Journal articles on the topic 'Foreign Direct Investment, Economic Growth, Afghan Economy'
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1
Kabir Sumon, Khairul. "Foreign Direct Investment and Economic Growth in Bangladesh Economy." International Journal of Economics, Finance and Management Sciences 2, no. 6 (2014): 339. http://dx.doi.org/10.11648/j.ijefm.20140206.16.
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Baasandulam, Mavidkhaan. "THE IMPACT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIC GROWTH IN MONGOLIA." Chronos 6, no. 4(54) (April 13, 2021): 43–48. http://dx.doi.org/10.52013/2658-7556-54-4-12.
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Mongolian foreign direct investment is governed by the “Constitution”, “Foreign Investment Law” and other laws as well as international treaties to which Mongolia is a party. Mongolian s foreign direct investment fell by 35.8% from 2010 to 2011, 43.52% from 2012 to 2013, and 27.3% from 2014 to 2018. In recent years, there has been a trend of focusing foreign direct investment in the mining industry. As the inflow of foreign direct investment declines and the outflow increases, the economy still faces a series of problems, including foreign debt, budget deficits, exchange rates, and unemployment. This highlights the need to pay attention to the current investment environment and investment attractiveness policies, as well as appropriate policies that are in Mongolia’s interests. For this reason, it is still necessary to determine the prospects of foreign direct investment in Mongolia, the concentration of foreign direct investment in the non-mining sector, the implementation of foreign direct investment policy and its impact on the economy. Therefore, the purpose is to study and improve Mongolia’s foreign direct investment policy.
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Adeniran, Ademola, and Kehinde Ogunmodede. "FOREIGN DIRECT INVESTMENT: A PANACEA FOR NIGERIA ECONOMIC GROWTH." International Journal of Development Strategies in Humanities, Management and Social Sciences 10, no. 2 (December 21, 2020): 28–39. http://dx.doi.org/10.48028/iiprds/ijdshmss.v10.i2.03.
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This paper critically examined the role of foreign direct investment (FDI) on Nigeria economy, with specific focus on past researches. This paper is based on empirical evidence from past researchers. The study found out that FDI positively influence Nigeria Economy system, that FDI funds can be used for long term development goal and therefore recommends that to promote growth and development in the economy, government should give priority to policies that could promote FDI inflows into the country such as tax holidays, infrastructural development, consistent power supply and good security outlet to address the issues of Boko Haram and their random bombing in some part of the country, kidnapping and militancy. This will go along way in creating job opportunities for the unemployed youth band help in checkmating the high rate of poverty in the country thereby reducing the gap between rich and the poor.
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Olasehinde, Ireti Olamide, and Clement Folorunso Ajayi. "Foreign Direct Investment and Nigerian Economic Growth." Journal of Applied And Theoretical Social Sciences 4, no. 3 (September 26, 2022): 313–27. http://dx.doi.org/10.37241/jatss.2022.69.
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This paper examined the relationship between foreign direct investment (FDI) and economic growth (GDP) in Nigeria between 1981 and 2020, using Autoregressive Distributed Lag Bound technique (ARDL). From the findings, there existed a long-run significant relationship among the variables employed. Foreign direct investment (FDI) and real exchange rates (REXCR) showed positive significant short, and long-run impacts on economic growth (GDP) which is aligned with Abu (2013) and John (2016). While interest rates and trade openness have insignificant short and long-run impacts on the economic growth. The Pairwise Granger Causality exhibited bidirectional causality between foreign direct investment (FDI) and economic growth (GDP), demonstrating the influence of these two variables on each other, as supported by Mounir & Atef (2018). It is therefore recommended that government should introduce new approach to foreign direct investment by supporting with zero-interest loan and credit facilities for it to have better significant impacts on economic growth both in the short and long-run. Adequate Exportation of Nigerian products should be encouraged by export-promotion decree in order to boost trade openness to have significant impacts on the economic growth. Real Exchange rates (REXCR) should be properly controlled by monetary authorities for economic stability to maintain its significant impacts in future on Nigerian economy.
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Ilhéu, Fernanda. "Chinese Outward Foreign Direct Investment." International Journal of Asian Business and Information Management 1, no. 4 (October 2010): 43–56. http://dx.doi.org/10.4018/jabim.2010100104.
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In past years, China recorded a fast sustainable economic growth with an estimated average GDP growth rate of 9.7% in the period of 1980-2008, turning China into the world’s second largest economy. With an export oriented economic model, China is the most attractive developing country for FDI flows, both short and long term. In this regard, China has been able to achieve a foreign exchange reserve of US$ 2.2 trillion, the world´s largest reserve currency. Around 50% of this huge reserve is being applied in American bonds, while the remaining supports Chinese health and social security systems, bank solvability, internationalization of their economy, investment in geostrategic positioning, and making foreign aid available to other developing countries. During the 2008 global crisis, China was able to resist better than other major world economies, benefitting from this downturn to implement policies to reduce its economic imbalances. One of these imbalances is the gap between Chinese FDI and OFDI, which is now progressively narrowing. In the near future, OFDI is expected to be larger than FDI, and in this paper, the authors research whether Chinese OFDI can be explained by existing theories or if a new theory is required.
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Kraja Boriçi, Ylvije, and Elezi Osmani. "Foreign Direct Investment and Economic Growth in Albania." ECONOMICS 3, no. 2 (December 1, 2015): 27–32. http://dx.doi.org/10.1515/eoik-2015-0014.
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Abstract Since the 1980s, foreign direct investment inflow (FDI) has grown significantly in most developing countries while pertaining Alania, foreign direct investment has started after the 1990s. A lot of developing countries have made policies aimed at reducing FDI barriers. Foreign capital globalization, particularly FDI inflow is increased significantly in developing countries, due to the fact that FDI is the most stable and prevalent component of foreign capital inflows (Adams, 2009) Foreign direct investments are a very important factor for the development of a country and Albania has still much to be done to encourage such investments, especially in the legislative framework. The authors are trying to give the answer to the question that how does foreign direct investment in the Albania affect the nation’s economy? The authors identify that foreign direct investment improves technology and has positive impact on economic growth. Because the overall theory is that FDI inflow enhances and sustains economic growth in the host country.
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SAHOO, DUKHABANDHU, and MAATHAI K. MATHIYAZHAGAN. "ECONOMIC GROWTH IN INDIA: "DOES FOREIGN DIRECT INVESTMENT INFLOW MATTER?"." Singapore Economic Review 48, no. 02 (October 2003): 151–71. http://dx.doi.org/10.1142/s0217590803000748.
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The main objective of this paper is to examine the role of Foreign Direct Investment (FDI) in promoting the growth of the economy via export promotion by using the annual data from 1979–80 to 2000–01. This study uses the Johansen co-integration test and the results demonstrate that there is a long run relationship between Gross Domestic Product (GDP), FDI and Export (EX). The same relationship is also established when the Index of Industrial Production (IIP) replaces GDP. However, the positive elasticity coefficients between FDI, GDP and FDI, IIP are less than the positive elasticity coefficient between EX, GDP and EX, IIP. It implies that EX plays a comparatively better role in the growth of the Indian economy than FDI. Thus, on the eve of India's plan for further opening up of the economy, it is advisable to open up the export-oriented sectors so that a higher growth of the economy can be achieved through the growth of these sectors.
