Journal articles on the topic 'Foreign direct investment flows'
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Zefinescu, Carmen Veronica, Marian Cătălin Voica, and Panait Mirela. "Foreign Direct Investment." International Journal of Sustainable Economies Management 8, no. 2 (April 2019): 36–48. http://dx.doi.org/10.4018/ijsem.2019040103.
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The world economy is in constant change, the action of multiple forces is sometimes divergent. Transnational corporations and foreign direct investment (FDI) are one of the most important forces contributing to the remodeling of the world economy and host countries. In this article, the authors focused their analysis on the factors favoring the attraction of FDI by the host countries and the motivation of the transnational companies to investment abroad. In the final part of the article, the authors analyzed the flows of FDI for the period 2000-2014. The objectives of this article are to detect changes that have been made to companies' determinants to invest abroad and the evolution of FDI flows, given the period of global economic crises.
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Antevski, Miroslav. "China: Flows and effects of foreign direct investments." Medjunarodni problemi 64, no. 4 (2012): 479–506. http://dx.doi.org/10.2298/medjp1204479a.
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The paper analyses international flows and effects of a form of investment capital in case of China. Apart from the fact that they are a form of imports of foreign savings as a source of investment capital, foreign direct investments are rightly considered one of the potentially most significant factors of economic growth and international transfer of technology and knowledge. The empirical research has confirmed that such their potential, this also including the degree of its utilization, depends on the absorption capacity of the host country. China has recorded the greatest rates of economic growth in the last decade and its response to challenges of the global economic crisis has been the most successful. Also, China is the largest investment area in the world and the inflow of foreign direct investments is very significant, resulting from the attractiveness of the Chinese economy itself and measures for attracting foreign investments. The Chinese experience with the effects of foreign direct investment has been multiple, being both positive and negative, and it is very useful for other countries. On the other side, Chinese investments abroad have recorded fast growth rates, although their scope is still small in comparison to those of the most developed countries and they are present only in trade flows.
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Stojadinovic-Jovanovic, Sandra. "Contemporary trends in global foreign direct investment flows." Medjunarodni problemi 67, no. 1 (2015): 79–105. http://dx.doi.org/10.2298/medjp1501079s.
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It is not necessary to explain the importance of foreign direct investment, particularly in less developed countries, bearing in mind the numerous theoretical and empirical papers that confirm their importance and effects that the inflow of these investments in the country can make. The movement of these investments on the global level is characterized by significant changes, especially in recent years, in their volume, geographically distribution as well as in the conditions in which they take place - conditions of instability and crisis interruptions, growing regional and interregional integration and altered foreign direct investment policies. Trends in their movements are mirrored in individual countries, stressing on the need for their continuous monitoring and detailed analysis. Therefore the paper will identified the key trends that characterize the contemporary global flows of foreign direct investments.
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Salorio, Eugene M., and Thomas L. Brewer. "Components of Foreign Direct Investment Flows." Latin American Business Review 1, no. 2 (December 1998): 27–45. http://dx.doi.org/10.1300/j140v01n02_03.
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Agarwal, Manmohan, Pragya Atri, and Srikanta Kundu. "Foreign Direct Investment and Poverty Reduction." South Asia Economic Journal 18, no. 2 (September 2017): 135–57. http://dx.doi.org/10.1177/1391561417713129.
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It is widely proclaimed that capital account liberalization would immensely benefit developing economies because once capital controls are lifted, developing economies create a potential for movement of capital. And, this free movement of capital could possibly increase growth thereby lifting millions out of poverty. India has been gradually liberalizing since the 1980s and throughout more capital inflows were observed compared to outflows. Also, the composition of capital flows has been changing since the 1980s–with Foreign Direct Investment (FDI) inflows rising steadily post-1991compared to portfolio and debt flows. However, since 2000, FDI outflows from India were also witnessed. In this paper we empirically test the impact of FDI flows on poverty in India for 1980–2011. To provide a correct perspective to India’s performance we also analyze the link between FDI flows and poverty for SAARC countries. For a better understanding of how FDI flows impact poverty, we analyze the outflows and inflows separately. The results show both similarities and contrasts in the behaviour of India in comparison with the other SAARC countries.
