Foreign Direct Investment in Oil-Exporting Countries

The study reports a number of findings regarding the determinants of FDI. It firstly finds that “openness to trade” and “composite risk” are the most important variables (amongst the overall determinants) for FDI inflows in oil-exporting countries in the long-run while “law and order” is the most important variable amongst the institutional and political determinants. It also concludes that FDI does not contribute to economic growth in oil-exporting countries; the only contribution is observed within non-rentier and non-Islamic oil-exporting countries.