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Olomola, PA. "The FDI-growth hypothesis: A VAR model for Nigeria." South African Journal of Economic and Management Sciences 7, no. 1 (July 23, 2004): 170–84. http://dx.doi.org/10.4102/sajems.v7i1.1435.
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The objective of this study was to examine the causal relationship between foreign direct investment and economic growth in Nigeria using annual data covering the period 1970 to 2002. The study employed the Granger causality procedure to test the direction of causality between foreign direct investment and economic growth for the Nigerian economy. The endogenous production function was derived to accommodate foreign investment and other domestic policies that could influence growth and foreign investment. The study found a one-way causality between from foreign direct investment to economic growth. The implication arising from this study is that Nigeria should adopt policy whereby FDI is attracted to promote economic growth.
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Abd Rahman, Nur Hayati, Khairunnisa Abd Samad, Shahreena Daud, and Zarinah Abu Yazid. "Intellectual Property and Foreign Direct Investment." Jurnal Intelek 14, no. 2 (November 29, 2019): 26–32. http://dx.doi.org/10.24191/ji.v14i2.214.
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With help from both domestic and international markets, ASEAN countries are able to catch-up withthe latest economic development if they can sustain high economic growth for a long-period of time. To doso, the resources available in countries such as capital and labors should fully be utilized up to theoptimum level. The capital itself can be in many forms such as investment. Since most of the ASEANcountries are categorized as developing countries, the reliance on foreign direct investment (FDI) as asource of growth is highly needed as it helps the economy to step on a higher stage of economic developmentvia the roles of foreign experts and technological transfer. In ensuring a higher level of investment, there isa need to ensure a high level of intellectual property protection since it assists in promoting invention,innovation and new business development. In opposite, lacking in protection might discourage foreigninvestors to invest in the countries, thus limiting the ability of the countries to grow further. Therefore, theaim of this paper is to examine whether strong intellectual property protection will really help in attractingmore foreign investors to invest in ASEAN-5 countries. Using annual data from 2007 to 2016, panel dataestimation using random effect is employed. It was found that the ASEAN-5 countries should strengthentheir intellectual property protection in order to stimulate higher foreign investments. Nevertheless, inbetween copyright and patents, copyrights protection gives significant effect to the FDI inflows relative tothe latter one. It indicates that the countries are slowly moving out from the production-based economy andcatching-up towards a digital economy.
Keywords: ASEAN-5, foreign direct investment, intellectual property protection, digital economy, copyrights
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Muse, Abdillahi Nedif, and Saidatulakmal Mohd. "Impact of Foreign Direct Investment on Economic Growth in Ethiopia." Latin American Journal of Trade Policy 4, no. 10 (September 3, 2021): 56. http://dx.doi.org/10.5354/0719-9368.2021.61853.
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This article analyses the impact of foreign direct investment (FDI) on Ethiopia’s economic growth.
For this purpose, it uses Vector Autoregressions (VARs) model for the period comprised by years
1981-2017. It finds that FDI had a significant positive impact on Ethiopia’s economic growth for
both the short and long-run periods. Adequate human capital and stable macroeconomic
envirornment have catalysed the contribution of FDI to economic growth. Gross fixed capital
formation and government consumption exerted a negative and significant effects on economic
growth during the period of interest. Moreover, the study reveals that there is no causal relationship
between FDI and economic development. Ethiopia needs to open up the economy and restructure
the financial sector to attract foreign multinational companies (MNC), especially in the manufacturing
and agro-industry sectors. Human capital investment should be strength to absorb more foreign
direct investment and transform the agricultural-based economy to a modern one. Effective
budgeting system and prioritisation of government consumption will support a more rapidly growing
economy.
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Hu, Jian Bo. "Study on Utilizing Foreign Direct Investment in Underdeveloped Areas." Advanced Materials Research 989-994 (July 2014): 5023–28. http://dx.doi.org/10.4028/www.scientific.net/amr.989-994.5023.
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The use of foreign investment is an important engine of developing inland opening economy. In 2012, in face of weak external demand, insufficient domestic effective demand and other serious and complex economic situation, the introduce of foreign investment in Guizhou keeps high growth , the actual use of foreign capital breakthrough $1 billion for the first time, up to $1.046 billion, growing by 55.35% year on year. The total amount ranked the sixth and the growth ranked the third in western regions. The utilization of foreign investment has realized the improvement of speed, quality and efficiency. The economic contribution of foreign investment to Guizhou has improved continuously, laying a solid foundation to accelerating the speed of economic development for Guizhou. But we also found many problems existing in the process of attracting foreign investment in Guizhou. And we need to seek reasonable countermeasures to further strengthen the role of foreign investment in promoting the economy of Guizhou and improve the core competitiveness of Guizhou to realize sustainable development of the economy.
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Chong, Yi Syen, and Mui-Yin Chin. "REVISITING THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN THAILAND." TRA VINH UNIVERSITY JOURNAL OF SCIENCE; ISSN: 2815-6072; E-ISSN: 2815-6099 11, no. 48 (September 24, 2022): 1–10. http://dx.doi.org/10.35382/tvujs.11.48.2022.1104.
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Past studies have researched how foreign direct investment has played a pivotal role in stimulating Thailand’s economic growth. However, Thailand’s foreign direct investment inflows have exhibited huge fluctuations from1979 until now. Empirical studies have revealed that foreign direct investment worsens and weakens current accounts, raising foreign debt. In addition, foreign firms with large influence on market shares might crowd out domestic investment. Hence, this study aimed to re-examine the impact of foreign direct investment on Thailand’s economic growth in both the short and long run by employing yearly data from 1980 to 2019using the Vector Error Correction Model and Granger Causality test. Besides, this study also investigated the impact of other determinants of economic growth, namely real effective exchange rate and trade. The empirical results revealed that foreign direct investment has positively impacted Thailand’s economy in the long run. Inaddition, foreign direct investment emerged as the most influential variable on economic growth. Given the importance of foreign direct investment for Thailand, The Board of Investment of Thailand should implement effective policies and provide incentives that benefit foreign investors to invest in the country. In addition, the government should implement further intervention measures to improve the positive spillover effects fromforeign direct investment.
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Prah, Gigamon Joseph, and Charles Ofori. "EXTERNAL DEBT AND FOREIGN INVESTMENT: AN EMPIRICAL ANALYSIS ON THE ECONOMY OF GHANA." EURASIAN JOURNAL OF ECONOMICS AND FINANCE 10, no. 2 (2022): 54–67. http://dx.doi.org/10.15604/ejef.2022.10.02.002.
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This study considers the impact of Ghana’s heavy external debt on its ability to attract foreign investment. The study uses data covering the period from 1991 to 2019. Foreign investment is measured using net foreign direct investment inflows, while external debt is measured using two indicators: public and publicly guaranteed external debt stock and long-term debt stock. Using the ARDL, we found that both external debt indicators have a substantial negative long-run influence on foreign direct investment inflows. On the other hand, economic growth, measured by the gross domestic product, has a substantial positive effect on foreign direct investment inflows. External debt has a detrimental impact on foreign direct investment, while improvement in the country’s economic performance promotes foreign direct investment inflows. The implication is that when funds borrowed are well utilized for economic purposes, it will neutralize the negative consequences of the debt, and the improved economic performance shall augment foreign investment inflows. These findings are essential for most developing economies, especially the African countries, which heavily depend on foreign loans. Policymakers should focus on strategies such as human capital improvement, innovation, and strengthening their legal systems that improve economic performance.
