Abstract. FDI, ODA and imports are highly related in economic literature. We aim to investigate the impact of both inward FDI and ODA on imports, in seven middle income MENA countries (Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine, and Tunisia), for the period 2000 to 2019, using two econometric techniques, which are simultaneous equations, 3SLS, and Dynamic Panel Data system estimators. We found that FDI replaces imports that indicates the dominant types of market-seeking or/and platform FDI in the area. ODA shows a positive (negative) impacts on both imports (savings), respectively, which clarifies that ODA crowds out local savings, and increases imports. We recommended of a series of an ambitious policies that would enhance FDI role and reallocate ODA to replace imports and boost economic growth instead to suppress it, and allow for development use of ODA.

Keywords: inward FDI, imports, ODA, dynamic panel model, MENA.