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

Zeravan Asaad () and Bayar MohamedRasheed Marane ()
Additional contact information
Bayar MohamedRasheed Marane: Cihan University - Duhok, University of Duhok, Kurdistan Region - Iraq

Technium Social Sciences Journal, 2020, vol. 10, issue 1, 318-332

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.

Keywords: Foreign Direct Investment; Human Development; Institutional Quality; Governance Sub-Indicators (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://techniumscience.com/index.php/socialsciences/article/download/1402/499 (application/pdf)
https://techniumscience.com/index.php/socialsciences/article/view/1402 (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:tec:journl:v:10:y:2020:i:1:p:318-332

Access Statistics for this article

Technium Social Sciences Journal is currently edited by Tasente Tanase

More articles in Technium Social Sciences Journal from Technium Science
Bibliographic data for series maintained by Tasente Tanase ( this e-mail address is bad, please contact ).