ROLE OF ECONOMIC FACTORS ON FOREIGN DIRECT INVESTMENT INFLOWS IN THE GULF COOPERATION COUNCIL COUNTRIES

Abstract

Economic factors have played a critical impact on foreign direct investment (FDI) inflows and require the attention of scholars to enhance economic conditions and the country's FDI position. Therefore, this study investigates the effect of economic factors such as economic growth, taxes on international commerce, technology adoption, labor force, and ease of doing business on foreign direct investment (FDI) inflows in Gulf Cooperation Council (GCC) nations. Following secondary data-gathering methodologies, this article retrieved secondary data from the world development indicators (WDI) from 1986 to 2020. The relationship between the understudy variables was analyzed using the autoregressive distributed lag (ARDL) model. Results indicated that economic growth, taxation on international commerce, technology adoption, labor force, and ease of doing business positively correlate with FDI inflows in GCC nations. This article instructs regulators on designing policies about FDI inflows by utilizing effective economic elements that boost FDI inflows.