Revista Internacional de Economía y Ciencias de la Gestión

The Factors Affecting the Attraction of Foreign Investors in Construction and Development of Industrial Towns in East Azerbaijan Province

Abstract

Khorrami Fard S* and Fakhimi Azar S

 The aspect of investment especially foreign and industrial investor is among the major subjects in economic and financial growth and development of countries. Thus, the factors affecting investment are considered to increase the ability of countries in their competitiveness in international markets. The arrival of foreign invests to the industrial sector is an important tool to increase the supply of production resources that an increase the export capacity of the host country. The increase of production and export capacity attracts revenues, creates new job opportunities, increases technology transfer, and promotes the efficiency of production factors and finally the economic growth in the host country. The present study was conducted with the aim of investigating a significant relationship between foreign investment and the factors affecting the attraction of foreign investor. Policy, optimal management, laws, facilities and selecting a proper place in industrial towns are among the factors studied in this study. For this purpose, a sample of 200 members is selected by random stratified sampling method. Firstly, the significant relationship between the factors is studied by using structural equation modeling (SEM) and secondly the degree of this relationship is measured. Then, the above-mentioned factors are ranked according to the importance of their effectiveness by using analytic hierarchy process (AHP). Thus, among the factors mentioned in this study, the policies adopted by the government have the maximum effect with factor load of 3.695 in the attraction of foreign investors.