The Impact of National Cultural Distance on Foreign Direct Investment in Iraq

Dr. Ghassan Faraj Hanna; Mohamad Saleh Hammoud

Authors

Dr. Ghassan Faraj Hanna
Mohamad Saleh Hammoud

Keywords:

foreign direct investment; iraq; post-conflict country; cultural distance; decision making; multinational enterprises; international business

Abstract

Political and security risks coupled with cultural distance have profound effects on foreign investments by multi-national enterprises. A qualitative case study was conducted to investigate the impact of cultural distance on foreign direct investment in the heterogeneous and post-conflict country of Iraq. Data were collected from interviews with 15 business and government subject matter experts, and from a review of publically available documents. The findings showed majority of foreign investment was from Arab countries and Iraq's neighbors. There was limited investment by Western firms in Iraq, outside its oil and gas sector, and those taking place were mainly in the housing construction market. Kurdistan region attracted significant investment activities. Wholly-owned and joint ventures characterized mode of entry by MNEs. Substantial number of investment licenses issued did not materialize due to hurdles brought about by government agencies. Statistical data regarding the real dollar amount of foreign investment in Iraq are still lacking. The findings showed an important role played by Iraqi expatriates as facilitators of foreign investment. Implications to other post conflict and heterogeneous countries are presented and recommendations made.

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How to Cite

The Impact of National Cultural Distance on Foreign Direct Investment in Iraq. (2014). Global Journal of Management and Business Research, 14(13), 1-7. https://journalofbusiness.org/index.php/GJMBR/article/view/

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Author Biography

Dr. Ghassan Faraj Hanna

Dr. Ghassan F. Hanna is a distinguished researcher and academic specializing in international business, trade, and investment, with a particular focus on post-conflict economies. He holds a Ph.D. in Business Administration with a specialization in Management from Alliant International University. Dr. Hanna has served as a faculty member at DeVry University and Southern New Hampshire University, where he has contributed to the field through his research on cultural distance and foreign direct investment, as well as U.S.-Arab trade relations. His notable works include "The Impact of National Cultural Distance on Foreign Direct Investment in Iraq" and "U.S. a Arab Trade and Investment Relations (2010 a 2014): An Analytical View." As a recognized Fellow, he continues to engage in scholarly activities and peer review, furthering knowledge in management and international economics.

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