Modeling the growth of regional investment in the Islamic Republic of Iran

1Hossein Ahmad Zadeh, Ali Nuriyev*, Aqil asadov

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Abstract:

The present study aims to model the growth of regional investment in Iran. The dependent variable is foreign direct investment (FDI) and the independent variable is the gross domestic product (GDP), domestic investment, the rate of investment risk, and human investment. It is a type of descriptive study aiming to describe the relationship the variables (dependent and independent) using the statistical tests. The study is a applied in nature and adopts a correlational procedure. The descriptive and inferential statistics were utilized and the ordinary least squares(OLS) used to examine the relationship between the variables. The results indicate that by increase of one unit of the GDP, the foreign investment increases up to 46.25%. So, there is a direct relationship with them. By increase of one unit in investment risk, the foreign direct investment reduces up to 0.14%. There is an inverse meaningful relationship between the investment risk and the FDI. Also, by one unit increase in human capital, the foreign direct investment increases 12.50%. So, a meaningful and direct relationship exists between the FDI and the human capital. After one unit increase in rate of economic opening, the FDI rises 0.02%. Therefore, a meaningful and direct association presents between the FDI and the economic opening. The R2 shows that 89% of the dependent variable (the FI) variations could be explained by the model, which indicates the research model high level of prediction.

Keywords:

investment growth, foreign direct investment, human capital, investment risk, GDP

Paper Details
Month9
Year2020
Volume24
IssueIssue 10
Pages4843-4860