Economic and Social Determinants of Foreign Direct Investment with Emphasis on Governance Index (1996-2007)

This paper examines the economic, political and social determinants which influence foreign direct investment inflow among a set of 83 countries, member states of the Organization for Economic Cooperation and Development, and selected countries of Mena region during the period 1996-2007. The panel d...

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Bibliographic Details
Published in:Pizhūhishhā-yi iqtiṣādī (Print) 2012-05, Vol.12 (1), p.141-170
Main Authors: Parvin Heydari, Zahra Afshari
Format: Article
Language:per
Subjects:
d 73
economic freedom index
environmental sustainability index
f21
fdi
governance index
mena jel classification: d73
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Summary:This paper examines the economic, political and social determinants which influence foreign direct investment inflow among a set of 83 countries, member states of the Organization for Economic Cooperation and Development, and selected countries of Mena region during the period 1996-2007. The panel data method has been applied to investigate the impact of governance indicators, human development index, environmental sustainability index, ICOR, GDP and economic freedom index, on foreign direct investment inflows. The results indicate that GDP as proxy for market size, governance and environmental sustainability in both OECD countries and the global model were respectively the most effective variables in attracting foreign direct investment. While in the MENA region the market size, ICOR and economic freedom index show a significant effect on attracting foreign direct investment respectively.
ISSN:1735-6768
2980-7832