Advances in Management and Applied Economics

FDI determinants and oil effects on foreign direct investment: evidence from Islamic countries

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• Abstract

  This paper investigates studying FDI determinants in Islamic countries. We have chosen a sample with 8 Islamic countries in the period 1985-2009. We have applied a balanced panel data model. Hausman (1978) test shows that we should use random effects model. The results indicate that economic growth has the most effect on FDI attracting. But, inflation rate, oil extraction and openness have a negative effect on attraction of FDI. For attraction of FDI, Islamic countries should control economic risk and should pay attention to economic growth.