This study examines the determining factors of FDI inflows in Kuwait. Data sample covers the period from 1975 to 2013. In this study, estimates are tested using Augmented Dickey and Fuller, Johansen Co-integration tests and Error Correction Model (ECM). Results of the Johansen test show that all variables are co-integrated with the Kuwait’s FDI inflows in the long run. Interestingly, factors of market size, economic development, financial deepening, number of population, infrastructure development, openness, and oil rent have long run relationship with the FDI inflows in Kuwait. In the short run, findings also show that the short-run models are in equilibrium.
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