Promoting economic diversity is important for states reliant on natural resources as the major source of economic development. Many of these states suffer from the Dutch disease leading to negative effects, which hinders economic diversification. One of the ways to reduce dependency on national resources is to encourage Foreign Direct Investment (FDI) inflows, which aids diversification by the transfer of technology, the creation of new employment opportunities, and the adoption of modern management practices. The Gulf Council Cooperation (GCC) countries recognised the necessity and benefits of FDI as an aid to economic diversification; it seems, however, that Kuwait is lagging behind in this endeavour. The government of Kuwait has engaged in a series of policy measures to induce Multinational Companies (MNCs) to invest in Kuwait, but the results, thus far, have been disappointing. The formal and informal institutions interact in a variety of ways. However, ineffective formal rules can create different outcomes; particularly, in the presence of strong informal institutions. In such a case, formal rules and procedures are not enforced systematically, that is, enabling actors who are involved in the policy process to ignore or violate them, which subsequently results in a failure to attract inward FDI to a host country. Thus, this study investigates the reasons behind this failure by examining the role of formal and informal institutions on FDI policy and on decisions on whether to grant FDI licences by means of using a New Institutional Economics (NIE) approach. The conceptual framework is used as a guide for an inquiry into the subject of study by constructing a category of intellectual scaffolding, which would provide a coherent structure (Schlager, 2007). The conceptual framework in this study systematically organises the investigation into how a MNC examines a potential investment location by dividing the host country assessments into four distinct 'stages'. When systematically conducted, the respective approach is grounded in the existing literature, which provides theories regarding the behaviour of MNCs in relation to their decision-making processes for considering locations for their FDI projects. The research questions derived from the conceptual framework are answered using a mixed methods research approach that uses three sets of data survey, semi-structured interviews, and secondary data. Firstly, the findings show that almost that all MNCs in the Gulf region have a limited awareness regarding investment opportunities in Kuwait, FDI laws and regulations. Secondly, the findings reveal a number of attractive and unattractive locations, and institutional factors of Kuwait. Finally, it is discovered that the high rejection rate of FDI applications is linked to unsuccessful policy implementation, which is a result of interaction of both formal and informal institutions in Kuwait. Subsequently, the results are utilised to make a number of recommendations for government policy makers, administrators, and for MNCs regarding how to improve FDI inflows into Kuwait. The results are also used to contribute towards the international business literature concerning the institution based view of FDI, and for government policy connected to attracting FDI.

Promoting economic diversity is important for states reliant on natural resources as the major source of economic development. Many of these states suffer from the Dutch disease leading to negative effects, which hinders economic diversification. One of the ways to reduce dependency on national resources is to encourage Foreign Direct Investment (FDI) inflows, which aids diversification by the transfer of technology, the creation of new employment opportunities, and the adoption of modern management practices. The Gulf Council Cooperation (GCC) countries recognised the necessity and benefits of FDI as an aid to economic diversification; it seems, however, that Kuwait is lagging behind in this endeavour. The government of Kuwait has engaged in a series of policy measures to induce Multinational Companies (MNCs) to invest in Kuwait, but the results, thus far, have been disappointing. The formal and informal institutions interact in a variety of ways. However, ineffective formal rules can create different outcomes; particularly, in the presence of strong informal institutions. In such a case, formal rules and procedures are not enforced systematically, that is, enabling actors who are involved in the policy process to ignore or violate them, which subsequently results in a failure to attract inward FDI to a host country. Thus, this study investigates the reasons behind this failure by examining the role of formal and informal institutions on FDI policy and on decisions on whether to grant FDI licences by means of using a New Institutional Economics (NIE) approach. The conceptual framework is used as a guide for an inquiry into the subject of study by constructing a category of intellectual scaffolding, which would provide a coherent structure (Schlager, 2007). The conceptual framework in this study systematically organises the investigation into how a MNC examines a potential investment location by dividing the host country assessments into four distinct ¿stages¿. When systematically conducted, the respective approach is grounded in the existing literature, which provides theories regarding the behaviour of MNCs in relation to their decision-making processes for considering locations for their FDI projects. The