THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH: IRAQ CASE STUDY FOR THE PERIOD (2004-2019) (original) (raw)
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2021
The paper aims at examining the impact of Foreign Direct Investment on Gross Domestic Product in Iraq over the period 2006-2015. Data have been collected from the World Bank database. For the purpose of analyzing data, the study applied Foreign Direct Investment (FDI) Net Inflows as an independent variable while Gross Domestic Product (GDP) as a proxy for economic growth as a dependent variable. The results of the study found that all of the variables under study are non-stationary at the level while stationary at first differenced by utilizing unit-root tests (ADF). The findings of Johansen Test for Co-integration showed that there is no long-term relationship among variables. Other findings of the paper revealed that, in short term, it is concluded that FDI Granger-Causes GDP and there is a short-run causality running from FDI to GDP. The research recommended that Iraq has to pay more attention to improve the level of education sectors and financial sector and to empower human capital. It also has to decrease lending rate, transportation and instability terms of political and economic environment as well as to improve liberalized market environment.
South Asian Journal of Social Sciences and Humanities, 2021
This study aims to demonstrate the role of foreign direct investment in achieving sustainable development in Iraq. The Iraqi Investment Law No. (13) for the year 2006 and the amendments attached to it for the years 2009 and 2015 serve as a legal cover to grant many privileges and tax exemptions to foreign investors in order to attract more of them into the country. As Iraq is a developing country, it is in dire need of foreign direct investment to advance its economic and service reality by financing development programs and plans. The need for direct foreign investments to be directed towards the productive sectors.
Foreign Direct Investment and Growth: A Study in the Context of Kuwait
International Journal of Financial Research, 2016
Foreign Direct Investment is considered an encouraging impetus for economic development of an economy by enhancing competitiveness through offering employment, transferring sophisticated technologies, boosting productivity and promoting infrastructure, etc. In the recent times, the downtrend of oil prices has affected adversely the GDP of GCC regions as revenue from oil has been major source of inflow of funds for them. This economic turmoil has caused a serious concern among these countries and attracted immediate attention of the government and policy makers. This has led the members to focus on non-oil units in order to get revenues by promoting FDI, abolishing subsidies, proposal to impose tax, cost cutting and downsizing of employment especially in public sectors to accentuate the drivers of growth. Kuwait is not an exception to it. In the light of above mentioned facts, present study examines the role of FDI to the economic rise of Kuwait. Here, the trends of FDI and GDP in GCC have been explained in general; and for Kuwait, in particular. The statistical tools such as correlation, Analysis of Variance (ANOVA) and regression have been employed to glean the desired results. The result shows a positive relationship between FDI and GDP of Kuwait.
2020
This study investigates the influence of human development and institutional quality on the foreign direct investment net inflows on the gross domestic product in Iraq for the period (2004-2016) by using OLS regression. The empirical results show that governance sub-indicators do not actually matter much in attracting Foreign Direct Investment (FDI) inflows in Iraq. This variable shows fixed results with a different sign; the Political Stability (PS), Government Effectiveness (GE) and Rule of Law (RL) are the sub-indicators of the governance with a positive sign which is insignificant, while the Voice and Accountability (VA), Regulatory Quality (RQ) and Control of Corruption (CC) are the sub-indicators of the governance index with a negative sign and an insignificant impact on FDI inflows. The value of Worldwide Governance Indicators (WGI) coefficient is negative and significant at 10% level. Hence it has been concluded that the explanatory variables are negatively associated with the dependent variable FDI. In contrast, the Human Development Index (HDI) has a positive and significant impact on FDI inflows. This study found that Islamic State of Iraq and Syria (ISIS) emergence after (2013) had a significant coefficient, meaning that ISIS has affected the level of FDI inflows.
The Role of Investment on Economic Growth; An Empirical Case of Iraq For the Period of 2004 to 2020
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This paper employs time series techniques to analyse the effect of foreign direct investment and national investment on economic growth in Iraq. The study uses secondary annual data over the period 2004-2020. The gross domestic product )GDP( is the dependent variable, and foreign direct investment )FDI( and national Investment )NI( are the explanatory variables. The empirical analysis starts with run ordinary least square )OLS(. The result of Augmented Dickey Fuller )ADF( and Phil- lips Perron )PP( test illustrates that the series are non-stationary in the level form, however station- ary in the first difference. The study further utilises the Johansen cointegration test whereby it finds the variables are cointegrated and there is a long run relationship between dependent and indepen- dent variables. The results demonstrates that foreign direct investment has statistically significant positive impact on gross domestic product by almost 0.1013, meanwhile, national investment has posi...