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Kacperska, Elżbieta. "Foreign Direct Investment in World Economy." Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego 16, no. 4 (December 31, 2016): 155–68. http://dx.doi.org/10.22630/prs.2016.16.4.108.
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Some of the phenomena dynamically developing in global economy in recent years are capital flows in the form of foreign direct investment. The investment takes different forms and is a way of economic development desired by most countries in the world. The article aims to present tendencies occurring in global FDI flows and define their types and geographical structure.
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Larudee, Mehrene, and Tim Koechlin. "Wages, Productivity, and Foreign Direct Investment Flows." Journal of Economic Issues 33, no. 2 (June 1999): 419–26. http://dx.doi.org/10.1080/00213624.1999.11506173.
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Padhi, Satya Prasad. "Attracting Foreign Direct Investment." Foreign Trade Review 37, no. 3-4 (October 2002): 32–47. http://dx.doi.org/10.1177/0015732515030302.
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Foreign Direct Investment (FDI) inflows are industry-specific and, therefore, are regional-specific. Following this framework, the paper, first of all, notes that the regional FDI inflows relate positively to cross-regional differences in initial level of manufacturing output. This is especially when cross-regional differences in initial level of manufacturing output do not conform to a regional manufacturing convergence process and point to cross-regional differences in production structures. The paper also says that the regional FD! inflows are attracted less by regional incentive pattern (both provisions off inancial incentives and infrastructure facilities) which is independent of cross-regional differences in manufacturing levels. At the same time, though FDI inflows are attracted to regions with initial higher level of manufacturing output, they do not directly support a divergence process. This may be due to the fact that (1) FDI regional flows pertain mainly to the post-1991 phase. and (2) the FDI and total private investment in India have different regional biases.
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KOZLOVA, Anžela, and Algita MIEČINSKIENĖ. "THE RESEARCH ON INTERFACE BETWEEN LITHUANIAN DIRECT INVESTMENT ABROAD AND FOREIGN TRADE FLOWS." Business, Management and Education 14, no. 1 (June 23, 2016): 136–51. http://dx.doi.org/10.3846/bme.2016.321.
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The scientific research results related to foreign trade and direct investment abroad (DIA) are discussed in the article. The relation of the direct investment abroad and foreign trade is still under the discussion as there is no clear answer whether foreign trade is supplemented or replaced by the direct investment abroad. Since 1997 the flows of the direct investment abroad increased greately in Lithuania. Consequently, it is important to define the link between the DIA and foreign trade considering each country separately. Direct investment abroad and trade links in Lithuania in 1997–2014 are analyzed in the article. The research analysis involves Lithuanian direct investments in the developed countries except some countries, such as Belorus, Russia and Ukraine. It is defined that there is a positive bilateral link between Lithuanian direct investment abroad and foreign trade. It is also observed the impact of general development of Lithuanian direct investment abroad (considering certain countries) on the countries economy itself – imports can exceed exports. Engle-Granger causality test is applied in the research paper for the purpose of defining the impact of the DIA on the import and export range.
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Wahyuningsih, Diah. "Trade flow of manufacturing sector and foreign direct investment in ASEAN economic integration: the gravity model of trade." Jurnal Perspektif Pembiayaan dan Pembangunan Daerah 8, no. 6 (February 1, 2021): 619–30. http://dx.doi.org/10.22437/ppd.v8i6.10289.
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This study aims to determine the effects of ASEAN economic integration on the manufacturing sector's trade flow and foreign direct investment. This study using panel data regression. The results show that ASEAN economic integration affects trade in the manufacturing sector and foreign direct investment (FDI) in ASEAN member countries. The tariff elimination policy increased trade flows in the manufacturing sector and foreign direct investment. The variable of GDP has a positive and significant effect on the manufacturing sector's trade flows and foreign direct investment. Exchange rate variables have a negative and significant effect on trade flows in the manufacturing sector and foreign direct investment. Meanwhile, the distance variable negatively affects trade in the manufacturing sector, but it does not affect foreign direct investment.
