Foreign Direct Investment in oil-abundant countries: The role of institutions

Carril-Caccia, Federico; Baleix, Juliette Milgram; Paniagua, Jordi

doi:10.1371/journal.pone.0215650

Cited by 26 publications

(13 citation statements)

References 88 publications

(179 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The results indicate that oil rents discourage FDI. The result of this study supports the findings of Khayat (2017) and Carril-Caccia et al (2019). This establishes the presence of 'resource curse' in oil abundant countries in terms of attracting FDI.…”

Section: Conclusi̇onsupporting

confidence: 89%

“…The study infers that GCC states lack the motivation to attract FDI and they restrict FDI channeled ownership of firms fearing losing of resources due to uneven control of ownership. Carril-Caccia et al (2019) in their study supports the presence of "oil curse" on FDI for oil abundant countries. The study estimates that a percentage point increase in oil rents decreases the number of projects by an average of 3%.…”

Section: Literature Reviewsupporting

confidence: 62%

“…The choice of the variables is based on earlier studies. Oil rents were used by Khayat (2017);and Carril-Caccia et al (2019). Trade openness was used by Mina (2007); Abdel-Rahman ( 2007); and Yazdanian (2014).…”

Section: Methodsmentioning

confidence: 99%

See 2 more Smart Citations

Do Oil Rents Deter Foreign Direct Investment? The Case of Saudi Arabia

Haque

2020

IJEEP

View full text Add to dashboard Cite

The relationship between foreign direct investments (FDI) and natural resource endowment of a country is contentious. This study attempts to study this relationship for Saudi Arabia that is primarily an oil-producing country. In the process, it would also assess the role of institutions, trade openness, and domestic investments in attracting FDI. Using the methodology of cointegration over the data for the period 1984-2016, the study ascertains the presence of "resource curse" in terms of attracting FDI. The study discovers new findings as to the resource curse in attracting FDI are not because of institutional quality which has a positive relationship with FDI. The results also indicate the absence of crowding out of domestic investments. Finally, the study recommends channeling FDI to Greenfield projects with the maximum transfer of management and technology.

show abstract

Section: Conclusi̇onsupporting

confidence: 89%

Section: Literature Reviewsupporting

confidence: 62%

See 1 more Smart Citation

Do Oil Rents Deter Foreign Direct Investment? The Case of Saudi Arabia

Haque

2020

IJEEP

View full text Add to dashboard Cite

show abstract

“…(2) Political and legal environment. Countries with stable political conditions, high-functioning government, and sound legal systems have a better investment environment and will reduce political, legal and social risks in the process of corporate investment [51]. We use The Worldwide Governance Indicators to measure the political and legal environment of countries, including Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Control of Corruption, Regulatory Quality, Rule of Law, Voice and Accountability.…”

Section: Indicators For Measuring Investment Environmentmentioning

confidence: 99%

The Potential of Absorbing Foreign Agricultural Investment to Improve Food Security in Developing Countries

Jiang

Chen

2020

Sustainability

View full text Add to dashboard Cite

Global food security has been in a severe condition in recent years, especially in developing countries. These countries need sufficient investment to promote their agricultural development. At the same time, the increasing foreign investment in agriculture has aroused widespread concern in the international community. It is controversial whether it is conducive to the host country’s agriculture and social development. In order to study whether developing countries can promote food security by absorbing adequate and effective foreign agricultural investment, we use principal component analysis and select 135 countries (regions) as samples to construct an indicator system from three aspects: investment demand, investment environment and investment motivation. We use cross-section data consisting of the values of the most recent year updated for each indicator. The results show that the demand for foreign investment in developing countries is strong, but overall, it does not have much investment appeal and the investment environment is bad. There is a gap between the expectations and realities in societies in each developing country in terms of the introduction of foreign agricultural investment to promote food security. Governance and capacity building should be strengthened to reconcile their investment needs with investors’ motives. Meanwhile, more inclusive rules for foreign agricultural investment will help it to play its due role in developing countries.

show abstract

“…However, the relation between fall of oil prices and national economy is made complex by several factors, not least the impacts on availability of Foreign Direct Investment (FDI). Significant part of the FDI in the MENA region comes from oil exporting countries, which have suffered a fall in revenues due to dropping oil prices [ 8 ]. Therefore, overall, the short-to medium-term economic impact of lower oil and gas prices on the Tunisian economy may be negative.…”

Section: Introductionmentioning

confidence: 99%