Economic Growth and Foreign Direct Investment in the MENA Region: A Comparative Analysis

Abstract

Since the 1970s many developing countries have experienced a considerable leap towards openness and integration with neighbouring countries as well as the wider world economy. Although the significance of trade and economic blocs has become prominent in the world economy, many of the moves towards integration have not necessarily been in the form of trading blocks. Openness has been manifested in the overall change of the trading strategies of developing countries. As point out, the shift from an inward-looking (or import-substitution) policy to an outwardlooking (or export-oriented) one has made a significant difference in the integration of the economies of the developing countries with the wider world economy. Liberalization policies in many developing countries have been part and parcel of this general process of openness. argue that during the early stages of policy change in many South-East Asian countries, including Japan, many countries maintained significant protection of their domestic market. Therefore, trade liberalization is thought to be a necessary condition for the success of an outward trade strategy, but it doesn’t usually precede it.