The Role of Foreign Direct Investments in Diversifying Sources of National Incomean Econometric Study forthe "MENA" Countries During the Period (1990-2018)

Abstract

Foreign direct investment is an important source of external financing, because of its great role in supporting and diversifying the economies of countries, especially those that depend on a single source of income. Foreign direct investments may contribute effectively in diversifying sources of national income and reducing unemployment rates. Through this research paper, we aim to study the extent of the contribution of foreign direct investments in supporting the GDP of a sample of the Middle East and North Africa (MENA) countries during the period (1990-2018), and we also relied on a standard study on plate models, to reach a conclusion. In the conclusion of this research paper, the study variables are in a state of joint complementarily in the long term, and that (22%) of the short-term errors can be corrected to return to the long-term equilibrium position, and based on the results of the evaluation of the long-term relationship, it was found that there is a positive relationship. Between foreign direct investment and GDP.