The Role of Foreign Direct Investment in the Effect of Logistic's Performance on Iran's Economic Growth with an Emphasis on Institutional Quality

Document Type : Research Paper

Authors

1 Ph.D. student in Economics, Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.

2 Assistant Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.

3 Associate Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.

10.30465/jnet.2025.49718.2157

Abstract

Foreign direct investment (FDI) plays an important role in economic growth. Also, the countries' institutional environment with its influence on the legislation's quality and logistic infrastructures with trade facilitation for business owners are considered as an effective factor on the foreign investors' decisions. In this article, for investigating the role of FDI in transferring the effects of logistics performance and institutional quality on Iran's economic growth in 2007-2022, two models for FDI and per-capita growth were estimated using the FMOLS method. The results showed that logistics performance and the legal system health as institutional quality index, had a positive effect and the multiplication of them had a negative effect on FDI. The calculation of the logistics performance final effect, achieved a threshold of 0.792 for the legal system health, so that before this threshold, the increase of this index leads to increase this positive effect of logistics performance on FDI, but after passing the threshold, the effect reduces this relationship. In addition, FDI had a positive effect on economic growth. Based on Sobel, Aroyan and Goodman tests, the role of FDI in transferring the effects of logistics performance, legal system health and their cross effect on economic growth was confirmed.

