TY - JOUR
T1 - The location determinants of FDI in the GCC countries
AU - Mina, Wasseem
N1 - Funding Information:
I am grateful to two anonymous referees, the Editor (Ike Mathur), and to participants at the 4th INFINITI conference at Trinity College, Dublin, and the 5th Annual Middle East Association Meeting held in Sousse, Tunisia, for their useful comments and suggestions on earlier versions of this paper. I gratefully acknowledge the financial support of the Office of Research Affairs at the UAE University (research grant contract no. 01-02-4-11/05).
PY - 2007/10
Y1 - 2007/10
N2 - This paper studies the location determinants of FDI flows to the GCC countries, along Dunning's [Dunning, J., 1981. International Production and the Multinational Enterprise. Allen & Unwin, London] OLI paradigm. The paper uses panel data for the period 1980-2002. Panel data model estimates show that oil potential, measured by oil reserves, and oil utilization, measured by oil production, have a surprisingly negative influence on FDI flows, contrary to expectations about positive association between GCC oil resources and FDI flows. However, the relative degree of oil utilization, measured by oil production relative to oil reserves, has a positive influence on inflows. Similar to oil potential and oil utilization, oil price has a negative influence. Estimates also show that while institutional quality, trade openness and infrastructure development encourage FDI flows, human capital significantly discourages them.
AB - This paper studies the location determinants of FDI flows to the GCC countries, along Dunning's [Dunning, J., 1981. International Production and the Multinational Enterprise. Allen & Unwin, London] OLI paradigm. The paper uses panel data for the period 1980-2002. Panel data model estimates show that oil potential, measured by oil reserves, and oil utilization, measured by oil production, have a surprisingly negative influence on FDI flows, contrary to expectations about positive association between GCC oil resources and FDI flows. However, the relative degree of oil utilization, measured by oil production relative to oil reserves, has a positive influence on inflows. Similar to oil potential and oil utilization, oil price has a negative influence. Estimates also show that while institutional quality, trade openness and infrastructure development encourage FDI flows, human capital significantly discourages them.
KW - Foreign direct investment
KW - Gulf Cooperation Council
KW - Location advantage
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U2 - 10.1016/j.mulfin.2007.02.002
DO - 10.1016/j.mulfin.2007.02.002
M3 - Article
AN - SCOPUS:34447266401
SN - 1042-444X
VL - 17
SP - 336
EP - 348
JO - Journal of Multinational Financial Management
JF - Journal of Multinational Financial Management
IS - 4
ER -