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Outward Foreign Direct Investment (OFDI) significantly impacts the economy of a country. This study aims to investigate the determinants of OFDI through the evaluation of outward investments for the panel of the Gulf Cooperation Council (GCC) countries. Pooled ordinary least squares (OLS), fixed effects and random effects regression analysis were applied to test the model and hypotheses. The data was collected from the year 1960 to 2018 from the databases of the World Bank and Bloomberg. GDPP (0.120, p > 0.10) has insignificant relationship with OFDI, whereas EX (-0.138, p > 0.10) has insignificant relationship with OFDI. However, INFRA (-0.001, p > 0.10) has insignificant impact on OFDI. In addition, ER (3.048, p < 0.01), has been found statistically significant at 99% confidence interval. The study revealed that FDI significantly impacts the economic performance of home and host countries. The rate of outward foreign direct investment has increased significantly over the past few years. It has been observed that the outflow has been on the rise from the developing states, where the factor has been identified as a strong influential element in the transition of economy.
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In-Text Citation: (Khayat, 2020)
To Cite this Article: Khayat, S. H. (2020). The Determinants of GCC’s Outward Foreign Direct Investment. International Journal of Academic Research in Business and Social Sciences. 10(8), 1026-1043.
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