Keywords


احسان­فر، محمد حسین. (1399). بررسی اثر بلندمدت نااطمینانی‌های تورم و نرخ ارز بر تولیدات صنعتی در ایران: رویکرد FMOLS و DOLS، پژوهشنامه اقتصاد کلان، 15(30)، 271-252.
اسدنژاد، اعظم؛ ترابی، تقی و رادفر، رضا. (1395). تأثیر کیفیت سرمایه انسانی بر جذب سرمایه­گذاری مستقیم خارجی مطالعه موردی کشورهای منتخب جنوب شرق آسیا و ایران، دانش سرمایه­گذاری، 5(19)، 253-235.
باقری پرمهر، شعله، زاهدی آزاد، نگار. (1399). نقش کیفیت قوانین ‌و ‌مقررات در اثرگذاری سرمایه‌گذاری مستقیم خارجی بر رشد اقتصادی، پژوهش های برنامه و توسعه، 1(3)، 210-167.
جعفری پرویز خانلو، کرم. (1401). آثار سرمایه‌گذاری مستقیم خارجی و کیفیت نهادی بر سرمایه‌گذاری داخلی در کشورهای سند چشم‌انداز ایران، اقتصاد توسعه و برنامه­ریزی، 9(1)، 191-167.
جودکی، مریم و حسن­پور، حسینعلی. (1397). اولویت­بندی عوامل مؤثر بر ارتقاء بهره­وری کارکنان با استفاده از تکنیک فرایند تحلیل شبکه (ANP)، (مطالعه موردی: سازمان ملی استاندارد ایران)، مدیریت استاندارد و کیفیت، 8(2)، 65-38.
رحمانی، تیمور و معتمدی، سیما. (1397). تأثیر سرمایه­گذاری مستقیم خارجی بر تشکیل سرمایه، بهره­وری نیروی کار و رشد اقتصادی در کشورهای در حال توسعه، پژوهش­های رشد و توسعه اقتصادی، 8(30)، 132-117.
رستگار خرمی، پروانه. (1397). تأثیر نهادهای اقتصادی بر سرمایه گذاری مستقیم خارجی. پایان نامه کارشناسی ارشد، دانشگاه غیردولتی-غیرانتفاعی خاتم، دانشکده علوم انسانی، گروه علوم اقتصادی.
شاه‌آبادی، ابوالفضل و احمدی‌روشن، زهرا. (1390). بررسی نقش دموکراسی و حقوق مالکیت بر جریان جذب سرمایه­گذاری مستقیم خارجی کشورهای D8 و G7. پژوهشنامه بازرگانی, 15(60)، 183-163.‎
شاه­آبادی، ابوالفضل؛ بات، سوگند و مرادی، علی. (1400). تأثیر تعاملی نهاد ریسک و پیچیدگی اقتصادی بر جذب سرمایه­گذاری مستقیم خارجی در کشورهای منتخب اسلامی، اقتصاد و الگوسازی، 12(1)، 171-141.
فاضلیان، رضا، نصراللهی، خدیجه. (1401). بررسی تاثیر فساد بر سرمایه‌گذاری مستقیم خارجی در ایران: کاربرد نظریه بازی‌ها، اقتصاد باثبات، 3 (4)، 62-37.
کریمی، محسن؛ اکبریان، رضا؛ شهنازی، روح­اله و صدرایی جواهری، احمد. (1399). بررسی عوامل مؤثر بر سرمایه­گذاری مستقیم خارجی با تأکید بر نرخ مالیات بهینه بر آن در کشورهای منتخب (الگوی دوربین فضایی برای داده­های پانل(، مدلسازی اقتصادسنجی، 5(3)، 91-63 .
مفوضی، بهاره؛ طباطبایی­نسب، زهره و ابطحی، سید یحیی. (1397). آثار کیفیت نهادی و فشار بازار ارز بر سرمایه­گذاری مستقیم خارجی: مطالعه بین­کشوری، سیاست­های راهبردی و کلان، 6(4)، 709-686.
منصورلکورج، کیانوش؛ بختیاری کوه­سرخی، صادق و قبادی، سارا. (1401). تأثیر متغیرهای نهادی و فرهنگی در جذب سرمایه­گذاری مستقیم خارجی و رشد اقتصادی )مورد مطالعه: منتخبی از کشورهای درحال توسعه(، توسعه و سرمایه، 7(2)، 90-73.
مؤسسه مطالعات و پژوهش­های بازرگانی. (1401). چالش­ها و الزامات توسعه لجستیک کشور، گروه پژوهش­های لجستیک و زنجیره ارزش، 19 مرداد ماه.
نصیری، نرگس. (1399). نقش آموزش بر بهره­وری نیروی انسانی، رهیافتی در مدیریت بازرگانی، 1(2): 44-30.
نگهداری، ابراهیم. (1393). نقش سرمایه انسانی در اثربخشی سرمایه­گذاری مستقیم خارجی بر رشد اقتصاد کشورهای حوزه خلیج فارس، سیاست­های راهبردی و کلان، 2(5)، 75-67.
وزارت صنعت، معدن و تجارت جمهوری اسلامی ایران. (1400). سیاست­های توسعه بازار در بخش صنعت و معدن از منظر لجستیک: گزارش پشتیبان یازدهم طرح تدوین سند سیاست­های صنعتی ایران در افق 1404، ویراست دوم، خرداد ماه.
Abduvaliev, M. (2023). The Impact of Investments on Economic Growth: Evidence from Tajikistan. Journal of Research, Innovation and Technologies, 2(1 (3)), 31-48.
Abu-Bader, S., & Jones, T. V. (2021). Statistical mediation analysis using the sobel test and hayes SPSS process macro. International Journal of Quantitative and Qualitative Research Methods, 9(1), 42-61.
Agarwal, J. (1980). Determinants of foreign direct investment: A survey. Review of world economics, 116(4), 739-773.
Asadnezhad, A. , Torabi, T. and Radfar, R. (2016). The Impact of the Quality of Human Resources On attracting Foreign Direct Investment A Case Study of the South East Asian countries and Iran. Journal of Investment Knowledge, 5 (19), 235-254 .(In Persian)
Bagheri Pormehr, S. And Zahedi Azad, N. (2020). The Role of Regulatory Quality on the Impact of Foreign Direct Investment on Economic Growth. Program and Development Research. 1(3), 167-210 .(In Persian)
