EconPapers    
Economics at your fingertips  
 

The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran

Ghahroudi Mehdi Rasouli () and Chong Li Choy ()
Additional contact information
Ghahroudi Mehdi Rasouli: Institute for Management and Planning Studies (IMPS),Tehran, Iran
Chong Li Choy: University of St. Gallen,St. Gallen, Switzerland

Economics and Business, 2020, vol. 34, issue 1, 15-34

Abstract: We examine the impact of the macroeconomic determinants of foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI inflows into Iran. The results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run effect on FDI inflows in Iran. Our findings also show that GDP growth rate and trade openness have no significant effect on FDI. Our results indicate that sanctions do not have a significant moderating role in the relationship between macroeconomic factors and FDI. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanctions have a positive impact on the inflation rate and exchange rate in Iran. Finally, our findings show that sanctions have had a significant impact on Iran’s economic growth in recent years due to increasing the severity level of sanctions.

Keywords: FDI inflows; GDP growth; Iran; macroeconomic factors; sanctions; political stability (search for similar items in EconPapers)
JEL-codes: F21 F62 F4 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.2478/eb-2020-0002 (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:vrs:ecobus:v:34:y:2020:i:1:p:15-34:n:2

Access Statistics for this article

Economics and Business is currently edited by Remigijs Počs

More articles in Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2020-09-19
Handle: RePEc:vrs:ecobus:v:34:y:2020:i:1:p:15-34:n:2