The factors affecting the relationship between foreign direct investment and economic growth in selected OPEC countries

Document Type : Original

Authors

Department of Theoretical Economics, Faculty of Economics, University of Tehran, Tehran, Iran.

Abstract

In classical models, one of the important factors of economic growth is capital accumulation. Since developing countries, including Iran, need to accumulate capital for economic growth, as a result, the use of foreign direct investment in these countries is considered. The present research examines the effects of foreign direct investments and the financial development on the economic growth in a panel data of OPEC countries (Algeria, Ecuador, Iran, Iraq, Kuwait, Nigeria, Qatar, United Arab Emirates, Saudi Arabia) over the period 1987-2017. The estimation of the model estimation shows that the effect of FDI index on economic growth of the countries under study was positive and significant. The effect of the financial ratio of private sector credit to GDP on the economic growth of the countries studied was negative and significant. The effect of the financial ratio of cash debt to GDP on the economic growth of selected OPEC countries has been positive and significant.

Keywords

Main Subjects

حوزة موضوعی: منتخبی از کشورهای عضو اوپک (اکوادور، الجزایر، امارات متحدة عربی، ایران، عراق، عربستان سعودی، کویت، قطر، و نیجریه)

Main Object: Selected OPEC Countries (Algeria, Ecuador, Iran, Iraq, Kuwait, Nigeria, Qatar, United Arab Emirates, Saudi Arabia)

References

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Journal of Countries Studies
Volume 1, Issue 3
2023
Pages 407-425

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History

  • Receive Date: 31 May 2023
  • Revise Date: 17 June 2023
  • Accept Date: 20 June 2023

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