This study involves a detailed analysis of the dynamics of the oil sector in Libya, and reviews the process of economic development in order to identify key issues and priorities for future development. As with many other developing countries, Libya has received insignificant FDI inflows over the study period 1962-2003. The experience of the developing world in particular suggests that it is far from certain whether FDI will indeed act as an engine of transition in Libya. Libya places great importance on foreign capital in the oil sector as a critical element of economic growth. The main aim of this study is to identify and analyze the economic factors giving rise to FDI inflows to the Libyan oil sector during the study period. It reviews FDI trends in Libya, both in the regional and international contexts, and takes into account the evolution of various policies and measures introduced in order to attract FDI. Primary data were collected through a questionnaire-based survey from a sample of 35 foreign oil companies in Libya, along with 20 interviews with government officials. Using annual time series data, the study finds that the nationalization of foreign oil companies in 1972 has negatively influenced FDI inflows; whereas country wealth and the lagged value of FDI positively influence FDI inflows to the Libyan oil sector. Since sanctions were lifted, Libya's relations with the world are becoming normalized and there are opportunities for foreign investment in every sector of the economy associated with the government's new open policy of adopting FDI, which is already visibly growing. Libya is considering changing its 40-years old hydrocarbon legislation to improve the terms for foreign investment. Therefore, the Libyan foreign investment environment is promising for the foreseeable future.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:537395 |
| Date | January 2009 |
| Creators | Moussa, Mohamed Salem Ali |
| Contributors | Deary, Michael |
| Publisher | Northumbria University |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://nrl.northumbria.ac.uk/1916/ |
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