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Foreign Direct Investment in Post-Conflict Countries: The Case of Iraq s Oil and Electricity Sectors

Author

Listed:
  • Ghassan F. Hanna

    (Business Consultant - ISL Business Consulting San Diego, CA, USA)

  • Mohamad Saleh Hammoud

    (Mohamad Saleh Hammoud Dean of the School of Business Administration, Arts, Sciences and Technology University in Lebanon, Lebanon)

  • Judith A. Russo-Converso

    (Graduate School Dissertation Chair - Northcentral University, Prescott Valley, AZ, USA)

Abstract

Foreign direct investment is new phenomenon to Iraq, a post conflict country with abundance of natural resources. With dominant state-controlled public sector, attracting foreign investment is an added challenge to an economy devastated by years of wars. A qualitative case study was conducted to assess determinants of foreign direct investment in Iraq s energy sector. Data was collected from interviews with business and government subject matter experts, and a review of publically available documents. Lack of security, political instability, corruption, and inadequate government policies towards foreign direct investment as symptoms found and typically shared by other post-conflict countries. The persistence of violence was not seen as a deterrent; however, foreign direct investment activity in the energy sector was virtually limited to the semi-autonomous region of Kurdistan. Investments were either wholly-owned or joint-venture enterprises. Implications to other post conflict countries, using Kuwait and Nigeria as illustrative examples, are presented and recommendations made.

Suggested Citation

  • Ghassan F. Hanna & Mohamad Saleh Hammoud & Judith A. Russo-Converso, 2014. "Foreign Direct Investment in Post-Conflict Countries: The Case of Iraq s Oil and Electricity Sectors," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 137-148.
    • Handle: RePEc:eco:journ2:2014-02-3
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    References listed on IDEAS

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    Cited by:

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    2. Muhammad Shahbaz & Smile Dube & Ilhan Ozturk & Abdul Jalil, 2015. "Testing the Environmental Kuznets Curve Hypothesis in Portugal," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 475-481.
    3. Melani Cammett & Ishac Diwan & Andrew Leber, 2019. "Is Oil Wealth Good for Private Sector Development?," Working Papers 1299, Economic Research Forum, revised 2019.
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    5. Yousif Aftan & Mohamad Hanapi, 2018. "The Impact of Entrepreneurial Motivation on Small Business Performance in Iraq," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(1), pages 409-419, January.

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    More about this item

    Keywords

    Foreign direct investment; Iraq; post-conflict country; energy Journal: International Journal of Energy Economics and Policy;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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