Title: An evaluation of the impact of foreign direct investment on Bahraini economy

Authors: Anis Khayati

Addresses: College of Business Administration, University of Bahrain, P.O. Box 32038, Sakhir, Bahrain

Abstract: In many economic studies, FDI is positively linked to economic growth of the host country. However, questions continue to linger and some authors contend that the relation between economic growth and FDI can be negative. Existing empirical findings for Bahrain based on traditional regression analysis show no conclusive results; and many voices, notably from the Bahrain Chamber of Commerce and Industry (BCCI), are urging the government to limit the advantages given to foreign investors. In this paper, we use the fuzzy screening methodology to assess the impact of FDI on Bahraini economy by aggregating the evaluations of a panel of experts from the academic and the investment fields on the basis of some set criteria. Results show an overall threshold positive effect of FDI on Bahraini economy.

Keywords: foreign direct investment; FDI; technological transfer; trade performance; employment; competition; fuzzy screening; Bahrain; economic impact; economic growth.

DOI: 10.1504/IJANS.2015.076522

International Journal of Applied Nonlinear Science, 2015 Vol.2 No.1/2, pp.39 - 48

Received: 08 Jan 2015
Accepted: 06 Jul 2015
Published online: 11 May 2016 *

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