Economics: Determinants of Foreign Direct Investment
BACKGROUND (What I Have)
The study aims at examining the impact of a number of factors on the performance of FDI in UAE and these factors include macroeconomic and institutional variables. Macroeconomic variables include Gross Domestic Product per Capita (GDPC), Taxation, and Inflation covering a span of 35 years (1980-2015) while institutional variables include political stability, government effectiveness and the control of corruption using time series data, which covers the period of 2000-2015. Thus, this study attempts to achieve the following objectives:
1.To examine the impact of Gross Domestic Product per Capita (GDPC) on FDI performance in UAE.
2.To investigate the impact of Taxation on FDI performance in the UAE.
3.To examine the extent to which Inflation Rate affects FDI performance in the UAE.
4. To examine the impact of Political Stability on FDI performance in UAE.
5.To investigate the impact of Government Effectiveness on FDI performance in UAE.
6.To find out whether Control of Corruption has an influence on FDI performance in UAE.
Measurements
The first instrument is quantitative method which is based on the analysis of two econometric models applying time-series data. Hence, the first model will investigate the effect of some macroeconomic variables on the performance of FDI in the UAE, the model will be conducted using Autoregressive Distributed Lag Model (ARDL) and it is covering a span of 35 years from the year 1980 to the year 2015. The second model attempts to investigate the effect of some institutional variables that may have impact on the FDI in UAE. Institutional variables include political stability, government effectiveness and the control of corruption. The analysis will be conducted also using time series data, which covers the period of 2000-2015 and it uses Ordinary Least Squares (OLS). In other words, these two econometric models are separately designed for the links between FDI and its determinants.
REQUIREMENTS (What I Need)
• Getting the missing data for the remaining years and the data on the taxation determinant.
• Designing the Models
– First Econometric Model: (Please design the equations)
– Second Econometric Model: (Please design the equations)
P/S: I can email you the data that I have on the variables (I have most of the data for the independent variables and the dependent variable except for taxation variable. Besides, I have the data up to 2013 for institutional factors and 2010 for macro-economic ones. If you provide me with the email of the writer I can email him/her the data.