Impact of Foreign Direct Investment (FDI) on Manufacturing Industries: A View of Domestic Industries in Oman
Dr. Uvesh Husain1,Dr. Zaheer Ahmed Khan, Dr. SarfarazJaved

The major objective of this study was to assess the spill over effect of Foreign Direct Investment (FDI) on domestic firms in Oman. Specifically, to assess the relationship between the FDI policy framework and FDI net inflows in Oman. Additionally, the impact of FDI net inflows on job creation in Oman was considered. The study utilized a quantitative research method where primary and secondary data were obtained from Oman's World Bank database (1984-2018) and through a field survey of manufacturing firms from diverse sectors. The primary data was collected from a research questionnaire administered to 410 respondents from nine industrial sectors, namely: Textile, Petroleum goods, Electronics, Automotive, Food & Beverages, Agriculture & Fishery, Publishing, Chemicals, and Pharmaceutics. The outcomes of the study revealed that labour market policy and administrative procedures as a tool of FDI policy framework affect FDI net inflow in Oman. Other tools (i.e., trade policies and competition policies) of the FDI policy framework has a positive impact on FDI net inflow but did not indicate a significant impact on FDI net inflow. This study contributes significantly to the literature on the awareness level of local firms being a stakeholder of FDI policy. The study also provides an insight into the practical side as how FDI could be utilized as a device for promoting and strengthening a successful FDI policy. The study has certain limitations too: lack of actual data of jobs created through FDI, and lack of some important variables such as the business environment in current scenario. Overall, the study has successfully provided a useful insight into the phenomenon under investigation.

Full Text: PDF     DOI: 10.15640/jeds.v9n1a11