تخمين تابع سرمايه گذاري مستقيم خارجي در كشورهاي منتخب اسلامي

The Estimation of Foreign Direct Investment (FDI) Function in Selected Islamic Countries

The members of Organization of Islamic Countries (OIC) alike other developing countries, in addition of being dependant on domestic taxes and savings, need to foreign resources to finance their economies. Foreign direct investment (FDI) is one of the main ways of attaining of technology and possibility of persistence of economic growth in these countries. Although FDI has considerably grown in the world afterwards 1980s, however the share of Islamic countries from this process has not been important. In this paper, the factors affecting on FDI is considered; and FD1 function for selected Islamic countries is estimated by using pooled time series and cross section data over the 1993-2002 period. Based on estimations, the paper concludes that attraction of FDI requires to direct governments of these countries towards reducing volume of external debt(indicator of foreign commitments), increasing the domestic investment in infrastructure and opening their economies to international trade.