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Kim, Tien Do Thi. "Attraction of foreign direct investment in agriculture." Accounting 7, no. 6 (2021): 1407–16. http://dx.doi.org/10.5267/j.ac.2021.3.024.
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Agriculture is an industry with potential and advantages for development, but it is increasingly difficult to attract foreign direct investment (FDI) flows. Up to now, the results of attracting FDI inflows into the agricultural sector have many limitations, not really reaching the industry’s potential. This study will assess the current situation of attracting foreign direct investments into the agricultural sector in Vietnam in terms of FDI capital scale, FDI capital structure based on agriculture standard, investment method, investment partners and by investment recipients. The Red River Delta is one of the two Vietnamese economic regions with highly agricultural production. With the tradition of agricultural production and many favorable natural, economic and social conditions, the Red River Delta can further develop into a major agricultural production area of the country, contributing to economic development of the region and the whole country. However, FDI investment in agriculture in the region is modest compared to the potential of the industry as well as compared to other sectors in the region. While FDI inflow into Vietnam and other sectors in the region tends to increase strongly, FDI into agriculture is very low and has not grown for a long time, which is contrary to the trend of FDI to other sectors of the Red River Delta as well as the whole country and also contrary to the FDI flows to global agriculture.
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Nguyen, Yen, and Pham Hung. "CAPITAL FLOWS AND ECONOMIC GROWTH. EVIDENCE FROM VIETNAM." Economics & Law 3, no. 2 (December 30, 2021): 53–71. http://dx.doi.org/10.37708/el.swu.v3i2.6.
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The study examines the impact of foreign capital flows on economic growth in Vietnam over the period 1989-2019 using autoregressive distributed lag (ARDL). The findings indicate that there exists a long-run relationship between economic growth and foreign capital flows. Foreign direct investment stimulates economic growth both directly and indirectly since the findings indicate that in both the short and long run, foreign direct investment has significantly positive effects on economic growth. Foreign direct investment can also indirectly affect growth through appreciation of human capital due to the existence of a bi-directional Granger causality relationship between human capital and foreign direct investment. Our findings suggest that foreign direct investment and human capital are complementary to improving economic growth and Vietnam should promote foreign direct investment with enhancing human capital accumulation. External debt, however, has an insignificant impact on growth and the impact of foreign aid is also negative. Vietnam, therefore should not rely on external debt in the long run and allocate the effectiveness of foreign aid to achieve the optimal target.
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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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Ganzorig, Baasankhuu, and Dashnyam Nachin. "Trends in international investment flows: Foreign direct investment in Mongolia." Journal of International Logistics and Trade 4, no. 2 (December 2006): 107–20. http://dx.doi.org/10.24006/jilt.2006.4.2.107.
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Lyulyov, Oleksii Valentynovych, and Bogdan Andriiovych Moskalenko. "FEATURES OF ESTIMATING THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT FLOWS WITHIN COUNTRY INVESTMENT POTENTIAL EVALUATION." SCIENTIFIC BULLETIN OF POLISSIA, no. 1(20) (2020): 6–11. http://dx.doi.org/10.25140/2410-9576-2020-1(20)-6-11.
