Impact of Foreign Direct Investment on Iran’s Economic Security: Study of Dimensions

To attract foreign investment is nowadays one of the requirements in the economic development of countries. The direct foreign investment bears both varied positive and negative consequences in the different economic, political, cultural and security dimensions of countries. In some countries, it brings about positive impacts like economic growth and in some, it mostly spurs negative consequences. In Iran’s economy, the attraction of foreign investment has been discussed by managers and officials as a significant tool for economic growth. Nonetheless, the impacts of foreign investment on economic security has not yet been studied by researchers. This study, by means of Grounded Theory and the tacit knowledge of experts, seeks to explore the conceptual model of direct foreign investment impact on Iran’s economic security. The outcome of the study suggests that the direct foreign investment could bear positive impacts through invigoration of domestic production, promotion of human capital, increase of commercial balance and invigoration of the national economic power, and it may spur negative consequences by threats like infiltration, espionage and economic sabotage.