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

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)

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Abstract

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.

Item Type:	Article (Journal)
Additional Information:	5147/36418
Uncontrolled Keywords:	FDI; foreign direct investment; Iran; Malaysia; determinants of FDI; business environment
Subjects:	J Political Science > JQ Political institutions Asia
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Political Science
Depositing User:	Dr. Moniruzzaman Md.
Date Deposited:	22 Apr 2014 11:31
Last Modified:	25 Jun 2018 08:23
URI:	http://irep.iium.edu.my/id/eprint/36418

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