The Impact of Globalization on Attracting Foreign Direct Investment in Selected MENA Countries by Using GMM

Of the issues facing present age countries is the phenomenon of globalization. Globalization, mixture and integration of national economies into the global economy is whose effects can be considered in increasing international trade, globalization of production and the flow of foreign direct investment. Investigated broad effects and consequences this process on various aspects of human life including political, economic, social and cultural has attracted Particular attention of thinkers, politicians, economists in worldwide. This investigation, first of all need to quantify this phenomenon, construction and use of appropriate indicators to measure it. The aim of this study is the investigation of the globalization effect by using a new integral index of economic globalization, KOF on attracting foreign direct investment in selected countries, member of the MENA and 20 year’s period is 1990-2009. Research model was estimated by using panel econometric techniques such as panel unit root, panel co-integration and GMM. The results of research implies a significant and positive relationship between globalization and foreign direct investment. Also the size of the market index, the human capital index have positive and significant impact and population parameters on attracting foreign direct investment has a significant and negative impact.