The Impact of Governance Indicators on Foreign Direct Investment Flows in A Sample of Arab Countries During The Period (2000 - 2020): Analytical - Econometric Study

The study aimed to assess the reality of the impact of governance indicators on foreign direct investment flows for a group of Arab countries during the period (2000 - 2020), using the PMG-ARDL method. The results indicate that the governance indicators were insignificant in the short term, that is, they do not contribute to attracting foreign direct investment.
The study revealed that there is a long-term relationship between governance indicators and foreign direct investment, and the results of the assessment indicated that foreign investment flows in the Arab countries are directly related to both the Legislation Quality Index (RQ) and the Corruption Control Index (CC), with a statistical significance when 5% morale level. It is inversely correlated with both the participation and responsibility index (VA) and the government effectiveness index (GE), with a statistical significance at the level of significance of 5%. As for the Political Stability Index (PS) and the Rule of Law Index (RL), neither of them has statistical significance at all levels, and therefore none of them explains foreign investment flows in the Arab countries in the long term. The error correction factor was negative (-071%), and therefore any short-term imbala