TY - JOUR ID - 43068 TI - The Role of Institutional Development Indexes in Attracting Foreign Investment in Selected OPEC Member Countries JO - Journal of Applied Research on Industrial Engineering JA - JARIE LA - en SN - 2538-5100 AU - Raei Dehaghi, Morteza AU - Mirhashemi, Seyed Mohammad AD - Department of Industrial Management, College of Management and Accounting, Mobarakeh Branch, Islamic Azad University, Mobarakeh, Isfahan, Iran AD - PhD Student of Economic Science, University of Shiraz, Fars, Shiraz, Iran Y1 - 2014 PY - 2014 VL - 1 IS - 5 SP - 307 EP - 319 KW - Foreign direct investment KW - Institutional Development Index KW - Seemingly Unrelated Regressions KW - OPEC Member Countries DO - N2 - The present survey explores the effects of institutional quality on foreign direct investment in selected OPEC member countries. To this end, the annual data of foreign direct investment, institutional quality index, gross domestic product, and freedom of the trade index in Angola, Algeria, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela were employed for the time period 1999-2010. The results of Im, Pesaran and Shin unit root test (2003) and Levin, Lin and Chu test (2002) revealed that all variables are stationary. As Pesaran test (2004) and Frees test (2004) show cross-sectional dependence correlation among the sections, the seemingly unrelated regressions (SUR) model was used. Estimation results disclosed that besides gross domestic product and freedom of the trade that have a positive and significant effect on attracting foreign direct investment, the effect of institutional quality on foreign direct investment is positive and significant too in the countries under study. Also, the results showed that among institutional development indexes, political stability and absence of violence, government effectiveness and control of corruption have a positive and significant effect on foreign direct investment in the countries under study. UR - https://www.journal-aprie.com/article_43068.html L1 - https://www.journal-aprie.com/article_43068_7715b5e804d282b1a3cca6fe6b3e039b.pdf ER -