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Sofiko Dzhvarsheishvili, Sofiko Dzhvarsheishvili. "Developing Tendencies of Foreign Direct Investments." New Economist 16, no. 03 (January 28, 2022): 41–47. http://dx.doi.org/10.36962/nec62-6303-042021-41.
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The formation process of foreign direct investment theories began in the second half of the twentieth century, it was period that the importance of foreign direct investment (FDI) in international capital movement increased, and this period was characterized by the rapid growth of multinational enterprises, which, in turn, is a major source of FDI. Scientific and technological progress has become the basis for decisions of transnational companies to invest capital in to different parts of the world and to coordinate and control its many branches from one country. During this period scientists actively began to develop theories and mathematical models of foreign direct investments, which meant studying the genesis of FDI, as well as analyzing their impact on the economy of both the host and the issuer countries. The analysis of foreign direct investment theories is closely related to the study of the activities of multinational corporations. Among them are some paradigms containing interesting discoveries that view the foreign direct investment as a contributing factor for the economic growth of the host country and its industrial development. In this article, the author consider the key theories and models of foreign direct investment: 1. The Product Life Cycle Theory, which is developed by Vernon; 2. Transnational companies and monopolistic computation theory, which is developed by Hymer; 3. Generalized theory of economic development, which is developed by Akamatsu; 4.The competitive advantage of nation’s theory, which is developed by Porter; 5.The eclectic paradigm and country's investment development theory, which is developed by Dunning; 6.Differential model of capital distribution between countries by Leontiev. The theories and models provide a basic range of motives of investors' behavior in the world market. It also makes it possible to analyze what impact foreign direct investment has on the economy of the recipient country and what forecast the recipient country's economy will have. Keywords: Globalization, Foreign Direct Investment, Economic Growth, Multinational Corporations, Analysis of Basic Theories and models;
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Kueh, Y. Y. "Foreign Investment and Economic Change in China." China Quarterly 131 (September 1992): 637–90. http://dx.doi.org/10.1017/s0305741000046324.
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Foreign direct investment (FDI) in China is the most dramatic manifestation of China's open-door policy. Together with continuous import and export expansion, FDI has increasingly exposed the Chinese economy to the western world during the past decade. There are, however, several differences between FDI and foreign trade in terms of their implications for the domestic economy. The most obvious is that FDI directly helps to relieve domestic capital supply bottlenecks and to promote employment and economic growth. By contrast, increased capital formation through imports of machinery and equipment must be financed by extra export earnings.
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Paudel, Ramesh C., and Chakra Pani Acharya. "Financial Development and Economic Growth: Evidence from Nepal." NRB Economic Review 32, no. 1 (April 1, 2020): 15–36. http://dx.doi.org/10.3126/nrber.v32i1.35296.
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This paper aims to examine the role of financial development and economic growth in Nepal employing Autoregressive distributed lag (ARDL) approach of cointegration using time series data for the period from 1965 to 2018. Nepal is a unique country with big markets in the neighbors-India and China but remains as one of the poor landlocked developing countries, even being the earlier entrant in liberalization and reform. Nepal recently went through a substantial political transition and now the stable government is seeking substantial amount of foreign direct investment. In this background, it will be better, for a good policy analysis, to know how the financial activities have played the role in highly intended economic growth. We develop a model with five proxies of financial development (broad money, domestic credit to private sector, total credit from banking sector, capital formation, and foreign direct investment); and econometrically test their contribution in economic growth. Overall, the results suggest that financial development causes to economic growth substantially, except in the case of foreign direct investment. This result warns the policy makers to be more serious making investment friendly economy to attract the expected foreign direct investment.
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Malyshivskyi, Taras, and Volodymyr Stefinin. "Attracting foreign capital as a factor in ensuring the country's economic growth." Socio-Economic Problems of the Modern Period of Ukraine, no. 5(145) (2020): 34–41. http://dx.doi.org/10.36818/2071-4653-2020-5-7.
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The article examines the relationship between attracting foreign capital in the form of foreign direct investment and ensuring economic development. In particular, the analysis of the current structure of the economy is indicated, its raw material character is pointed out and, based on other researches, the necessity of its reform is substantiated, as Ukraine will remain a low-income country if the current trend continues. This is due to the fact that countries with a raw material structure of the economy are characterized by a low level of economic complexity, and therefore are not able to generate high levels of income in society. As a result, the expediency of stimulating the attraction of investment resources into the country’s economy, in particular in the form of foreign direct investment, is substantiated. The dynamics of attracting foreign direct investment to Ukraine and a number of other countries for the period from 1991 to 2019 is analyzed and the key negative factors that deter foreign investors from investing in the economy of Ukraine are indicated. As a result of the analysis, divergent trends in the economic development of Ukraine and other analyzed countries (Poland, Czech Republic, Slovakia, Turkey, Romania, Hungary) were identified, which contributed to economic stagnation and restrained economic growth and development. Taking into account the analysis, as well as based on the concept of investment and innovation growth, it is proposed to use the experience of Israel to improve the country’s investment attractiveness and stimulate foreign capital inflows by adapting the Yozma program to Ukrainian realities. According to our estimates, the adaptation of this program to the Ukrainian economy will attract about $ 350 million over a five-year period of venture capital alone. In addition, programs such as YOSMA can also be implemented at the regional or even local level. We believe that the use of this tool will improve the investment attractiveness of the country, as well as provide sufficient financial resources to modernize the domestic economy and ensure rapid economic growth.
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Nasir, Najeeb Muhammad, Mohammed Ziaur Rehman, and Nasir Ali. "Foreign Direct Investment, Financial Development and Economic Growth Evidence from Saudi Arabia." International Journal of Financial Research 8, no. 4 (September 11, 2017): 228. http://dx.doi.org/10.5430/ijfr.v8n4p228.
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This study is an effort to explain and establish a relationship among foreign direct investment, financial development and economic growth in Saudi Arabian context for the period of 1970 to 2015 by employing Vector Auto Regression (VAR) and modified Granger Casualty Models. The result of Johansen co-integration test illustrates that no long run co-integration can be established among the variables. VAR has established a link between economic growth, financial development and foreign direct investment. The Granger causality test also confirms that economic growth causes foreign direct investment and financial development which is a unidirectional causality running from economic growth towards foreign direct investment and financial development. No significant causality can be observed empirically between foreign direct investment and financial development. This feature can be attributed to the fact that Saudi Arabian economy is still heavily dependent on its oil resources which is the driving force behind growth. Impulse Response Function has been utilized in order to observe the response to the shocks among the variables.
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Le, Thi Thuy Hang, Van Chien Nguyen, and Thi Hang Nga Phan. "Foreign Direct Investment, Environmental Pollution and Economic Growth—An Insight from Non-Linear ARDL Co-Integration Approach." Sustainability 14, no. 13 (July 4, 2022): 8146. http://dx.doi.org/10.3390/su14138146.
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The paper examines the impact of foreign direct investment and environmental pollution on economic growth in an emerging economy. We used annual data covering the period of 1986–2020 and the non-linear autoregressive distributed lag (NARDL) to analyze the positive and negative co-integrated variables, and our findings support the asymmetric relationship between foreign direct investment, environmental pollution and economic growth in both the short and long run, as well as a long-run relationship between environmental pollution and economic growth. A one-percent increase in environmental pollution leads to a positive change in economic performance by 0.662 percent. Adversely, a one-percent decrease in environmental pollution leads to a negative change in economic performance by 0.212 percent. Vietnam is an emerging market, and capital needs for economic activities are essential. However, the research results show that a disproportionate impact of foreign direct investment on economic growth is recorded in the long run, and a disproportionate impact of environmental pollution on the economy occurs in both the short and long term. Therefore, the government needs to have policies to attract foreign investment to develop a green and sustainable economy.
