FDI-Local Investment Nexus: Evidence from MENA Region

The aim of this article is to measure the interactions likely to occur between Foreign Direct Investment and the local investment in the MENA region. This interaction could take the shape of either a substitution or a complementarity relationship. We have adopted an empirical analysis based on panel data using a sample of 7 countries (Tunisia, Algeria, Morocco, Egypt, Jordan, Lebanon and Syria). We have concluded that the most probable assumption for these countries is the eviction of the local investment projects following the entry of FDI.