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Nation Branding and How It Is Related to Foreign Direct Investment Inflows

Author

Listed:
  • Abdelmounaim Lahrech

    (Finance Program, Faculty of Business and Law, The British University in Dubai, Block 11, 1st and 2nd Floor, Dubai International Academic City, Dubai, United Arab Emirates,)

  • Sami Zaki Alabdulwahab

    (Department of Economics, College of Business Administration, King Faisal University, Al-Hofuf Al-Ahsa 31982, Kingdom of Saudi Arabia,)

  • Safa Bouayach

    (College of Business Administration, Al Akhawayn University, Ifrane 53000, Morocco.)

Abstract

This study examines the existence of a correlation between the Brand Image of a country and its FDI Inflows. Furthermore, does the Brand Image of a country have a positive impact on its FDI inflows? To proceed to the object of the study, we use a panel model regression that applies to the ten best Nation Branding Index (NBI) countries between 2008 and 2014. The result illustrates a strong positive correlation between nation branding and FDI inflow, indicating that nation branding plays a significant role in attracting business to the country. Moreover, countries that exhibit high nation branding have a tendency to have significant increases in FDI inflows.

Suggested Citation

  • Abdelmounaim Lahrech & Sami Zaki Alabdulwahab & Safa Bouayach, 2020. "Nation Branding and How It Is Related to Foreign Direct Investment Inflows," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 248-255.
    • Handle: RePEc:eco:journ1:2020-02-28
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    References listed on IDEAS

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    Cited by:

    1. John Schoeneman & Jami Fullerton, 2023. "Exploring relationships between nation branding and foreign direct investment," Place Branding and Public Diplomacy, Palgrave Macmillan, vol. 19(3), pages 266-279, September.
    2. Eda Dineri & Fatma Gül Bilginer Özsaatcı & Yunus Kılıç & Şemsettin Çiğdem & Gökçen Sayar, 2024. "Unveiling the Power of Nation Branding: Exploring the Impact of Economic Factors on Global Image Perception," Sustainability, MDPI, vol. 16(16), pages 1-20, August.
    3. Katariina Juusola & Abdelmounaim Lahrech, 2024. "Modeling transitions in nation brand equity: An empirical assessment of the nation equity power grid," Australian Journal of Management, Australian School of Business, vol. 49(2), pages 249-271, May.
    4. Aymen A. Mohib & Conor Carroll, 2024. "Nation branding as a tool to attract foreign direct investments: a case study of Qatar," Place Branding and Public Diplomacy, Palgrave Macmillan, vol. 20(3), pages 363-377, September.

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    More about this item

    Keywords

    Nation Branding Index; Foreign Direct Investment; Trade Openness; Growth Real GDP; Political Stability; Control of Corruption; Panel Estimation;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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