The role of foreign direct investment on increasing the amount of export

Abstract: Improving livelihood and increasing in welfare and life quality of people always have been some of the most important concerns among politicians in each country. Therefore, addressing economy and trying to reach maximum growth play essential role on having sustainable growth. One of the determinant factors in the economic growth is attraction of direct foreign investments, successfully. Direct foreign investment not only leads to capital and modern technology in absorbent country but also it causes increasing in production capacities particularly in export products. Therefore, it helps host country in context of communicating with international economy through development of export markets and research and development (R & D). In this paper, we present an empirical study to find important factors influencing foreign direct investment based on factor analysis. The study designs and distributes a questionnaire consist of 30 questions among some experts. The proposed study uses Skewness analysis to reduce the factors into 22 items and reports 5 important factors including Economic, Feasibility, Infrastructure, Incentive and Resource.

How to cite this paper

 Hajirasouliha, M., Zanganeh, G & Golafshani, S. (2014). The role of foreign direct investment on increasing the amount of export.Management Science Letters , 4(1), 101-106.

Refrences

Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2006). How does foreign direct investment promote economic growth? Exploring the effects of financial markets on linkages (No. w12522). National Bureau of Economic Research.

Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2010). Does foreign direct investment promote growth? Exploring the role of financial markets on linkages. Journal of Development Economics, 91(2), 242-256.

Balasubramanyam, V. N., Salisu, M., & Sapsford, D. (1996). Foreign direct investment and growth in EP and IS countries. The Economic Journal, 92-105.

Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth?. Journal of international Economics, 45(1), 115-135.

De Maeseneire, W., & Claeys, T. (2012). SMEs, foreign direct investment and financial constraints: the case of Belgium. International Business Review, 21(3), 408-424.

Feenstra, R. C., & Hanson, G. H. (1997). Foreign direct investment and relative wages: Evidence from Mexico & apos; s maquiladoras. Journal of international economics, 42(3), 371-393.

Froot, K. A. (Ed.). (2008). Foreign direct investment. University of Chicago Press.

Lee, H. Y., Lin, K. S., & Tsui, H. C. (2009). Home country effects of foreign direct investment: from a small economy to a large economy. Economic Modelling, 26(5), 1121-1128.

Li, X., & Liu, X. (2005). Foreign direct investment and economic growth: an increasingly endogenous relationship. World development, 33(3), 393-407.

Lizondo, J. S. (1993). Foreign direct investment. Readings in International Business: A Decision Approach, 85-114.

Luiz, J. M., & Charalambous, H. (2009). Factors influencing foreign direct investment of South African financial services firms in Sub-Saharan Africa. International Business Review, 18(3), 305-317.

Markusen, J. R., & Venables, A. J. (1999). Foreign direct investment as a catalyst for industrial development. European economic review, 43(2), 335-356.

Moosa, I. A. (2002). Foreign direct investment. Palgrave.

Underwood, R. L. (2012). Automotive foreign direct investment in the United States: Economic and market consequences of globalization. Business Horizons, 55(5), 463-474.

Journals

MSL Volumes

Keywords

Authors

Countries

Management Science Letters

The role of foreign direct investment on increasing the amount of export Pages 101-106 Download PDF

Add Reviews