Open AccessDeterminant of FDI Inflows in OIC Countries
Author(s) -
Tania Megasari,
Soha Saleh
Publication year - 2021
Publication title -
international journal of islamic economics and finance
Language(s) - English
Resource type - Journals
eISSN - 2622-4372
pISSN - 2622-3562
DOI - 10.18196/ijief.v4i1.9473
Subject(s) - foreign direct investment , openness to experience , panel data , inflation (cosmology) , exchange rate , economics , monetary economics , international economics , language change , political stability , economic stability , politics , macroeconomics , econometrics , psychology , social psychology , art , physics , literature , theoretical physics , political science , law
This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).