The Impact of Multilateral Trade Liberalization and Economic Structural Vulnerability on the Outflow of FDI in D8 Countries
Foreign direct investment is one of the main methods of access to capital, technology and the possibility of continued economic growth of countries and leads to solving the problem of unemployment, creating employment, increasing production and reducing inflation. In most countries, due to the high...
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University of Sistan and Baluchestan
2022-04-01
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| Series: | اقتصاد باثبات |
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| Online Access: | https://sedj.usb.ac.ir/article_6889_1cb9361fb31b3fefcd22ca2958f311c9.pdf |
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| author | fateme nezai MOHAMMAD MAHDI BARGHI OUSKIE vahid nikpey pesyan |
| author_facet | fateme nezai MOHAMMAD MAHDI BARGHI OUSKIE vahid nikpey pesyan |
| author_sort | fateme nezai |
| collection | DOAJ |
| description | Foreign direct investment is one of the main methods of access to capital, technology and the possibility of continued economic growth of countries and leads to solving the problem of unemployment, creating employment, increasing production and reducing inflation. In most countries, due to the high structural economic vulnerability, the implementation of multilateral trade liberalization policy will lead to the outflow of foreign direct investment. Therefore, the implementation of correct policies by governments will reduce the damage index. Structural economic acceptance and the expansion of multilateral trade liberalization will prevent the outflow of foreign direct investment. Therefore, the purpose of this study is to investigate the effect of multilateral trade liberalization in the context of structural economic vulnerability on the outflow of foreign direct investment in D8 member countries with the Generalized Torque (GMM) approach during the period 1996-2019. The results of the above study indicate that there is a positive relationship between multilateral trade liberalization and structural structural vulnerability on the outflow of foreign direct investment in D8 member countries. Among other research findings, the real GDP per capita variable has a positive effect on the outflow of foreign direct investment, while the exchange rate variable has a negative effect on the FDI outflow. Therefore, in order to positively affect multilateral trade liberalization on the outflow of foreign direct investment, it is necessary to reduce the degree of structural economic vulnerability by improving the country's infrastructure and reforming economic structures. In order to reform economic policies with the aim of reducing dependence on oil revenues, development and diversification of exports, reducing the budget deficit with financial discipline, curbing inflation by increasing productivity, basic measures should be taken and appropriate measures such as improving the country's infrastructure, stability Economic stability, political stability, increasing GDP, reducing corruption, increasing the health of the economy by creating a business environment and increasing employment can, with wise implementation, improve the country's economic situation and reduce structural economic vulnerability. |
| format | Article |
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| institution | OA Journals |
| issn | 2821-1049 |
| language | fas |
| publishDate | 2022-04-01 |
| publisher | University of Sistan and Baluchestan |
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| series | اقتصاد باثبات |
| spelling | doaj-art-23fa1cb909c8424ca0c19bab25c2e7782025-08-20T02:11:36ZfasUniversity of Sistan and Baluchestanاقتصاد باثبات2821-10492022-04-0131376010.22111/sedj.2022.41492.11836889The Impact of Multilateral Trade Liberalization and Economic Structural Vulnerability on the Outflow of FDI in D8 Countriesfateme nezai0MOHAMMAD MAHDI BARGHI OUSKIE1vahid nikpey pesyan2Master of Economics, University of TabrizAssociate Professor, Department of Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, IranPhD student in Economics, Department of Economics and Management, Urmia UniversityForeign direct investment is one of the main methods of access to capital, technology and the possibility of continued economic growth of countries and leads to solving the problem of unemployment, creating employment, increasing production and reducing inflation. In most countries, due to the high structural economic vulnerability, the implementation of multilateral trade liberalization policy will lead to the outflow of foreign direct investment. Therefore, the implementation of correct policies by governments will reduce the damage index. Structural economic acceptance and the expansion of multilateral trade liberalization will prevent the outflow of foreign direct investment. Therefore, the purpose of this study is to investigate the effect of multilateral trade liberalization in the context of structural economic vulnerability on the outflow of foreign direct investment in D8 member countries with the Generalized Torque (GMM) approach during the period 1996-2019. The results of the above study indicate that there is a positive relationship between multilateral trade liberalization and structural structural vulnerability on the outflow of foreign direct investment in D8 member countries. Among other research findings, the real GDP per capita variable has a positive effect on the outflow of foreign direct investment, while the exchange rate variable has a negative effect on the FDI outflow. Therefore, in order to positively affect multilateral trade liberalization on the outflow of foreign direct investment, it is necessary to reduce the degree of structural economic vulnerability by improving the country's infrastructure and reforming economic structures. In order to reform economic policies with the aim of reducing dependence on oil revenues, development and diversification of exports, reducing the budget deficit with financial discipline, curbing inflation by increasing productivity, basic measures should be taken and appropriate measures such as improving the country's infrastructure, stability Economic stability, political stability, increasing GDP, reducing corruption, increasing the health of the economy by creating a business environment and increasing employment can, with wise implementation, improve the country's economic situation and reduce structural economic vulnerability.https://sedj.usb.ac.ir/article_6889_1cb9361fb31b3fefcd22ca2958f311c9.pdfmultilateral trade liberalizationstructural economic vulnerabilityforeign direct investment outflow |
| spellingShingle | fateme nezai MOHAMMAD MAHDI BARGHI OUSKIE vahid nikpey pesyan The Impact of Multilateral Trade Liberalization and Economic Structural Vulnerability on the Outflow of FDI in D8 Countries اقتصاد باثبات multilateral trade liberalization structural economic vulnerability foreign direct investment outflow |
| title | The Impact of Multilateral Trade Liberalization and Economic Structural Vulnerability on the Outflow of FDI in D8 Countries |
| title_full | The Impact of Multilateral Trade Liberalization and Economic Structural Vulnerability on the Outflow of FDI in D8 Countries |
| title_fullStr | The Impact of Multilateral Trade Liberalization and Economic Structural Vulnerability on the Outflow of FDI in D8 Countries |
| title_full_unstemmed | The Impact of Multilateral Trade Liberalization and Economic Structural Vulnerability on the Outflow of FDI in D8 Countries |
| title_short | The Impact of Multilateral Trade Liberalization and Economic Structural Vulnerability on the Outflow of FDI in D8 Countries |
| title_sort | impact of multilateral trade liberalization and economic structural vulnerability on the outflow of fdi in d8 countries |
| topic | multilateral trade liberalization structural economic vulnerability foreign direct investment outflow |
| url | https://sedj.usb.ac.ir/article_6889_1cb9361fb31b3fefcd22ca2958f311c9.pdf |
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