Thursday, June 21, 2018
This paper investigates the main determinants of foreign direct investments inflows in oil and non-oil developing countries from 1970 to 2016. We use World Bank data to examine the main determinants of FDI based on UNCTAD (1993) model. Using ARDL models, we found that GDP is the key determinants affecting FDI in both oil and non-oil countries. We also tested the causality between GDP and FDI using Granger Causality test. we find a feedback causality between FDI and GDP in non-oil countries. Our empirical results support the findings of single-country studies.