Foreign Direct Investment and the development of the Casablanca Stock Exchange

DOI

10.2991/icefs-17.2017.64How to use a DOI?

Keywords

Foreign direct investment, Stock market development, Exchange rate, OLS, Market capitalisation, Gross domestic savings.

Abstract

This paper aims to empirically examine the impact of Foreign direct investment in developing host countries' stock markets development, in our case Morocco's Casablanca stock exchange, while investigating the effect of domestic savings and exchange rate among other variables, we utilized market capitalization as a proportion of GDP, Mad-Dollar exchange rate and Net FDI inflow as proxies for our analysis, using a multiple regression analysis (OLS) with annual time series data for the selected time period of (1993-2013). We estimated an empirical relationship between these variables and tried to depict a closer relationship between Foreign Direct Investment and Stock Market Development, we hypothesized that the increased Foreign Direct Investment in Morocco has a positive effect on its stock market development. The results show a negative impact of foreign direct investment on stock market development, along with a positive impact of the other explanatory variables on the development of the Casablanca Stock Exchange.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - JIHANE AAYALE
PY  - 2017/01
DA  - 2017/01
TI  - Foreign Direct Investment and the development of the Casablanca Stock Exchange
BT  - Proceedings of the 2017 International Conference on Economics, Finance and Statistics (ICEFS 2017)
PB  - Atlantis Press
SP  - 477
EP  - 482
SN  - 2352-5428
UR  - https://doi.org/10.2991/icefs-17.2017.64
DO  - 10.2991/icefs-17.2017.64
ID  - AAYALE2017/01
ER  -