Pages: 20-24

Abstract

ABSTRACT: According to the role of FDI in technology transfer and attraction of foreign capital to developing countries, these countries have been considered it in their plans. Planning to take advantage of this process requires to understand and estimate the capacity of FDI to these countries. Accordingly, in this study we estimate the capacity of foreign direct investment. Therefore, using a panel data model based on data by 11 countries and using the Human Development Index for identifing the oil countries which are closer to Iran, we recognize the factors affecting foreign direct investment since 1996 to 2011. Then we deal with the determination of optimal model for estimating the capacity of foreign direct investment. Based on the results obtained, we reject the assumption that says the potential capacity of FDI is more than its actual quantity.