https://search.dev.ndltd.org/etd/bradford/oai:bradscholars.brad.ac.uk:10454/6294
type: CreativeWork
name: The role of institutional systems and government policy in securing inward foreign direct investment in Kuwait. The impact of institutional and government policy systems on the inward foreign direct investment decision in Kuwait
description: Promoting economic diversity is important for states reliant on natural resources as the major source of economic development. Many of these states suffer from the Dutch disease leading to negative effects, which hinders economic diversification. One of the ways to reduce dependency on national resources is to encourage Foreign Direct Investment (FDI) inflows, which aids diversification by the transfer of technology, the creation of new employment opportunities, and the adoption of modern management practices. The Gulf Council Cooperation (GCC) countries recognised the necessity and benefits of FDI as an aid to economic diversification; it seems, however, that Kuwait is lagging behind in this endeavour. The government of Kuwait has engaged in a series of policy measures to induce Multinational Companies (MNCs) to invest in Kuwait, but the results, thus far, have been disappointing. The formal and informal institutions interact in a variety of ways. However, ineffective formal rules can create different outcomes; particularly, in the presence of strong informal institutions. In such a case, formal rules and procedures are not enforced systematically, that is, enabling actors who are involved in the policy process to ignore or violate them, which subsequently results in a failure to attract inward FDI to a host country. Thus, this study investigates the reasons behind this failure by examining the role of formal and informal institutions on FDI policy and on decisions on whether to grant FDI licences by means of using a New Institutional Economics (NIE) approach. The conceptual framework is used as a guide for an inquiry into the subject of study by constructing a category of intellectual scaffolding, which would provide a coherent structure (Schlager, 2007). The conceptual framework in this study systematically organises the investigation into how a MNC examines a potential investment location by dividing the host country assessments into four distinct ¿stages¿. When…
abstract: Promoting economic diversity is important for states reliant on natural resources as the major source of economic development. Many of these states suffer from the Dutch disease leading to negative effects, which hinders economic diversification. One of the ways to reduce dependency on national resources is to encourage Foreign Direct Investment (FDI) inflows, which aids diversification by the transfer of technology, the creation of new employment opportunities, and the adoption of modern management practices. The Gulf Council Cooperation (GCC) countries recognised the necessity and benefits of FDI as an aid to economic diversification; it seems, however, that Kuwait is lagging behind in this endeavour. The government of Kuwait has engaged in a series of policy measures to induce Multinational Companies (MNCs) to invest in Kuwait, but the results, thus far, have been disappointing. The formal and informal institutions interact in a variety of ways. However, ineffective formal rules can create different outcomes; particularly, in the presence of strong informal institutions. In such a case, formal rules and procedures are not enforced systematically, that is, enabling actors who are involved in the policy process to ignore or violate them, which subsequently results in a failure to attract inward FDI to a host country. Thus, this study investigates the reasons behind this failure by examining the role of formal and informal institutions on FDI policy and on decisions on whether to grant FDI licences by means of using a New Institutional Economics (NIE) approach. The conceptual framework is used as a guide for an inquiry into the subject of study by constructing a category of intellectual scaffolding, which would provide a coherent structure (Schlager, 2007). The conceptual framework in this study systematically organises the investigation into how a MNC examines a potential investment location by dividing the host country assessments into four distinct ¿stages¿. When…
author: Alawadhi, Salah A.
language: en
keywords: Institutions, MNC strategy, Government policy, Kuwait, Gulf region, Inward FDI, Natural resources, Economic diversification
date published: 2014-05-01
date modified: 2026-07-24T01:15:46Z
provider: University of Bradford
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Bradford

PropertyValue
property ID: Handle
value: http://hdl.handle.net/10454/6294