المستخلص: |
The present paper used statistical tools and eco¬nomic modeling to explain and interpret capital mo¬bility within the region and explore possible meth¬ods to enhance financial and economic integration. Due to international financial crisis and the political chang¬es in Arab Countries financial and economic integration were reduced remarkably, trade and investment indica¬tors had shown a massive decline indicating a slowdown in economic growth within the whole region. Based on a panel data that includes 7 cross sections (countries within the region), and a time span of 6 years, including the vari¬ables of GDP, Current Account (CA), Foreign Direct In¬vestment (FDI), Degree of Openness and Terms of Trade as economic fundamentals that shape the capital flows. Because of unavailability of data on sources of capital in stock exchange markets the study confined with actual data indicating the performance of the external sector. Pooled methods and including fixed effect methods in cross sections and time were adopted. The findings con¬firmed that in Algeria, Egypt and Morocco capital is highly mobile, while in the rest of the region capital seemed to be virtually immobile.
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