An Error Correction Model Analysis of the Determinants of Foreign Direct Investment: Evidence from SAUIDI ARABIA

The aim of this study was to gain insights into the factors affecting Foreign Direct Investment (FDI) inflow in Saudi Arabia by applying cointegration and error-correction model on annual data over period 2000-2020. results ARDL bound test co-integration displayed existence long-run equilibrium model. regression report that openness, government spending economic stability are statistically significant. coefficient exports market size is positive both them not However, short-run, our evidence shows exports, openness significant at 1%. findings important for policy makers undertake effective policies can promote attract foreign direct investments diversify sources income boost growth.