Abstract
Inward foreign direct investment (FDI) is identified as An important player in national competitiveness equation, although national competitiveness and FDI inflow records are positively correlated in the case of Oman, the causality relationship is unclear due to type of FDI; the majority of inward FDI stock is resource seeking (FDI in oil and gas exploration), which literature questions the value adding activities of such type of FDI to host economy.However, the role of inward FDI in improving host country’s competitiveness is subject to many factors such as; type of inward FDI, absorption capacity of domestic environment, and host country’s stage of development; therefore, the aim of this research is to evaluate the role of inward FDI in enhancing Oman’s competitiveness through perceptions and social construct (questionnaires and interviews); whereas the majority of inward FDI is resource seeking, local absorption capacity is weak, and the country is in initial stages of development (developing country).
Research methodology is based on Gugler et al. framework (cluster approach), which connects Porter’s Diamond (national competitiveness school of thought) with Dunning’s Eclectic Paradigm (FDI school of thought) using business clusters. The study measures the role of inward FDI in improving the underlying relative competitiveness factors, which are extracted from literature and national competitiveness reports; the aggregation of different factors form pillars such as national business environment (NBE) and sub-pillars such as related and supporting industries by using Delgado et al. competitiveness structure.
Furthermore, the research investigates the role of inward FDI based on its type and sector; whereas comparison analysis is conducted between the role of resource seeking FDI (cluster) and non-resource seeking FDI (non-cluster) in improving local absorption capacity by examining oil and non-oil inward FDI positive externalities in upgrading of local human capital and transfer of technology.
| Date of Award | 1 May 2022 |
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| Original language | English |
| Awarding Institution |
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| Supervisor | David Roberts (Supervisor) & Jonathan Hill (Supervisor) |