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The impact of foreign direct investment on economic growth in Oman: An analysis via SmartPLS approach

Yıl 2024, Cilt: 5 Sayı: 1, 68 - 80, 03.07.2024
https://doi.org/10.57085/ufebud.1451525

Öz

Foreign Direct Investment (FDI) has grown rapidly around the world. This is because many nations, particularly developing ones, consider Foreign Direct Investment as a vital component of their economic growth plans. This research investigates the relationship between FDI and economic growth in Oman. This is descriptive research that employs quantitative methodologies, with quantitative data gathered through secondary sources. Economic growth is the dependent variable in this study. The factors influencing foreign direct investment are often known as independent variables. In addition, this study used the net inflow and net outflow % of GDP to measure foreign direct investment and GDP growth annual % for measure economic growth. Where the real data was used, annual reports from "The World Bank" for the years 1974 to 2019. In addition, the data in this study was evaluated utilizing a Partial Least Square (PLS) technique and Structural Equation Modeling (SEM). This study discovered a positive association between FDI and economic growth in Oman. Furthermore, the findings suggested that FDI had an impact on economic growth. Foreign direct investment has a substantial impact on economic growth (GDP-Growth). However, the finding showed that FDI-Net-Inflows were insignificant in terms of GDP-Growth.

Kaynakça

  • Adegbite, E. O., & Ayadi, F. S. (2011). The role of foreign direct investment in economic development: A study of Nigeria. World Journal of Entrepreneurship, Management and Sustainable Development, 6(1/2), 133–147.
  • Ahmadu, E. (2021). Nexus Between Foreign Direct Investment and Economic Growth in Nigeria: The Role of Exchange Rate. Journal of Investment and Management, 10(1),1-9.‏
  • Al Samman, H., & Jamil, S. A. (2018). The Impact of Foreign Direct Investment (FDI) on Stock Market Development in GCC countries. Pertanika Journal of Social Sciences & Humanities, 26(3).
  • Al-Abri, I., Önel, G., & Grogan, K. A. (2019). Oil revenue shocks and the growth of the non-oil sector in an oil-dependent economy: the case of Oman. Theoretical Economics Letters, 9(4), 785-800.
  • Ali Ibrahim, O., Eltayeb Mohamed Abdel-Gadir, S., & Devesh, S. (2019). The potential of foreign direct investment (FDI) as a means of developing ports: Evidence from Oman. International Journal of Maritime History, 31(4), 879-895.
  • Alkathiri, N. A., & Soliman, M. (2020). Examining foreign direct investment determinants of tourism industry in Oman and Egypt: The moderating role of investment environment. International Journal of Finance & Economics.
  • Awnar, M. M. (2018). The effect of foreign direct investment (FDI) on the economic growth performance of mena countries (Master's thesis, Sosyal Bilimler Enstitüsü).
  • Bakari, S., & Sofien, T. (2019). The impact of trade openness, foreign direct investment and domestic investment on economic growth: New evidence from Asian developing countries.
  • Cicea, C., & Marinescu, C. (2021). Bibliometric analysis of foreign direct investment and economic growth relationship. A research agenda. Journal of Business Economics and Management, 22(2), 445-466.‏
  • Crespo, N., & Fontoura, M. P. (2007). Determinant factors of FDI spillovers–what do we really know?. World development, 35(3), 410-425.‏
  • Echandi, R., Krajcovicova, J., & Qiang, C. Z. W. (2015). The impact of investment policy in a changing global economy: a review of the literature. World Bank Policy Research Working Paper, (7437).‏
  • Edame, G. E., & Okoi, W. W. (2014). The impact of taxation on investment and economic development in Nigeria. Academic Journal of Interdisciplinary Studies, 3(4), 209-209.
  • Eudelle, P., & Shrestha, A. (2017). Foreign Direct Investment and Economic Growth: The Cases of Singapore and Oman. Global Policy, 8(3), 402-405.
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.
  • Grabara, J., Tleppayev, A., Dabylova, M., Mihardjo, L. W., & Dacko-Pikiewicz, Z. (2021). Empirical research on the relationship amongst renewable energy consumption, economic growth and foreign direct investment in Kazakhstan and Uzbekistan. Energies, 14(2),1-18.‏
