Revista de Economía y Negocios

An econometric study of the impact of economic growth, human capital and environmental degradation on FDI inflows in Mediterranean African countries

Abstract

Mohamed Abdullah

This paper aims to examine the role of economic growth, human capital and environment in attracting FDI flows using the dynamic panel data approach (Sys-GMM) for a panel of four Mediterranean African countries over the period 1990-2013. Our empirical results pointed out that higher human capital attracts FDI flows in Mediterranean African countries. They also indicate that weak environmental regulations increase FDI flows. On the other hand, our findings demonstrated that FDI flows in Mediterranean African countries do not react to economic growth.