Saarc ülkeleri için doğrudan yabancı yatırımların iktisadi ve kurumsal belirleyicileri

ABSTRACT This study provides an in-depth analysis of the key economic and institutional determinants that influence Foreign Direct Investment (FDI) in the South Asian Association for Regional Cooperation (SAARC) countries. Understanding the drivers of FDI is especially relevant for SAARC nations, which include Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, as these countries seek to leverage foreign investment to accelerate economic growth, promote development, and strengthen regional ties. The research examines a comprehensive set of economic factors that are hypothesized to attract or deter FDI, including market size, infrastructure quality, macroeconomic stability, human capital, trade openness, labor productivity, and natural resource endowments. These economic variables collectively shape the business environment and can significantly impact investor confidence, influencing both the volume and sustainability of FDI inflows. In addition to economic conditions, this study also explores institutional determinants that affect the attractiveness of SAARC countries for foreign investment. The rule of law, control of corruption, and political stability are essential aspects of the institutional environment that can enhance or undermine investor trust. Strong institutions not only support smoother business operations but also reduce the perceived risks associated with political or regulatory unpredictability. By investigating these institutional dimensions, the research seeks to provide a balanced view of both economic and governance factors in shaping FDI trends across the SAARC region. The study employs quantitative analysis to assess the relative impact of each economic and institutional factor on FDI inflows, utilizing data spanning from 2004 to 2018 and encompassing all SAARC countries. Panel data Fiхеd Еffеcts Еstimаtiоn with Driscоll-Krаау Stаndаrd Еrrоrs mеthоd is used fоr аnаlуzing аnd еstimаting thе relationship between variables. The findings underscore the critical importance of a dual focus on strengthening both economic indicators and institutional frameworks to create a stable, transparent, and competitive investment environment. The results suggest that while improvements in infrastructure, human capital, market size, trade openness can attract investors, these efforts are less effective if institutional weaknesses persist, such as political instability. Also, the study concludes that control of corruption and macroeconomic stability is not affecting the inflows of FDI in the mentioned category countries. Keywords: FDI, SAARC, Economic Determinants, Institutional Determinants