Record Details

Financial Development and Investors Location Choice in The Arab World

International Journal of Business Studies Review

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Field Value
 
Title Financial Development and Investors Location Choice in The Arab World
 
Creator Ayesha Azam, Mumtaz Hussain Shah,
 
Description There are several variables/factors which play an important role in influencing investors’ location choice. In this paper, we gauge the impact of financial development (FD) along with other variables i.e. market size, development level, openness and human capital on Foreign Direct Investment (FDI) in the Arab World. Using fixed effects panel method for 8 Arab countries i.e. Bahrain, Egypt, Jordan, Kuwait, Morocco, Qatar, Saudi Arabia and Tunisia from 2003 to 2016 it is shown that there is a significant effect of financial development on FDI in the Arab World. Whether this relationship is positively significant or negatively significant, it depends on the proxy used for measuring FD. Domestic credit to private sector is negatively significant and market capitalisation of listed companies positively. Hence, depending on the multinationals objective both are plausibly possible. Among the conventional FDI determinants market size and openness have a positive effect on FDI, whereas development level and human capital negatively influence the overseas investors. However, like financial development these results are sensitive to the use of proxy measures.
 
Publisher KUST
 
Date 2018-09-20
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier http://intjourbsr.org/index.php/ijbsr/article/view/36
 
Source International Journal of Business Studies Review; Vol 4 No 1 (2018); 58-74
2521-0068
 
Language eng
 
Relation http://intjourbsr.org/index.php/ijbsr/article/view/36/29