The relationship Between Country Risk Indicators and flows of FDI study for sample Oil & nonoil countries for period( 1996-2016 ) Analytical study

Abstract

The study aims at measuring and testing the relation between country risk, as it is called by researchers and writers, and flows of FDI. The study deduces that there is fluctuation in direct foreign investment Due to several factors, including exchange rates, reduced capacity of local markets and, finally, political turbulence. This fluctuation was very clear in 2002. most countries have witnessed a high level in direct foreign investment like Iran, Indonesia and Nigeria. other countries show a low level of direct foreign invest like Jordan and Malaysia. We must know the books of country's risk like international country risk guide and must study the country's economy, fiscal and policy in order to know or to expect the country's investment direction. This leads to expect the returns and to know how to avoid the risks in order to end them.