The Relationship between Foreign Direct Investment and Institutional Quality on Poverty (Case of MENA’S Countries)

The lack of capital is known to be one of the main causes of many countries’ entrapment in the vicious cycle of poverty and underdevelopment. In addition, the presence or absence of appropriate institutional quality has an impact on poverty rates in these countries. This paper examines the effects o...

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Main Authors: Ahmad Assadzadeh (Ph.D), Zeynab Heydary Dad, Zeynab Jameshuorani
Format: Article
Language:fas
Published: Shahid Bahonar University of Kerman 2018-06-01
Series:مجله توسعه و سرمایه
Subjects:
Online Access:https://jdc.uk.ac.ir/article_2058_639b0a1c4843a389652889a2bac3c87b.pdf
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author Ahmad Assadzadeh (Ph.D)
Zeynab Heydary Dad
Zeynab Jameshuorani
author_facet Ahmad Assadzadeh (Ph.D)
Zeynab Heydary Dad
Zeynab Jameshuorani
author_sort Ahmad Assadzadeh (Ph.D)
collection DOAJ
description The lack of capital is known to be one of the main causes of many countries’ entrapment in the vicious cycle of poverty and underdevelopment. In addition, the presence or absence of appropriate institutional quality has an impact on poverty rates in these countries. This paper examines the effects of foreign direct investment and institutional quality (rule of law) on reducing poverty. To this end, a random effect panel econometric technique is applied using MENA countries’ data for 2000–2009. The Human Development Index is used as an indicator of poverty reduction. The findings show that the foreign direct investment and the appropriate institutional quality have significant positive effects on reducing poverty and increasing welfare.
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spelling doaj.art-2d0f791a923246bea91da9c4c9a1450e2023-05-02T06:51:27ZfasShahid Bahonar University of Kermanمجله توسعه و سرمایه2008-24282645-36062018-06-014172610.22103/jdc.2018.20582058The Relationship between Foreign Direct Investment and Institutional Quality on Poverty (Case of MENA’S Countries)Ahmad Assadzadeh (Ph.D)0Zeynab Heydary Dad1Zeynab Jameshuorani2Associate professor of Economics, University of Tabriz, Tabriz, Iran.M.A. of Economics, University of Tabriz, Tabriz, Iran.M.A. of Economics, University of Tabriz, Tabriz, Iran.The lack of capital is known to be one of the main causes of many countries’ entrapment in the vicious cycle of poverty and underdevelopment. In addition, the presence or absence of appropriate institutional quality has an impact on poverty rates in these countries. This paper examines the effects of foreign direct investment and institutional quality (rule of law) on reducing poverty. To this end, a random effect panel econometric technique is applied using MENA countries’ data for 2000–2009. The Human Development Index is used as an indicator of poverty reduction. The findings show that the foreign direct investment and the appropriate institutional quality have significant positive effects on reducing poverty and increasing welfare.https://jdc.uk.ac.ir/article_2058_639b0a1c4843a389652889a2bac3c87b.pdfpovertyforeign direct investmentinstitutional qualitypanel datahuman development index
spellingShingle Ahmad Assadzadeh (Ph.D)
Zeynab Heydary Dad
Zeynab Jameshuorani
The Relationship between Foreign Direct Investment and Institutional Quality on Poverty (Case of MENA’S Countries)
مجله توسعه و سرمایه
poverty
foreign direct investment
institutional quality
panel data
human development index
title The Relationship between Foreign Direct Investment and Institutional Quality on Poverty (Case of MENA’S Countries)
title_full The Relationship between Foreign Direct Investment and Institutional Quality on Poverty (Case of MENA’S Countries)
title_fullStr The Relationship between Foreign Direct Investment and Institutional Quality on Poverty (Case of MENA’S Countries)
title_full_unstemmed The Relationship between Foreign Direct Investment and Institutional Quality on Poverty (Case of MENA’S Countries)
title_short The Relationship between Foreign Direct Investment and Institutional Quality on Poverty (Case of MENA’S Countries)
title_sort relationship between foreign direct investment and institutional quality on poverty case of mena s countries
topic poverty
foreign direct investment
institutional quality
panel data
human development index
url https://jdc.uk.ac.ir/article_2058_639b0a1c4843a389652889a2bac3c87b.pdf
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