Determinants of Foreign Direct Investment in the Middle East Region: An Empirical Analysis

Abstract

The objective of the present study is to examine the Foreign Direct Investment (FDI) inflows in the Middle East region, and it also attempts to identify the potential determinants for the investment inflows. With this purpose taking assistance of public database such as the World Bank (WB), and the United Nations Conference on Trade and Development (UNCTAD) a panel econometric model has been specified and tested for a sample of 09countries over a period of 35 years (1981-2015). The result of the study shows Purchasing Power, Human Capital and Trade Openness as the key determinants of Inward FDI inflows for the growth and development of the Middle East region.