Version 1
: Received: 27 November 2019 / Approved: 28 November 2019 / Online: 28 November 2019 (09:45:49 CET)
Version 2
: Received: 9 April 2020 / Approved: 9 April 2020 / Online: 9 April 2020 (09:55:45 CEST)
How to cite:
Rasouli Ghahroudi, M.; Chong, L.C. The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran: A Case Study. Preprints2019, 2019110357. https://doi.org/10.20944/preprints201911.0357.v1
Rasouli Ghahroudi, M.; Chong, L.C. The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran: A Case Study. Preprints 2019, 2019110357. https://doi.org/10.20944/preprints201911.0357.v1
Rasouli Ghahroudi, M.; Chong, L.C. The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran: A Case Study. Preprints2019, 2019110357. https://doi.org/10.20944/preprints201911.0357.v1
APA Style
Rasouli Ghahroudi, M., & Chong, L.C. (2019). The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran: A Case Study. Preprints. https://doi.org/10.20944/preprints201911.0357.v1
Chicago/Turabian Style
Rasouli Ghahroudi, M. and Li chy Chong. 2019 "The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran: A Case Study" Preprints. https://doi.org/10.20944/preprints201911.0357.v1
Abstract
In this paper, 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 empirical results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run impact 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 foreign direct investment. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanction has a positive impact on 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; sanctions; political stability; macroeconomic factors; GDP growth; Iran
Subject
Business, Economics and Management, Economics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
