The Role of FDI Attraction Determinants with an Approach to Technology Transfer in Iran

The urgent need to provide capital from developing countries and improve the level of technology has made it necessary to attract foreign investment. FDI can respond to this need as an inflow of capital, technology, and technical know-how. The present study investigated the role of FDI attraction determinants through a technology transfer approach comprehensively and coherently. This research was conducted using a quantitative paradigm and a cross-sectional survey among experts. The statistical population consisted of Iranian experts, practitioners, and executives in investment and economics. The convenience sampling method was used to study 310 members of the statistical population. A researcher-made questionnaire was also used for data collection. The validity was determined using experts' views, and its reliability was determined using Cronbach's alpha within a pre-test (n=20). Data were analyzed through the partial least square structural equation modeling (PLS-SEM) method in Smartpls 3 software. The hierarchical component analysis (using two orders of constructs) was used to reduce the complexity of the structural model. The results showed that "international relations and agreements" as a primary variable correlated with FDI attraction, and "bureaucracy and domestic laws" significantly affected FDI attraction. In addition, the results indicate that "sanctions, "economic stability and security," and "workforce" are among the economic components that play a less significant role in FDI attraction.