The Host Iranian Economy and Foreign Direct Investment: A Comparative Analysis

In this paper fourteen selected developing economies, including Iran, are compared to evaluate the Iranian position in attracting foreign direct investment (FDI). The evaluation is based on economic performance, risk, liberalization policy, and FDI determinant indicators. The results show that the Iranian economy has a sound economic performance and its economic, financial, and political risks are moderate among selected nations. Even though Iran s economic liberalization policy performance seems low, but its economic and policy indictors as the stimulator of FDI ranks the country in middle. The Iranian economy has improved its FDI attraction position through more favorable and flexible economic liberalization policies nationally and internationally since 1993: As a result of these policies, the foreign investments have already started to increase by a moderate rate.