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Ostapenko, S. O., and Y. O. Namiasenko. "Foreign Investment as a Potential Factor of Overcoming the Poverty Trap for Ukraine." Business Inform 8, no. 523 (2021): 19–28. http://dx.doi.org/10.32983/2222-4459-2021-8-19-28.
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The analysis of the impact of foreign direct investment (FDI) on the rate of economic growth on the example of China and Ukraine is carried out. It is shown that foreign direct investment has a positive impact, but this is not the only factor that determines economic growth. Apart from the attracted foreign investment, the country must have developed institutions that will protect foreign capital from both the internal political and the external risks. Such an institutional environment will contribute to the growth of foreign direct investment and the effectiveness of their implementation. It is shown that at the same levels of foreign direct investment per capita – investments in China tend to grow steadily and less volatility. At the same time, foreign investment in Ukraine is unstable and highly dependent on macroeconomic factors, such as global economic crises and armed aggression of the neighboring country. To determine the impact of foreign investments on the pace of economic growth, the article used a regression and correlation apparatus. A cross-correlation function was used to assess the lagging impact of foreign investment on economic growth. The novelty of this publication is that by using correlation analysis, a significant difference in the lags of FDI impact on the GDP growth rates for the economies of Ukraine and China has been proved. It is found that Ukraine is characterized by a rapid short-term response to foreign direct investment with zero and single lag, while for the Chinese economy this response is dissolved over time. The main stagnation factors in Ukraine include the following: practical absence of the possibility of direct investment of the population into the country’s economy (underdeveloped stock market), significant political (risks of loss of property), macroeconomic and corruption risks.
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Benedict, Arthur, Kyei Baffour Tutu, and Afenya Millicent Salase. "Does Foreign Direct Investment Generate Long-Term Growth in Ghana?" Asian Journal of Economic Modelling 9, no. 3 (September 2, 2021): 214–29. http://dx.doi.org/10.18488/journal.8.2021.93.214.229.
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In pursuant to sustainable economic growth on the ticket of FDI-led growth hypothesis, the government of Ghana has instituted a myriad of thoughtful policy reforms to help boost the economy to realize a self-sustaining economic growth. To some extent, the policies might have paid off as the country was named the highest recipient of FDI in West Africa in 2018. However, the supposed upsurge in the inflow of foreign direct investment in the country and its expected long-run spillover benefits have not been tangibly felt in the region as the economy continues to oscillate. Therefore, this study utilized two methods; the autoregressive distributed lag model (ARDL) and the variance decomposition method (VDM) to empirically examine economic growth of Ghana as a function of foreign direct investment (FDI) whiles controlling for exchange rate, financial development, trade oppeness and employment rate. The results of the study endorses the FDI-led growth for Ghana by indicating that a positive long run causal impact flows from FDI to economic growth. The findings from the VDM test affirm the results are robust and reliable. Therefore, the study suggests that government should amplify FDI inflow via policies like incentives to draw more foreign investors directly into other sectors other than the conventional sectors gratified by foreign investors.
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Brenkevičiūtė, Raimonda. "ANALYSIS OF FOREIGN DIRECT INVESTMENT INFLUENCE ON NATIONAL ECONOMY." Mokslas - Lietuvos ateitis 2, no. 2 (April 30, 2010): 11–17. http://dx.doi.org/10.3846/mla.2010.028.
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In the paper there were analyzed foreign direct investments (FDI) in the ten Central and East Europe countries which are included in the European Union (EU). IT is theoretically and virtually justified positive and negative FDI influence to country’s economic growth. Based on statistical data there were written up FDI dynamics in the world, Central and Eastern Europe countries. There were analyzed applications of FDI incentives. There were given the methodology which allows quantifying connection strength between GDP and FDI flows in the analyzing countries using correlation analysis. Results of analysis allow proving hypothesis (it is existing positive link between FDI and GDP inflows in the Central and East Europe countries) and enable to plan economic policy in aspect of foreign capital more exactly.
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Pushpalatha, M., and T. Kumarasamy. "Foreign Direct Investment from an Indian Perspective." Innovation in Economy & Policy Research 3, no. 2 (December 23, 2022): 27–33. http://dx.doi.org/10.46610/jepr.2022.v03i02.005.
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Foreign direct investment has been crucial to the expansion of many countries in the current universal environment. This is essential for emerging and poor nations. The reality is that these developing and undeveloped economies typically lack the income and savings levels sufficient to support the degree of investment necessary to sustain economic growth. When this happens, FDI is crucial in linking the gap between the available and required incomes or finances. In addition to serving as a source of funding, it contributes to the nation's long-term growth by boosting infrastructure, boosting productivity, and opening up new employment opportunities through technology transfer play part of India, FDI is viewed as a development instrument that promotes economic growth and self-sufficiency in several different areas. Foreign direct investment inflows to India significantly increased after the economy's liberalization and externalization in 1991. The goal of this article is to examine changes in his FDI inflows into India, as well as to categorize them by country and analyze the sectoral distribution of those investments there. Secondary information used in this paper was collected from many reliable sources. For research, straightforward statistical tools like Percentage and CAGR (Compound Annual Growth Rate) were utilized. The analysis demonstrates several tendencies in recent FDI inflows to India. This is reliable with the overall growth trend in the global economy. According to the survey, Mauritius has the most investments in India overall, and throughout the study period, the services sector attracted the most foreign direct investments from other nations. Most of the information gathered for the study is restricted to the previous 20 years and only pertains to the Indian economy.
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Hobbs, Sam, Dimitrios Paparas, and Mostafa E. AboElsoud. "Does Foreign Direct Investment and Trade Promote Economic Growth? Evidence from Albania." Economies 9, no. 1 (January 1, 2021): 1. http://dx.doi.org/10.3390/economies9010001.
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Albania has experienced a rapid transition from a centrally planned economy to a mixed economy since the fall of communism in 1989. Policy changes, trade liberalization, and privatization have come about at a rapid pace, allowing foreign direct investment (FDI) and international trade to become key components of Albania’s economy. Against this backdrop, this study investigates the relationships among FDI, trade, and economic growth in Albania. Annual time-series data were obtained from the World Bank. Then, the following econometric tests were performed on the variables representing FDI inflows, exports, and GDP as proxies for FDI, trade, and economic growth: the unit root test; the unit root test with a structural break; Johansen cointegration analysis; the error correction model; and the Granger causality test. The results revealed a long-term relationship between FDI, trade, and economic growth. The Granger causality tests found unidirectional causality. Economic growth brought about exports and FDI in the short term but not vice versa. In conclusion, policymakers need to design policies that promote technology-based, export-promoting FDI to meet the needs of the economy and develop specialized sectors that are competitive in the global market. Furthermore, the salient takeaway is that the penetration of export markets should be promoted as much as the furtherance of FDI.
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Pradhan, Rudra P. "Determinants of Foreign Direct Investment in SAARC Countries: An Investigation Using Panel VAR Model." Information Management and Business Review 3, no. 2 (August 15, 2011): 117–26. http://dx.doi.org/10.22610/imbr.v3i2.924.
