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The Influence of Human Development, Institutional Quality and ISIS Emergence on Foreign Direct Investment in Iraq

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  • Zeravan Abdulmuhsen Asaad

    (Cihan University - Duhok, University of Duhok, Kurdistan Region - Iraq)

  • Bayar MohamedRasheed Marane

    (Cihan University - Duhok, University of Duhok, Kurdistan Region - Iraq)

Abstract

This study investigates the influence of human development and institutional quality on the foreign direct investment net inflows on the gross domestic product in Iraq for the period (2004-2016) by using OLS regression. The empirical results show that governance sub-indicators do not actually matter much in attracting Foreign Direct Investment (FDI) inflows in Iraq. This variable shows fixed results with a different sign; the Political Stability (PS), Government Effectiveness (GE) and Rule of Law (RL) are the sub-indicators of the governance with a positive sign which is insignificant, while the Voice and Accountability (VA), Regulatory Quality (RQ) and Control of Corruption (CC) are the sub-indicators of the governance index with a negative sign and an insignificant impact on FDI inflows. The value of Worldwide Governance Indicators (WGI) coefficient is negative and significant at 10% level. Hence it has been concluded that the explanatory variables are negatively associated with the dependent variable FDI. In contrast, the Human Development Index (HDI) has a positive and significant impact on FDI inflows. This study found that Islamic State of Iraq and Syria (ISIS) emergence after (2013) had a significant coefficient, meaning that ISIS has affected the level of FDI inflows.

Suggested Citation

  • Zeravan Abdulmuhsen Asaad & Bayar MohamedRasheed Marane, 2020. "The Influence of Human Development, Institutional Quality and ISIS Emergence on Foreign Direct Investment in Iraq," Technium Social Sciences Journal, Technium Science, vol. 10(1), pages 318-332, August.
    • Handle: RePEc:tec:journl:v:10:y:2020:i:1:p:318-332
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    Cited by:

    1. Leena Ajit Kaushal, 2022. "Institutional and economic determinants of Indian OFDI," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2147648-214, December.
    2. Bayar Marane, 2022. "Iraq Stock Exchange Performance Determinants: A literature review," Technium Social Sciences Journal, Technium Science, vol. 31(1), pages 397-407, May.
    3. Zeravan Abdulmuhsen Asaad & Amjad Saber Al-Delawi & Omed Rafiq Fatah & Awaz Mohamed Saleem, 2023. "Oil Exports, Political Issues, and Stock Market Nexus," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 362-373, January.
    4. Zeravan Abdulmuhsen Asaad & Amjad Saber Al-Delawi, 2022. "Iraqi Stock Exchange Reactions to the Oil price, Covid-19 Aftermath, and the Saudi Stock Exchange Movements pre-during Vaccination Program," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 18-30, September.

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    More about this item

    Keywords

    Foreign Direct Investment; Human Development; Institutional Quality; Governance Sub-Indicators;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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