The effects of FDI on voice and accountability in the MENA region

Purpose – Several scholars, policymakers and international development agencies have been suggesting that trade and capital openness would bring better governance, in particular higher level of voice and accountability (VA), for the Middle East and North Africa (MENA) region. The purpose of this paper is to examine the effects of foreign direct investment (FDI) inflows on VA in the MENA region. Design/methodology/approach – Applying two different panel models (fixed‐effects and dynamic), this paper uses related observations from 19 MENA countries between 2000 and 2008 to analyze the impacts of FDI inflows on VA. Findings – The results reveal that FDI inflows do not contribute to the higher level of VA in the MENA region. Originality/value – With no previous studies of the linkage between FDI inflows and VA in the MENA region, the paper makes a significant contribution in this regard.