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Foreign direct investment (FDI) is considered to be a policy variable to enhance economic growth in the economy. So identifying the determinants of FDI is very challenging among the policymakers. The paper examines the determinants of foreign direct investment in seven SAARC countries over the period 1980-2010. Using panel VAR model, the paper finds that foreign direct investment are largely influenced by economic growth, exchange rate, inflation, labor population, trade balance, current account balance and long term debt outstanding. The impact of economic growth and exchange rate are bidirectional, while the other factors are unidirectional on FDI inflows.
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Talamo, Giuseppina. "Foreign direct investment flows and the global economic crisis." Corporate Ownership and Control 13, no. 4 (2016): 266–74. http://dx.doi.org/10.22495/cocv13i4c1p11.
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In recent years, Foreign Direct Investment has become an increasingly important feature of the globalized economy. The importance of FDI flows raises several of important questions. First of all is the question of the impact of FDI on host and home countries. Second crucial question is about FDI flows during the recent financial crisis and the role of FDI flows in promoting growth in less developed countries. Then,what can host countries do to become more attractive to foreign investors, and benefit from their activities?
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Putri Amanda, Tazkia Ayu Alharani.YS, Putri Indriyanti, and Retno Sri Rindiyani. "Analisis Pengaruh Pertumbuhan Ekonomi Terhadap Realisasi Investasi Asing Dan Investasi Dalam Negeri Di Indonesia Tahun 2018-2021." CEMERLANG : Jurnal Manajemen dan Ekonomi Bisnis 2, no. 4 (November 1, 2022): 55–69. http://dx.doi.org/10.55606/cemerlang.v2i4.404.
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Penanaman Modal Asing (PMA) and Penanaman Modal Dalam Negeri (PMDN) are important sources of financing for developing regions and can make a significant contribution to development. As a component of capital flows, Foreign Direct Investment (FDI) is considered a relatively stable inflow compared to other capital flows, such as portfolio investment and foreign debt. A country's economy relies on investment to solve various problems, crises, and economic challenges. This is because investing in certain sectors of the economy can quickly change the various economic challenges facing a country. Both private and public investment bring many benefits, including job creation. The purpose of this study is to analyze the impact of domestic and foreign investment on economic growth. This type of research is quantitative research. The research instrument used is documentation of research instruments through books and scientific journals. Data analysis using multiple regression method. As a result, it can be seen that foreign investment has a large positive effect on economic growth. Foreign direct investment helps Indonesia achieve stable national development. But domestic investment has no effect on economic growth. The implementation of this research is the need for the government's role as a regulator to support increased domestic and international investment in order to encourage Indonesia's economic growth.
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Safdar, Noreen. "How Trade Openness and Foreign Direct Investment Affect Economy of Pakistan." Revista Gestão Inovação e Tecnologias 11, no. 2 (June 5, 2021): 1641–53. http://dx.doi.org/10.47059/revistageintec.v11i2.1787.
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This study is intended to find out how and to what extent FDI and trade openness affect the growth of economy in Pakistan for time span 1980-2018. To examine influence of FDI and trade openness, GDP was used by way of dependent variable whereas FDI, trade openness, exchange rate, and inflation are also taken as independent variables. The ARDL technique is employed in following study to estimate short-run and long-run results. This study concludes that TO have a positive momentous influence on GDP in both long and short run. While Foreign Direct Investment has an optimistic but irrelevant influence on GDP in Pakistan which demonstrates that TO has a more progressive influence on GDP of Pakistan than FDI. Other variables labor force and inflation harm economic growth while the exchange rate affects GDP positively. It is suggested by the study to enhance economic growth, govt should focus on liberalization of trade by reducing tariffs, customs duties, and other types of taxes on exports to enhance the economic growth of Pakistan.
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CAVUSOGLU, Behiye, and Mariam ALSABR. "An ARDL Co-Integration Approach to Inflation, FDI and Economic Growth in Libya." Journal of Advanced Research in Law and Economics 8, no. 8 (September 3, 2018): 2373. http://dx.doi.org/10.14505//jarle.v8.8(30).07.
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Despite the different economic systems that are prevalent around the world, inflation and foreign direct investment (FDI) are two important instruments to attain economic objectives. It is apparent that the inflation rate is an important indicator of the economic performance of any country and this has necessitated the urgent need to measure, study and analyze this phenomenon. FDI is another important factor affecting economic growth, which plays an essential role in the economies of host countries, particularly those that are developing economies, including Libya. The Libyan economy has many characteristics and features that make it attractive to the foreign investors. The main aim of the study is to analyze the relationship between inflation, foreign direct investment and economic growth in Libya. In order to investigate the relationship between the variables, the ARDL Bound test was used along with necessary statistical tests. The obtained results showed that there is a continual correlation between inflation, foreign direct investment and economic growth in Libya. Further observations showed that foreign direct investment policies being implemented by the Libyan government have had an adverse effect on economic growth.
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Ghosh, Sujan Kumar, and Sandip Sarker. "Foreign direct investment and economic growth - an empirical study on Bangladesh economy." International Journal of Economics and Business Research 10, no. 2 (2015): 167. http://dx.doi.org/10.1504/ijebr.2015.070983.
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Ghosh Roy, Atrayee, and Hendrik F. Van den Berg. "Foreign Direct Investment and Economic Growth: A Time-Series Approach." Global Economy Journal 6, no. 1 (February 13, 2006): 1850084. http://dx.doi.org/10.2202/1524-5861.1130.
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Research has often focused on how foreign direct investment (FDI) transfers technology from developed economies to less developed economies. Most FDI occurs between developed economies, however, and the country receiving the greatest inflow of FDI is the United States. This paper examines whether such FDI inflows have stimulated growth of the U.S. economy. We apply time-series data to a simultaneous-equation model (SEM) that explicitly captures the bi-directional relationship between FDI and U.S. economic growth. FDI is found to have a significant, positive, and economically important impact on U.S. growth. Also, our SEM estimates reveal that FDI growth is income inelastic. These results imply that: (1) even a technologically advanced country such as the U.S. benefits from FDI, (2) the gains from FDI are very substantial in the long run, and (3) the sustainability of the U.S. current account deficit is enhanced by FDI's positive effect on productivity but undermined by the income inelasticity of FDI. Overall, the results suggest that U.S. policies should focus on keeping the country attractive to foreign direct investors.
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Jibir, Adamu, and Musa Abdu. "Foreign Direct Investment - Growth Nexus: The Case of Nigeria." European Scientific Journal, ESJ 13, no. 1 (January 31, 2017): 304. http://dx.doi.org/10.19044/esj.2017.v13n1p304.
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The quest by developing countries for increased FDI stems from the assumption that FDI leads to economic benefits within the host country. The study examined the paradigm ‘FDI led growth’ using dataset for Nigeria obtained from Central Bank of Nigeria span between 1970 and 2014. Modern econometric tools of Vector error correction model and Granger Wald test were employed. The econometric analysis reveals that there is steady long run relationship between FDI and output in Nigeria. Additionally, the causality result indicates that there is unidirectional causality between trade openness and per capita income, running from trade openness to per capita income proxy for economic growth. On the other hand, there is absence of short-run causality between FDI and economic growth in Nigeria. The policy implication is that FDI can be considered as an engine of growth and development. In the case of Nigeria, FDI can be used as a tool for structuring the economy and achieving inclusive growth. This can be done by attracting more FDI through creating conducive business environment, development of infrastructures and strengthening security especially in north-eastern part of the country.
