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Foreign Direct Investment Master - Essay Example

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Foreign Direct Investment Master

However, despite its economic significance, on political grounds, FDI is a very controversial term as it is marred by controversies and political victimization especially in developing countries.
Iran is one such case where FDI has mostly remained a political issue despite the fact that Iran held one of the largest oil reserves in the world. Over the period of time, due to international sanctions, the process of Foreign Direct Investment has remained stagnant due to political hostility towards Iran. However, despite such situation, due to Iran's strategic oil & gas reserves, many countries such as China, Pakistan, India as well as other European countries made foreign direct investment into the country.
Jensen (2004) is of the view that institutional lending by supernatural institutions such as IMF has very complex and perplexing impacts on the economic performance of the countries due to institutional interference and policy dictations made by such institutions lower the flow of foreign direct investments into the developing countries.
Foreign Direct Investment has multiple consequences for the countries as it not only create an impact on the economic situation of the country but also have consequences on the political as well as social environment of the country.(Kudrle & Bobrow, 1982). The question of foreign direct investment is therefore largely viewed within the perspective of the presence of foreign influence in the country as non-domestic entities tend to control some of the strategic assets of the country. The nature of foreign direct investment into developing countries is therefore largely considered more as a political action rather than an economic impact.
This research study therefore will consider following research question
"The nature of foreign direct investment key determinants in Iran "
The above research question has been selected keeping in view the diverse impacts of foreign direct investment on the overall economy of the country especially in presence of different institutional arrangements such as economic sanctions, IMF/World Bank lead lending as well as openness to the free market policies adopted by the receiver countries.
Aims of the Research
Considering the research question, the major aim of this research study would be to analyze the nature of foreign direct investment into Iran and what are the key determinants which determine the level of FDI into the country
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Summary

Foreign Direct Investment or FDI has rapidly increased during the last few decades as the overall network of countries and institutions favoring the FDI have expanded at great pace. (Mody & Ashoka, 2007). Foreign Direct Investment plays a critical role in the development of any country because of its potential impact on economic growth…
Author : maryamwaelchi
Foreign Direct Investment Master Essay essay example
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