Department of Business Management, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran
Abstract: This study was designed to investigate the role of investment promotion agencies and environmental attractiveness of host country to absorb foreign investment, the model which is used was proposed by Lim (2008). According to this model, the effect of investment promotion and attractiveness of foreign direct investment is measured on the host country environmental and structural equations based on the structural equation modeling and software Lisrel. In this study, data on indicators of IPA, was collected by using questionnaire. Macroeconomic variables using data from different sources (World Investment Report, International Financial Statistics Yearbook, International Monetary Fund, The Economist Intelligence Unit, and World Development Indicators) were collected. Questionnaires collected from the person responsible for investment policy in each of the 32 OECD countries. Based on our results, investment promotion agencies have had significant effect on absorb foreign direct investment in the country. The environmental attractiveness has no significant effect on foreign direct investment. However, the attractiveness of the environment through investment promotion agencies of foreign direct investment is significant. Environmental attractiveness effect of country by investment promotion agencies is significant in foreign direct investment. This means that investment promotion agencies involved in the introduction of reasonably attractiveness country for foreign investors.
[Safieh, Salehisadr. The Role of Investment Promotion Agencies and Environmental Attractiveness of Host Country to Absorb Foreign Investment. Life Sci J 2013;10(1):1584-1588] (ISSN: 1097-8135).http://www.lifesciencesite.com.
Keywords: Foreign investment - investment promotion - environmental attractions - Structural Equation