Analysis of Challenges and Opportunities for Foreign Investment in East Azerbaijan Province Based on Social Capital Variable from the Perspective of Economic Sociology

Subject Areas : sociology

Karim Yazdani Hojagan ¹ (Specialized PhD student in Economic Sociology and Development, North Tehran Branch, Islamic Azad University, Tehran, Iran)
Hosein Dehgan ² (Assistant Professor, Department of Social Sciences, North Tehran Branch, Islamic Azad University, Tehran, Iran (corresponding author) [e-mail])
Talieh Khademiyan ³ (Associate Professor, Department of Social Sciences, North Tehran Branch, Islamic Azad University, Tehran, Iran)

Received: 2022-05-31 Accepted : 2022-06-25 Published : 2022-08-23

Keywords: profitability, Social capital, Tabriz, Bureaucracy, Julfa, Foreign Investment,

Abstract :

This study aims to investigate the opportunities and challenges of foreign investment in East Azerbaijan province with emphasis on the two business districts of Tabriz and Jolfa. The research method was survey and a questionnaire was used to collect data. The statistical population was managers of foreign investments and foreign investors in the cities of Tabriz and Jolfa. The sample size was determined using Cochran's formula and 429 people were selected by stratified sampling method. According to the findings, the identified challenges of foreign investment in Tabriz and Jolfa regions included administrative bureaucracy, lack of optimal executive plans, inconsistencies in executive plans, lack of consensus and empathy between officials and lengthy investment process. Foreign investment opportunities included greater profitability, lower production costs, better marketing, better access to workers, and the ability to compete more with the host country's products. Findings showed that there is a significant direct correlation between the variables of social capital with the three dimensions of participation, trust and social cohesion and foreign investment (r = 0.55). Also, the study of the effect of social capital on foreign investment showed that social capital has an effect of 0.46 on foreign investment. Conflict of interest: According to the authors, the article did not have any conflict of interest.

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