IDEAS home Printed from https://ideas.repec.org/a/ibn/assjnl/v13y2017i11p47.html

Determinants of Foreign Direct Investment in the Middle East Region: An Empirical Analysis

Author

Listed:
  • Munir Hassan

Abstract

The objective of the present study is to examine the Foreign Direct Investment (FDI) inflows in the Middle East region, and it also attempts to identify the potential determinants for the investment inflows. With this purpose taking assistance of public database such as the World Bank (WB), and the United Nations Conference on Trade and Development (UNCTAD) a panel econometric model has been specified and tested for a sample of 09countries over a period of 35 years (1981-2015). The result of the study shows Purchasing Power, Human Capital and Trade Openness as the key determinants of Inward FDI inflows for the growth and development of the Middle East region.

Suggested Citation

  • Munir Hassan, 2017. "Determinants of Foreign Direct Investment in the Middle East Region: An Empirical Analysis," Asian Social Science, Canadian Center of Science and Education, vol. 13(11), pages 1-47, November.
  • Handle: RePEc:ibn:assjnl:v:13:y:2017:i:11:p:47
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ass/article/download/69190/39064
    Download Restriction: no

    File URL: https://ccsenet.org/journal/index.php/ass/article/view/69190
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Huybens, Elisabeth & Smith, Bruce D., 1999. "Inflation, financial markets and long-run real activity," Journal of Monetary Economics, Elsevier, vol. 43(2), pages 283-315, April.
    2. Abu N.M. Wahid, 2011. "Savings and investment in South Asia," Journal of Economic Studies, Emerald Group Publishing, vol. 37(6), pages 658-666, January.
    3. Pietro Garibaldi & Nada Mora & Ratna Sahay & Jeromin Zettelmeyer, 2001. "What Moves Capital to Transition Economies?," IMF Staff Papers, Palgrave Macmillan, vol. 48(4), pages 1-6.
    4. Lall, Sanjaya & Narula, Rajneesh, 2004. "FDI and its role in economic development: Do we need a new agenda?," Research Memorandum 019, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    5. Schneider, Friedrich & Frey, Bruno S., 1985. "Economic and political determinants of foreign direct investment," World Development, Elsevier, vol. 13(2), pages 161-175, February.
    6. Marktanner, Marcus & Salman, Lana, 2011. "Economic and geopolitical dimensions of renewable vs. nuclear energy in North Africa," Energy Policy, Elsevier, vol. 39(8), pages 4479-4489, August.
    7. Robert E. Lipsey, 2000. "Interpreting Developed Countries' Foreign Direct Investment," NBER Working Papers 7810, National Bureau of Economic Research, Inc.
    8. van der Zwaan, Bob & Cameron, Lachlan & Kober, Tom, 2013. "Potential for renewable energy jobs in the Middle East," Energy Policy, Elsevier, vol. 60(C), pages 296-304.
    9. Laura Resmini, 2000. "The Determinants of Foreign Direct Investment in the CEECs: New evidence from sectoral patterns," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(3), pages 665-689, November.
    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. Hayelom Abrha Meressa, 2022. "Determinants of foreign direct investment inflows to COMESA member countries: an integration of institutional and socio-economic factors," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-16, December.
    2. Nasser A. Alkathiri & Mohammad Soliman, 2022. "Examining foreign direct investment determinants of tourism industry in Oman and Egypt: The moderating role of investment environment," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4722-4740, October.
    3. Mohamed Abdelaziz Eissa & Mohammed M. Elgammal, 2020. "Foreign Direct Investment Determinants in Oil Exporting Countries: Revisiting the Role of Natural Resources," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 19(1), pages 33-65, April.

