The issue of differentiating between FDI and FPI is related to the functional aspects of the investments. The internationally adopted definition which relies on a numerical benchmark of 10% is thus of limited practical utility for policy makers. However, because of its widespread adoption and...

Morocco and Tunisia are performing in term of economic growth better than the average economic growth of the Middle East and North Africa (MENA) region and middle-income countries. Tremendous efforts in terms of reforms and restructuring of the economy have been deployed in the early 80s. The...

India’s inward investment regime went through a series of changes since economic reforms were ushered in two decades back. The expectation of the policy makers was that an “investor friendly” regime will help India establish itself as a preferred destination of foreign investors. These...

The purpose of the paper is twofold. Firstly, it attempts to analyze accurately the volatility of economic growth and financial flows (i.e. remittances and FDI) in the case of Morocco. Secondly, it tries to address the possible effects of these financial flows on the economic growth. We provide...

We study the behavior of the Real Effective Exchange Rate (REER) of the dirham against the European currencies (Europe of the 15), over the period 1960-2000 (annual data). We measure the volatility using standard deviation, and the misalignments as the difference between the actual REER and the...

The objective of the paper is to examine the impact of economic openness on FDI inflows and the interaction between foreign presence and labor productivity in the case of Moroccan manufacturing. Our estimation showed that the entry into force of the Association Agreement has boosted FDI inflows...

After a long and winding process, India opened the retail trade to foreign direct investment (RFDI) albeit with some caveats. The process, however, suggests that the case of RFDI provides a classic example of large global corporations succeeding in influencing public policy of developing...

In this paper, we first compare the characteristics of Moroccan and foreign manufacturing firms between 1987 and 1996, and finds, as expected, that the latter perform better in terms of productivity, are technologically more advanced and more export-oriented, and pay higher wages than the...

We develop a microeconomic model to explain why sanction policies used by developed countries have had ambiguous effects to reduce drug trafficking in developing countries. In the model, a country receives FDI depending on its government effort to reduce drug exports. However, local drug...

While India has generally been following an open door FDI policy, a few areas are still subject to caps on FDI and/or specific government approval. One of the justifications for the same is the need to retain a degree of control over the operations of the investee companies in Indian hands....