Threshold effect of foreign direct investment on economic growth: new evidence from a panel regime switching models

The article contributes to the existing literature by examining nonlinear effect of foreign direct investment (FDI) on development Arab Maghreb Union (AMU) countries during 1980-2019. These multiply their FDI attraction policies in order enrich national externalities offered local businesses and benefit from some positive effects economy terms growth, technology, know-how, etc. Using panel smooth transition regression (PSTR) model autoregressive (PSTAR) models, our findings reveal that shows opposite below over estimated threshold. This highlights asymmetrical unforeseen shocks its volatility. Policy implications are also discussed.