The impact of some macroeconomic variables on FDI inflows in the selected countries during the period (2000-2014) panel-data model

The study examined the determinants of foreign direct investment inflows to the selected countries (Malaysia, Singapore, Saudi Arabia, and Turkey) by using Panel-Data Model. The main objective of this study was to find out the major macroeconomic determinants of foreign direct investment in these countries during the period 2000 - 2014. According to empirical results all the variables Political stability, BOP, Inflation rates, and Exchange rate was statistically significant with high significant levels and considered as an important determinants of FDI flow to these countries, except economic growth variable. In this study we initially tested the unit root test, which includes test of Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) test, this test is used to find out stationarity degree in time-series of economic variables under study, according to ADF test and PP test with a constant and a general trend, that all data (time-series) integrated and stable and do not suffer from unit root and other test such as Pooled OLS Regression test; Fixed effect model; Random effect model; Hausman test; diagnostic tests and Heteroscedasticity test. Based on the findings we recommend that policies that encourage foreign direct investment such as provide the political stability case, improve the situation of the balance of payments, moderate exchange rate depreciation, the stability of inflation rates, should be implemented. Key words: FDI Inflows, Macroeconomic variables, Panel data, Unit Root, Political stability.