The foreign direct investment and the employment in Maghreb countries: An econometric study by using the cointegration test and the panel models

Abstract

The study aims to determine the foreign investments effect on the employment rate in the Maghreb countries from 1990 to 2016, with the usage of Panel models (the cross-sectional time series) and Cointegration test. The labour demand function estimation results show there is a positive impact of foreign investments on the employment, increasing of 1% of foreign investments causes increasing of 5,49% of labour demand, in addition to that the Cointegration test results showed that there is a balance relationship between the direct foreign investments and the total labour demand, for long term, in the Maghreb countries. As results also, the rapidity of reaching balance is 41,27%, the absence of causation between them in short term.