Technium Social Sciences Journal, 2020
This study investigates the influence of human development and institutional quality on the foreign direct investment net inflows on the gross domestic product in Iraq for the period (2004-2016) by using OLS regression. The empirical results show that governance sub-indicators do not actually matter much in attracting Foreign Direct Investment (FDI) inflows in Iraq. This variable shows fixed results with a different sign; the Political Stability (PS), Government Effectiveness (GE) and Rule of Law (RL) are the sub-indicators of the governance with a positive sign which is insignificant, while the Voice and Accountability (VA), Regulatory Quality (RQ) and Control of Corruption (CC) are the sub-indicators of the governance index with a negative sign and an insignificant impact on FDI inflows. The value of Worldwide Governance Indicators (WGI) coefficient is negative and significant at 10% level. Hence it has been concluded that the explanatory variables are negatively associated with t...
The Role of Foreign Direct Investment in Economic Growth of Jordan
Journal of business & economic policy, 2019
Foreign Direct Investment (FDI) has been one of the major sources of economic growth in Jordan and has become an important channel for improving Jordanian economy and financial systems. The purpose of this study is to identify the role of FDI in economic growth of Jordan .The study covered the period started in 2010. Foreign Direct Investment as each type of Foreign or Foreign local association driven speculation, goes for creating work, raise profitability, exchange abilities and innovation and in addition improve fares and add to the long-haul monetary development of the world's creating nations. This study shows how does the Jordanian economy was affected by FDI since 2010.It shows that Jordanian economic performances influenced positively by foreign investment and its gross national investment also has capitalized its economy. It also showed that trade has a positive impact on economic growth.
The Key Factors Affecting Investment in Middle East, The Case of Iraq
2021
This study aimed to identify the key factors affecting investment in the Middle East (ME) and Iraq particularly. The study has used the descriptive analytical approach, where a questionnaire was employed as the study instrument, to examine the hypotheses for the key factors affecting investment in ME, the case of Iraq, with Statistical Package for Social Sciences (SPSS) used in processing. The population of the study consisted of the purposive sample from 500 clothing retailers in Basra and from 217 clothing retailers in Basra as it is classified into its demographic characteristics. The results showed that the key factors affecting investment in Iraq was high. Furthermore, the level of investment in Iraq was also high. The results also showed that there is a statistically significant impact of factors affecting investment (infrastructure, governance and risk aversion) on the investment (stability of the investment environment and investor satisfaction) at the level (α ≤ 0.05).
International Review of Business Research …, 2009
Kuwait and Bahrain) comprising the Cooperation Council for the Arab States of the Gulf (GCC) countries. The purpose of the paper is to test to what extent these countries have recognized the importance of FDI in the process of growth and hence what are the measures adopted aiming at attracting foreign capital and encouraging foreign investment. Based on evidence, the paper goes on to identify the determinants of FDI in the GCC countries. This paper uses recent growth theories and statistical techniques to empirically test for the association between FDI and economic growth in the GCC countries. Results obtained from data analysis indicate a weak relationship between FDI and GDP in the panel of the GCC. This result supports the endogenous growth hypothesis, at least for this group of countries.Keywords: foreign direct investment, economic growth, GCC countries and determinants of FDI.
The Impact of Foreign Direct Investment in UAE Economic growth
2018
The purpose of this paper is to provide an understanding of the effect of foreign direct investment, relying on the GDP, government concession and technology to improve the performance of the foreign direct investments in UEA. The study applies a quantitative methodological approach by using a survey method. The data are collected from a sample of 100 employee’s field in UEA. From a theoretical perspective, this study reinforces the role of EG, GC and technology beliefs as determinants of a positive attitude towards the FDI ratio. This in turn impacts positively on Economic Growth. Additionally, it was found that FDI impacts economic growth. These results evidence the importance of the FDI and the positive correlation with the economic growth and additional improvement that will gain from high GDP, government concession and technology.