Doktorarbeit / Dissertation, 2016
255 Seiten
Introduction
1. Chapter One: Investments and Foreign Direct Investments Attractiveness
1.1. Investments and Classification of Investments
1.2. Concept, Theories, and Practice of Foreign Direct Investments
1.2.1. Theories of Foreign Direct Investment
1.2.2. Practice of Foreign Direct Investment Over Multiple Historical Periods
1.3. Determinants of Investments Attractiveness
2. Chapter Two: Methodology of Foreign Direct Investments Attractiveness Research
2.1. Review of Foreign Direct Investments Attractiveness Assessment Methods
2.2. Composite Measure of Foreign Direct Investments Attractiveness
2.3. Aggregate Methods in the Study of Attractiveness of Investment
2.3.1. Synthetic Vector Measure
2.3.2. Synthetic Measure Using PCA Method
2.3.3. Topsis Method
3. Chapter Three: Investment Specificity in Arab Countries
3.1. Culture and Economic Geography in Arab Countries
3.2. Analyses of FDI Trends for Arab Countries
3.2.1. FDI in Arab Countries
3.2.2. The Inter-Arab Direct Investment and Sectoral Distribution of Arabic Countries
3.3. Analyses of Indicators of Investments Climate in Arab Countries
4. Chapter Four: Empirical Analysis of the Investment Attractiveness Countries
4.1. Analyses of the Attractiveness of Arab Countries and Poland Using Vector Methods
4.2. Analyses of Factors Influencing Investment Attractiveness in Arab Countries (in Comparison with Poland)
4.3. Change in the Investment Attractiveness of Arab Countries and Poland in the Period 2005-2010
4.4. Propositions for Important Changes in Investment Attractiveness in Arab Countries
The primary objective of this research is to assess the investment attractiveness of various Arab countries by constructing a composite index based on key economic, social, and political determinants. The study seeks to address the research problem of identifying the most influential factors that determine foreign direct investment (FDI) inflows, as these factors often vary significantly between countries due to differences in economic structure and size. By comparing these countries with Poland as a benchmark, the research aims to provide actionable recommendations for policymakers to enhance their investment climates.
1.2.1. Theories of Foreign Direct Investment
Various FDI theories provide the motivations and determinants of FDI. The theories try to answer the questions why the firms prefer to invest abroad and how they enter into the foreign countries, etc. All the new marks in the new theories are to add some new elements and criticism to the earlier ones. Economists classified the FDI theories into micro-level and macro-level FDI theories. The micro-level theories (such as the theory of monopolistic advantage, the theory of internalization, and eclectic FDI theory) discuss the motivation of FDI associated with the firm level. The macro-level FDI theories (such as capital market theory, FDI theories based on exchange rates, and FDI theories based on economic geography) give the macroeconomic factors that determine the FDI. Besides these two categories, the development theories of FDI (which combine both the micro level and macro level FDI theories (such as Life-cycle theory) also discussed the motivation of FDI inflows (Denisia, 2010, p. 53).
Stephen Hymer (1976) developed the theory of monopolistic advantage. According to this theory, firms invest abroad because of certain firm-specific advantages such as access to raw materials, economies of scale, trade names, patents, low transaction costs, etc. Also, these features are limited to the company enabling it to get the monopoly profit. Hymer stated that local firms will always be better informed about the local economic environment, and to have FDI taken place there must be certain conditions. The theory assumes investments to be viable, and the markets of these benefits must be imperfect (ʿbd Alǧfar, 2002).
Casson and Buckley developed the theory of internalization in 1976 (Rugman & Verbeke, 2007, p. 156). According to this theory and due to imperfect market firms try to make use of their monopolistic advantage themselves. Buckley and Casson (1976) suggest incorporation a vertical union in bringing new operations and activities under the governance of the firm.
1. Chapter One: Investments and Foreign Direct Investments Attractiveness: Provides a theoretical overview of investment definitions, classifications, and historical FDI trends, while identifying key determinants.
2. Chapter Two: Methodology of Foreign Direct Investments Attractiveness Research: Outlines the methodological approach, including the construction of composite indicators and the application of synthetic vector measures.
3. Chapter Three: Investment Specificity in Arab Countries: Analyzes the economic geography, FDI trends, and investment climate indicators specifically within the context of the identified Arab nations.
4. Chapter Four: Empirical Analysis of the Investment Attractiveness Countries: Presents the empirical findings, comparing Arab countries and Poland, analyzing influencing factors, and proposing structural changes to improve attractiveness.
Foreign Direct Investment, FDI, Investment Attractiveness, Arab Countries, Poland, Composite Index, Synthetic Vector Measure, Economic Determinants, Social Factors, Political Stability, Rule of Law, Transparency, Investment Climate, Economic Growth, Competitiveness
The dissertation focuses on assessing and comparing the investment attractiveness of selected Arab countries, specifically aiming to identify the most significant factors influencing FDI inflows in these regions.
The research covers three main pillars: economic factors (such as GDP and inflation), social factors (such as education and electricity production), and political factors (including stability, rule of law, and transparency).
The main goal is to construct a composite index of FDI attractiveness for Arab countries, utilizing this index to rank them and compare their performance against Poland as a benchmark.
The study primarily utilizes a synthetic vector measure approach to build composite indicators and assess FDI attractiveness, allowing for dynamic comparative analyses across the period 2005-2010.
The main body examines FDI trends in Arab countries, compares these results with Poland, analyzes influencing factors using multi-dimensional assessment techniques, and offers concrete policy recommendations for improvement.
The work is best characterized by terms such as Foreign Direct Investment, FDI, Investment Attractiveness, Arab Countries, Poland, Composite Index, Synthetic Vector Measure, and various economic, social, and political determinants of FDI.
Poland was selected because it successfully underwent a transition from a centrally planned economy to a market economy, shares some cultural similarities, and serves as an appropriate model for emerging markets seeking to develop financial and investment institutions.
The research relies on diverse data from reputable international sources like the World Bank, UNCTAD, and Arab financial institutions, which are then normalized and structured into stimulant and destimulant factors to calculate the composite index.
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