Determinants of foreign direct investment in Iran: assessing the standard factors

This paper examines the determinants of foreign direct investment(FDI) of the Islamic Republic of Iran based on those of Malaysia that have been successful in attracting FDI since the early 1980s. The model adopted was based on a previous study on FDI determinants in Malaysia. Results of multiple re...

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Main Authors: M , Moniruzzaman, Kazi, Masuma Khatun, Atiyat, Hala Mohammad, Mahmood , Rana
Format: Article
Language:English
Published: Inderscience Publishers, UK 2014
Subjects:
Online Access:http://irep.iium.edu.my/36418/
http://irep.iium.edu.my/36418/1/Determinants_of_FDI_in_Iran_JGBA_7%281%29.pdf
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author M , Moniruzzaman
Kazi, Masuma Khatun
Atiyat, Hala Mohammad
Mahmood , Rana
author_facet M , Moniruzzaman
Kazi, Masuma Khatun
Atiyat, Hala Mohammad
Mahmood , Rana
author_sort M , Moniruzzaman
building IIUM Repository
collection Online Access
description This paper examines the determinants of foreign direct investment(FDI) of the Islamic Republic of Iran based on those of Malaysia that have been successful in attracting FDI since the early 1980s. The model adopted was based on a previous study on FDI determinants in Malaysia. Results of multiple regression analysis to determine whether FDI determinants in Iran are of the same significance as they are for Malaysia showed that none of the determinants under the study (economic growth, growth of export, exchange rate and balance of payment), except for government expenditure, is significant in affecting the flow of FDI in the case of Iran. On the basis of these results, the conclusion is drawn that these typical determinants fail to reflect the case of Iran. The study argues that one needs to look at Iran from a different perspective of FDI as the country is an outlier in the global economy owing to international sanctions.
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spelling iium-364182018-06-25T00:23:29Z http://irep.iium.edu.my/36418/ Determinants of foreign direct investment in Iran: assessing the standard factors M , Moniruzzaman Kazi, Masuma Khatun Atiyat, Hala Mohammad Mahmood , Rana JQ Political institutions Asia This paper examines the determinants of foreign direct investment(FDI) of the Islamic Republic of Iran based on those of Malaysia that have been successful in attracting FDI since the early 1980s. The model adopted was based on a previous study on FDI determinants in Malaysia. Results of multiple regression analysis to determine whether FDI determinants in Iran are of the same significance as they are for Malaysia showed that none of the determinants under the study (economic growth, growth of export, exchange rate and balance of payment), except for government expenditure, is significant in affecting the flow of FDI in the case of Iran. On the basis of these results, the conclusion is drawn that these typical determinants fail to reflect the case of Iran. The study argues that one needs to look at Iran from a different perspective of FDI as the country is an outlier in the global economy owing to international sanctions. Inderscience Publishers, UK 2014-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/36418/1/Determinants_of_FDI_in_Iran_JGBA_7%281%29.pdf M , Moniruzzaman and Kazi, Masuma Khatun and Atiyat, Hala Mohammad and Mahmood , Rana (2014) Determinants of foreign direct investment in Iran: assessing the standard factors. Journal of Global Business Advancement, 7 (1). pp. 38-54. ISSN 1746-9678 (O), 1746-966X (P) http://www.inderscience.com/info/inarticletoc.php?jcode=jgba&year=2014&vol=7&issue=1 DOI: 10.1504/JGBA.2014.058882
spellingShingle JQ Political institutions Asia
M , Moniruzzaman
Kazi, Masuma Khatun
Atiyat, Hala Mohammad
Mahmood , Rana
Determinants of foreign direct investment in Iran: assessing the standard factors
title Determinants of foreign direct investment in Iran: assessing the standard factors
title_full Determinants of foreign direct investment in Iran: assessing the standard factors
title_fullStr Determinants of foreign direct investment in Iran: assessing the standard factors
title_full_unstemmed Determinants of foreign direct investment in Iran: assessing the standard factors
title_short Determinants of foreign direct investment in Iran: assessing the standard factors
title_sort determinants of foreign direct investment in iran: assessing the standard factors
topic JQ Political institutions Asia
url http://irep.iium.edu.my/36418/
http://irep.iium.edu.my/36418/
http://irep.iium.edu.my/36418/
http://irep.iium.edu.my/36418/1/Determinants_of_FDI_in_Iran_JGBA_7%281%29.pdf