EVALUATION OF COUNTRY RISKS ON FOREIGN DIRECT INVESTMENT IN MIDDLE EAST COUNTRIES USING DATA ENVELOPMENT ANALYSIS (DEA): A CASE STUDY

Abstract

: THIS RESEARCH PAPER AIMS TO PROVIDE AN ASSESSMENT OF COUNTRY RISKS ON FOREIGN DIRECT INVESTMENT IN MIDDLE EAST COUNTRIES USING DATA ENVELOPMENT ANALYSIS (DEA).NOWADAYS, FORIEGN DIRECT INVESTMENT (FDI) HAS STRONG AFFECT TO RISK COUNTRY. MANY COUNTRIES CHECK THE COUNTRY RISK OF THAT TO UNDERSTAND THEY CAN PERFORM INVESTMENTSIN THAT COUNTRY OR NOT. THE AIM OF THIS RESEARCH STUDY IS FINDING ACCORDING TO COUNTRY RISK, HOW MUCH THEY CAN GET FDI AND EVALUATED THEY PERFORMANCE ABOUT IT IN THE MIDDLE EAST COUNTRIES. FIVE COUNTRIES HAVE BEEN SELECTED AND THEN THEY EVALUATED BY DATA ENVELOPMENT ANALYSIS (DEA) FOR FINDING THE BEST PERFORMANCE OF COUNTRIES FROM 2005 TO 2020. THE RESULT INDICATES THAT AMONG THESE COUNTRIES, EXCLUSIVELY TURKEY AND THE UNITED ARAB EMIRATES HAD OBTAINED BEST PERFORMANCE REGARDING ABSORBING FDI ACCORDING TO THEIR COUNTRY RISK.