Determinants of inter-foreign direct investment in OECD Countries (2005-2021)

Authors

  • Gherbi Tarek University of El-Oued
  • Khedir Okba Laboratory: University of El-Oued, The Economies of Renewable Energies and Their Role in Achieving Sustainable Development
  • Mostefaoui Ali University of El-Oued, Political Economy Laboratory Between Economic Development and Political Challenges In Arab And African Countries (Pedaa)
  • Khedir Leyla Laboratory: University of El-Oued, The Economies of Renewable Energies and Their Role in Achieving Sustainable Development

Keywords:

Foreign direct investment, Organization for Economic Co-operation and Development, Multinational companies, Gravity Model

Abstract

The study aims to measure the determinants of bilateral foreign direct investment (FDI) in countries of the Organisation for Economic Co-operation and Development (OECD) during the period 2005-2021. The study includes 19 countries: Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, Japan, Korea, Mexico, the Netherlands, Portugal, Spain, Turkey, the United Kingdom, and the United States. To achieve this, a standard model was constructed that includes the most important economic and non-economic variables (19 variables) that directly affect foreign investor behavior. The quantitative estimation of the study was done using the gravity model with fixed-effects poisson estimation (PPMLHDFE), relying on the statistical software "STATA 17". The results showed a relationship between the dependent variable and the independent variables, indicating that both the per capita GDP in the source and host country, investment freedom in the host country, geographical distance, long-term interest rates, control of corruption, and financial freedom in the host country, as well as regional trade agreements have a significant impact.

References

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Published

2025-02-10

How to Cite

Gherbi, T., Khedir, O., Mostefaoui, A., & Khedir, L. (2025). Determinants of inter-foreign direct investment in OECD Countries (2005-2021). International Journal of Economic Perspectives, 19(2), 403–424. Retrieved from http://ijeponline.org/index.php/journal/article/view/872

Issue

Vol. 19 No. 2 (2025)

Section

Peer Review Articles
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Copyright (c) 2025 Gherbi Tarek, Khedir Okba, Mostefaoui Ali, Khedir Leyla

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