Document
Determinants of FDI in the economy of GCC Countries : a PMG ARDL approach.
Identifier
DOI: 10.31181/oresta031022046o
Source
Operational Research in Engineering Sciences: Theory and Applications. v. 5, 3, p. 92-107
Contributors
Alvi, Shaista., Author
Country
Serbia.
Publisher
Regional Association for Security and crisis management.
Gregorian
2022-01-01
Language
English
English abstract
The main determinant of the growth of Gulf Cooperation Council (GCC) countries is inward foreign direct investment stock (FDI). The paper shows the effects of economic growth, cost of living, Economic Freedom Indices, global oil price, and construction value-added on the inward foreign direct investment stock in GCC in the long term and short term for an unbalanced data period of study from 1996 to 2020(Bahrain, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates) and Qatar from 1999 to 2020. We use the PMG ARDL model to have a long-run and short-run estimate between these variables in the gulf council region. Empirical results evidence positive correlation that economic growth and construction industry volumes and cost of living and economic freedom indices have an inverse relationship in long term on regional FDI stock. At the same time, results confirm that there is Cross-sectional dependence among these countries of GCC.
ISSN
2620-1607
Category
Journal articles