Abstract
This study provides an overall view of the Foreign Direct Investment (FDI) inflows for the Arab region during the global financial crisis (GFC) in 2008. There a little attention has given to the FDI flows in Arab region as the main focus was on the countries where the GFC started. The objective of this study is to compare and analyses the global FDI inflows with Arab region during the GFC. It attempts to answer the question whether the FDI flow into Arab region was impacted immediately by the GFC? It provides a case analysis of FDI inflows in the Arab countries to test what is the reduction in these inflows? Are FDI inflows hold due to the assumption of that the region is considered as preferable distention to FDI? The study gives better understanding to the share of each individual Arab country over the period. It also introduces a case analysis of FDI inflow for Arab countries then compare it with other global regions.
Highlights
There is competition among developing countries to attract Foreign Direct Investment (FDI) inflows since it is an important source of technology transfer, export development, job creation, labour skill creation, upgrading of management and improved productivity in local firms (World Bank, 2013a)
The objective of this study is to compare and analyses the global FDI inflows with Arab region during the global financial crisis (GFC). It attempts to answer the question whether the FDI flow into Arab region was impacted immediately by the GFC? It provides a case analysis of FDI inflows in the Arab countries to test what is the reduction in these inflows? Are FDI inflows hold due to the assumption of that the region is considered as preferable distention to FDI? The study gives better understanding to the share of each individual Arab country over the period
This study provides an overall view of the FDI inflows for the world and highlights these inflows in Arab region and trying to answer the question of what was the FDI flows levels on Arab region during the GFC? It provides a case analysis of FDI inflows in the Arab countries to test if the inflows have been impacted by the crisis and what is the reduction in these inflows? what was the position of FDI in the Arab region as compared to other global regions in the same period? In addition, the study sheds light on the FDI position inside the Arab countries themselves over the period before and after the GFC in 2008
Summary
There is competition among developing countries to attract Foreign Direct Investment (FDI) inflows since it is an important source of technology transfer, export development, job creation, labour skill creation, upgrading of management and improved productivity in local firms (World Bank, 2013a). FDI flows to Arab economies accounted for the low level of 3.3% of global FDI flows (UNCTAD database) (Note 1) This low share may be attributed to various factors but not limited to lacks of growth strategy, inefficient social policies; corruption and weak institutions that prevent an equal distribution of economic gains; alliance between the government and a privileged rent-seeking business elite is seen as an important driver of the Arab Spring revolutions; and for the weak institutional quality that operate in the region (World Bank, 2013b)
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