An Investigation of the FDI Determinants in the Iran's Petrochemical Industry by the Panel Data Method

The petrochemical industry plays an important role in the world economy and has many forward and backward linkages with other sectors. So capacity expansion through attracting FDI in this industry can help economy of the host countries to reach; GDP growth, employment creation, technology transfer a...

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Main Authors: Seyed komail Tayebi, Ahmad Googerdchian
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2006-03-01
Series:فصلنامه پژوهش‌های اقتصادی ایران
Subjects:
Online Access:https://ijer.atu.ac.ir/article_3713_dba473229f9c58a82b2231c1bc56138f.pdf
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author Seyed komail Tayebi
Ahmad Googerdchian
author_facet Seyed komail Tayebi
Ahmad Googerdchian
author_sort Seyed komail Tayebi
collection DOAJ
description The petrochemical industry plays an important role in the world economy and has many forward and backward linkages with other sectors. So capacity expansion through attracting FDI in this industry can help economy of the host countries to reach; GDP growth, employment creation, technology transfer and its spillover effects. The main purpose of this study is to present and estimate a FDI model which includes the major determinants of attracting FDI to the Iran's Petrochemical Industry. The model coefficients are estimated by the Panel Data, using observations of FDI and the relevant variables on a set of the Iranian individual petrochemical complexes, over the period 1993-2002. The estimation results indicate that: profitability of the host industry, the economic size (production capacity), the degree of openness of the industry and the level of R&D expenses affect significantly the inflow FDI to the Iran's Petrochemical Industry. In other words, improvement in the quantity and quality of such significant factors leads to the inflow of FDI to petrochemical industry of Iran and eventually expanding potential of this industry as well as other sectors dependent on petrochemical industry.
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spelling doaj.art-487f5176dd714cc5ba49f348ae4500e02024-01-02T10:27:49ZfasAllameh Tabataba'i University Pressفصلنامه پژوهش‌های اقتصادی ایران1726-07282476-64452006-03-018261812033713An Investigation of the FDI Determinants in the Iran's Petrochemical Industry by the Panel Data MethodSeyed komail Tayebi0Ahmad Googerdchian1Assistant Professor, university of IsfahanPh.D. student in Economics, University of IsfahanThe petrochemical industry plays an important role in the world economy and has many forward and backward linkages with other sectors. So capacity expansion through attracting FDI in this industry can help economy of the host countries to reach; GDP growth, employment creation, technology transfer and its spillover effects. The main purpose of this study is to present and estimate a FDI model which includes the major determinants of attracting FDI to the Iran's Petrochemical Industry. The model coefficients are estimated by the Panel Data, using observations of FDI and the relevant variables on a set of the Iranian individual petrochemical complexes, over the period 1993-2002. The estimation results indicate that: profitability of the host industry, the economic size (production capacity), the degree of openness of the industry and the level of R&D expenses affect significantly the inflow FDI to the Iran's Petrochemical Industry. In other words, improvement in the quantity and quality of such significant factors leads to the inflow of FDI to petrochemical industry of Iran and eventually expanding potential of this industry as well as other sectors dependent on petrochemical industry.https://ijer.atu.ac.ir/article_3713_dba473229f9c58a82b2231c1bc56138f.pdfforeign direct investment (fdi)iran's national petrochemical industrypanel data
spellingShingle Seyed komail Tayebi
Ahmad Googerdchian
An Investigation of the FDI Determinants in the Iran's Petrochemical Industry by the Panel Data Method
فصلنامه پژوهش‌های اقتصادی ایران
foreign direct investment (fdi)
iran's national petrochemical industry
panel data
title An Investigation of the FDI Determinants in the Iran's Petrochemical Industry by the Panel Data Method
title_full An Investigation of the FDI Determinants in the Iran's Petrochemical Industry by the Panel Data Method
title_fullStr An Investigation of the FDI Determinants in the Iran's Petrochemical Industry by the Panel Data Method
title_full_unstemmed An Investigation of the FDI Determinants in the Iran's Petrochemical Industry by the Panel Data Method
title_short An Investigation of the FDI Determinants in the Iran's Petrochemical Industry by the Panel Data Method
title_sort investigation of the fdi determinants in the iran s petrochemical industry by the panel data method
topic foreign direct investment (fdi)
iran's national petrochemical industry
panel data
url https://ijer.atu.ac.ir/article_3713_dba473229f9c58a82b2231c1bc56138f.pdf
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AT seyedkomailtayebi investigationofthefdideterminantsintheiranspetrochemicalindustrybythepaneldatamethod
AT ahmadgoogerdchian investigationofthefdideterminantsintheiranspetrochemicalindustrybythepaneldatamethod