The Impact of Economic Variables on Foreign Direct Investment in Libya during the Period (2000–2014)

Mr. Mohamed Abdelali Mohamed / Mr. Hamza El-Hadi Ibrahim

This study aims to identify the key economic determinants affecting foreign direct investment (FDI) rates in the Libyan economy during the period (2000–2014) to provide recommendations for encouraging its inflow. Utilizing a descriptive-analytical methodology, a multiple regression model was built to examine variables including GDP, current account balance, inflation, exports, and public expenditure using the MINITAB software. The findings revealed a positive relationship between the investment rate and both the trade balance and exports, and an inverse relationship with GDP, inflation, and public expenditure. The study recommended creating a favorable investment climate to attract foreign capital.

Foreign Direct Investment, Economic Variables, Libyan Economy, Gross Domestic Product, Exports, Inflation, Econometric Analysis