Political unrest, the Arab Spring, and FDI flows: A quantitative investigation

Al-Shammari, Nayef; Willoughby, John; Behbehani, Mariam S.

doi:10.1080/23322039.2023.2228092

Cited by 6 publications

(4 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, the results from [64] study reveal that the relationship between inflation levels and FDI is insignificant. [40] have also found similar results in the case of MENA countries. Therefore, the second null hypothesis is formulated as: H2: There is a positive and significant relationship between FDI and inflation in the GCC countries.…”

Section: Foreign Direct Investment and Inflationsupporting

confidence: 75%

“…Focusing on MENA region, another recent study conducted by [ 40 ] on five MENA countries (Algeria, Bahrain, Egypt, Syria, and Tunisia). This study examines the indicators of FDI over the period 1980–2014 using OLS, FEM and REM.…”

Section: Literature Review and Hypotheses Formulationmentioning

confidence: 99%

“…Most of the previous studies confirmed that the relationship between GDP growth and FDI is significant and positive. In recent times, many studies investigated it and found a positive relationship between GDP growth and FDI, and they include studies by [ 40 ] on MENA countires, [ 34 ] on highly emerging BRICS countries, [ 37 ] on China, [ 42 ] on 124 countires, [ 1 ] on Europe, [ 33 ] on West African regions, [ 46 ] on OECD countries, [ 6 ] on Brazil, [ 47 ] on China, [ 7 ] on Caribbean countries, [ 48 ] on China, [ 49 ] on 15 countries, [ 50 ] on 189 countries, [ 51 ] on Greece, [ 52 ] on 151 countries, and [ 53 ] on China and ASEAN countries. On the other hand, a few studies noted that higher GDP levels reduce FDI significantly, and they include studies by [ 54 ] on BRIC countries (Brazil, Russia, India and China) and CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) countries, [ 55 ] on G20 countries, and [ 56 ] on 33 countries.…”

Section: Literature Review and Hypotheses Formulationmentioning

confidence: 99%

See 2 more Smart Citations

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Alharthi,

Islam,

Alamoudi

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

In general, foreign direct investments (FDIs) play a crucial role in driving a country’s economic development, promoting diversification, and enhancing competitiveness. The Gulf Cooperation Council (GCC) countries, which heavily rely on the oil and gas sectors, are particularly vulnerable to fluctuations in commodity prices. However, these countries have recognized the imperative of economic diversification and have increasingly turned to inward FDIs to achieve it. By attracting capital, advanced technology, and expertise from foreign investors, FDIs enable the GCC countries to expand their economic base beyond the oil and gas sectors. This diversification not only creates employment opportunities but also fosters resilient economic growth, ultimately leading to an improvement in the living standards of the local population. This study investigates the macroeconomic and environmental factors that potentially attract foreign direct investment (FDI) inflows into the Gulf Cooperation Council (GCC) countries in the long run. Additionally, the study explores the causal relationship between these factors and FDI inflows. The panel autoregressive distributed lag (ARDL) approach to co-integration is the primary analytical technique used, utilizing long time-series data from six GCC countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) during the period 1990–2019. The empirical results indicate that, in the long run, almost all independent variables significantly influence FDI in GCC countries. Variables such as GDP growth (GDPG), inflation (INFL), carbon dioxide emissions (CO2), and urbanization (URB) are found to be highly significant (p≤0.01) in their impact on FDI. Moreover, unemployment (UNEMP) also positively and significantly influences FDI in these countries in the long run. Based on the key findings, strategies aimed at reducing persistently high unemployment rates, maintaining population growth, viewing FDI as a driver for GDP growth, and continuing with infrastructure development and urbanization are expected to attract more FDI inflows into GCC countries in the long run. Additionally, fostering both long-term economic incentives and creating a conducive business infrastructure for investors are vital for attracting inward FDI into any nation, including those in the GCC. This research would benefit various stakeholders, including governments, local businesses, investors, academia, and the local society, by providing valuable knowledge and informing decision-making processes related to economic development, diversification, and investment promotion.

show abstract

Section: Foreign Direct Investment and Inflationsupporting

confidence: 75%

Section: Literature Review and Hypotheses Formulationmentioning

confidence: 99%

Section: Literature Review and Hypotheses Formulationmentioning

confidence: 99%

See 1 more Smart Citation

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Alharthi,

Islam,

Alamoudi

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

show abstract

“…Sociopolitical changes in the MENA region over the past decade, such as the Arab Spring, have significantly transformed the business environment and investment cli-mate [22]. In addition, recent financial inclusion strategies in this region, supported by the World Bank, have aimed to improve financial inclusion and promote policy reforms.…”

Section: Introductionmentioning

confidence: 99%

How Financial Inclusion Moderates the Curvilinear Nexus between Tangible Investment and Sustainable Firm Growth: New Evidence from the Middle East and North Africa Region

Khémiri,

Attia,

Chafai

2024

Sustainability

View full text Add to dashboard Cite

The aim of this study was to examine the curvilinear relationship between tangible investment and sustainable firm growth in the MENA region, as well as the moderating role of financial inclusion on this connection. To achieve this, we selected a sample of 465 firms over the period 2007–2020. Employing a system GMM model for the empirical analysis, the findings reveal that there is a curvilinear (inverted U-shaped) nexus between tangible investment and sustainable firm growth. Moreover, this study employs a moderating effect model to demonstrate that financial inclusion can enhance sustainable firm growth. The system GMM model further indicates that financial inclusion moderates the curvilinear relationship between tangible investment and sustainable firm growth. This study offers valuable insights for strategic firm planning and policy development, highlighting the role of financial inclusion in promoting firm sustainability.

show abstract

Unravelling the impact of political risk on industrialization: Evidence from Africa

Kaffo Fotio,

Karim

2024

International Economics

View full text Add to dashboard Cite

Political unrest, the Arab Spring, and FDI flows: A quantitative investigation

Cited by 6 publications

References 37 publications

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

How Financial Inclusion Moderates the Curvilinear Nexus between Tangible Investment and Sustainable Firm Growth: New Evidence from the Middle East and North Africa Region

Unravelling the impact of political risk on industrialization: Evidence from Africa

Contact Info

Product

Resources

About