The thesis examines the foreign direct investment (FDI) inflows in the Middle East and North Africa (MENA) region and, in order to achieve a better understanding of how MENA economies may attract FDI, attempts to identify their possible location-specific de-terminants. The analysis is based on the results of the cross-section OLS regression meth-od. The examined empirical model is based on the eclectic theory developed by John Dun-ning and the previous empirical studies. To test the relevant location-specific determinants of FDI inflows into MENA region, eighteen countries are sampled for the period 1996-2006. The results of the regression analysis show that physical infrastructure and trade openness are significant determinants of FDI in the MENA countries.

Foreign Direct Investment is seen as a critical source of capital inflow and a stimulant of economic growth in many developing nations. It brings with it benefits such as job creation, technology and knowledge transfers just to mention a few. Thus many African countries are keen in finding ways of attracting FDI. The main objective of this paper is to empirically examine the determinants of foreign direct investment (FDI) by incorporating an econometric method based on cross-sectional data from 41 African countries over the period 2002-2007. More precisely, this research intends to answer the following question: what are the relevant determinants that promote FDI inflows in Africa? Among the several determinants of FDI, the finding suggests that market size and natural resource predominance are the main determinants of FDI into Africa.

<p><p>The thesis examines the foreign direct investment (FDI) inflows in the Middle East and North Africa (MENA) region and, in order to achieve a better understanding of how MENA economies may attract FDI, attempts to identify their possible location-specific de-terminants. The analysis is based on the results of the cross-section OLS regression meth-od. The examined empirical model is based on the eclectic theory developed by John Dun-ning and the previous empirical studies. To test the relevant location-specific determinants of FDI inflows into MENA region, eighteen countries are sampled for the period 1996-2006. The results of the regression analysis show that physical infrastructure and trade openness are significant determinants of FDI in the MENA countries.</p></p>