THE RELATIONSHIP BETWEEN FINANCIAL LIBERALIZATION, FDI AND ECONOMIC GROWTH: AN EMPIRICAL TEST FOR MENA COUNTRIES

The debate on the relation between financial liberalisation FDI and economic growth is more ambiguous. Since the recommendations of Mc Kinnon (1973) and Shaw (1973) for a policy of financial liberalization and going to more recent theorical and empirical research, this relation have been paradoxical. The aim of this paper is to analyze empirically the relation between financial liberalization FDI and economic growth in MENA countries. On the basis of a data relating to 6 MENA countries observed over the period 1986-2010, the result of our study shows that there is a negative relation between financial liberalization and economic growth. According to the FDI-economic growth, our finding indicates on a positive relation. Our study joins the literature on the effect of FDI, but it’s divergent for the effect of financial liberalization on the economic growth.