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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Determinants of Foreign Direct Investment in Iran

Seyed Mohammad Alavinasab

Open access

This study aims to identify the economic determinants of foreign direct investment (FDI) in Iran for the period of 1991-2009. Simple econometric model and least squares technique have been used to determine the various economic factors that affect FDI inflows. Result found indicates the positive significant effects of real GDP growth, the proportion of imports to GDP, return on investment and infrastructure on FDI. While the effect of government consumption on FDI inflows has been found insignificant with unexpected positive sign.
Keywords: foreign direct investment, determinants, Iran.

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