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- Friday, March 16, 2007
- The Hidden Role of Cultural Factors on Foreign Direct Investment Mobility to Jordan
This paper presents results of a survey that has been conducted to analyze and trace
the significant factors that affect FDI inflow to the Jordanian market. The survey findings
are expected to contribute to a better understanding of trends and prospects of FDI
inflows to Jordan; through concentrating on the following broad objects: First identifying
the main risks that affect FDI inflows to Jordan. Second: exploring the main components
of each factor (economical, political, and cultural) that contributed most to FDI decision
making in Jordan.
Using a Conditional Logit model, it is found that despite the political factors to have
most significant influence on FDI decision to Jordan, there is a significant hidden role of
the cultural factors that drive political ones; in the way political factors could be
considered as a result of hidden cultural factors. Such conclusion, the importance of
cultural factors, couldn
t be clear even for several policy makers in the Middle East
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