Impact of Trade Liberalization on FDI Inflows to D-8 Countries

Shah, Mumtaz Hussain; Samdani, Saima

Impact of Trade Liberalization on FDI Inflows to D-8 Countries

Shah, M.H., & Samdani, S. (2015). Impact of trade liberalization on FDI inflows to D-8 countries. Global Management Journal for Academic & Corporate Studies (GMJACS), 5(1), 30-37.

8 Pages Posted: 20 Oct 2016

See all articles by Mumtaz Hussain Shah

Mumtaz Hussain Shah

Institute of Management Studies, University of Peshawar

Saima Samdani

University of Peshawar - Institute Of Management Studies

Date Written: 2015

Abstract

This paper studies the impact of trade liberalization on Foreign Direct Investment (FDI) in D-8 member countries, that are, Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey over the time period of twenty two years (1991-2012). Using panel data random effect model, it has been revealed that trade liberalization is significantly and positively effecting FDI inflows to D-8 members. This study also show that the traditional location pull factors of FDI such as market size, economic growth, infrastructure and exchange rate are also desirable besides with trade liberalization for inward FDI in D-8 member nations.

Keywords: Foreign Direct Investment, Trade Liberalization, Panel Data, Inward FDI relationship, D-8 Countries

JEL Classification: F140, F210, F230

Suggested Citation: Suggested Citation

Shah, Mumtaz Hussain and Samdani, Saima, Impact of Trade Liberalization on FDI Inflows to D-8 Countries (2015). Shah, M.H., & Samdani, S. (2015). Impact of trade liberalization on FDI inflows to D-8 countries. Global Management Journal for Academic & Corporate Studies (GMJACS), 5(1), 30-37., Available at SSRN: https://ssrn.com/abstract=2855722