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Urgency of the research. Theoretical and empirical studies show that investment allocation has a perceptible impact on local economic development. Target setting. Taking into consideration reasonably low quantity of high-quality investments, countries all over the world are eager to incentive foreign direct investments inflows. Therefore, realistic country investment potential evaluation is vitally important for respective government institutions within their policies getting done. Actual scientific researches and issues analysis. The major issues of country investment potential evaluation, and investment market in general, were made by the following scientists and technicians: O. Fedonin, I. Riepina, O. Oleksiuk, S. Lieonov, B. Chub, Ie. Lapin, J. Dunning, A. Thompson., D. Kaufmann, M. De Melo, K. Berden, S. Sarno, P. Buckley, A. Fukumi and others. Uninvestigated parts of general matters defining. At the same time, insufficient scientific works cover approaches to assessing investment potential of Ukraine, based on latest research results of foreign scientists within current topic. Current socio-economic determinants of foreign direct investment need to be studied. The research objective is to identify key determinants of foreign direct investment inflow in the economy of Ukraine. The statement of basic materials. The article have considered determinants of foreign direct investment inflows, which are related to country socio-economic development and state institutions indicators. Conclusions. Studies of statistics of groups in transition economies have shown that the simultaneous adoption indicators of socio-economic development and quality of public institutions into the model of country investment potential evaluation allows to evaluate the elasticity of foreign direct investment to changes in each of the determinants.
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Drapkin, Igor. "Institutional determinants of bilateral foreign direct investment flows." Economics and the Mathematical Methods 57, no. 1 (2021): 33. http://dx.doi.org/10.31857/s042473880007982-9.
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Oğuş Binatlı, Ayla, and Niloufer Sohrabji. "Factors Influencing Foreign Direct Investment Flows into Turkey." Entrepreneurial Business and Economics Review 7, no. 2 (2019): 159–74. http://dx.doi.org/10.15678/eber.2019.070209.
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Endo, Kumi. "Foreign direct investment in tourism—flows and volumes." Tourism Management 27, no. 4 (August 2006): 600–614. http://dx.doi.org/10.1016/j.tourman.2005.02.004.
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Ahmed Nawaz Hakro and Ikhtiar Ali Ghumro. "Determinants of Foreign Direct Investment Flows to Pakistan." Journal of Developing Areas 44, no. 2 (2011): 217–42. http://dx.doi.org/10.1353/jda.0.0113.
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Chakrabarti, Rajesh, and Barry Scholnick. "Exchange rate expectations and foreign direct investment flows." Weltwirtschaftliches Archiv 138, no. 1 (March 2002): 1–21. http://dx.doi.org/10.1007/bf02707321.
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Kłysik-Uryszek, Agnieszka. "Equity Investments vs. Debt Investments – What Drives OFDI in Polish Industry." Przedsiebiorczosc i Zarzadzanie 16, no. 1 (March 1, 2015): 65–81. http://dx.doi.org/10.1515/eam-2015-0005.
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AbstractPolish economy witnessed enormous changes over the past 25 years. Systematic economic growth, increasing market openness, legal stabilization and integration with EU have substantially improved Poland’s global competitive position. That is reflected, among others, in intensified flows of long-term capital in the form of foreign direct investment (FDI). What is worth stressing, the last decade (regardless the economic crisis) brought a significant rise of investments made by Polish companies abroad (Outward FDI). It should be mentioned however, that the FDI flows are usually analyzed (in both theoretical and empirical literature) as if they consist only of equity investments, when in fact they consist also of intracompany loans. As the latter may not be driven by the same factors as equity flows, the real structure of FDI flows should be taken into consideration while evaluating the investment potential of companies. The paper examines selected issues concerning international expansion of Polish companies in the form of foreign direct investment. It provides theoretical background of the problem, explores the reasons for expansion and presents the structure of foreign direct investment by Polish industrial companies in the period 2003-2012 with regard to the equity and debt components of the flows. The study is based on the data provided by the National Bank of Poland (NBP).
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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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Limanskis, Andrejs. "MEASURING INSTABILITY OF FOREIGN DIRECT INVESTMENT FLOWS IN LATVIA." SOCIETY. INTEGRATION. EDUCATION. Proceedings of the International Scientific Conference 6 (May 28, 2021): 347–58. http://dx.doi.org/10.17770/sie2021vol6.6474.