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Selelo, Seloinyana Elizabeth. "Determinants of Fixed Foreign Direct Investment in Botswana." Journal of Economics and Behavioral Studies 4, no. 7 (July 15, 2012): 414–22. http://dx.doi.org/10.22610/jebs.v4i7.342.
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In this article, we explain the determinants of foreign direct investment in Botswana for the period 1980–2007. The government of Botswana has over the years provided investment incentives to attract foreign direct investment (FDI) into the country but, despite these efforts, FDI has continued to be relatively low and skewed towards mining, especially diamond mining. Recent literature on investment is silent on the impact of economic growth rates on FDI inflows in developing countries such as this one. We examined economic variables that determined FDI in Botswana, and our study used the accelerator theory of investment to uncover the effects of FDI on the nation’s economy. The dependent variable, FDI is expressed as a function of GDP growth rates, human capital, terms of trade, domestic investment, and government expenditure. We used time series annual data from Botswana Central Statistics Office (CSO) and employed both the co-integration and vector error correction model to find the short-term and long-term effects of FDI. The econometric results showed that economic growth rates better explains FDI flows in Botswana. The significance of economic growth is consistent with the acceleration theory of investment. This finding confirms that the accelerator theory is useful as a policy tool for planning investment outlay in developing countries. The findings are also useful for policy-makers in shading light on investment determinants that could be employed to achieve more FDI in Botswana.
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Umezurike, Chinedu Maurice, Amalachukwu Chijindu Ananwude, and Patrick Amaechi Mbanefo. "Foreign Direct Investment and Economic Growth: Empirical Assessment of the Nigerian Economy (1986 – 2019)." Journal La Bisecoman 2, no. 6 (February 10, 2022): 23–33. http://dx.doi.org/10.37899/journallabisecoman.v2i6.547.
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The purpose of this study is to examine the impact of foreign direct investment on the growth of the Nigerian economy. The Autoregressive Distributive Lag (ARDL) technique was used to analyze data spanning the years 1986 to 2019. The preliminary findings of the ARDL suggested that foreign direct investment and economic development in Nigeria had a long-run link. According to the stated finding, foreign direct investment has a considerable positive link with the rate of real gross domestic product growth. Similarly, total exports are positively correlated with the pace of real gross domestic product growth. On the other hand, total non-oil imports and exchange rates show a considerable negative association with the pace of real GDP growth. The Granger causality test indicated that foreign direct investment inflows into Nigeria had no discernible influence on the growth rate of real gross domestic product throughout the study period. Similarly, the pace of real gross domestic product growth is not greatly impacted by the quantity of total exports, total non-oil imports, or exchange rate fluctuations. This report suggested that trade obstacles be removed, particularly those imposed by customs and port officials. Structural trade-oriented policies should be implemented to stimulate economic growth in Nigeria through increased exports in order to attract additional investors and strengthen the country's output growth rate.
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Petrovic, Pero, and Dobrica Vesic. "Impact of global economic crisis on Serbia’s economic development." Medjunarodni problemi 67, no. 1 (2015): 106–27. http://dx.doi.org/10.2298/medjp1501106p.
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The global economic crisis strongly affects economic slowdown in the world due to the effects of reduced demand in developed economies. The fall in demand in the European market had a negative impact on Serbia?s foreign trade and economic growth. The reduction in export demand, reduction of industrial production, the company in default, wage cuts and rising unemployment are the main features of the crisis that has engulfed Serbia. Serbia needs structural reforms at all levels in order to increase the competitiveness of the economy, which is now at a low level. In the last decade Serbia?s economic development based on the integration in European and global markets and foreign direct investment. An additional impact of crisis in Serbia was a significant shortage of foreign capital. The decline and fall of the investment trust in the banking system, manifested by withdrawal of foreign funds from the financial system and reduce foreign exchange liquidity. The recovery of Serbian economy can be expected by introduction of new reforms, economic measures. In addition to reducing the fiscal deficit and savings, it is expected a creation of favorable business environment for investment and business. Political and economic stability is the basis for attracting foreign direct investment.
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Madojemu, Michael. "The role of foreign direct investment in economic growth of Nigeria." RUDN Journal of Economics 28, no. 2 (December 15, 2020): 357–66. http://dx.doi.org/10.22363/2313-2329-2020-28-2-357-366.
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The paper investigates the relevance of foreign direct investment (FDI) as a factor inhibiting economic growth in Nigeria. This paper inspects the sectorial influence of FDI in manufacturing, mining, oil and the telecommunications sectors on economic growth in Nigeria based on theoretical framework founded on the standard growth accounting theory, detailed analysis of the sectorial FDI over the period 1981 and 2017 was carried out. Various econometric methods are employed, such as the ADF test, Dickey and Fuller test (1979), PP test (Phillips and Perron, 1988) are used for the unit root test, and the Shahbaz and Rahman (2010) method is used for the long-run relationship between the foreign direct investment and economic growth. The paper also adapted the framework provided by M.B. Obwona (2004). The paper formalizes a mechanism of recommendations to allow for the influence of foreign direct investment in the transmission of socio-economic growth generated in Nigeria. In conclusion, government should provide an enabling environment that will encourage foreign investors to invest in Nigeria economy by addressing the security challenges in the country, understanding that investment friendly environment will improved regulatory framework as well as encourage domestic investment.
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Nestorović, Olgica. "Are Foreign Direct Investment Contribution to The Economic Growth of Transition?" Economic Themes 53, no. 2 (June 1, 2015): 267–77. http://dx.doi.org/10.1515/ethemes-2015-0015.
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Abstract The main aim of this paper is to show whether foreign direct investments affect the development of transition countries. This paper represents an empirical model where you analyze sixteen countries in transition in the 10-year period. The existence of a positive correlation between the level of incoming foreign direct investments and economic characteristics of the economy, as well as its competitiveness, is obvious in numerous studies that have studied this subject, but there are also some opposite standpoints. The increase of foreign direct investments in host country by itself does not imply a positive impact on economic growth, but it depends on numerous factors such as human capital, financial structure development, macroeconomic stability and other institutional factors.
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Atique, Zeshan, Mohsin Hasnain Ahmad, and Usman Azhar. "The Impact of FDI on Economic Growth under Foreign Trade Regimes: A Case Study of Pakistan." Pakistan Development Review 43, no. 4II (December 1, 2004): 707–18. http://dx.doi.org/10.30541/v43i4iipp.707-718.
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Foreign Direct Investment (FDI) as a growth-enhancing component has received great attention of developed countries in general and less developed countries in particular in recent decades. It has been a matter of great concern for many economists that how FDI affects economic growth of the host country. In a closed economy, with no access to foreign saving, investment is financed solely from domestic savings. However, in open economy investment is financed both through domestic savings and foreign capital flows, including FDI. The investments in form of FDI enable investment-receiving (host) countries to achieve investment levels beyond their capacity to save.
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Čegytė, Orinta, and Algita Miečinskienė. "A Survey on Foreign Direct Investment Impact." Mokslas - Lietuvos ateitis 1, no. 3 (April 11, 2011): 9–12. http://dx.doi.org/10.3846/142.
