Explore publications.

This study examines the long-run relationship between foreign direct investment (FDI) inflows and institutional quality within the Arab Maghreb Union (AMU), focusing on Algeria, Mauritania, Morocco, and Tunisia over the period 2002–2019. Drawing on institutional theories of FDI, the analysis employs governance indicators such as political stability, control of corruption, government effectiveness, regulatory quality, and rule of law to assess their influence on investment dynamics. Using panel unit root and cointegration tests, the study confirms the existence of a stable long-term equilibrium among the variables. The Fully Modified Ordinary Least Squares (FMOLS) estimator is applied to quantify these relationships. Empirical results indicate that control of corruption, political stability, and regulatory quality exert significant positive effects on FDI inflows, even after accounting for macroeconomic controls. Conversely, government effectiveness and rule of law show no statistically significant impact in the presence of the macroeconomic control variables. These findings underscore the critical role of institutional quality in shaping the investment climate of AMU economies. Policy implications suggest that targeted reforms such as strengthening anti-corruption frameworks, enhancing political stability, and improving regulatory governance can bolster institutional credibility, mitigate investment risk, and attract sustainable FDI to the region.  

The study examines how quality of governance influences the Foreign Direct Investment (FDI) inflows in Sub-Saharan Africa. The study adopts a quantitative research strategy that utilises panel data of selected countries during 28 years, that is, 1996-2023. Indicators of governance like Government Effectiveness (GE), Political Stability and Absence of Violence (AV), Rule of Law (RL), Regulatory Quality (RQ) and Voice and Accountability (VA). The findings indicate that Strong Governance frameworks significantly enhance FDI inflows in Sub-Saharan Africa. VA was found to be a very strong positive determinant. GE and PS were also found to have negative relationships in within-country analyses. The IFRS adoption, being a uniform variable throughout the sampled countries, was observed to increase investor confidence. These results imply that the improvement of governance are synergies that help to establish the stable, transparent, and predictable environment sought by investors. Thus, policymakers can improve the governance systems and provide citizen involvement in order to boost foreign investment and attract sustainable capital and economic growth in the region.