The Impact of Economic Sanctions and other Factors on Attracting Foreign Direct Investment in OPEC Countries

Abstract
Foreign direct investment (FDI) is considered as a one of the important channels of financing capital internationally. FDI, in addition to compensating for the lack of capital, entails the transfer of technology, the entry of expert human capital, management, and knowledge; therefore, in order to Realizing the continuous and stable economic growth is necessary to scientifically identify the factors affecting the entry of foreign direct investment. The purpose of this study is to investigate the impact of economic, natural, political and legal factors on the attraction of foreign direct investment in OPEC member countries for the period of 2003-2014. This research has been carried out using the generalized least squares method (EGLS) in the form of a pooled data model. The results indicate that market size, openness of the economy, community health, oil reserves and rule of law have a positive and significant effect on the attraction of FDI, and economic sanctions have been important factors in reducing foreign investment attraction.