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Fluctuations of Foreign Direct Investment (FDI) flows constitute an acute research problem globally and in Latvia studies. Already before COVID19, negative flows occurred. The research aim is to investigate stability in FDI in Latvia applying theory of dynamical system to big database of 129 countries of origin of FDI covering the whole period of regained statehood. The primary methods used are standard deviation and correlation. The main research result is disclosing growing instability of FDI flows in Latvia despite joining the EU and Eurozone. Novelty consists of research methodology justification, plotting analytical table, calculation of sigma and correlations for FDI flows for the periods before and after Latvia joined the EU, and drawing conclusions.
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Susetyo, Didik. "Determinants of Foreign Direct Investment (Fdi) in Indonesia: Short Term and Long Term." Modern Economics 33, no. 1 (June 20, 2022): 72–81. http://dx.doi.org/10.31521/modecon.v33(2022)-10.
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Abstract. Introduction. Foreign capital flows have an important role in a sustainable Indonesian economy, these flows have a significant influence on developing countries, especially Indonesia to encourage increased economic growth. This study focuses on analyzing the determination of macroeconomic variables including economic growth, interest rates, rupiah exchange rates, and the number of residents who subscribe to cellular phones. Purpose. This study focuses on long-term analysis of macroeconomic variables in determining foreign direct investment (FDI). Results. The findings of this study indicate that in the short term economic growth has a positive and significant effect on foreign direct investment. while the rupiah exchange rate, interest rate,s and the number of residents who subscribe to cellular phones have a negative and significant effect on foreign direct investment. while in the long term economic growth has a positive but not significant effect on foreign direct investment. while the interest rate and the number of residents who subscribe to cellular phones have a positive and significant effect. Meanwhile, the rupiah exchange rate in the long term has a negative and significant effect. Conclusions. Based on the short-term estimation, Economic Growth has a positive and significant effect on Foreign Direct Investment. Meanwhile, the Rupiah Exchange Rate, Interest Rate, and Number of Residents Subscribing to Cellular Phones have a negative and significant effect on Foreign Direct Investment and Based on the long-term estimation, Economic Growth has a positive but not significant effect on Foreign Direct Investment. Meanwhile, the interest rate and the number of residents who subscribe to cell phones have a positive and significant effect. Meanwhile, the Rupiah Exchange Rate in the long term has a negative and significant effect.
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Bayar, Yilmaz. "Impact of foreign direct investment inflows on environmental pollution in Turkey." New Trends and Issues Proceedings on Humanities and Social Sciences 2, no. 2 (January 12, 2016): 23–29. http://dx.doi.org/10.18844/prosoc.v2i2.409.
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The globalization accelerated especially as of 1980s and the countries began to integrate global economy and remove the constraints on the flows of goods, services and capital. In this context, the developed countries partly shifted their environmentally hazardous production activities to the developing countries especially by means of foreign direct investments. This study investigates the impact of foreign direct investment inflows on the environmental pollution in Turkey during the period 1974-2010 by using Toda and Yamamoto (1995) causality test. We found that there was a bidirectional causality between foreign direct investment inflows and  emissions.Keywords: Foreign direct investment inflows,  emissions, causality analysis
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Bayar, Yilmaz. "Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries." Naše gospodarstvo/Our economy 63, no. 3 (September 1, 2017): 19–26. http://dx.doi.org/10.1515/ngoe-2017-0015.
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AbstractGlobal foreign direct investment flows in terms of greenfield and brownfield investments have increased during the recent three decades resulting from the accelerating globalization. The considerable increases in the flows of foreign direct investment have many eventualities for the national economies. This study investigates the mutual effects among greenfield and brownfield (mergers and acquisitions) investments and economic growth in Central and Eastern European Union countries during the 2003–2015 period employing panel data analysis. The findings revealed that both greenfield and brownfield investments had positive influence on the economic growth, but the influence of greenfield investments was found to be relatively higher. Furthermore, one-way causality was discovered from both greenfield and brownfield investments to the economic growth.
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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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Jurša, Aleksejs. "Structural Analysis of Inward Foreign Direct Investment in Latvia." Humanities and Social Sciences: Latvia 29, no. 1 (June 2021): 76–94. http://dx.doi.org/10.22364/hssl.29.1.05.
