عنوان مقاله [English]
Based on economic theories, one of the effective factors of economic growth is investment. There are many ways to provide capital, that foreign direct investment is the best of them. Because of FDI inflows is providing capital and additionally causes technology, human capital expert, management and knowledge entrance. This study investigates the role of democracy and property rights on foreign direct investment attraction in D8 and G7 countries in 1995-2006. The findings show that democracy has a negative and significant and property rights has a positive and significant effect on FDI inflows in both of case study countries. Open trade in G7 and D8 countries has a positive and significant and real effective exchange rate has a negative and significant effect on FDI inflows. Also economic development degree has a positive and significant effect on FDI inflows in the G7 countries and inflation rate has a negative and significant effect on FDI inflows in the D8 countries.