The Survey of the Robust Legal Institutions of Doing Business on the Capital Flight and Attracting Foreign Direct Investment

One of the important preconditions for economic growth and development is the provision of capital; each society needs to provide an environment to attract foreign and domestic investment. But despite the rich revenues of oil in OPEC member countries, their business environments are largely confronted with the domestic Capital Flight and reluctance of foreign investors to invest. The purpose of this paper, using panel models, is to examine the dimensions of doing business on the Capital Flight, as well as the attraction of foreign direct investment in OPEC countries during the period 2007-2017. In this framework, according to the World Bank doing Business report in 2018, business dimensions are divided into two dimensions: the complexity and cost of business incorporation processes and robust legal institutions. The results generally show that complexity and cost of business incorporation processes are important for foreign investors, while for domestic investors, the robust legal institutions are more important.