Investment Component of Technological Development of GCC Countries

The article discusses the features and trends of FDI in the GCC region, uniting Bahrain, Oman, Qatar, Kuwait, Saudi Arabia and the UAE. Countries in this group remain significant recipients of FDI. This group of States has traditionally attracted significant amounts of foreign investment, especially direct investment (FDI), especially in free economic zones. Moreover, according to the author, it is not only and not so much about the inflow of financial resources, but about modern and high technologies that are necessary for this group of States to ensure long-term sustainable development in the conditions of volatility of prices in the world oil markets. The aim of the article was to determine the determinants of FDI in the GCC countries and their relationship with the technical and technological development of the countries of the region on the basis of evidence. The results of the analysis show that this relationship remains weak at the present stage, although it tends to increase. The study is based on the statistical method and covers the period 2000-2017. the article shows that FDI contributes to a more active «embedding» of these States in global production chains, and not only as suppliers of resources. The dynamics of high-technology exports of this group of States attests to the long-term, productive investment nature of FDI and the link between FDI and foreign TNCs in the region. At the same time, the results of the analysis show that the relationship remains weak at the present stage, although it tends to increase.

Keywords

GCC, foreign direct investment, determinants of FDI, technological development, global value chains

Received

14.05.2019

Publication date

22.05.2019

Number of characters

17354

Cite

GOST	Rusakovich V. Investment Component of Technological Development of GCC Countries // Asia and Africa Today – 2019. – Issue 5 C. 34-40 [Electronic resource]. URL: https://asaf-today.ru/S032150750004747-3-1 (circulation date: 22.07.2024). DOI: 10.31857/S032150750004747-3
MLA	Rusakovich, V. "Investment Component of Technological Development of GCC Countries." Asia and Africa Today 5 (2019):34-40. DOI: 10.31857/S032150750004747-3
APA	Rusakovich V. (2019). Investment Component of Technological Development of GCC Countries. Asia and Africa Today (5), pp.34-40 DOI: 10.31857/S032150750004747-3

100 rub.

When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 2, views: 1375

Readers community rating: votes 0

1. Shkvarya L.V., Ajdrus I.A. Investitsionnyj potentsial arabskikh stran Persidskogo zaliva // Aziya i Afrika segodnya. 2010. № 7. C. 41-47. (Shkvarya L.V., Aidrous I.A. 2010. Investment potential of the Arab countries of the Gulf // Asia and Africa today. № 7) (In Russ.)

2. Rusakovich V.I. Ne neft'yu edinoj. Diversifikatsiya natsional'nykh ehkonomik stran SSAGPZ // Aziya i Afrika segodnya. 2017. № 2 (715). S. 33-40. (Rusakovich V.I. 2017. Not Oil Alone. Diversification of national economies in the GCC countries // Asia and Africa today. № 2) (In Russ.)

3. Todaro M.P., Smith S.C. Economic Development. Pearson Education Limited, 2003.

4. Hayami Y. Development Economics: From the Poverty to the Wealth of Nations. Oxford University Press, 2001.

5. Hermes N., Lensink R. Foreign Direct Investment, Financial Development and Economic Growth // Journal of Development Studies. 2003. Vol. 40. Is. 1. Pp. 142-163.

6. Mellahi K., Guermat C., Fryneas J.G., Al-Bortmani H. Motives for Foreign Direct Investment in Oman // Thunderbird International Business Review. 2003. Vol. 45. Is. 4. Rp. 431-446.

7. Trade and Foreign Investment – Keys to Diversification and Growth in the GCC. International Monetary Fund, 2018 – https://www.imf.org/~/media/Files/Publications/PP/2018/pp120618gcc-trade-and-foreign-investment.ashx (accessed 11.01.2019)

8. World Investment Report 2018: Investment and new industrial policies – https://investmentpolicyhub.unctad.org/ Publications/Details/1187 (accessed 11.01.2019)

9. World Investment Report 2016. Methodological Note – https://unctad.org/en/PublicationChapters/wir2016chMethodNote_en.pdf (accessed 11.01.2019)

10. UNCTAD STAT database – http://unctadstat.unctad.org/wds/TableViewer/downloadPrompt.aspx (accessed 11.01.2019)

11. World Investment Report 2009: Transnational Corporations, Agricultural Production and Development – https://unctad.org/en/Docs/wir2009_en.pdf (accessed 11.01.2019)

12. BP Statistical Review of World Energy June 2008 – https://www.ief.org/_resources/files/events/bp-statisticalreview-of-world-energy-june-2008/bp-statistical-review-of-world-energy-june-2008-presentation.pdf (accessed 11.01.2019)

13. MENA-OECD Investment Programme (2010), Investment Reforms in the MENA Region: Country Progress 20062009 – http://www.oecd.org/mena/competitiveness/46802638.pdf (accessed 11.01.2019)

14. Kravchuk V.I. Svobodnye ehkonomicheskie zony v stranakh Persidskogo zaliva / Mirovaya ehkonomika i mezhdunarodnaya torgovlya na sovremennom ehtape. M., 2014. S.127-130. (Kravchuk V.I. 2014. Free economic zones in the Gulf countries / World economy and international trade at the present stage. M. Pp. 127-130) (In Russ.)

15. Muawya A.H. Impacts of Foreign Direct Investment on Economic Growth in the Gulf Cooperation Council (GCC) Countries // International Review of Business Research Papers. Vol. 5, No. 3. April 2009. Pp. 362-376.

16. Shkvarya L.V. Rossiya – strany Zaliva: investitsionnoe sotrudnichestvo // Aziya i Afrika segodnya. 2011. № 5. S.18-23. (Shkvarya L.V. 2011. Russia-Gulf countries: investment cooperation // Asia and Africa today. № 5) (In Russ.)

17. Strenalyuk V.V. Ob'edinenie unikal'nykh tekhnologicheskikh kompetentsij Rossii i stran SSAGPZ – novoe napravlenie mezhdunarodnogo innovatsionnogo sotrudnichestva // Rossiya i Aziya. 2018. № 3(4). (Strenalyuk V.V. 2018. Consolidation the unique technological competencies of Russia and the GCC countries – a new direction of international innovative cooperation // Russia and Asia. № 3(4)) (In Russ.)

18. 2017 EU – Gulf Cooperation Council Investment Report – http://trade.ec.europa.eu/doclib/docs/2018/april/tradoc_156661.pdf (accessed 11.01.2019)

19. De Backer K., Miroudot S. Mapping Global Value Chains // OECD Trade Policy Papers. 2013. No. 159, OECD Publishing, Paris – http://dx.doi.org/10.1787/5k3v1trgnbr4-en https://www.oecd-ilibrary.org/docserver/5k3v1trgnbr4en.pdfexpires=1547194910&id=id&accname=guest&checksum=CF93C4427EE81B664CDBCAD5CA656284 (accessed 11.01.2019)

20. Grossman G., Rossi-Hansberg E. The rise of offshoring: it is not wine for cloth any more / in The New Economic Geography: Effects and Policy Implications, Jackson Hole Conference Volume, Federal Reserve of Kansas City, August 2006, pp. 59-102.