Manufactured Exports and FDI in Southern Mediterranean Countries: Evolution, determinants and prospects

CEPS Papers from Centre for European Policy Studies

Abstract: This paper investigates the evolution and determinants of manufactured exports and foreign direct investment (FDI) in 11 southern Mediterranean countries over the period 1985–2009 as well as their prospects under different scenarios pertaining to the development of the determinants. The econometric analysis confirms the role of exchange rate depreciation, the openness of the economy and the quality of institutions and infrastructure in fostering manufactured exports and FDI inflows in the region. The assessment of the prospects suggests that a scenario of deeper integration with the EU entails superior performance for manufactured exports and FDI compared with either the status quo or less integration with the EU but greater integration within the region.

Pages: 33 pages
Date: 2012-04
New Economics Papers: this item is included in nep-ara
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