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In global economy foreign capital flows from one country to another, and mostly from developed countries to less developed countries in order to take advantages of low rates of raw materials and wages, is an often phenomenon. Foreign direct investment is usually treated as important factor of economic growth. A separate part of this research includes the analysis of the factors influencing FDI flows in the countries. These factors are export, market capacity, tax rates, education level and the level of research and development. The research shows strong relation with all these determinants in Lithuania.
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Nikolenko, Tamara. "Investment security as a component of the state's economic security." Vìsnik Marìupolʹsʹkogo deržavnogo unìversitetu. Serìâ: Ekonomìka 10, no. 20 (2020): 101–13. http://dx.doi.org/10.34079/2226-2822-2020-10-20-101-113.
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The article is devoted to the study of the peculiarities of investment security of the country as a component of economic security, and the development of general recommendations for improving its level. In particular, the dynamics of foreign direct investment of Ukraine is studied and forecasted, the geographical structure of foreign direct investment of Ukraine is assessed, the most attractive types of economic activity in the economy of Ukraine are considered, the dynamics of main macroeconomic investment security indicators is analyzed, namely fixed capital investment investment growth to GDP growth rates, estimated dynamics of the country's investment attractiveness index and highlighted the factors that affect it, indicated what threats foreign investments may pose to national economic security and suggested ways to minimize them.
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Dmytrenko, Alla, Oksana Furmanchuk, Olena Kravchenko, Yevgeniya Karpenko, Olena Koba, and John O. Aiyedogbon. "MACROECONOMIC ANALYSIS AND FORECASTING OF FOREIGN DIRECT INVESTMENT INFLOW: EVIDENCE FROM UKRAINE." Financial and credit activity problems of theory and practice 6, no. 47 (December 30, 2022): 66–76. http://dx.doi.org/10.55643/fcaptp.6.47.2022.3926.
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Attracting foreign investment is a viable means of ensuring the economic growth of any country. The relevance of the study is substantiated by the creation of a favorable investment climate in the country, which will allow the establishment of guarantees of protection of foreign investments and stability of the legal basis for entrepreneurship performance. The article aims to analyze and forecast the inflow of foreign direct investment (FDI) into Ukraine. In order to achieve the stated purpose, the econometric model was developed, which demonstrates the correlation between macroeconomic indicators, their characteristics and the amount of FDI. A set of general scientific and special research methods were used, in particular: induction and deduction, grouping, summarization, comparison, complex and systemic approaches. The article reveals the essence of foreign investment for the Ukrainian economy and defines the characteristics of FDI. The impact of FDI on the economy of Ukraine is analyzed in detail and the conditions for their attraction are substantiated. Using statistical methods, the structure and dynamics of FDI by types of economic activity and investor countries are investigated. The conducted research has shown that through the attraction of foreign direct investment economic growth, the well-being of the population, the reduction of foreign indebtedness and efficient state capital investments are ensured. Taking all this into account the necessary preconditions for the attraction of foreign direct investments into the Ukrainian economy were substantiated.
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OLOGBENLA, Patrick. "An Investigation into the Nexus between Fiscal Policy, Foreign Direct Investment and Economic Growth in Nigeria." Journal of Social and Development Sciences 12, no. 4(S) (February 22, 2022): 1–8. http://dx.doi.org/10.22610/jsds.v12i4(s).3259.
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The study examined the relationship between foreign direct investment and fiscal policy and the implication of the relationship on the Nigerian economic growth, the years under review were 1980 to 2019. Variables such as government expenditure, government revenue among others were used to proxy fiscal policy while data on foreign direct investment were used for FDI. The GDP growth rate was used as a proxy for the Nigerian economic growth. The study applied Autoregressive Distributed Lags estimating techniques. The result from the analysis indicated that the association between foreign direct investment and fiscal policy could not have a significant effect on the economic growth of Nigeria in the long run but, in the short run, the association was significant. The study recommends more collaboration between fiscal policy and foreign direct investment in such a way that it will promote the growth of the Nigerian economy.
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Yuliarti, Yuliarti, Hasdi Aimon, and Melti Roza Adry. "GONCANGAN FAKTOR INTERNAL DAN EKSTERNAL TERHADAP INVESTASI ASING LANGSUNG DI INDONESIA." Ecosains: Jurnal Ilmiah Ekonomi dan Pembangunan 6, no. 2 (November 1, 2017): 149. http://dx.doi.org/10.24036/ecosains.11064557.00.
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The purpose of this research to analyze the long-term effects and short-term shocks of internal factors (inflation, economic growth, Indonesian interest rates) and external factors (economic openness, foreign interest rates, exchange rates) to foreign direct investment in Indonesia. The effects and impacts of these shocks will form the basis for decision-making and policy-setting in achieving optimal economic growth. This study uses the Ordinary Least Square (OLS) and Error Correction Model (ECM) method to see the long-term and short-term effects of internal and external factors on foreign direct investment in Indonesia. The data used time series data from fisrt quarterly in 2000 to fourth quarterly in 2016. In more detail, ECM used to analyze short-term shocks. The results show that in the short term the internal factor of inflation caused shocks to foreign direct investment and in the long run, the variable of inflation and economic growth have a significant effect on foreign direct investment. External factors such as: economic openness, foreign interest rate and exchange rate in the short run cause shocks to foreign direct investment, and in the long term the openness of economy and exchange rate have a significant influence.
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Orji, Anthony, Godson Umunna Nwagu, Jonathan E. Ogbuabor, and Onyinye I. Anthony-Orji. "Foreign Direct Investment and Growth Nexus: Further Evidence from Africa’s Largest Economy." Journal of Infrastructure Development 13, no. 1 (June 2021): 65–78. http://dx.doi.org/10.1177/09749306211024433.
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The study investigated the effect of foreign direct investment (FDI) on economic growth in Nigeria, which is currently Africa’s largest economy, and also determined the long-run relationship between FDI and economic growth in Nigeria from 1981 to 2017. The study adopted the autoregressive distributed lag modelling approach and ordinary least square in the analysis. The empirical results revealed that FDI has a positive and significant relationship with economic growth in Nigeria within the period under review. The study concluded and recommended that Nigerian Government should formulate policies that will attract more FDI in all sectors of the economy especially in the service and manufacturing sectors, so as to improve the infrastructural facilities and production of goods in the country and also expand its labour force. Finally, there is need to improve the educational policy of the country in order to raise the stock of human capital in the country that will make useful policies for the attraction for productive FDIs in the country. JEL Classification: E22, F21, F23, F43
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OTAPO, Toyin Waliu, USHIE, and Paul Obogo. "Trade openness, Foreign Direct Investment, and Economic Growth in Nigeria." International Journal of Research and Scientific Innovation 09, no. 05 (2022): 82–89. http://dx.doi.org/10.51244/ijrsi.2022.9507.
