Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments

ABSTRACT    Purpose: This research reviewed the determinant factor of FDI in OIC countries using a framework of institutional quality, green economic policies, and the role of financial development. Design/methodology: The method used in this research is panel data analysis with the Generalized Me...

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Main Authors: Fajri Hatim, Nurdin I Muhamad, Muhammad Adnan Azzaki, Fahima Nasar
Format: Article
Language:English
Published: Universitas Islam Negeri Fatmawati Sukarno Bengkulu 2024-09-01
Series:Al-Intaj
Subjects:
Online Access:https://ejournal.uinfasbengkulu.ac.id/index.php/Al-Intaj/article/view/4076
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author Fajri Hatim
Nurdin I Muhamad
Muhammad Adnan Azzaki
Fahima Nasar
author_facet Fajri Hatim
Nurdin I Muhamad
Muhammad Adnan Azzaki
Fahima Nasar
author_sort Fajri Hatim
collection DOAJ
description ABSTRACT    Purpose: This research reviewed the determinant factor of FDI in OIC countries using a framework of institutional quality, green economic policies, and the role of financial development. Design/methodology: The method used in this research is panel data analysis with the Generalized Method of Moments (GMM) approach. This research examines 32 OIC countries with 352 observations in the period 2010 to 2022. Findings: The results of the research are generally show that institutional quality, green economic policies and the role of financial development attract foreign direct investment. However, there are still factors that cause low FDI flows, the causal factor is voice and accountability and control of corruption. Practical implications: The empirical implication of this research is to determine the conditions and factors that cause FDI inflows through institutional quality, green economy and financial development in OIC countries. Originality/Value: OIC countries should improved their institutional quality with policies oriented towards global investor preferences. The contribution of this research focuses on efforts to attract capital flows for the development of OIC countries
format Article
id doaj-art-a86f5e7d3e42431f8e954f9f08473caf
institution Kabale University
issn 2476-8774
2621-668X
language English
publishDate 2024-09-01
publisher Universitas Islam Negeri Fatmawati Sukarno Bengkulu
record_format Article
series Al-Intaj
spelling doaj-art-a86f5e7d3e42431f8e954f9f08473caf2025-08-22T05:03:35ZengUniversitas Islam Negeri Fatmawati Sukarno BengkuluAl-Intaj2476-87742621-668X2024-09-0110212314210.29300/aij.v10i2.40763640Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial DevelopmentsFajri Hatim0Nurdin I Muhamad1Muhammad Adnan Azzaki2Fahima Nasar3Universitas KhairunUniversitas KhairunUniversitas Islam Negeri Sunan Kalijaga YogyakartaUniversitas KhairunABSTRACT    Purpose: This research reviewed the determinant factor of FDI in OIC countries using a framework of institutional quality, green economic policies, and the role of financial development. Design/methodology: The method used in this research is panel data analysis with the Generalized Method of Moments (GMM) approach. This research examines 32 OIC countries with 352 observations in the period 2010 to 2022. Findings: The results of the research are generally show that institutional quality, green economic policies and the role of financial development attract foreign direct investment. However, there are still factors that cause low FDI flows, the causal factor is voice and accountability and control of corruption. Practical implications: The empirical implication of this research is to determine the conditions and factors that cause FDI inflows through institutional quality, green economy and financial development in OIC countries. Originality/Value: OIC countries should improved their institutional quality with policies oriented towards global investor preferences. The contribution of this research focuses on efforts to attract capital flows for the development of OIC countrieshttps://ejournal.uinfasbengkulu.ac.id/index.php/Al-Intaj/article/view/4076foreign direct investmentinstitutional qualitygreen economyfinancial developmentoic countries
spellingShingle Fajri Hatim
Nurdin I Muhamad
Muhammad Adnan Azzaki
Fahima Nasar
Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments
Al-Intaj
foreign direct investment
institutional quality
green economy
financial development
oic countries
title Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments
title_full Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments
title_fullStr Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments
title_full_unstemmed Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments
title_short Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments
title_sort factors influencing foreign direct investment in muslim countries the role of financial developments
topic foreign direct investment
institutional quality
green economy
financial development
oic countries
url https://ejournal.uinfasbengkulu.ac.id/index.php/Al-Intaj/article/view/4076
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AT nurdinimuhamad factorsinfluencingforeigndirectinvestmentinmuslimcountriestheroleoffinancialdevelopments
AT muhammadadnanazzaki factorsinfluencingforeigndirectinvestmentinmuslimcountriestheroleoffinancialdevelopments
AT fahimanasar factorsinfluencingforeigndirectinvestmentinmuslimcountriestheroleoffinancialdevelopments