Classification of OIC Countries Based on Factors Influencing Foreign Direct Investment (FDI)

Tekijä: Reza Najarzadeh, Vaheed Shaghaghi Shahri

Aineistotyyppi: Article
Julkaistu: پژوهشگاه حوزه و دانشگاه 2004-09-01

Kuvaus

There are several indices based on which the member states of theOrganization of the Islamic Countries (OIC) can be classified inattracting foreign direct investments. Some of the more importantones are gross domestic product (per capita or its growth rate),inflation rate, trade openness index, wage rate index or unit labor cost(ULC), the ratio of savings to gross domestic product, the ratio offoreign debt to gross domestic product, average tariff rate, the ratio ofgovernment expenditure to gross domestic product, the GiniCoefficient (an income distribution indicator), the ratio of domesticinvestment to gross domestic product, time laps in foreigninvestments, exchange rate variability, political stability index,foreign investment risk index, economic freedom index, globalizationindex, regionalism index and other factors impacting foreigninvestment attraction.In this article an attempt is made to classify the member states of theOrganization of the Islamic Countries, OIC, based on their ability toattract foreign direct investments, FDI. In so doing, economic, socialand political indices affecting FDI were introduced and then by usingthe Numerical Taxonomy technique this classification was done. Theresults indicate that Iran is in the thirty fifth places among forty threecountries.