  • Habibi, F., & Sharif Karimi, M. (2017). Foreign direct investment and economic growth: evidence from Iran and GCC. Iranian Economic Review, 21(3), 601-620.
  • Hamid, I., Alam, M. S., Murshed, M., Jena, P. K., Sha, N., & Alam, M. N. (2021). The roles of foreign direct investments, economic growth, and capital investments in decarbonizing the economy of Oman. Environmental Science and Pollution Research, 1-17.‏
  • Husain, U., Javed, S., & Al Araimi, A. S. (2021). A Study of Foreign Direct Investment on Manufacturing Industries in Sultanate of Oman. International Journal of Research-Granthaalayah, 9(3), 1-9.
  • Hussein, M. A. (2009). Impacts of foreign direct investment on economic growth in the Gulf Cooperation Council (GCC) Countries. International Review of Business Research Papers, 5(3), 362-376.
  • Hussein, M. A., & Ahmed, H. M. S. (2019). The Impact of Foreign Direct Investment on Economic Growth in Oman (1990-2014). Global Journal of Economics and Business–Vol, 6(3), 552.
  • Jamei, N. H., Nurmakhanova, M., Mustafa, S., Egbulonu, A., & Hadidan, W. (2020). The long run relationship between fish production, marine trade balance and foreign direct investment: An empirical study of Omani economy. Maritime Business Review.
  • Latief, R., & Lefen, L. (2019). Foreign direct investment in the power and energy sector, energy consumption, and economic growth: Empirical evidence from pakistan. Sustainability, 11(1), 192
  • Mahmoodi, M., & Mahmoodi, E. (2016). Foreign direct investment, exports and economic growth: evidence from two panels of developing countries. Economic research-Ekonomska istraživanja, 29(1), 938-949.‏
  • Mellahi, K., & Guermat, C. (2002). What Motivates Foreign Direct Investment?: The Case of Oman. Department of Management, School of Business and Economics, University of Exeter.‏
  • Melnyk, L., Kubatko, O., & Pysarenko, S. (2014). The impact of foreign direct investment on economic growth: case of post communism transition economies. Problems and perspectives in Management, (12, Iss. 1), 17-24.
  • Mohamed, T., Noureddine, H., & Ahmed, T. (2021). The Impact of foreign direct investment inflows on Economic Growth in the Gulf Cooperation Council Countries: Econometric Study from 1990 to 2018. مجلة الامتياز لبحــوث الاقتصاد والادارة, 5(1), 379-395.‎
  • Mosteanu, N. R. (2019). Intelligent Foreign Direct Investments to boost economic development–UAE case study. The Business & Management Review, 10(2), 1-9.
  • Oladipo, O. S. (2010). Foreign direct investment (FDI): Determinants and growth effects in a small open economy. The International Journal of Business and Finance Research, 4(4), 75-88.
  • Pamba, D. (2022). Does Foreign Direct Investment Crowd in or Crowd out Domestic Investment in South Africa? An ARDL-ECM Approach.‏
  • Panigrahi, S. K., Azizan, N. A. B., & Kumaraswamy, S. (2020). Investigating Dynamic Effect of Energy Consumption, Foreign Direct Investments and Economic Growth on CO2 Emissions between Oman and United Arab Emirates: Evidence from Co Integration and Causality Tests. International Journal of Energy Economics and Policy, 10(6), 288.
  • Rolfe, R. & White, R. (1992). The Influence of Tax Incentives in Determining the Location of Foreign Direct Investment in Developing Countries. Journal of the American Taxation Association, (13)2, pp. 39-57.
  • Tanaya, O., & Suyanto, S. (2022). The Causal Nexus Between Foreign Direct Investment and Economic Growth in Indonesia: An Autoregressive Distributed Lag Bounds Testing Approach. Periodica Polytechnica Social and Management Sciences, 30(1), 57-69.‏
  • Todaro, M. P., & Smith, S. C. (2003). Economic development. Essex, England: Pearson Education. Unctad (1998). World Investment Report, Trends & Determinants. United Nations Publication, Switzerland.
  • Wang, F., He, J., & Niu, Y. (2022). Role of foreign direct investment and fiscal decentralization on urban haze pollution in China. Journal of environmental management, 305, 114287
  • Yeboua, K. (2021). Foreign direct investment and economic growth in Africa: New empirical approach on the role of institutional development. Journal of African Business, 22(3), 361-378.‏
  • Musa, N. (2022). The Impact of External Debt on Economic Growth the Case of Egypt. مجلة السياسة والاقتصاد, 14(13), 1-30.‎

