The role of foreign direct investment in technology transfer for the development of export-oriented industries Challenges and opportunities for polarization

Abstract

The purpose of this study is to examine the reality of the attractiveness of foreign direct investment (FDI) to contribute to the transfer of technology for developing export-oriented industries. The study highlighted the impact of FDI on economic growth; additionally, the role of modern technology in improving the quality of the local product; and the ability of the Libyan state to encourage FDI without obstacles for foreign and domestic investors alike.

      The paper used the analytical-descriptive approach through the use of a questionnaire. The programs (SPSS and EXCEL) were used to analyze the data. Furthermore, the questionnaire was supported by personal interviews.

      The study had many results. FDI needs a lot to settle in a country other than its own. The Libyan state is not ready yet to attract it. Also, the political, financial, economic, security, and social divides and the hidden economy do not encourage the process of attraction. Moreover, the administrative complexities, the absence of institutional governance, and the generality of the state sectors are also among the real obstacles to FDI. The complete absence of sovereign records, international accounting standards, and the stock market are also major challenges for foreign and local investors. The guarantees provided by the Investment Promotion Authority are insufficient compared to other Arab countries.