Abstract
The aim of this paper is to study the role and significance of foreign direct investment (FDI) in the economic performance of the Arab countries. It first highlights the importance of international capital and financial flows in the Arab and developing countries, and then concentrates on the global distribution of FDI and its position in the Arab world. This discussion is followed by an analysis of the effect of FDI on Arab technological development and total factor productivity (TFP). The paper concludes with policy recommendations and suggestions.
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