Umman'da doğrudan yabancı yatırımın ekonomik büyümeye etkisi: SmartPLS yaklaşımıyla bir analiz

Yıl 2024, Cilt: 5 Sayı: 1, 68 - 80, 03.07.2024
https://doi.org/10.57085/ufebud.1451525

Öz

Doğrudan Yabancı Yatırım (DYY) dünya çapında hızla büyümektedir. Bunun nedeni, birçok ülkenin, özellikle de gelişmekte olan ülkelerin, Doğrudan Yabancı Yatırımı ekonomik büyüme planlarının hayati bir bileşeni olarak görmesidir. Bu araştırma Umman'da doğrudan yabancı yatırım ile ekonomik büyüme arasındaki ilişkiyi araştırmaktadır. Bu, ikincil kaynaklardan toplanan nicel verilerle nicel metodolojileri kullanan tanımlayıcı bir araştırmadır. Bu çalışmada bağımlı değişken ekonomik büyümedir. Doğrudan yabancı yatırımı etkileyen faktörler genellikle bağımsız değişkenler olarak bilinir. Buna ek olarak, bu çalışmada doğrudan yabancı yatırımı ölçmek için GSYH'nin net giriş ve net çıkış yüzdesi ve ekonomik büyümeyi ölçmek için yıllık GSYİH büyüme yüzdesi kullanılmıştır. Gerçek verilerin kullanıldığı yerlerde "Dünya Bankası"nın 1974-2019 yıllarına ait yıllık raporları kullanılmıştır. Ayrıca bu çalışmadaki veriler Kısmi En Küçük Kareler (PLS) tekniği ve Yapısal Eşitlik Modellemesi (SEM) kullanılarak değerlendirilmiştir. Bu çalışma, Umman'da doğrudan yabancı yatırım ile ekonomik büyüme arasında pozitif bir ilişki olduğu bulgusuna ulaşmıştır. Ayrıca bulgular, doğrudan yabancı yatırımların ekonomik büyüme üzerinde etkisi olduğunu ortaya koymaktadır. Doğrudan yabancı yatırımın ekonomik büyüme (GSYİH-Büyüme) üzerinde önemli bir etkisi vardır. Ancak bulgu, DYY-Net Girişlerin GSYİH-Büyüme açısından önemsiz olduğunu göstermiştir.