    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. Keshmeer Kanewar Makun, 2016. "Direct Foreign Investment and its Determinants: A Case Study - Gli investimenti diretti esteri e loro determinanti : studio di un caso," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 69(2), pages 151-174.
    2. Azam, Muhammad & Khan, Hashim & Hunjra, Ahmed Imran & Ahmad, H. Mushtaq & Chani, Muhammad Irfan, 2011. "Institutions, macroeconomic policy and foreign direct investment: South Asian countries case," MPRA Paper 32480, University Library of Munich, Germany.
    3. repec:ebl:ecbull:v:6:y:2007:i:33:p:1-9 is not listed on IDEAS
    4. Schwieren, C.A.A. & Vendrik, M.C.M. & de Gijsel, P.P., 2004. "The power of competition: reducing or reinforcing discrimination?," Research Memorandum 041, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    5. Kinoshita, Yuko & Campos, Nauro F., 2004. "Estimating the determinants of foreign direct investment inflows : how important are sampling and omitted variable biases?," BOFIT Discussion Papers 10/2004, Bank of Finland, Institute for Economies in Transition.
    6. Buchen, Clemens, 2010. "Emerging economic systems in Central and Eastern Europe – a qualitative and quantitative assessment," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 37141.
    7. Griffiths, Steven, 2017. "A review and assessment of energy policy in the Middle East and North Africa region," Energy Policy, Elsevier, vol. 102(C), pages 249-269.
    8. Ojide Makuachukwu Gabriel & Agu Osmond Chigozie & Eke Felix Awara, 2016. "Foreign Direct Investment in Nigeria: Reassessing the Role of Market Size," 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. 6(2), pages 95-104, February.
    9. Andrzej Cieślik, 2020. "What attracts multinational enterprises from the new EU member states to Poland?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 253-269, June.
    10. Nina Vujanovic & Bruno Casella & Richard Bolwijn, . "Forecasting global FDI: a panel data approach," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    11. Andrzej CieŚlik, 2013. "Determinants of the Location of Foreign Firms in P olish Regions: Does Firm Size Matter?," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(2), pages 175-193, April.
    12. Radu CIOBANU & Robert-Aurelian ȘOVA & Adriana Florina POPA, 2020. "The Impact of FDI over Economic Growth and how COVID-19 Crisis Can Impact the CEE Economies," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 0(4), pages 64-72, April.
    13. Krishnankutty, Raveesh, 2010. "Testing the relationship between FDI inflow and out flow in India: a critical analysis," MPRA Paper 48609, University Library of Munich, Germany.
    14. Manuel Fernandez & Aysha Abdulla Ahmed Aljeed Alnuaimi & Robinson Joseph, 2020. "FDI Environment in China: A Critical Analysis," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 238-253, October.
    15. Nematollahi, Omid & Hoghooghi, Hadi & Rasti, Mehdi & Sedaghat, Ahmad, 2016. "Energy demands and renewable energy resources in the Middle East," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1172-1181.
    16. Chiara Castelli & Ronald B. Davies & Javier Flórez Mendoza & Mahdi Ghodsi, 2025. "Drivers of FDI in the EU: Regulatory distance and revealed technological advantage," wiiw Working Papers 264, The Vienna Institute for International Economic Studies, wiiw.
    17. Jaap Bos & Mindel van de Laar, 2004. "Explaining Foreign Direct Investment in Central and Eastern Europe: an Extended Gravity Approach," DNB Working Papers 008, Netherlands Central Bank, Research Department.
    18. Jagadish Prasad Sahu & Santosh Kumar Dash, 2021. "What Explains FDI Inflows to ASEAN Countries? Evidence from Quantile Regressions," Journal of Asian Economic Integration, , vol. 3(1), pages 25-37, April.
    19. Brada, Josef C. & Kutan, Ali M. & Yigit, Taner M., 2004. "The effects of transition and political instability on foreign direct investment inflows: Central Europe and the Balkans," ZEI Working Papers B 33-2004, University of Bonn, ZEI - Center for European Integration Studies.
    20. Sirin, Selahattin Murat, 2017. "Foreign direct investments (FDIs) in Turkish power sector: A discussion on investments, opportunities and risks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 1367-1377.
    21. Bitzenis, Aristidis & Tsitouras, Antonis & Vlachos, Vasileios A., 2010. "Corrigendum to "Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece" [J. Socio-Econ. 38 (2009) 691-704]," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(3), pages 445-445, June.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:ibn:assjnl:v:13:y:2017:i:11:p:47. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.