Balasubramanyam, V.N. (2001). FDI in Developing Countries: Determinants and Impact, OECD Global Forum on International Investment.
Baskoro, L. S., Hara, Y., & Otsuji, Y. (2019). Labor productivity and foreign direct investment in the Indonesian manufacturing sector. Signifikan: Jurnal Ilmu Ekonomi, 8(1), 9-22.
Bénétrix, A., Pallan, H., & Panizza, U. (2023). The elusive link between FDI and economic growth. Policy Research Working Paper, World Bank.
Bhujabal, P., Sethi, N., & Padhan, P. C. (2024). Effect of institutional quality on FDI inflows in South Asian and Southeast Asian countries. Heliyon, 10(5).
Busse, M., & Hefeker, C. (2007). Political risk, institutions and foreign direct investment. European journal of political economy, 23(2), 397-415.
Business Studies and Research Institute. (2022). Challenges and requirements of logistics development in the country, Logistics and Value Chain Research Group, August 19. (In Persian)
Celebi, U. (2021). The impact of logistics performance index upon gross domestic product: Mediating roles of foreign direct investment and patents. Journal of Global Strategic Management, 15(1), 29-46.
Chen, F., & Jiang, G. (2023). The impact of institutional quality on foreign direct investment: empirical analysis based on mediating and moderating effects. Economic research-Ekonomska istraživanja, 36(2). 1-21.
Coase, R.H. (1937). The nature of the firm. Economica, 4(16), 386-405.
Contractor, F. J., Dangol, R., Nuruzzaman, N., & Raghunath, S. (2020). How do country regulations and business environment impact foreign direct investment (FDI) inflows? International Business Review, 29(2), 101640.
Cushman, D. O. (1987). The effects of real wages and labor productivity on foreign direct investment. Southern economic journal, 174-185.
De Faria, R. N., De Souza, C. S., & Vieira, J. G. V. (2015). Evaluation of logistic performance indexes of brazil in the international trade. RAM. Revista de Administração Mackenzie, 16, 213-235.
De Mello, L. R. (1999). Foreign Direct Investment-led Growth: Evidence from Time Series and Panel Data. Oxford Economic Papers, 51(1), 133-151.
Denisia, V. (2010). Foreign direct investment theories: An overview of the main FDI theories. European journal of interdisciplinary studies, (3).
Dunning, J.H. (1998). Location and the multinational enterprise: A neglected factor? Journal of International Business Studies, 29(1), 45–66.
Ehsanfar, M.H. (2020). An Investigation of the Long-Term Impact of Exchange Rate Uncertainty on the Growth of Industrial Production: FMOLS and DOLS Approaches. Macroeconomics Research Letter, 15 (30): 252-271. (In Persian)
Fazelian, R. and Nasrollahi, K. (2022). Investigating the Impact of Corruption on Foreign Direct Investment in Iran: Application of Games Theory. Stable Economy Journal, 3 (4), 37-62. (In Persian)
Fofana, M. F. (2014). The influence of measures of economic freedom on FDI: A comparison of Western Europe and Sub-Saharan Africa. Global Economy Journal, 14(3-4), 399-424.
Gómez-Zaldívar, M., Llamosas-Rosas, I., & Gómez-Zaldívar, F. (2021). The relationship between economic complexity and the pattern of foreign direct investment flows among Mexican states. Review of Regional Studies, 51(1), 64-88.
Halaszovich, T. F., & Kinra, A. (2020). The impact of distance, national transportation systems and logistics performance on FDI and international trade patterns: Results from Asian global value chains. Transport Policy, 98, 35-47.
 Hartmann, D., Guevara, M. R., Jara-Figueroa, C., Aristarán, M., & Hidalgo, C. A. (2017). Linking economic complexity, institutions, and income inequality. World development, 93, 75-93.
Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., & Simoes, A. (2014). The atlas of economic complexity: Mapping paths to prosperity. Mit Press.
Hidalgo, C. (2015). Why information grows: The evolution of order, from atoms to economies. Basic Books.
