Determinants of Fdi in Saudi Arabia

FOREIGN DIRECT INVESTMENT IN SAUDI ARABIA-AN sparing DEVELOPMENT PERSPECTIVE Khalid Alkhathlan, Department of Economics, King Saud University, Riyadh, KSA Md.Tarique, College of Business Administration, Al-Kharj, King Saud University, Riyadh, KSA. ABSTRACT international take away investing (FDI) plays an substantial role in impact the growth potentials and providing stability to the economy of Saudi Arabia. Our findings show that thither are mainly four factors which determine the net FDI fly the coop to Saudi Arabia. These are - gross domestic product, Privatization, Import and Export and Growth post of gross domestic product. There exists a positive race between FDI and GDP and GDP growth rate while it is negatively related to to privatisation and imports plus exports taken to shoother showing trade sensitivity. However, the relationship between FDI and GDP growth rate is very weak. The value for the GDP, privatisation and trade sensitivity elasticity to FDI is 1.36, -0.999 and 0.068 respectively. The marginal effect of GDP growth on FDI is 0.004. The developmental efforts in the country score not been able to attract FDI in a craved amount except the oil sector. To provide stability, self creed and sustainable growth to the Kingdom of Saudi Arabia (KSA) economy, FDI is needed in both import substitute and export promoting industries.

Keywords: Foreign Direct Investment, Gross Domestic Product, Privatization, Growth Rate. 1. INTRODUCTION Foreign Direct Investment (FDI) inflow in a country is considered to be an important waterway for the transmission of new ideas, technologies and business skills among different nations. It weed have break away impact on the developmental efforts of a country in transition. The prospects for growth can get better with an increase in the total level of capital coronation in the economy and by introducing more productive applied science and techniques. An essential source of new physical capital is organism provided by the foreign investors helping in channelizing the... If you want to get a full essay, order it on our website: Ordercustompaper.com

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