The Impact of public, private and foreign Investments on Economic Growth: Evidence from North African countries

Numerous authors worldwide have examined the relationship between investment and economic growth using various timeframes and research approaches. Consequently, there exist contradictory viewpoints on this matter. This study aims to contribute empirical evidence by evaluating the effects of different investment sources, namely public, private, and foreign direct investment, on short- and long-term economic growth. The study utilizes panel data from North African countries between 1990 and 2022, using the fixed effects model (FEM). The Kao test was employed during the mentioned period to conduct joint cointegration tests on the variables. The long-term relationship was estimated using the fully modified least squares (FMOLS) method. This estimation revealed that public and private investments positively influence economic growth in North African countries. However, it was observed that foreign direct investment has a detrimental effect on long-term economic growth in these countries.