<abstract xmlns="http://www.w3.org/1999/xhtml"><p>We examine the impact of the macroeconomic determinants of foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI inflows into Iran. The results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run effect on FDI inflows in Iran. Our findings also show that GDP growth rate and trade openness have no significant effect on FDI. Our results indicate that sanctions do not have a significant moderating role in the relationship between macroeconomic factors and FDI. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanctions have a positive impact on the inflation rate and exchange rate in Iran. Finally, our findings show that sanctions have had a significant impact on Iran’s economic growth in recent years due to increasing the severity level of sanctions.</p></abstract>

We examine the impact of the macroeconomic determinants of foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI inflows into Iran. The results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run effect on FDI inflows in Iran. Our findings also show that GDP growth rate and trade openness have no significant effect on FDI. Our results indicate that sanctions do not have a significant moderating role in the relationship between macroeconomic factors and FDI. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanctions have a positive impact on the inflation rate and exchange rate in Iran. Finally, our findings show that sanctions have had a significant impact on Iran’s economic growth in recent years due to increasing the severity level of sanctions.

The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran

Economics and Business

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran"}

We examine the impact of the macroeconomic determinants of foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI...

The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran

Publié en ligne: 31 mars 2020

Pages: 15 - 34

DOI: https://doi.org/10.2478/eb-2020-0002

Mots clés
FDI inflows, GDP growth, Iran, macroeconomic factors, sanctions, political stability

© 2020 Mehdi Rasouli Ghahroudi et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran

Publié en ligne: 31 mars 2020

Pages: 15 - 34

DOI: https://doi.org/10.2478/eb-2020-0002

Mots clésFDI inflows, GDP growth, Iran, macroeconomic factors, sanctions, political stability

© 2020 Mehdi Rasouli Ghahroudi et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Mots clés
FDI inflows, GDP growth, Iran, macroeconomic factors, sanctions, political stability