The determinants of foreign direct investment in developing countries : the case of Libya

Teeb, AS

Abstract

Foreign Direct Investment (FDI) represents an important indicator of the increasing
interdependence of economies among countries of the world. FDI in its various forms
is considered as the artery that maintains the continuity of the life of any economy.
Therefore, all countries aim at setting up programmes and policies to ensure the flow
of investment according to the goals and objectives of the economic system.
FDI is of great significance, especially to developing countries. They
require FDI as one of the most important factors for financial funding. In addition to
its financial value it is a means of acquiring the required knowledge and technology
to gain success in economic projects. The Libyan economy is among those economies
that require this kind of foreign investment to achieve the desired economic goals,
which are correlated with the objectives of the Libyan economic system for
subsequent stages. Therefore it is important to study the trends and determinants of
FDI in developing countries in general and in Libya in particular.
To attract foreign investment, the country should create an attractive investment
environment in a country, which intends to attract it. Since 1990 Libya has made
remarkable progress in terms of economic reforms. During this time, the Libyan
government has given FDI top priority in its future development strategy. In Libya
great efforts are being made to change and develop the legislative system in order to
encourage and attract foreign investment. This research aims to determine how much
Libyan economic reforms have positively affected FDI and to consider further
improvements in terms of attracting FDI.
To understand a host country's location factors, this research analyses the
related literature on the theories of FDI, the effect of world economic changes during
two decades on FDI and the determinants of FDI in different developing countries
and regions.. The research attempts to determine the predominant factors in
attracting FDI.
This research seeks to contribute effectively by filling a gap in the area of FDI
knowledge in the Libyan economy and to add new knowledge in this important field of
study, particularly in developing countries (such as Libya, where the current trend is
to diversify the Libyan economy and reduce reliance on oil exports as the main source
of income in Libya).

Citation

Teeb, A. The determinants of foreign direct investment in developing countries : the case of Libya. (Thesis). Salford : University of Salford

• Thesis Type: Thesis
• Deposit Date: Oct 3, 2012
• Award Date: Jan 1, 2009