Volume 6, Issue 3 (March 2019), Pages: 102-110
----------------------------------------------
Original Research Paper
Title: Determinants of foreign direct investment in Arab countries during 1970–2016
Author(s): Bilal Louail *
Affiliation(s):
College of Business Administration, Northern Border University, Arar, Saudi Arabia
Full Text - PDF XML
* Corresponding Author.
Corresponding author's ORCID profile: https://orcid.org/000-0002-2383-4329
Digital Object Identifier:
https://doi.org/10.21833/ijaas.2019.03.015
Abstract:
The aim of this study is to determine factors that attracted foreign direct investment to the Arab countries during the period of 1970–2016. Previous studies have shown that there are determinants attracting foreign direct investment to polarized countries, for which such investments are very important and have positive effects. Therefore, we studied and measured such determinants in Arab countries that are in dire need of investment. We found that foreign direct investment is positively affected by crude domestic output, economic openness, and value of foreign direct investment for the past year (t-1). However, they are negatively affected by inflation rates in the previous four years (t-4).
© 2019 The Authors. Published by IASE.
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Keywords: Foreign direct investment, Panel data regression model, Arab countries, Economic growth, Economic openness
Article History: Received 9 November 2018, Received in revised form 27 January 2019, Accepted 29 January 2019
Acknowledgement:
The authors gratefully acknowledge the approval and support of the deanship of scientific research study (grant no. BA-2016-1-6-F-5729) at the Northern Border University, Arar, Kingdom of Saudi Arabia.
Compliance with ethical standards
Conflict of interest: The authors declare that they have no conflict of interest.
Citation:
Louail B (2019). Determinants of foreign direct investment in Arab countries during 1970–2016. International Journal of Advanced and Applied Sciences, 6(3): 102-110
Permanent Link to this page
Figures
No Figure
Tables
Table 1 Table 2 Table 3 Table 4 Table 5 Table A1 Table A2 Table A3
----------------------------------------------
References (19)
- Anuchitworawong C and Thampanishvong K (2015). Determinants of foreign direct investment in Thailand: Does natural disaster matter?. International Journal of Disaster Risk Reduction, 14: 312-321. https://doi.org/10.1016/j.ijdrr.2014.09.001 [Google Scholar]
- Bayar Y and Gavriletea MD (2018). Foreign direct investment inflows and financial development in central and eastern European Union countries: A panel cointegration and causality. International Journal of Financial Studies, Open Access Journal, 6(2): 1-13. [Google Scholar]
- Brahim M and Dupuch S (2016). Foreign direct investments in Europe: Are the East-West differences still so noticeable?. The European Journal of Comparative Economics, 13(1): 37-61. [Google Scholar]
- Caves RE and Caves RE (1996). Multinational enterprise and economic analysis. Cambridge University Press, Cambridge, UK. [Google Scholar] PMCid:PMC1217418
- Dimitrova A and Triki D (2018). Does state fragility matter for foreign direct investment? Evidence from Southern and Eastern Mediterranean countries. Management Decision, 56(8): 1787-1803. https://doi.org/10.1108/MD-03-2017-0252 [Google Scholar]
- Dunning JH (1981). Explaining the international direct investment position of countries: Towards a dynamic or developmental approach. Weltwirtschaftliches Archiv, 117(1): 30–64. https://doi.org/10.1007/BF02696577 [Google Scholar]
- Faeth I (2009). Determinants of foreign direct investment–A tale of nine theoretical models. Journal of Economic Surveys, 23(1): 165-196. https://doi.org/10.1111/j.1467-6419.2008.00560.x [Google Scholar]
- Green RT and Cunningham WH (1975). The determinants of U.S. foreign investment: An empirical examination. Management International Review, 15(2/3): 113– 120. [Google Scholar]
- Hunady J and Orviska M (2014). Determinants of foreign direct investment in EU Countries–Do corporate taxes really matter?. Procedia Economics and Finance, 12: 243-250. https://doi.org/10.1016/S2212-5671(14)00341-4 [Google Scholar]
- Laabas B and Abdmoulah W (2009). Determinants of Arab intraregional foreign direct investments. Journal of Business and Policy Research, 4(2): 138-169. [Google Scholar]
- Lucas JRE (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1): 3-42. https://doi.org/10.1016/0304-3932(88)90168-7 [Google Scholar]
- Nabil K (2008). Les déterminants de l’investissement direct étranger dans les pays d’accueil en développement. Cahiers du CREAD, Algérie, (83-84): 69-90. [Google Scholar]
- Omar S (2000). Globalization and contemporary economic issues, edar eljameaia, Egypt. Council for Foreign Relations at the Diplomatic Club, Cairo, Egypt. [Google Scholar]
- Rime MR (2009). Les investissements directs étrangers dans les pays arabes. Ph.D. Dissertation, Laboratoire d'économie appliquée au développement, Toulon, France. [Google Scholar]
- Romer PM (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5): 1002-1037. https://doi.org/10.1086/261420 [Google Scholar]
- Różański J and Sekuła P (2016). Determinants of foreign direct investment in developed and emerging markets. Dynamic Econometric Models, 16: 49-64. https://doi.org/10.12775/DEM.2016.005 [Google Scholar]
- Tintin C (2013). The determinants of foreign direct investment inflows in the Central and Eastern European Countries: The importance of institutions. Communist and Post-Communist Studies, 46(2): 287-298. https://doi.org/10.1016/j.postcomstud.2013.03.006 [Google Scholar]
- Ucal MŞ (2014). Panel data analysis of foreign direct investment and poverty from the perspective of developing countries. Procedia-Social and Behavioral Sciences, 109: 1101-1105. https://doi.org/10.1016/j.sbspro.2013.12.594 [Google Scholar]
- Villaverde J and Maza A (2015). The determinants of inward foreign direct investment: Evidence from the European regions. International Business Review, 24(2): 209-223. https://doi.org/10.1016/j.ibusrev.2014.07.008 [Google Scholar]
|