المستخلص: |
This paper sought to find the long-run relationship between the economic growth of Arab countries and their inward direct investments inflows from The Organization for Economic Cooperation and Development (OECD) countries during period of 2005 to 2014. Two types of panel unit root tests, common unit root processes represented in Levin, Lin and Chu panel unit root test and individual unit root processes represented in Im, Pesaran and Shin panel unit root test and Fisher-type Augmented Dickey Fuller (ADF-Fisher) panel unit root test and Fisher-type Philips Perron (PP-Fisher) panel unit root test to analyze the stationarity of data. The panel cointegration test based on Pedroni seven residual cointegration tests and Kao residual cointegration test were used to test in panel among the variables. With the help of Eviews 9 software and a sample of 14 Arab countries, the results imply that the level of economic growth of the Arab countries and their inward FDI inflows from OECD countries have a long-run equilibrium relationship. Moreover, Fully Modified Ordinary Least Squares (FMOLS) estimator of the study model indicated that inward direct investments inflows from OECD countries have a significant positive impact on the economic growth of Arab countries.
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