Authors : S. Homayooni, H. Daliri, F. Karimzadeh and H. Arabshahi
Abstract: Investment is one of the key factors to create a steady growth in economy of the developing countries. In today’s world, only the countries are considered important that have a production line and technological support to back it up. For this, a great deal of capital is needed and to accumulate it using a foreign source to supplement the domestic resources sounds rational. This also could be a way to import the modern technology in the country. However, it must be born in mind that in order to attract foreign investment, one should find and modify the influencing factors on direct foreign investment. In this study using the VAR model, we reviewed the interaction between foreign direct investment and domestic investment and the economic growth during 1990-2004 in Iran.
S. Homayooni, H. Daliri, F. Karimzadeh and H. Arabshahi, 2011. Reviewing the Dynamic Interactions of Foreign Direct Investment, Domestic Investment and Gross Domestic Product on Each Other in Iran (1990-2009). Journal of Economics Theory, 5: 32-36.