research questions derived from the conceptual framework are answered using a mixed methods research approach that uses three sets of data survey, semi-structured interviews, and secondary data. Firstly, the findings show that almost that all MNCs in the Gulf region have a limited awareness regarding investment opportunities in Kuwait, FDI laws and regulations. Secondly, the findings reveal a number of attractive and unattractive locations, and institutional factors of Kuwait. Finally, it is discovered that the high rejection rate of FDI applications is linked to unsuccessful policy implementation, which is a result of interaction of both formal and informal institutions in Kuwait. Subsequently, the results are utilised to make a number of recommendations for government policy makers, administrators, and for MNCs regarding how to improve FDI inflows into Kuwait. The results are also used to contribute towards the international business literature concerning the institution based view of FDI, and for government policy connected to attracting FDI. / Kuwait Petroleum Corporation (KPC)

Depuis plus de trois décennies, l'un des aspects par lequel se manifeste la mondialisation est la mobilité internationale des firmes et des facteurs de production. L'interdépendance croissante des économies, qui résulte de l'expansion des échanges et du développement des mouvements des capitaux, est devenue incontournable. La mondialisation a donné lieu à la promotion du libéralisme économique, et au développement d'un processus mondialisé des activités, dans lesquels les IDE se font une place centrale, dans les politiques de développement des pays d'accueil. Qu'ils soient pays développés ou PED, ces derniers se livrent à une concurrence acerbe, pour l'attractivité des flux d'IDE sur leur territoire. Les FMN ont gagné une place centrale dans ce nouveau schéma. Après avoir suscité la méfiance et l'hostilité des gouvernements des PED, elles sont devenues une composante principale dans la stratégie de développement. Suivant leurs propres préoccupations (gains de productivité, sources d'approvisionnement, etc), les FMN établissent des stratégies dans une perspective internationale, et intègrent dans les activités leur responsabilité sociale et environnementale. Les IDE ont fait l'objet d'une forte controverse sur leurs potentialités à faire profiter les pays d'accueil des « spillovers ». Une inégale répartition des flux d'IDE, amène les PED à mettre en place des politiques d'attractivité ambitieuses (exonérations fiscales, subventions, etc.). L'Algérie a engagé, à l'instar d'autres PED, une série de réformes pour s'inscrire dans une nouvelle logique qui consacre les lois du marché et la libéralisation de l'économie touchant tous les secteurs d'activité. L'objectif de cette thèse est d'évaluer empiriquement les déterminants d'attractivité des IDE dans le modèle algérien, de la conduite de sa politique de promotion et de son évaluation. La qualité des institutions est bel et bien validée comme déterminant central dans la conduite de la politique d'attractivité de l'Algérie. La construction de la matrice d'attractivité a révélé que l'Algérie se place dans le cercle des « pays potentiels », qui pourraient figurer un jour dans la « short-list », à condition d'améliorer certaines composantes de leur attractivité. Des réformes cohérentes restent à faire pour une insertion effective dans l'économie internationale. / For over three decades, one aspect by which manifests globalization is the international mobility of firms and factors of production. Growing interdependence of economies resulting from the expansion of trade and development of capital movements has become unavoidable. Globalization has given rise to the promotion of economic liberalism, and development of a process of global activities in which FDI are central in the development policies of host countries. Whether developed or developing countries, these one are engaged in a bitter competition for FDI attractiveness of flux of FDI in their territory. The MNF has taken a central place in this new scheme. After arousing the suspicion and hostility of the governments of developing countries, they have become a key component in the strategy of development. Following their own concerns (productivity gains, exoneration, etc.), the MNF gone to research an international perspective, and integrate their activities in the social and environmental responsibility. The FDI has been subject of an important controversy over their potential to benefit the host countries of the "spillover". An unequal distribution of FDI, make the developing countries to take up an attractive ambitious policies (tax holidays, subsidies etc.). Algeria has committed, like other developing countries, a series of reforms to be part of a new logic that embodies the laws of the market and liberalization of the economy, affecting all sectors of activity. The objective of this thesis is to empirically assess the determinants of FDI attraction in the Algerian model, the conduct of its promotion policy and its evaluation. Quality of institutions is indeed well validated as a central determinant in the conduct of political attractiveness of Algeria. The construction of the matrix of attractiveness revealed that Algeria is located in the circle of ?potential countries", and that could one day appear in the "short list", provided certain components to improve their attractiveness. Consistent reforms are still needed for effective integration into the international economy.