The effect of the foreign direct investment on Middle East and North African countries (MENA): An emprical study

The purpose of this thesis is to analyse the effect of the effect of the foreign investment on Middle East and North African countries (MENA) between 1995-2014 by time series analysis and OLS method. In first chapter of the thesis, history, importance and the definitions of foreign direct investment have been mentioned. In the second chapter, the definition of absorptive capacity and its effects on development have been dwelled on, and in the third chapter, the economic and social structures of MENA countries and the effect of FDY on the economic development have been mentioned. In the fourth chapter, literature has been reviewed. In the fifth chapter, an empirical study has been used with OLS method by creating time-series for each MENA countries. If the MENA countries have the capacity to absorb certain FDI's has a positive effect on economic growth. In countries that do not have the capacity to absorb FDI it has reached the conclusion that they have a negative effect on economic growth. Key Words: Foreign Direct Investment, Absorptive Capacity, MENA countries, economic development, OLS method.