FDI and JV distribution in Kurdistan Region

This study investigates the determinants of inward foreign direct investment (FDI) and joint ventures (JVs) in the Kurdistan Region of Iraq (KRI). Using a hand-collected firm-level dataset from 2007–2021 and employing a Poisson Pseudo-Maximum Likelihood (PPML) estimator, the results show that both FDI and JVs are significantly hindered by greater geographical distance, exposure to ISIS-related conflict, and weaker local labour market conditions, while they are positively associated with GDP and infrastructure quality, including transportation networks and airport connectivity. When examining how inward FDI and JVs are distributed across the governorates of the KRI, the results reveal substantial regional differences in foreign investment allocation. Inward FDI is highly concentrated in Erbil, while JVs are more concentrated in Sulaymaniyah Governorate, suggesting distinct location preferences within the KRI. These findings contribute to the literature on investment in post-conflict economies by demonstrating the uneven geographic distribution of foreign investment across the region. ...