American International Journal of Social Science

ISSN 2325-4149(Print), ISSN 2325-4165(Online) DIO: 10.30845/aijss

Nexus between the Logistics Performance and Foreign Direct Investment: Evidence from GCC Countries
Sahar Hassan Khayat

This study examined the role of logistics performance in attracting FDI in Gulf Cooperation Council (GCC) states. This study used a panel dataset over the period 2007-2018 by employing a static panel regression model. The logistic performance was evaluated through six distinct dimensions of the logistic performance index. The study findings revealed that none of the six dimensions of the logistic performance index has a significant impact on attracting FDI inflows, in the context of GCC states, which indicates that logistics operations do not give opportunities for GCC countries to attract foreign investment during the study time. On contrary, FDI inflows significantly foster economic growth and trade openness while FDI negatively but significantly affects CO2 emissions. It is recommended that policymakers should focus more on holistic insights rather than concentrate on a particular set of indicators to procure high-performance levels to maintain inward foreign investment based on state characteristics.

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