This paper examines the determinants of foreign direct investment (FDI) in Iran by applying the structural equation modelling (SEM). Using the annual time series data for the 1991-2006 period, two models were developed. In the first model the correlation between 12 determining factors and FDI in Iran were analyzed and in the second model the 12 factors were fit into five categories of determinants namely: Business, Economic, Infrastructural, Oil and Science and Technology and the impact of each of the mentioned groups of factors was investigated.

Nader Ale Ebrahim holds a PhD degree in Technology Management from the Department of Engineering Design and Manufacture, Faculty of Engineering, University of Malaya. He holds a Master of Science in the Mechanical Engineering from the University of Tehran with distinguished honors. He also has over 19 years of experience in the establishment of the R&D departments in different companies, heading projects as the project director and project coordinator and implementing knowledge based system in the R&D department. His current research interest focuses on E-skills, Research Tools, Bibliometrics and managing virtual NPD teams in SMEs’ R&D centers. His papers/articles have published and presented in the several journals and conferences.

Foreign Investment
 
Structural Equation Modelling
 
Iran
 
Foreign Investment in iran
 

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