Affiliation:
1. Institute for Management and Planning Studies (IMPS) , Tehran , Iran
2. University of St. Gallen , St. Gallen , Switzerland
Abstract
Abstract
We examine the impact of the macroeconomic determinants of foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI inflows into Iran. The results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run effect on FDI inflows in Iran. Our findings also show that GDP growth rate and trade openness have no significant effect on FDI. Our results indicate that sanctions do not have a significant moderating role in the relationship between macroeconomic factors and FDI. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanctions have a positive impact on the inflation rate and exchange rate in Iran. Finally, our findings show that sanctions have had a significant impact on Iran’s economic growth in recent years due to increasing the severity level of sanctions.
Reference82 articles.
1. Abdellah K., Nicet-Chenaf D. and Rougier E. (2012). FDI and macroeconomic volatility: a close-up on the source countries. Cahiers du GREThA, 2012-21. Available from: https://pdfs.semanticscholar.org/01f1/5a8bc126ee8ebafa0a31ba9e864c102433eb.pdf
2. Abdioglu, N., Khurshed, A., & Stathopoulos, K. (2013). Foreign institutional investment: Is governance quality at home important? Journal of International Money and Finance, 32(1), 916–940. https://doi.org/10.1016/j.jimonfin.2012.08.00110.1016/j.jimonfin.2012.08.001
3. Alavinasab, S. M. (2013). Determinants of Foreign Direct Investment in Iran. Int. J. Academic Research in Business and Social Sciences, 3(2), 258–270.
4. Alcantara, L. L., & Mitsuhashi, H. (2012). Make-or-Break Decisions in Choosing Foreign Direct Investment Locations. Journal of International Management, 18(4), 335–351. https://doi.org/10.1016/j.intman.2012.07.00210.1016/j.intman.2012.07.002
5. Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and economic growth: The role of local financial markets. Journal of International Economics, 64(1), 89–112. https://doi.org/10.1016/S0022-1996(03)00081-310.1016/S0022-1996(03)00081-3
Cited by
5 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献