Hong, J. (2007). Transport and the location of foreign logistics firms: The Chinese experience. Transportation Research Part A: Policy and Practice, 41(6), 597-609.
Hong, J. (2007). Transport and the location of foreign logistics firms: The Chinese experience. Transportation Research Part A: Policy and Practice, 41(6), 597-609.
Https://dataverse.harvard.edu/dataverse/atlas
Hymer, S.H. (1976). The international operations of nationalfirms: A study of direct foreign investment. Cambridge, MA: MIT Press.
Jafari Parviz Khanlou, K. (2022). The effects of foreign direct investment and institutional quality on domestic investment in Iran's Sindh countries, Development and Planning Economy, 9(1), 167-191. (In Persian)
Jodki, M. and Hasanpour, H. A. (2018). Prioritization of effective factors on improving employee productivity using the Analytical Network Process (ANP) technique, (Case study: Iran's National Standards Organization), Standard and Quality Management, 8(2), 38-65. (In Persian)
Karimi, M. , Akbarian, R. , Shahnazi, R. and Sadraei, A. (2020). An Investigation of the Effective Factors on Foreign Direct Investment with Emphasis on the Optimal Tax Rate in Selected Countries (Spatial Durbin Model for Panel Data). Journal of Econometric Modelling, 5(3), 63-91. (In Persian)
Khadaroo, A. J., & Seetanah, B. (2010). Transport infrastructure and foreign direct investment. Journal of International Development: The Journal of the Development Studies Association, 22(1), 103-123.
Khan, A., Shah, S. M., Haasis, H. D., & Freitag, M. (2020). Influence of supply chain management & logistics in the wake of China Pakistan Economic Corridor (CPEC) on Domestic Industry in Pakistan. In Dynamics in Logistics: Proceedings of the 7th International Conference LDIC 2020, Bremen, Germany (pp. 175-185). Springer International Publishing.
Khan, H., Dong, Y., Bibi, R., & Khan, I. (2023). Institutional Quality and Foreign Direct Investment: Global Evidence. Journal of the Knowledge Economy, 1-45.
Khan, S. A. R., Yu, Z., Janjua, L. R., & Shah, A. (2021, November). Investigating the Impact of Financial Inflows and Logistics Performance on Economic Growth Under the Shadow of Pandemic Crises: Empirical Analysis Using Dynamic Panel Estimation. In 7th International Conference on Social Science and Higher Education (ICSSHE 2021) (pp. 33-38). Atlantis Press.
Khayat, S. H. (2024). Nexus between the Logistics Performance and Foreign Direct Investment: Evidence from GCC Countries, American International Journal of Social Science, 13, 1-19.
Li, C., & Tanna, S. (2019). The impact of foreign direct investment on productivity: New evidence for developing countries. Economic Modelling, 80, 453-466.
Li, C., Tanna, S., & Nissah, B. (2023). The effect of institutions on the foreign direct investment‐growth nexus: What matters most?. The World Economy, 46(7), 1999-2031.
Lucas, R.E. (1993). Making a miracle. Econometrica, 61(2), 72-251.
Luttermann, S., Kotzab, H., & Halaszovich, T. (2020). The impact of logistics performance on exports, imports and foreign direct investment. World Review of Intermodal Transportation Research, 9(1), 27-46.
Ministry of Industry, Mining and Trade of the Islamic Republic of Iran. (2021). Market development policies in the industry and mining sector from the perspective of logistics: the 11th supporting report of Iran's industrial policy development plan in the horizon of 2025, second edition, June.
Mofavezi, B. , Tabataba’i-Nasab, Z. and Abtahi, S. Y. (2018). the Impact of Institutional Quality and Exchange Market Pressure on Foreign Direct Investment : A Cross Countries Study. Quarterly Journal of The Macro and Strategic Policies. 6 (24), 686-709. (In Persian)
Nasiri, N. (2020). The role of training on human productivity. JOURNAL OF ADVERTISING AND SALES MANAGEMENT (APPROACH TO BUSINESS MANAGEMENT), 1(2), 30-44. (In Persian)
Negahdari, E. (2014). The role of human capital in the efficacy of FDI on economic growth in the countries of the Persian Gulf. Quarterly Journal of The Macro and Strategic Policies, 2(5), 67-75. (In Persian)