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The relationship between trade openness and foreign direct investment in the economic growth in Nigeria has been a subject of debate in most economic literature. The study, therefore, looked at the effect of trade openness and foreign direct investment on economic growth in Nigeria within a temporal scope between 1986 and 2021. The study made use of the Solow growth model and thus included the unemployment rate as a moderating variable along with the segregation of exports component of trade openness into oil and non-oil exports. The Autoregressive Distributed Lag (ARDL) was employed as the method of analysis and it was discovered that non-oil export had a positive and significant effect on economic growth while oil export had a positive but insignificant relationship with economic growth. The unemployment rate was found to have an insignificant and negative effect on economic growth in Nigeria. However, foreign direct investment was found to be positive and insignificant. The study also discovered that there is no long-run co-integrating equilibrium relationship between trade openness, FDI, unemployment rate, and economic growth. Thus it was suggested that there was a need for more funds to be allocated to the non-oil productive sector of the economy so as to boost productivity from the sector and as well as to reduce the unemployment rate
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Jasoum, Bakir Hameed, Noaman Mundher Younus, and Fouad Farhan Hussein. "Analyzing the reality of foreign direct investment and measuring its impact on economic growth for the period (2000-2017)Algeria as a model." Muthanna Journal of Administrative and Economic Sciences 11, no. 1 (May 5, 2021): 165–75. http://dx.doi.org/10.52113/6/2021-11/165-175.
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Foreign direct investment is of paramount importance at the international level, especially in developing countries, as many studies have shown its effective impact and its essential role in the medium and long term in advancing economic growth by stimulating GDP rates, providing employment opportunities, providing expertise and advanced technology. What prompted most Arab countries, including Algeria, to exert efforts in order to provide an appropriate investment environment to attract direct investment through a set of economic reforms, guarantees and facilities, and their conclusion of multiple bilateral agreements to encourage and protect the foreign investor.The research aims to know the extent of the impact of foreign direct investment on economic growth in Algeria for the period (2000-2017) by using standard analysis tools to identify the nature of the relationship between foreign direct investment and economic growth.The research also found that the gross domestic product has a positive relationship with foreign direct investment, that is, when foreign direct investment increases by one unit, this will inevitably lead to an increase in economic growth by (6.43). The research also recommends the necessity of adopting economic structural reform policies in line with the reality The Algerian economy, and working to develop and develop the financial markets through their size and tools, with an emphasis on the issue of legislation and laws that guarantee the regulation of capital investment flows.
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Pokharel, Shiva Prasad, and Bishnu Prasad Pokharel. "Impact of Foreign Direct Investment on Economic Growth of Nepal." Tribhuvan University Journal 33, no. 2 (December 20, 2019): 73–80. http://dx.doi.org/10.3126/tuj.v33i2.33608.
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This paper aims to investigate the impact of Foreign Direct Investment (FDI) on the economic growth of Nepal for the period 2008/09 to 2017/18 A.D. yearly data. It evaluated the Gross Domestic Product (GDP) performance and the trends of FDI and Gross Fix Capital Formation (GFCF) in Nepal. To demonstrate the relationship between Nepalese Gross Domestic Product (GDP) and Foreign Direct Investment (FDI) and Gross Fix Capital Formation (GFCF) Multiple-Regression-Model has been applied along with various econometrics techniques such as Unit-Root Test, Granger-Causality Test and Ordinary Least Square (OLS). GDP in this model is used as dependent variable whereas FDI and GFCF are measured as independent variables. According to the results, Unit Root Test indicated that all the variables included in the model were not stationary at level except FDI, whereas GDP and GFCF are stationary at first difference. The model is overall significant with the positive and significant relationship of GDP, FDI and GFCF. Result also indicate a good fit for the model with R2=86%. The Granger Causality Test revealed that there was no causality between the variables since all p-value obtained are more than 5%. Based on the empirical result of this paper, policy recommendation proposed that for Nepal to generate more foreign direct investment, hard work should be made at solving problems of government involvement in business; relative closed economy; corruption; weak public institutions; and poor external image, and political instability.
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Pradhan, Rudra, Mak B. Arvin, Sahar Bahmani, and John H. Hall. "Attaining economic growth through financial development and foreign direct investment." Journal of Economic Studies 46, no. 6 (October 14, 2019): 1201–23. http://dx.doi.org/10.1108/jes-04-2018-0136.
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Purpose The purpose of this paper is to consider the heterogeneous relationship among financial development, foreign direct investment (FDI) and economic growth, examining the possible directions of causality among them in both the short and long runs. Design/methodology/approach A sample of the G-20 countries over the period 1970–2016 is utilized. A vector error-correction model is used to consider the possible directions of causality among financial development, FDI and economic growth. Findings Results suggest a cointegrating relationship among the three series. Although short-run links among the variables are mostly non-uniform, both financial development and FDI matter in the determination of long-run economic growth. Practical implications Attention must be paid to policies that promote financial development. This, in turn, calls for fostering incentives to guarantee continued support to liberalize the economy and promoting capital openness. Additionally, financial infrastructure should be improved to improve financial innovation. The establishment of a well-developed financial market, including well-functioning banks and other financial institutions, can facilitate further investment and an easier means of raising capital to support the activities of FDI. Economic growth can ultimately be elevated through both financial development and FDI. Originality/value The study considers a sample of the G-20 countries, which have received relatively little attention in the existing literature. In addition, the study concurrently analyses the trivariate causal relationship among financial development, FDI and economic growth, a topic on which there has been a dearth of research.
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Muryani, Muryani, and Agna Amalia. "IMPACT OF ROAD INFRASTRUCTURE, EDUCATION, HEALTH AND FOREIGN DIRECT INVESTMENT TOWARDS INDONESIA’S ECONOMIC GROWTH: LEVEL OF 33 PROVINCES." AFEBI Economic and Finance Review 3, no. 02 (June 19, 2019): 35. http://dx.doi.org/10.47312/aefr.v3i02.204.
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<p><em>Economic growth is the most important factor to gain successful long-term development. The economy growth factors are road infrastructure, education, health, and foreign direct investment. This study analyzes the influence of road infrastructure, education, health and foreign direct investment on economic growth of 33 provinces in Indonesia in 2010-2016. This study uses panel data regression method and uses STATA 14 software. The regression estimation results showed that simultaneously road infrastructure, education, health, and foreign direct investment had an effect on economic growth of 33 provinces in Indonesia, while partially (individually) foreign direct investment doesn’t have significant effect.</em><em></em></p><pre><strong><em>JEL Classdification: </em></strong><em>H51, H52, H54</em></pre><pre><strong><em>Keywords</em></strong><strong><em>: </em></strong><em>Economic Growth, Education, Foreign Direct Investment, Health, Road Infrastructure</em></pre>
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Atiq, Faaeza, Mudassir Uddin, and Irfan Hussain Khan. "The Impact of Key Macroeconomic Determinants on Pakistan’s Economy." Global Social Sciences Review V, no. II (June 30, 2020): 260–72. http://dx.doi.org/10.31703/gssr.2020(v-ii).25.
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This paper intended to analyze key Macroeconomic factor’s effect on Pakistan’s economic development. The annual time-series data has been taken from 1980 to 2018 on External Debts, Foreign Direct investment. Consumer Price Index and Term of Trade. Variables stationarity is analyzed by ADF and Ng-Perron tests; afterwards, JJ test and Granger Causality test are used for Long-run (LR) & Short-run(SR) associations between variables, respectively. Also, Residuals Diagnostic Test used for checking residuals assumptions and CUSUM and CUSUMSQ are used for checking parameter constancy. The result shows significantly negative and positive long-run effects of External Debts and Foreign Direct Investment (FDI) respectively on the economic growth of Pakistan. Albeit, Consumer Price Index (CPI), Term of Trade (TOT) and, FDI significantly Granger cause economic growth in the short-run. Research suggests that economic policies devised in such a way that deteriorates External Debts and attract foreign investments and strengthen the economic growth of Pakistan in the long-term.