Identifying Location Drivers and Barriers of FDI Determinants in MENA Countries: Undertaking Hotel Sector

Abstract

The study aims to examine the location drivers and barriers influencing the foreign direct investment (FDI) in the hotel sector in selected Middle Eastern and North African (MENA) countries. Data of study variables was selected from fDi Intelligence, Euromonitor International, World Economic Forum, and Datamonitor. Findings indicated a significant correlation of investor, quality, rule and law, infrastructure quality, corruption, politics, government effect, gross domestic product (GDP) growth, total tax rate, and real export GDP with FDI. However, FDI inflows were significantly determined by the level of investment freedom, investor protection, and political stability. The study concluded that investment freedom, market size, and stability of the country revealed the anticipated signs.