The Effect of Bureaucracy on the Inflow of Foreign Direct Investment: A Comparative Study of Libya and the United Arab Emirates

<p>Attracting foreign direct investment (FDI) is a determinant factor for developing national economies, and Libya is no exception. However, the bureaucracy in Libya still needs to be improved to help attract foreign direct investment. Therefore, this comparative case study seeks to analyze the effects of bureaucracy on attracting FDI to Libya and the United Arab Emirates, highlighting the bureaucratic barriers embodied mainly in bureaucratic expansion, bureaucratic corruption, and the obstacles of the FDI laws. I argue in favor of eliminating those bureaucratic barriers and improving bureaucratic quality, enhancing the chances of attracting and keeping FDI. The study's standpoint is that eliminating bureaucratic flaws such as bureaucratic expansion, bureaucratic corruption, and drawbacks of the foreign direct investment law are preconditions for the inflows of foreign direct investment to Libya, taking the experience of the UAE as an example in this regard. This study takes Libya as a major case and the UAE as a minor one. The United Arab Emirates succeeded in adopting bureaucratic reforms varying from reducing bureaucratic expansion and corruption and updating its FDI laws, which improved its bureaucratic quality and encouraged the inflows of FDI in recent decades. Therefore, the experience of the UAE is considered a suitable model that Libya can apply to attract FDI. The study goes beyond how the UAE utilized its bureaucracy in attracting FDI and how Libya did not to why the UAE could conduct such bureaucratic reforms while Libya could not. For the why aspect, the study brings the roles of political stability and the political leadership character and incentive. The study bridges qualitative and qualitative methods through the investigation process. It runs a simple regression model to determine whether what is being explored qualitatively about the relationship between bureaucratic quality and FDI inflows makes sense when quantitively examined.</p>

Name thesis:degree_name

Political Science, PhD

Level thesis:degree_level

Open Access Dissertation

Discipline thesis:degree_discipline

School of Social Science, Politics, and Evaluation

Year dc:date.available

2023

Author dc:creator

• Elakder, Abdurraouf Abdussalam

Contributors dc:contributor

• Yi Feng
• Mietek P. Boduszyński

• Bureaucracy
• Development
• Economic Growth
• Foreign Direct Investment
• Libya
• United Arab Emirates
• Economics
• Political Science

Repository record dc:identifier

https://scholarship.claremont.edu/cgu_etd/584

OAI identifier oai:identifier

oai:scholarship.claremont.edu:cgu_etd-1606