Relationship between Inward Investment and Productivity in OmanMishrif A1* and Balushi YA2
- *Corresponding Author:
- Ashraf Mishrif
Department of International Affairs
CAS, Qatar University, Doha, Qatar
Tel: +974 66203605
E-mail: [email protected]
Received Date: May 08, 2017; Accepted Date: May 10, 2017; Published Date: May 20, 2017
Citation: Mishrif A, Balushi YA (2017) Relationship between Inward Investment and Productivity in Oman. J Bus Fin Aff 6: 266. doi: 10.4172/2167-0234.1000266
Copyright: © 2017 Mishrif A, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This study explores how the peculiarity of economic structure and institutions affect the relationship between inward investment and productivity of domestic firms in Oman. It provides its analysis through an examination of the policy framework that shapes the business environment; affects the quality of institutions and proper implementation of policies targeting inward investment; and influences productivity channels and mechanisms that facilitate the transmission of spillover effects from foreign to domestic enterprises. While international business literature attributes low productivity to low absorptive capacity of local firms, this study stresses the correlation between the quality of institutions and levels of productivity. Empirical evidence collected from 96 survey questionnaires and 42 interviews with government officials and executives confirms the essential role of the state through the creation of specialized institutions and proper implementation of investment policies in facilitating the transmission of productivity spillover effects from foreign to domestic enterprises.