Factors Affecting The Investment Climate For An International Financial Center In Kuwait

Abstract

In recent years, an increasing worldwide interest in developing a competitive international financial center (IFC) raises the important issue of identifying the factors or elements of the investment climate of an IFC. Drawing on the theories and literature of financial intermediation, innovation, governance, social relationships, and information in IFCs, the authors develop five hypotheses and examine them using a survey of 200 MBA students at a private university in Kuwait. The findings obtained from conducting a hierarchical linear regression indicate that finance and innovation are positively and significantly related to the investment climate in an IFC. Implications for theory and practice, and areas of further research are made.