Determinants of Foreign Direct Investment in Gulf Cooperation Council (Gcc) Region

Alharthi, Majed

doi:10.20472/efc.2018.010.002

Cited by 4 publications

(4 citation statements)

References 20 publications

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“…H7: Arab Spring: as expected, over the period of the Arab Spring (2011-2013), the FDI inwards in Saudi Arabia decreased significantly. This result is in line with the finding of Alharthi (2018) who confirmed that in the Arab Spring period, the FDI inwards decline significantly in the GCC countries.…”

Section: Findings Of the Study And Discussionsupporting

confidence: 92%

“…FDI inwards and Arab Spring In 2011, the political instability in the Middle East and North Africa (MENA) region was expanded and this political instability called Arab Spring (Arab political revelations). Alharthi (2018) found that Arab Spring has affected FDI inwards for GCC countries. The seventh hypothesis is: H7: Arab Spring impacts FDI inwards in Saudi Arabia significantly…”

Section: Fdi Inwards and Tradementioning

confidence: 99%

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Factors of Foreign Direct Investment Inwards: The Case of Saudi Arabia

Alharthi¹

2022

Proceedings of the 16th Economics &Amp; Finance Conference, Prague

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According to the gross domestic production, the Saudi Arabia's economy is listed in one of the top twenty economies in the world and Saudi Arabia is a member of G20 group. Using panel data from 1990 to 2020, this study tries to identify the key factors of foreign direct investment (FDI) inwards in Saudi Arabia. Saudi Arabia is facing many economic challenges which would affect the whole world as Saudi Arabia is consider being one of the leaders in the oil sector. The economy of Saudi Arabia depended extensively on oil exporting for a long period. In 2015, the oil prices dropped sharply which force the Saudi government to find some policies to diversify Saudi economy. The Saudi Vision 2030 is one of the most important strategies to enhance the economy through a bundle of programs and economic reforms. The Saudi vision is based on three main pillars as: 1) A Vibrant Society, 2) A Thriving Economy, 3) An Ambitious Nation. In this study, the focus is on the second pillar A Thriving Economy. However, FDI is one of the most important markers of an economy's efficiency. As a result, this research identifies the positive and negative elements that have a substantial impact on FDI in Saudi Arabia. The data of this study was collected from the database of the World Bank. The ordinary least squares statistical model was utilized in this investigation (OLS). The main findings proposed that GDP has affected the economic growth positively while, unemployment impacted the economy of Saudi Arabia negatively. These results of this study help policymakers to focus on the positive drivers of Saudi economic growth and avoiding negative factors. In addition, foreign investors who would like to invest in Saudi Arabia can explore the determinants of FDI in Saudi. Finally, academics in the field of economics can benefit from this study.

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Section: Findings Of the Study And Discussionsupporting

confidence: 92%

Section: Fdi Inwards and Tradementioning

confidence: 99%

Factors of Foreign Direct Investment Inwards: The Case of Saudi Arabia

Alharthi¹

2022

Proceedings of the 16th Economics &Amp; Finance Conference, Prague

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“…Other empirical studies have used different econometric techniques to estimate the determinants of FDI inflows on different countries (Alharthi, 2018). A study conducted by Asongu et al (2018) on and MINT (Mexico, Indonesia, Nigeria, and Turkey) countries demonstrated that market size, infrastructure availability, and trade openness play significant roles in attracting FDI.…”

Section: Literature Reviewmentioning

confidence: 99%

The Importance of Trade Openness and Inflation for Attracting Foreign Direct Investment in GCC Countries

Hisham¹,

Devesh²,

Omer³

2022

IJEBA

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Purpose: This paper examines the importance of trade openness for attracting foreign direct investment (FDI) inflows, for the GCC economies (Kingdom of Saudi Arabia, United Arab Emirates, Oman, Qatar, Kuwait and Bahrain) covering the period 1995-2018, using panel VAR model. Design/methodology/approach: It provides a direct test of causality between FDI inflows, trade openness, GDP per capita, and inflation. Findings: The main empirical findings of the panel analysis reveal that in the long run, trade openness contributes positively to the inflow of FDI in the GCC economies. The panel causality analysis shows that there is a unidirectional causal relationship running from trade openness and inflation to FDI, whereas no causality was traced with other variables. Practical Implications: The panel long-run estimation suggests that trade openness, have positive impact on FDI inflow confirming the results. Originality value: The paper investigates the effect of trade openness, and inflation on FDI inflows in GCC economies by using panel data for the period 1995-2018.

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“…Secondly, a variety of theoretical models has been used in previous studies. Thirdly, a number of different econometric techniques have been implemented in empirical studies to test and estimate FDI determinants (Alharthi, 2018). On the contrary, the disparity in outcomes does not prevent the requirement for additional investigation of the subject as long as it is apparently represented that the investigation and the obtained findings are not mandatorily generalized to other cases.…”

Section: Introductionmentioning

confidence: 99%

Determinants of International Foreign Portfolio Investment Flows to GCC Countries: An Empirical Evidence

Khayat¹

2020

IJBM

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The present study focuses on the roles of trade openness, market forces and domestic credit to private sector and infrastructures by documenting the determinants of Foreign Portfolio Investments (FPI) to Gulf Cooperation Council (GCC) economies. The determinants of foreign portfolio investment for the period between 2000 and 2018 were estimated by implementing random effects (RE), fixed effects (FE), and GMM methods. The dependent variable was foreign portfolio investment against different independent variables. The results of the study lead to the development of framework through the associated countries in GCC that are mainly focused on attracting additional foreign portfolio investment. The results have clearly showed that there is significant influence of macroeconomic factors on the decision of choosing an investment country by the foreign investor.

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Determinants of Foreign Direct Investment in Gulf Cooperation Council (Gcc) Region

Cited by 4 publications

References 20 publications

Factors of Foreign Direct Investment Inwards: The Case of Saudi Arabia

Factors of Foreign Direct Investment Inwards: The Case of Saudi Arabia

The Importance of Trade Openness and Inflation for Attracting Foreign Direct Investment in GCC Countries

Determinants of International Foreign Portfolio Investment Flows to GCC Countries: An Empirical Evidence

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