A Study of Motives and Determinants of Foreign Direct Investment in the Key Sectors of Libyan Economy

Suod, Rehab Mohamed Ben (2011) A Study of Motives and Determinants of Foreign Direct Investment in the Key Sectors of Libyan Economy. PhD thesis, University of Gloucestershire.

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Abstract

The study analyses the key motives and determinants of FDI in various sectors of the Libyan economy. It compares the results for the different sectors to determine how the policy of the Libyan government could be improved in order to increase the benefits for the government and the country. A new framework was developed for this research. A qualitative methodology using multiple case studies was employed. The case study companies comprised eight companies from four sectors. The four sectors were compared and contrasted using Porter's five forces model. The analysis of the eight companies had two stages: "within" and "cross-cases" analyses. Data were gathered through in depth, semi-structured interviews with foreign and local company managers, and government policy makers. The study also uses data collected from secondary sources such as company websites, documents and government reports. The empirical findings reveal the existence of a core of motives and determinants of FDI in Libya that are common for all parties across all sectors. This finding is surprising in relation to the similarity across sectors. This might be explained by the uniform government policy over a relatively stagnant forty-year period. These factors are: market size and growth, high return on investment and investment incentives, political stability, infrastructure and low transportation costs, business and industrial linkages, progress of privatisation, institutions, culture and attractive geographic location. The sector-specific and actor-specific determinants are however less important than the common ones. In terms of obstacles to FDI, bureaucratic red tape, infrastructure in terms of Internet, telephone, and the banking system inhibit FDI inflows in all contexts. The findings of this study showed also the critical role of the Libyan government in facilitating the process of FDI. This is probably the first study to incorporate both host government and foreign investors' views about motives and determinants of FDI.

Item Type: Thesis (PhD)
Uncontrolled Keywords: Foreign investment, Libya; Libyan economy
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance > HG4501 Investment, capital formation, speculation
Divisions: Schools and Research Institutes > Business School > Accounting and Finance
Depositing User: Phil Davis
Date Deposited: 21 Mar 2016 11:58
Last Modified: 20 Dec 2016 14:01
URI: http://eprints.glos.ac.uk/id/eprint/3256

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