The Effect of Exports on Direct Foreign Investment Follow in Selected Arab Countries

Abstract

Arab countries face great difficulties in obtaining sufficient local capital to realize the required level of investment for the human and natural resources. Most of these countries are characterized by low income per individual and low GDP compared with other developed countries. This led to low levels of investment and consequently, a decrease in growth of income and product in accumulated capital Hence, average growth of income and product decreased so much that these countries fell in the poverty which caused a shortage in local capital growth. Therefore, most of these countries focus on attracting foreign investments as they are one of the sources to fill the gap in the financial and local resources. This is done through providing the appropriate investment conditions by updating organizational and legislative frames governing investment and facilitating the investing companies business. The study aims at measuring and analyzing factors governing direct foreign investment export special in some of the Arabic countries. Quantitative method is used in the study to identify these factors including national growth product, inflation, and governmental expenditure and saving. ).