Jafarnejad, A., Golnam, A., & Ale Ebrahim, N. (2009). Determinants of Foreign Direct Investment in Iran: An Empirical Study Using Structural Equation Modelling. Middle East FORUM, 1(9), 71-85.

Share this:
Embed*
Cite this:
Ale Ebrahim, Nader; Jafarnejad, Ahmad; Golnam, Arash (2012): Jafarnejad, A., Golnam, A., & Ale Ebrahim, N. (2009). Determinants of Foreign Direct Investment in Iran: An Empirical Study Using Structural Equation Modelling. Middle East FORUM, 1(9), 71-85. figshare.
http://dx.doi.org/10.6084/m9.figshare.103361
Retrieved 15:10, Jul 30, 2014 (GMT)

Description

This paper examines the determinants of foreign direct investment (FDI) in Iran by applying the structural equation modelling (SEM). Using the annual time series data for the 1991-2006 period, two models were developed. In the first model the correlation between 12 determining factors and FDI in Iran were analyzed and in the second model the 12 factors were fit into five categories of determinants namely: Business, Economic, Infrastructural, Oil and Science and Technology and the impact of each of the mentioned groups of factors was investigated.

The results derived through the first model indicated that openness of trade and Gross Domestic Product (GDP) per capita have a significant positive impact on FDI in Iran, while along with inflation, oil extraction and production had a surprisingly negative correlation with FDI. The results also suggested that infrastructural factors pertaining to telecommunications in addition to market size, research and development (R&D), education and the scientific output encourage FDI inflows in Iran.

The second model output estimates revealed that the business factors promote FDI most and interestingly once more the oil factor proved to have a negative impact on the FDI inflows to Iran.

Comments (0)

You must be logged in to post comments.

Cite "Filename"

Place your mouse over the citation text to select it

Embed "Jafarnejad, A., Golnam, A., & Ale Ebrahim, N. (2009). Determinants of Foreign Direct Investment in Iran: An Empirical Study Using Structural Equation Modelling. Middle East FORUM, 1(9), 71-85."

Place your mouse over the embed code to select and copy it

Claim article

You claim request was sent. I will be handled in the next 24 hours.

Close window

Feedback

We appreciate all your comments, questions, suggestions or gratitude.

Login

The username or password entered are wrong.

Reset password

Your password will be sent to your registered e-mail address.

Create account

I agree to the Terms & Conditions *