Description |
1 online resource (31 pages) |
Series |
IMF working paper, 2227-8885 ; WP/04/206 |
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IMF working paper ; WP/04/206.
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Contents |
""Contents""; ""I. INTRODUCTION""; ""II. RTA AND FDI: A FIRST LOOK AT THE DATA""; ""III. THE ECONOMETRIC MODEL""; ""IV. RESULTS""; ""V. APPLICATION TO MAGHREB COUNTRIES""; ""VI. CONCLUSION""; ""References"" |
Summary |
The paper investigates whether the market size of a regional trade agreement (RTA) is a determinant of foreign direct investment (FDI) received by countries participating in the RTA. This hypothesis is tested on a sample of 71 developing countries during the period 1980-99. Evidence is found that the RTA market size had a positive impact on the FDI received by member countries, even more so in the 1990s when such agreements were revived and became more widespread. The size of domestic population also seemed to matter, possibly because of its effect on the availability of the labor supply. It appears, however, that not all countries in the RTA benefited to the same extent from the RTA: countries with a relatively more educated labor force and/or a relatively more stable financial situation tended to attract a larger share of FDI at the expense of their RTA partners. This evidence suggests it is essential for all RTA countries to improve their business environment to the best available in the region. Finally, a partial negative correlation between the FDI received by RTA countries and that received by non-RTA countries possibly reflects a diversion of FDI from non-RTA to RTA countries. As an illustration, FDI benefits are simulated from the creation of a regional trade agreement between Algeria, Morocco, and Tunisia |
Notes |
"November 2004." |
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At head of title: Middle East and Central Asia Department |
Bibliography |
Includes bibliographical references |
Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
Subject |
Investments, Foreign -- Developing countries
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International trade.
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Trade blocs -- Developing countries
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Economies of scale -- Developing countries
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Economies of scale
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International trade
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Investments, Foreign
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Trade blocs
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Developing countries
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Form |
Electronic book
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Author |
International Monetary Fund. Middle East and Central Asia Department, issuing body.
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ISBN |
1283512246 |
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9781283512244 |
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9781451919219 |
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1451919212 |
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9781451874631 |
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1451874634 |
ISSN |
2227-8885 |
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