Determinants of Foreign Direct Investment: Evidence of Sultanate Of

Shubiri, Faris Nasif Al

doi:10.17512/pjms.2016.13.2.01

Cited by 3 publications

(5 citation statements)

References 7 publications

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“…The findings of this study confirm the results of Sabir et al (2019), Mihaela et al (2018), Bailey (2018) Mallik and Chowdhury (2017), Siddica and Angkur (2017), Kurul and Yalta (2017) that control of corruption and adhering to the rule of law influence FDI positively, and a strict enforcement of property rights ensures safety and security of the foreign investments (Ayappan & Chin, 2018; Hossain, 2016; Cleeve (2008). The study also supports the claims of Sabir et al (2019), Kurul and Yalta (2017), Al Shubiri (2016), Mohamed and Sidiropoulos (2010), Cleeve (2008), Gani (2007) on the importance of fiscal freedom and government effectiveness and the claims of Sabir et al, 2019, Hossain (2016), Sánchez‐Martín et al (2014), Omanwa (2013) and Ines (2013) on the importance of trade freedom and openness in stimulating FDI. However, the study fails to support the findings of Dkhili & Dhiab, (2018), Aziz (2018), Hossain (2016), Khondoker and Kalirajan (2010) with causality between economic freedom and FDI.…”

Section: Discussionsupporting

confidence: 90%

“…The results of Hussein and Ahmed (2019) regarding the impact of FDI on economic growth in Oman during the period 1990-2014, indicated a bidirectional association between GDP and FDI in Oman. Al Shubiri (2016) investigated the flow of FDI in Oman during the period 2005-2014, using two models. The study found that annual GDP growth, ratio of fiscal balance to GDP, investment expenditure as a ratio of GDP, income velocity of broad money, trade balance as a percentage of GDP and the number of shares traded in Muscat Securities Market are the key factors attracting FDI in Oman.…”

Section: Main Fdi Driving Factors In Omanmentioning

confidence: 99%

“…Most of the literature related to attraction of FDI in Oman have focused extensively on the classical determinants of FDI, including market size, inflation, degree of openness and government support (Al Shubiri, 2016; Hussein & Ahmed, 2019; Ibrahim & Mohamed, 2015; Ibrahim, Mohamed, & Devesh, 2019; Pauceanu, 2016), leaving an important strand of motivators of institutional factors unexplored. This paper aims to identify the institutional determinants of FDI in Oman and examine the role of FDI in enhancing Oman's economic diversification strategy, using methodology of the unit root and Granger causality framework.…”

Section: Introductionmentioning

confidence: 99%

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Institutional determinants of FDI in Oman: Causality analysis framework

Ibrahim¹,

Devesh²,

Shaukat³

2020

Int. J Fin Econ

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This paper explores the institutional determinants of FDI in Oman and the role of FDI in enhancing Oman's economic diversification strategy. Time series data was collected for the selected institutional factors influencing FDI during the period 1996–2018. Unit root and Granger causality framework were used in the analysis. Results indicated that strong and clear property rights protection, corruption freedom, fiscal and trade freedom, cause FDI inflows in Oman, whereas business freedom had no effects. It is crucial for policy makers in Oman to strengthen these institutional factors, craft and implement a policy framework to sustain their efficacy, while improving business freedom towards an open economic model. This also includes strengthening the legal framework, combating corruption and reducing subsidies and other forms of favouritism towards state‐owned enterprises. Such policy measures, aimed at channelling FDI flow towards targeted sectors, would enhance Oman's diversification strategy and foster economic growth and development.

