IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2014-02-3.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/712/416
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijeep/article/view/712/416
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Kevin Honglin & Zhao, Zhongxiu, 2007. "Multinational Corporations and Technology Transfers in Developing Countries," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(2), pages 249-264.
    2. Basedau, Matthias & Richter, Thomas, 2011. "Why Do Some Oil Exporters Experience Civil War But Others Do Not? – A Qualitative Comparative Analysis of Net Oil-Exporting Countries," GIGA Working Papers 157, GIGA German Institute of Global and Area Studies.
    3. VINTILĂ Denisia, 2010. "Foreign Direct Investment Theories: An Overview of the Main FDI Theories," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    4. Geoffrey Jones, 2010. "Multinational Strategies and Developing Countries in Historical Perspective," Harvard Business School Working Papers 10-076, Harvard Business School.
    5. Ross, Michael L., 2004. "How Do Natural Resources Influence Civil War? Evidence from Thirteen Cases," International Organization, Cambridge University Press, vol. 58(1), pages 35-67, February.
    6. van der Ploeg, Frederick & Poelhekke, Steven, 2010. "Do Natural Resources Attract FDI? Evidence from Non-Stationary Sector-Level Data," CEPR Discussion Papers 8079, C.E.P.R. Discussion Papers.
    7. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
    8. Poelhekke, Steven & van der Ploeg, Frederick, 2010. "Do Natural Resources Attract FDI? Evidence from Non-Stationary Sector-Level Data," CEPR Discussion Papers 8079, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nuno Carlos Leit o, 2015. "Energy Consumption and Foreign Direct Investment: A Panel Data Analysis for Portugal," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 138-147.
    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. Vladimír Krepl & Husam I. Shaheen & Ghaeth Fandi & Luboš Smutka & Zdenek Muller & Josef Tlustý & Tarek Husein & Safwan Ghanem, 2020. "The Role of Renewable Energies in the Sustainable Development of Post-Crisis Electrical Power Sectors Reconstruction," Energies, MDPI, vol. 13(23), pages 1-31, November.
    4. 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.
    5. Melani Cammett & Ishac Diwan & Andrew Leber, 2019. "Is Oil Wealth Good for Private Sector Development?," Working Papers 1299, Economic Research Forum, revised 2019.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Godwin Okafor & Jenifer Piesse & Allan Webster, 2017. "FDI Determinants in Least Recipient Regions: The Case of Sub†Saharan Africa and MENA," African Development Review, African Development Bank, vol. 29(4), pages 589-600, December.
    2. Wani, Mr. Nassir Ul Haq & Rehman, Mr. Noor, 2017. "Determinants of FDI in Afghanistan: An Empirical Analysis," MPRA Paper 81975, University Library of Munich, Germany, revised 03 May 2016.
    3. Wegenast, Tim, 2013. "The Impact of Fuel Ownership on Intrastate Violence," GIGA Working Papers 225, GIGA German Institute of Global and Area Studies.
    4. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    5. Mohamed Elheddad & Mohga Bassim & Rizwan Ahmed, 2021. "FDI and economic growth in the GCC: does the oil sector matter?," Economics and Business Letters, Oviedo University Press, vol. 10(3), pages 178-190.
    6. Asamoah, Michael Effah & Adjasi, Charles K.D. & Alhassan, Abdul Latif, 2016. "Macroeconomic uncertainty, foreign direct investment and institutional quality: Evidence from Sub-Saharan Africa," Economic Systems, Elsevier, vol. 40(4), pages 612-621.
    7. Aleksynska, Mariya & Havrylchyk, Olena, 2013. "FDI from the south: The role of institutional distance and natural resources," European Journal of Political Economy, Elsevier, vol. 29(C), pages 38-53.
    8. Bougharriou, Nouha & Benayed, Walid & Gabsi, Foued Badr, 2019. "The democracy and economic growth nexus: Do FDI and government spending matter? Evidence from the Arab world," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-29.
    9. Ruba Aljarallah, 2021. "An Analysis of the Impact of Rents from Non-renewable Natural Resources and Changes in Human Capital on Institutional Quality: A Case Study of Kuwait," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 224-234.
    10. Morelli, Massimo & Rohner, Dominic, 2015. "Resource concentration and civil wars," Journal of Development Economics, Elsevier, vol. 117(C), pages 32-47.
    11. Chupryhin, Radzivon, 2021. "Determinants of Foreign Direct Investment in Europe: Bayesian Model Averaging in the Presence of Weak Exogeneity," MPRA Paper 107197, University Library of Munich, Germany.
    12. Hasanov, Fakhri & Bulut, Cihan & Suleymanov, Elchin, 2017. "Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 369-386.
    13. Immaculate Simiso Nxumalo & Patricia Lindelwa Makoni, 2021. "Analysis of International Capital Inflows and Institutional Quality in Emerging Markets," Economies, MDPI, vol. 9(4), pages 1-16, November.
    14. Daria Zvirgzde & Daniel Schiller & Javier Revilla Diez, 2013. "Location choices of multinational companies in Ukraine," ERSA conference papers ersa13p219, European Regional Science Association.
    15. Tanguy Bonnet, 2023. "Foreign Direct Investment and Strategic Minerals," EconomiX Working Papers 2023-7, University of Paris Nanterre, EconomiX.
    16. Choi, Jongmoo Jay & Lee, Sang Mook & Shoham, Amir, 2016. "The effects of institutional distance on FDI inflow: General environmental institutions (GEI) versus minority investor protection institutions (MIP)," International Business Review, Elsevier, vol. 25(1), pages 114-123.
    17. Basesa Jumanne, Bilali & Chee Keong, Choong, 2018. "Foreign Direct Investment and Natural Resources in Sub-Saharan Africa: The Role of Institutions towards the Africa We Want “2063 Vision”," African Journal of Economic Review, African Journal of Economic Review, vol. 6(1), January.
    18. Boka Stéphane Kévin Assa, 2018. "Foreign direct investment, bad governance and forest resources degradation: evidence in Sub-Saharan Africa," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(1), pages 107-125, April.
    19. Steven Poelhekke & Frederick Ploeg, 2015. "Green Havens and Pollution Havens," The World Economy, Wiley Blackwell, vol. 38(7), pages 1159-1178, July.
    20. Elheddad, Mohamed M., 2018. "What determines FDI inflow to MENA countries? Empirical study on Gulf countries: Sectoral level analysis," Research in International Business and Finance, Elsevier, vol. 44(C), pages 332-339.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2014-02-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.