Nordin, N., Nordin, N., Nordin, N. I. A., & Nordin, N. F. (2021, November). The Role of Logistic Performance on Foreign Direct Investment-Growth Link: Evidence from Asian Countries. In International Conference on Business and Technology (pp. 739-758). Cham: Springer International Publishing.
Okafor, G., Piesse, J., & Webster, A. (2015). The motives for inward FDI into Sub–Saharan African countries. Journal of Policy Modeling, 37(5), 875–890.
Phillips, P. C., & Hansen, B. E. (1990). Statistical inference in instrumental variables regression with I (1) processes. The review of economic studies, 57(1), 99-125.
Podlevska, O., & Podlevskyi, A. (2023). Development of circular economy in modern conditions. ECONOMICS - Innovative and Economics Research Journal, 11, 97-112.
Rathnayake, S., Jayakody, S., Wannisinghe, P., Wijayasinghe, D., Jayathilaka, R., & Madhavika, N. (2023). Macroeconomic factors affecting FDI in the African region. Plos one, 18(1), e0280843.
Rahmani, T. and Motamedi, S. (2018). The Impact of Foreign Direct Investment on Capital Formation, Productivity and Economic Growth in Developing Countries. Economic Growth and Development Research, 8 (30), 117-132. (In Persian)
Rastgar Khorami, P. (2018). The effect of economic institutions on foreign direct investment. Master's thesis, non-governmental non-profit Khatam University, Faculty of Humanities, Department of Economic Sciences. (In Persian)
Rehman, F. U., Popp, J., Ahmad, E., Khan, M. A., & Lakner, Z. (2021). Asymmetric and symmetric link between quality of institutions and sectorial foreign direct investment inflow in India: A fresh insight using simulated dynamic ARDL approach. Sustainability, 13(24), 13760.
Saidi, S., Mani, V., Mefteh, H., Shahbaz, M., & Akhtar, P. (2020). Dynamic linkages between transport, logistics, foreign direct Investment, and economic growth: Empirical evidence from developing countries. Transportation Research Part A: Policy and Practice, 141, 277-293.
Serikkyzy, A., Bakirbekova, A., Baktymbet, S., Yelshibayev, R., & Baktymbet, A. (2024). Foreign Direct Investment and Economic Development: An International Perspective. Innovative and Economics Research Journal, 12(2).
Shahabadi, A. and Ahmadi Roshan, Z. (2011). The Investigation of Democracy and Property Rights Roles on FDI Inflows in D8 and G7 Countries. Iranian Journal of Trade Studies, 15(60), 163-183.
Shahabadi, A. , Bat, S. and Moradi, A. (2021). The Interactive Effect of Risk Institution and Economic Complexity on Attracting Foreign Direct Investment in Selected Islamic Countries. Journal of Economics and Modelling. 12 (1), 141-171. (In Persian)
Soh, K. L., Wong, W. P., & Tang, C. F. (2021). The role of institutions at the nexus of logistic performance and foreign direct investment in Asia. The Asian Journal of Shipping and Logistics, 37(2), 165-173.
Staats, J. L., & Biglaiser, G. (2012). Foreign direct investment in Latin America: The importance of judicial strength and rule of law. International Studies Quarterly, 56(1), 193-202.
Stock, J. H, Watson, M. W, (1993), "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems", Econometrica: Journal of the Econometric Society, 61 ,4, 783-820.
Tanna, S., Li, C., & De Vita, G. (2018). The role of external debt in the foreign direct investment–growth relationship. International Journal of Finance & Economics, 23(4), 393-412.
Topçu, G. (2024). Impact of legal and regulatory qualities on fdi inflow: a comparison of developed and developing countries. Doğuş Üniversitesi Dergisi, 25(1), 219-239.
Wong, W. P., & Tang, C. F. (2018). The major determinants of logistics performance in a global perspective: Evidence from panel data analysis. International Journal of Logistics Research and Applications, 21(4), 431–443.
Yao, Y. (2021). Foreign Direct Investment and Economic Growth: A Panel Data Analysis. Empirical Economic Bulletin, An Undergraduate Journal, 14(1), 2.