Determinants of Foreign-Owned Firms Survival in Iran

In terms of financing, penetration in global markets and emphasis on comparative advantage, attracting FDI play a key role in boosting economic growth, providing foreign exchange and increasing non-oil exports. In this study, the effect of determinants on foreign-owned firms survival is investigated by the Complementary Log-Log Model. To achieve the purpose, the future status of valid foreign investment licenses in 2007 until 2019 was followed. The results suggest that after JCPOA until withdrawal of US from the agreement, foreign-owned firms were less likely to leave Iran than during the sanctions. The results also show that with increasing in age and size of capital, the hazard of foreign-owned firms exit will decrease. Foreign-owned firms from Europe were less likely to leave than other investors, as well as foreign-owned firms which active in the industrial sectors and some provinces with more than three million people were less likely to leave.