Kaynakça

  • Adegbite, E. O., & Ayadi, F. S. (2011). The role of foreign direct investment in economic development: A study of Nigeria. World Journal of Entrepreneurship, Management and Sustainable Development, 6(1/2), 133–147.
  • Ahmadu, E. (2021). Nexus Between Foreign Direct Investment and Economic Growth in Nigeria: The Role of Exchange Rate. Journal of Investment and Management, 10(1),1-9.‏
  • Al Samman, H., & Jamil, S. A. (2018). The Impact of Foreign Direct Investment (FDI) on Stock Market Development in GCC countries. Pertanika Journal of Social Sciences & Humanities, 26(3).
  • Al-Abri, I., Önel, G., & Grogan, K. A. (2019). Oil revenue shocks and the growth of the non-oil sector in an oil-dependent economy: the case of Oman. Theoretical Economics Letters, 9(4), 785-800.
  • Ali Ibrahim, O., Eltayeb Mohamed Abdel-Gadir, S., & Devesh, S. (2019). The potential of foreign direct investment (FDI) as a means of developing ports: Evidence from Oman. International Journal of Maritime History, 31(4), 879-895.
  • Alkathiri, N. A., & Soliman, M. (2020). Examining foreign direct investment determinants of tourism industry in Oman and Egypt: The moderating role of investment environment. International Journal of Finance & Economics.
  • Awnar, M. M. (2018). The effect of foreign direct investment (FDI) on the economic growth performance of mena countries (Master's thesis, Sosyal Bilimler Enstitüsü).
  • Bakari, S., & Sofien, T. (2019). The impact of trade openness, foreign direct investment and domestic investment on economic growth: New evidence from Asian developing countries.
  • Cicea, C., & Marinescu, C. (2021). Bibliometric analysis of foreign direct investment and economic growth relationship. A research agenda. Journal of Business Economics and Management, 22(2), 445-466.‏
  • Crespo, N., & Fontoura, M. P. (2007). Determinant factors of FDI spillovers–what do we really know?. World development, 35(3), 410-425.‏
  • Echandi, R., Krajcovicova, J., & Qiang, C. Z. W. (2015). The impact of investment policy in a changing global economy: a review of the literature. World Bank Policy Research Working Paper, (7437).‏
  • Edame, G. E., & Okoi, W. W. (2014). The impact of taxation on investment and economic development in Nigeria. Academic Journal of Interdisciplinary Studies, 3(4), 209-209.
  • Eudelle, P., & Shrestha, A. (2017). Foreign Direct Investment and Economic Growth: The Cases of Singapore and Oman. Global Policy, 8(3), 402-405.
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.
  • Grabara, J., Tleppayev, A., Dabylova, M., Mihardjo, L. W., & Dacko-Pikiewicz, Z. (2021). Empirical research on the relationship amongst renewable energy consumption, economic growth and foreign direct investment in Kazakhstan and Uzbekistan. Energies, 14(2),1-18.‏
  • Habibi, F., & Sharif Karimi, M. (2017). Foreign direct investment and economic growth: evidence from Iran and GCC. Iranian Economic Review, 21(3), 601-620.
  • Hamid, I., Alam, M. S., Murshed, M., Jena, P. K., Sha, N., & Alam, M. N. (2021). The roles of foreign direct investments, economic growth, and capital investments in decarbonizing the economy of Oman. Environmental Science and Pollution Research, 1-17.‏
  • Husain, U., Javed, S., & Al Araimi, A. S. (2021). A Study of Foreign Direct Investment on Manufacturing Industries in Sultanate of Oman. International Journal of Research-Granthaalayah, 9(3), 1-9.
  • Hussein, M. A. (2009). Impacts of foreign direct investment on economic growth in the Gulf Cooperation Council (GCC) Countries. International Review of Business Research Papers, 5(3), 362-376.
  • Hussein, M. A., & Ahmed, H. M. S. (2019). The Impact of Foreign Direct Investment on Economic Growth in Oman (1990-2014). Global Journal of Economics and Business–Vol, 6(3), 552.
