Foreign Direct Investment Determinants in Oil Exporting Countries: Revisiting the Role of Natural Resources

IF 1.2 Q3 BUSINESS, FINANCE

Journal of Emerging Market Finance Pub Date : 2020-04-01 DOI:10.1177/0972652719880153

M. Eissa, M. Elgammal

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引用次数: 14

Abstract

This article explores the determinants of foreign direct investment (FDI) in oil-dependent economies and revisits the role of natural resources in attracting FDI to countries of this kind. Panel data from the six Gulf Cooperation Council (GCC) countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, have been employed, covering the period from 1990 to 2015. First, we investigate the FDI determinants during the entire sample period, and then run another investigation starting from the beginning of 2000, when the FDI in the GCC region increased substantially. The results show that there is a positive nexus between market growth, trade openness, inflation, infrastructure, oil price and FDI. Interestingly, oil reserves have a negative impact on FDI; this may be because countries with large reserves of oil like the GCC countries have enough financial resources to finance their economic development. This leads these governments to set up restrictions to protect their resources, thus reducing the amount of resource-seeking FDI. JEL Codes: E22, F21, F23, F43, O13

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石油出口国的外国直接投资决定因素:重新审视自然资源的作用

本文探讨了依赖石油的经济体中外国直接投资的决定因素，并重新审视了自然资源在吸引外国直接投资到这类国家中的作用。本文采用的面板数据来自海湾合作委员会(GCC)六国，即巴林、科威特、阿曼、卡塔尔、沙特阿拉伯和阿拉伯联合酋长国，时间跨度为1990年至2015年。首先，我们调查了整个样本期内的FDI决定因素，然后从2000年初开始进行另一项调查，当时海湾合作委员会地区的FDI大幅增加。结果表明，市场增长、贸易开放、通货膨胀、基础设施、油价和FDI之间存在正相关关系。有趣的是，石油储量对外国直接投资有负面影响;这可能是因为像海湾合作委员会国家这样拥有大量石油储备的国家有足够的财政资源来资助其经济发展。这导致这些国家的政府设置限制以保护其资源，从而减少了资源寻求型FDI的数量。JEL代码:E22, F21, F23, F43, O13

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来源期刊

Journal of Emerging Market Finance BUSINESS, FINANCE-

CiteScore

1.80

自引率

33.30%

发文量

期刊介绍： The Journal of Emerging Market Finance is a forum for debate and discussion on the theory and practice of finance in emerging markets. While the emphasis is on articles that are of practical significance, the journal also covers theoretical and conceptual aspects relating to emerging financial markets. Peer-reviewed, the journal is equally useful to practitioners and to banking and investment companies as to scholars.