Effects of FDI on Economic Development in Kurdistan Region

Authors

  • Taban Kanabi Yaba Business and Management Department, Ishik University, Erbil, Iraq

DOI:

https://doi.org/10.23918/ijsses.v5i2p195

Keywords:

Economic Development, Effects, Foreign Direct Investment, Kurdistan Region

Abstract

The study examines the effects of foreign direct investment (FDI) on economic development of Kurdistan Region/Iraq (KRG). The study was motivated by observations made which showed that there is a slowdown in infrastructure development and employment growth, and ideas suggested that such problems can be dealt with by attracting a lot of foreign direct investment inflows. The study employed a deductive approach which uses existing literature and data sources to ascertain the probable effects of foreign direct investment on economic development of Kurdistan Region. The findings established from the study showed that government intervention in the economy is hampering foreign direct investment growth. The findings also showed that there is inequality in the distribution of foreign direct investment and that much of the foreign direct investment is more concentrated in Erbil and Dahuk. The study also outlined that there are a lot of economic inefficiencies which are restricting the ability of Kurdistan Region to attract and use foreign direct investment. The findings showed that the risky economic outlook still remains the major determinant of FDI inflows into KRG. Foreign investors have been exhibiting bearish behavior towards investing in KRG. The findings also showed that the impact of FDI on economic development in KRG is also influenced by the concentration of investment projects and the distribution of FDI funds. Conclusions were made that foreign direct investment is important for the growth and development of Kurdistan Region.

References

Adams, S. (2009). Foreign Direct investment, domestic investment, and economic growth in Sub-Saharan Africa. Journal of Policy Modeling, 31(6), 939-949.

Ahrend, R. (2000). Foreign direct investment into Russia–pain without gain? A survey of foreign direct investors. Russian Economic Trends, 9(2), 26-33.

Almfraji, M., & Almsafir, M. (2014). Foreign Direct Investment and Economic Growth Literature Review from 1994 to 2012. Procedia – Social and Behavioral Sciences, 129, 206-213.

Board of Investment. Factsheet Kurdistan Region – Iraq. Erbil: Kurdistan Regional Government, 2012.

Hawrami, A. (2013). Rising Star in the Global Oil and Gas Industry. Kurdistan Review.

Heshmati, A. & Davis, R. (2007). The determinants of foreign direct investment flows to the federal region of Kurdistan., Vol. 1, pp. 1-64. Retrieved from https://ssrn.com/abstract=1136380 or https://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Kurdistan Investment Board (2018). List of licensed projects in Kurdistan Region. Department of Information and Studies, Directorate of Information. Retrieved from https://kurdistaninvestment.org/docs/licensed_projects.pdf.

Kurdistan Investment Board (2016). List of Licensed Projects in Kurdistan Region. Erbil: Kurdistan Regional Government.

Krstevksa, A. & Petrovska, M. (2012). The economic impacts of the foreign direct investments: panel estimation by sectors on the case of Macedonian economy. Journal of Central Banking Theory and Practice, pp. 55-73.

Lall, S., & Narula, R. (2004). Foreign direct investment and its role in economic development: Do we need a new agenda? The European Journal of Development Research, 16(3), 447-464.

Raluca, D. A., & Mihaela, G. (2010). The Evolution of FDI in Romania during the Period 1990-2009. Romanian Economic and Business Review, 6(1), 97.

World Bank (2015). The Kurdistan Region of Iraq. Washington, DC: World Bank Group.

Downloads

Published

01.12.2018

Issue

Section

Articles

How to Cite

Yaba, T. K. (2018). Effects of FDI on Economic Development in Kurdistan Region. International Journal of Social Sciences & Educational Studies, 5(2), 195-204. https://doi.org/10.23918/ijsses.v5i2p195

Similar Articles

21-30 of 375

You may also start an advanced similarity search for this article.