Trade agreements, Complex network and Foreign Direct Investment: An application of a three-dimensional panel model

Given the importance and role of foreign direct investment in the development of countries, this study examines the effect of three types of variables, including the variable of membership in trade agreements, network index variables, and economic variables on attracting foreign direct investment. In this context, data from eleven selected countries from the BRICS, Shanghai, D۸, and ECO trade agreements during the years ۲۰۰۹-۲۰۲۳ have been utilized within the framework of a three-dimensional panel model. The results indicate that the effect of membership in the ECO trade area on foreign direct investment in member countries is significant and positive, while the effects of other regions are not significant. The effects of two network indices, degree and PageRank, are significant and direct, and the effects of economic variables such as GDP per capita, trade openness, and governance quality on foreign investment are positive, while the effect of the inflation rate variable is negative. This research, while highlighting the importance of membership in trade areas, increasing network communications and improving economic indices, and we think it may offer specific recommendations for policymakers aimed at enhancing the status of foreign direct investment in selected countries, including Iran.

کلیدواژه ها:

Trade Agreement ، network ، Foreign direct investment ، three-dimensional panel