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The aim of this article is to investigate the activity of foreign direct investors in Latvia and find out what is the main source of financing for foreign investors – new investments or reinvested earnings.In order to achieve the set goal and test the hypothesis, the methodology of Sixth Edition of the International Monetary Fund’s Balance of Payments and International Investment Position Manual was used to define the types of foreign direct investment. This methodology was adapted to Latvian data. At the request of the author, Ltd Lursoft IT selected business data on all registered companies with foreign capital in Latvia since 2005 and aggregate data were used in the analysis.Foreign direct investment in Latvia flows mainly in the form of reinvested earnings, due to the profit earned from operating activities in Latvia. While new investments or greenfield investments in equity is lower compared to the amount of reinvested earnings. The results of the study reflect the business results of foreign direct investors in Latvia, as well as their actions in relation to the earned profit from operating activities. These results could be used by the Ministry of Economics of the Republic of Latvia and the Investment and Development Agency of Latvia to improve Latvia’s investment environment and im¬plement a more effective investment attraction strategy.
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Loots, Elsabe, and Alain Kabundi. "Foreign direct investment to Africa: trends, dynamics and challenges." South African Journal of Economic and Management Sciences 15, no. 2 (June 5, 2012): 128–41. http://dx.doi.org/10.4102/sajems.v15i2.148.
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The FDI debate is often characterised by generalities about the importance of these flows within the global context. This article aims to unpack the African-specific FDI issues in order to get a clearer and more substantiated understanding of the current trends, dynamics and challenges, with emphasis on the period since 2000. The research concludes that nominal flows to the continent are on the increase, with exponential increases over the past decade. The descriptive analysis indicates that flows to the continent are unevenly spread and are concentrated in the largest economies and/or in petroleum-/oil-exporting countries. The impact of FDI on growth and investment in particularly smaller economies indicates that FDI inflows are making a substantial contribution to these economies and illustrates the importance of this source of investment. The econometric analysis reveals that oil exporters and the size of the economy are powerful explanatory variables in explaining FDI flows to Africa, with trade openness a positive, but less powerful variable.
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Kibalnyk, Liubov, Maryna Leshchenko, Olena Feshchenko, and Haiyu Wang. "Foreign direct investment trends: an analysis of the structure and dynamics in the context of globalization." SHS Web of Conferences 107 (2021): 08003. http://dx.doi.org/10.1051/shsconf/202110708003.
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The phenomenon of the international investment activity in the context of globalization is investigated in the article. Foreign direct investment is the most important basis for further analysis of the world economy. The article discusses the current trends of the foreign direct investment flows with an emphasis on their geographical location. In particular, the inflows of FDI by region and national economies are considered. The specific features of modern factors of the foreign investments’ distribution by regions are determined. The study shows that some methodological approaches are useful in determining the level of national economies’ interconnection of the linked processes of international capital flows. The clustering method was used for the analysis of foreign investments and the minimum spanning trees for the selected groups of countries were constructed. From the defined list of countries, one group with similar trends in the FDI movement has been distinguished. The article stipulates that countries should consider the need for their active involvement in globalization processes and contribute to the formation of a favourable investment environment within the country.
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Lu, Kelan (Lilly), and Glen Biglaiser. "The Politics of Chinese Foreign Direct Investment in the USA." Journal of Asian and African Studies 55, no. 2 (September 20, 2019): 254–72. http://dx.doi.org/10.1177/0021909619874816.
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Although recently Chinese investment in the USA has grown exponentially, it has not flowed equally among the US states. Controlling for popular explanations in the foreign direct investment literature, we carry out subnational analysis to assess the determinants of Chinese investment in the USA. Using a panel dataset for all states from 2006 to 2016, we find that Chinese firms are more attracted to states where Republican governors hold office. Republican-governed states particularly attract greenfield investments from Chinese firms. However, we also find that US national security concerns and Chinese goals appear to affect investment flows in high-technology states, limiting the role of partisanship. Our results indicate that it is too soon to dismiss the importance of politics on foreign direct investment.
