Political reforms and its role in stimulating foreign direct investment application on a sample of the Middle East and Central Asia Countries

Abstract

This research aims to find the role of political reforms to stimulate foreign direct investment application on a sample of countries in the Middle East and Central Asia, adopted a descriptive approach to research and quantitative analysis (standard) to describe the nature of the relationship between the variables. Using dynamic models (Panel data analysis) (Dynamic Panel Data Models) that blends time-series data with the data cross-sections using the program (Eviews 5.1), and use the method of least squares generalized GLS to estimate the parameters of the gradient, and research has come to a set of conclusions, the most important is that the states with democratic regimes capable of attracting foreign direct investment more than non-democratic countries. And that democracy represents the biggest variables impact on FDI flows in all the countries of the Middle East and Central Asia, and how much research found that restricting the freedom of the press has a negative effect on those flows, while the role of good governance is a significant and negative