Work

Bilateral Foreign Direct Investment Flows in Similar Islamic Countries: Alternative Explanation for Gross Domestic Product Per Capita Difference Effect

Year: 2025

Type: article

Abstract: This study examines whether developed Islamic countries invest in developing Islamic countries through Foreign Direct Investment (FDI), motivated by common religion and economic diplomacy. Using bilateral data from 2001–2012, it finds that FDI flows are positively influenced by GDP per capita differences and the geographic disadvantage of landlocked countries. However, diplomatic presence and regional trade agreements do not show a significant effect. The findings suggest that common religion, rather than diplomacy, psychologically influences FDI decisions.

Source: Fokus Bisnis Media Pengkajian Manajemen dan Akuntansi

DOI: 10.32639/sskwp772

Authors: M. Elfan Kaukab, Ali Akbar Anggara, Wan Noor Hazlina Wan Jusoh

Institutions: Universitas Sains Al-Qur'an, Muhammadiyah University Purwokerto, Universiti Teknologi MARA

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Partnerships for the goals, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4410978403

FWCI: 0.916

Cites:

Cited by: 1

Related to: 10