The Contagion "Disease" that affects Foreign direct investment In the MENA countries

Abstract

This paper aims to analyze the dynamic relationship between foreign direct investmer and different kinds of risks in the MENA countries, using the vector autoregressive tec\ on the country level for 11 MENA countries during the period 1980-2003. Despite th that, the macroeconomic performance and the political (in) stability are important in determining the location of FDI, the findings indicate that the cultural environn, also having its special effects on this theme. These results should attract the attent policymakers; since the results reveal that: it is neither the economical risk nor the po risk that mostly perform threats and shy away FDI from the MENA countries (as u point to), but it is a contagion "disease " that is called the cultural risk.