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Gangol, Pradeep. "Foreign Direct Investment in Nepal’s Hydropower Development." Hydro Nepal: Journal of Water, Energy and Environment 14 (October 15, 2014): 41–42. http://dx.doi.org/10.3126/hn.v14i0.11256.
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The fund for Foreign Direct Investment (FDI) is globally limited and overstretched. Therefore, Nepal needs to go the extra mile in offering a competitive investment environment to attract FDI flows into Nepal’s hydropower development. It literally means that our investment policies and laws should be more competitive compared to that of other countries like Vietnam, Cambodia and Bangladesh etc.DOI: http://dx.doi.org/10.3126/hn.v14i0.11256HYDRO Nepal JournalJournal of Water, Energy and EnvironmentVolume: 14, 2014, JanuaryPage: 41-42
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Meurer, Roberto. "Portfolio Investment Flows, GDP, and Investment in Brazil." International Journal of Economics and Finance 8, no. 12 (November 17, 2016): 1. http://dx.doi.org/10.5539/ijef.v8n12p1.
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Foreign portfolio investment (FPI) flows have grown substantially in recent decades, following changes in the international financial system. In Brazil, FPI represented 66% of foreign direct investment between 1995 and 2009, which makes it meaningful to analyze these flows. In this paper, the relationships between FPI flows to Brazil, GDP, investment, and financial variables from 1995 to 2009 are analyzed, employing quarterly data and applying descriptive statistics, correlation coefficients, and Granger causality tests. Results show a positive relationship between flows, GDP, and investment. Relationships between flows and financial variables show a strong relationship between FPI and the real effective exchange rate, which could be one of the channels through which the flows are related to real variables by means of changes in relative domestic and foreign production costs. Expectations about future behavior of the economy seem to be an important explanation for the relationship between flows and the real variables. Because FPI is volatile and this volatility relates to real variables through the real effective exchange rate and the interest rate, there is a case to be made for the implementation of capital controls.
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Janjua, Laeeq Razzak. "Financial Flows and Environmental Degradation." International Journal of Circular Economy and Waste Management 1, no. 2 (July 2021): 1–15. http://dx.doi.org/10.4018/ijcewm.2021070101.
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Foreign financial inflow always acts as a sort of catalyst agent for economic growth; moreover, in the recent period, the effect of these financial flows on sustainable development is a debatable topic among researchers. The central idea of conducting this analysis is to empirically explore the effect of foreign financial inflows, which are foreign direct investment (FDI), remittances (REM), and development aid (ODA), on-air pollution of Algeria using the data covers from 1970 to 2018. Instead of the conventional co-integration approach, the ARDL (auto regressive distributed lagged) estimation method is adopted for analysis. The bound test is applied for investigating the co-integration analysis. Results indicate that foreign direct investment, development aid, and energy use assert long-run positive and significant effects on air pollution, whereas remittances indicate a long-run significant but adverse impact on air pollution. In short-run foreign direct investment, ODA and GDP per capita indicate a conclusive and significant impact on air pollution. Furthermore, in short-run, energy utilization indicates a significant adverse effect on air pollution.
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TRUSOVA, Natalia V., Tetiana A. CHERNIAVSKA, Yurii Y. KYRYLOV, Viktoriia H. HRANOVSKA, Svitlana V. SKRYPNYK, and Liubov V. BOROVIK. "Investment Attractiveness of the Economy of the World Countries in the Polystructural Space of Foreign Direct Investments." Journal of Advanced Research in Law and Economics 11, no. 2 (March 31, 2020): 645. http://dx.doi.org/10.14505/jarle.v11.2(48).35.
