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Factors in Saudi FDI Inflow

Author

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  • Nahla Samargandi
  • Mohammed A. Alghfais
  • Hadeel M. AlHuthail

Abstract

This study explores the driving factors for attracting Foreign Direct Investment (FDI) inflow in the Saudi Arabian economy in two stages. First, it applies a general to specific approach to form a model reflecting theoretical and anecdotal evidence of the Saudi Arabian economy. Second, we analyse time series data over the years 1984 to 2018. applying Autoregressive Distributed Lags (ARDL) approach, incorporating several structural breaks. This study explores Saudi membership of the World Trade Organization (WTO) and institutional quality, identifying them as promising factors in fostering FDI inflows in the economy. Our empirical investigation demonstrates that the Saudi economy experienced a higher inflow of FDI during the global financial crisis (GFC) due to economic stability. Trade openness is found to be conducive to promote FDI inflow. This study provides several policy implications.

Suggested Citation

  • Nahla Samargandi & Mohammed A. Alghfais & Hadeel M. AlHuthail, 2022. "Factors in Saudi FDI Inflow," SAGE Open, , vol. 12(1), pages 21582440211, January.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:1:p:21582440211067242
    DOI: 10.1177/21582440211067242
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    Cited by:

    1. Mwahib Gasmelsied Ahmed Mohammed, 2024. "Analyzing GDP Growth Drivers in Saudi Arabia: Investment or Consumption: An Evidence-Based ARDL-Bound Test Approach," Sustainability, MDPI, vol. 16(9), pages 1-18, April.
    2. Nadia Yusuf & Dareen Abdulmohsen, 2022. "Saudi Arabia’s NEOM Project as a Testing Ground for Economically Feasible Planned Cities: Case Study," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    3. Mohammad Anamul Haque & Syed Mehmood Raza Shah & Muhammad Usman Arshad, 2022. "Sustainable Economic Growth and FDI Inflow: A Comparative Panel Econometric Analysis of Low-Income and Middle-Income Nations," Sustainability, MDPI, vol. 14(21), pages 1-14, November.
    4. Hayat Khan & Ying Dong & Robeena Bibi & Itbar Khan, 2024. "Institutional Quality and Foreign Direct Investment: Global Evidence," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10547-10591, September.

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