Foreign Direct Investment in GCC Countries: The Essential Influence of Governance and the Adoption of IFRS

Costas Siriopoulos (), Athanasios Tsagkanos, Argyro Svingou and Evangelos Daskalopoulos
Additional contact information
Athanasios Tsagkanos: Department of Business Administration, University of Patras, 26504 Patras, Greece
Argyro Svingou: School of Social Sciences, Hellenic Open University, Parodos Aristotelous 18, 26335 Patras, Greece
Evangelos Daskalopoulos: Department of Management Science and Technology, University of Patras, 1 Megalou Alexandrou Str., 26334 Patras, Greece

JRFM, 2021, vol. 14, issue 6, 1-13

Abstract: This paper presents an analysis of the factors affecting foreign direct investments, focusing on governance quality and adoption of International Financial Reporting Standards on countries of the Gulf Cooperation Council, which are a special case of study due to their idiosyncratic characteristics, rich natural resources and geographical position. Panel data analysis was conducted, implementing three different models (Fixed Effect, Random Effect, and Arellano Bond Dynamic Model). The results show that the adoption of International Financial Reporting Standards is a strong determinant that promotes foreign direct investments. As regards the governance quality, the block of Gulf Cooperation Council countries has fulfilled the minimum level of governance pre-conditions relative to foreign direct investments. In addition, governance indicators associated with law, rules, and corruption are more influential determinants for foreign direct investments.

Keywords: FDI; IFRS; GCC countries; governance; panel data analysis; OLI Paradigm (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.mdpi.com/1911-8074/14/6/264/pdf (application/pdf)
https://www.mdpi.com/1911-8074/14/6/264/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:14:y:2021:i:6:p:264-:d:572614

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().