  • Jamei, N. H., Nurmakhanova, M., Mustafa, S., Egbulonu, A., & Hadidan, W. (2020). The long run relationship between fish production, marine trade balance and foreign direct investment: An empirical study of Omani economy. Maritime Business Review.
  • Latief, R., & Lefen, L. (2019). Foreign direct investment in the power and energy sector, energy consumption, and economic growth: Empirical evidence from pakistan. Sustainability, 11(1), 192
  • Mahmoodi, M., & Mahmoodi, E. (2016). Foreign direct investment, exports and economic growth: evidence from two panels of developing countries. Economic research-Ekonomska istraživanja, 29(1), 938-949.‏
  • Mellahi, K., & Guermat, C. (2002). What Motivates Foreign Direct Investment?: The Case of Oman. Department of Management, School of Business and Economics, University of Exeter.‏
  • Melnyk, L., Kubatko, O., & Pysarenko, S. (2014). The impact of foreign direct investment on economic growth: case of post communism transition economies. Problems and perspectives in Management, (12, Iss. 1), 17-24.
  • Mohamed, T., Noureddine, H., & Ahmed, T. (2021). The Impact of foreign direct investment inflows on Economic Growth in the Gulf Cooperation Council Countries: Econometric Study from 1990 to 2018. مجلة الامتياز لبحــوث الاقتصاد والادارة, 5(1), 379-395.‎
  • Mosteanu, N. R. (2019). Intelligent Foreign Direct Investments to boost economic development–UAE case study. The Business & Management Review, 10(2), 1-9.
  • Oladipo, O. S. (2010). Foreign direct investment (FDI): Determinants and growth effects in a small open economy. The International Journal of Business and Finance Research, 4(4), 75-88.
  • Pamba, D. (2022). Does Foreign Direct Investment Crowd in or Crowd out Domestic Investment in South Africa? An ARDL-ECM Approach.‏
  • Panigrahi, S. K., Azizan, N. A. B., & Kumaraswamy, S. (2020). Investigating Dynamic Effect of Energy Consumption, Foreign Direct Investments and Economic Growth on CO2 Emissions between Oman and United Arab Emirates: Evidence from Co Integration and Causality Tests. International Journal of Energy Economics and Policy, 10(6), 288.
  • Rolfe, R. & White, R. (1992). The Influence of Tax Incentives in Determining the Location of Foreign Direct Investment in Developing Countries. Journal of the American Taxation Association, (13)2, pp. 39-57.
  • Tanaya, O., & Suyanto, S. (2022). The Causal Nexus Between Foreign Direct Investment and Economic Growth in Indonesia: An Autoregressive Distributed Lag Bounds Testing Approach. Periodica Polytechnica Social and Management Sciences, 30(1), 57-69.‏
  • Todaro, M. P., & Smith, S. C. (2003). Economic development. Essex, England: Pearson Education. Unctad (1998). World Investment Report, Trends & Determinants. United Nations Publication, Switzerland.
  • Wang, F., He, J., & Niu, Y. (2022). Role of foreign direct investment and fiscal decentralization on urban haze pollution in China. Journal of environmental management, 305, 114287
  • Yeboua, K. (2021). Foreign direct investment and economic growth in Africa: New empirical approach on the role of institutional development. Journal of African Business, 22(3), 361-378.‏
  • Musa, N. (2022). The Impact of External Debt on Economic Growth the Case of Egypt. مجلة السياسة والاقتصاد, 14(13), 1-30.‎
Toplam 36 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Konular Finans ve Yatırım (Diğer)
Bölüm Araştırma Makaleleri
Yazarlar

Tif Al Mazroui 0000-0003-0929-6306

Essia Ries Ahmed Abu Rıes 0000-0002-5723-0718

Yayımlanma Tarihi 3 Temmuz 2024
Gönderilme Tarihi 12 Mart 2024
Kabul Tarihi 3 Temmuz 2024
Yayımlandığı Sayı Yıl 2024 Cilt: 5 Sayı: 1

Kaynak Göster

APA Al Mazroui, T., & Abu Rıes, E. R. A. (2024). The impact of foreign direct investment on economic growth in Oman: An analysis via SmartPLS approach. Uluslararası Finansal Ekonomi Ve Bankacılık Uygulamaları Dergisi, 5(1), 68-80. https://doi.org/10.57085/ufebud.1451525