د. سلوى عبد القادر خليفة بن إدريس
DOI:
https://doi.org/10.58987/dujhss.v4i8.284Keywords:
Constraints, Institutional, Foreign Direct Investment, LibyaAbstract
This paper presents a descriptive and analytical study. It was intended to explain the institutional constraints that influence corporate choices regarding direct foreign investments. It employs a narrative analysis approach to uncover how these institutional constraints have hindered the flow of foreign direct investment into the Libyan economy. The research builds a conceptual framework incorporating authoritative institutional thought literature, which addresses environmental constraints, by utilizing both local and international reports. The results indicate that despite the Investment Law's significant advantages and tax exemptions for foreign investors, it has not been successful in attracting and localizing foreign direct investment into the Libyan economy. This is due to both formal and informal institutional constraints, expressed through cognitive, normative, and regulative gaps. This implies that foreign investors in Libya do not only face political or security risks, but also encounter operational, cultural, and normative risks that render them unable to understand the local 'rules of the game, which has rendered the institutional investment environment in Libya restrictive and repulsive to foreign direct investment
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