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Section: Discussionsupporting

confidence: 90%

Section: Main Fdi Driving Factors In Omanmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Institutional determinants of FDI in Oman: Causality analysis framework

Ibrahim¹,

Devesh²,

Shaukat³

2020

Int. J Fin Econ

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“…In an analysis of the determinants of FDI in Oman during the period from 1980 to 2013, Ibrahim and Abdel-Gadir (2015) found that market size, inflation rate, natural resources and trade openness are the key determinants of FDI flows to Oman. In another study, Al Shubiri (2016) aimed to identify the economic, financial, management and marketing factors that influenced FDI in the Sultanate of Oman over the 10 years ranging from 2005 to 2014. The results showed a statistically significant relationship with and impact of annual growth of GDP, fiscal balance, investment expenditure, income velocity of broad money and trade balance on inward FDI in Oman.…”

Section: Systematic Literature Review (Slr) Methodologymentioning

confidence: 99%

Determinants of Foreign Direct Investment: A Systematic Review of the Empirical Studies

Islam,

Beloucif

2023

Foreign Trade Review

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A growing body of literature is concerned with the factors that determine the inflows of foreign direct investment (FDI) into a host country. However, hardly any literature has been carried out to provide a systematic literature review (SLR) of the FDI determinants. An SLR methodology underlies this conceptual paper to evaluate and categorise a literature survey of 112 empirical studies published from 2000 to 2018. The result indicates that the size of the host market is the most robust determinant, followed by trade openness, infrastructure quality, labour cost, macroeconomic stability, human capital, and the growth prospect of the host country. Market size is highly significant in virtually all studies. This partly reflects the fact that most of the world’s FDI are market-seeking. This study provides a clear understanding of the scope of the research in the field of FDI determinants as the practical implication for future research. JEL Code: F14

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“…As far as the Oman context is concerned, there is relatively little analytical work related to the FDI's driving powers in Oman. Al Shubiri (2016) probed FDI flows in Oman from 2005 to 2014, adopting two models, observed that annual GDP rise, fiscal balance to GDP ratio, investment spending as a GDP ratio, revenue velocity of large money and trade balance as a percentage of GDP, the stock traded volume and the MSM 30 share price benchmark are major determinants attracting FDI in Oman. Ibrahim and Sufian (2015) studied the motivations and predictors for FDI in Oman from 1980 to 2013, using the Co-integration and Error Correction Model (VECM) process, established that FDI flows in Oman were positively affected by the size of the market and mineral resources, and adversely affected by inflation levels and degree of transparency.…”

Section: Main Fdi Driving Factors In Omanmentioning

confidence: 99%

Impact of Foreign Direct Investment (FDI) on Manufacturing Industries: A View of Domestic Industries in Oman

Husain¹,

Khan²,

SarfarazJaved³

2021

JEDS

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The major objective of this study was to assess the spill over effect of Foreign Direct Investment (FDI) on domestic firms in Oman. Specifically, to assess the relationship between the FDI policy framework and FDI net inflows in Oman. Additionally, the impact of FDI net inflows on job creation in Oman was considered. The study utilized a quantitative research method where primary and secondary data were obtained from Oman's World Bank database and through a field survey of manufacturing firms from diverse sectors. The primary data was collected from a research questionnaire administered to 410 respondents from nine industrial sectors, namely: Textile, Petroleum goods, Electronics, Automotive, Food & Beverages, Agriculture & Fishery, Publishing, Chemicals, and Pharmaceutics. The outcomes of the study revealed that labour market policy and administrative procedures as a tool of FDI policy framework affect FDI net inflow in Oman. Other tools (i.e., trade policies and competition policies) of the FDI policy framework has a positive impact on FDI net inflow but did not indicate a significant impact on FDI net inflow. This study contributes significantly to the literature on the awareness level of local firms being a stakeholder of FDI policy. The study also provides an insight into the practical side as how FDI could be utilized as a device for promoting and strengthening a successful FDI policy. The study has certain limitations too: lack of actual data of jobs created through FDI, and lack of some important variables such as the business environment in current scenario. Overall, the study has successfully provided a useful insight into the phenomenon under investigation.

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Determinants of Foreign Direct Investment: Evidence of Sultanate Of

Cited by 3 publications

References 7 publications

Institutional determinants of FDI in Oman: Causality analysis framework

Institutional determinants of FDI in Oman: Causality analysis framework

Determinants of Foreign Direct Investment: A Systematic Review of the Empirical Studies

Impact of Foreign Direct Investment (FDI) on Manufacturing Industries: A View of Domestic Industries in Oman

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