The effect of FDI on Economic Growththrough the Channel of Financial Development in the MENA region

This study is to show that the financial development in the MENA region is an important prerequisite for the impact of FDI on economic growth. For this purpose, the financial impact of FDI on economic growth for 15 countries in the region (Jordan, Algeria, United Arabic Emirates, Iran, Bahrain, Tunisia, Oman, Morocco, Egypt, Yemen, Turkey, Libya, Qatar Malta and Saudi Arabia) between 2001 and 2010 by the dynamic and static panel data models and generalized moments estimator (GMM) is evaluated. The results of this study show that, In the MENA region, the impact of FDI on economic growth through the development of financial markets is positive and significant.