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The article deals with the theoretical, methodological and practical aspects of ensuring a safety level the investment attractiveness of the world countries economy in the polystructural space of foreign direct investments. In the context of the implementation of investment policy and factors in the field of international investment, an optimization model of the investment attractiveness of the national economy has been developed. The aggregate factors of the investment attractiveness index, which characterize the investment climate, investment activity and the state of economic development of the country, are highlighted. A methodical approach is presented to determine the synergistic impact of foreign direct investment on the country's investment attractiveness indicator. The criteria of normalization of investment attractiveness of the economy of the country by indicators of macroeconomic, monetary and currency status, which are formalized by indicators-stimulators, destimulators and interaction of bilateral boundary constraints are proposed. The criteria of identification of risks and threats of safe and dangerous state of development of the economy of the countries by the methods of prognostic extrapolation of foreign direct investment are taken into account. A comparative assessment of global foreign direct investment flows and global GDP, the value of net sales of cross-border mergers and acquisitions was made. The structure of foreign direct investment by regions of the countries of the world is considered, taking into account their external reserves of investment potential. The indicators of investment attractiveness of the Ukrainian economy and its cooperation with EU countries in terms of the volume of inflow and direct investments are presented. The scenarios for the growth of foreign direct investments in the polystructural space of the world and developing countries are proposed.
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Izyumova, O. N., and T. A. Krylova. "ANALYSIS AND STRUCTURE OF RUSSIAN DIRECT INVESTMENTS ABROAD." Scientific bulletin of the Southern Institute of Management, no. 3 (September 30, 2017): 9–15. http://dx.doi.org/10.31775/2305-3100-2017-3-9-15.
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This article analyzes direct investments. Currently, with the development of market relations and the strengthening of international relations, the objective trends in the growing volume of the export of Russian capital, the increase in its scale and the size of foreign assets, the consolidation of Russian companies in the promising segments of the world market, makes the article relevant and important for consideration. For a more precise presentation of the present situation, the structure of capital flows, in the context of economic entities, as well as statistical data on regulatory measures for foreign direct investment, are provided. The analysis revealed an unfavorable situation on the world investment market for the Russian Federation. The outflow of foreign direct investment from countries with economies in transition tends to decline. Carrying out the analysis of investments it is impossible to bypass. It should be noted that the structure of the capital exported from Russia differs from the similar structure of states with a progressive market by the fact that the share of other investments approximates to the share of foreign direct investment, and this trend increases dramatically in the period of instability. A clearer idea allows us to obtain a detailed analysis of the outflow of Russian investments and the inflow of foreign capital, as given in the paper. The article allows to consider the structure and present position of Russian direct investments and foreign capital.
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Axarloglou, Kostas. "Multinational Corporations and Inertia in Foreign Direct Investment Flows." International Trade Journal 21, no. 4 (November 14, 2007): 359–83. http://dx.doi.org/10.1080/08853900701597827.
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SEN, KUNAL, and CHAITALI SINHA. "The location choice of US foreign direct investment: how do institutions matter?" Journal of Institutional Economics 13, no. 2 (November 3, 2016): 401–20. http://dx.doi.org/10.1017/s1744137416000333.
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AbstractWe look at the institutional determinants of both within- and across-country variations in US foreign direct investment (FDI) flows over time. The strength of our approach is that in contrast to the previous work that has focused on average FDI flows across countries, we are able to explain both the variations in FDI flows across and within countries for a given year. Our core hypothesis is that in countries with high quality of contract enforcement, multinationals are more likely to invest in the industries, where by their very nature investments are relationship specific. Conversely, in countries with low quality of contract enforcement, multinationals are more likely to invest in industries where investments to a large degree are not relationship specific. Using-three dimensional panel data for US FDI flows to 50 countries and 6 sectors for the period 1984–2010, we find strong support for our hypothesis. Our findings suggest that countries that want to attract US FDI in sectors that are highly intensive in technology and institutions such as transportation and electronics should improve their property rights and contracting environment.
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Gopalan, Sasidaran, Rabin Hattari, and Ramkishen S. Rajan. "Understanding foreign direct investment in Indonesia." Journal of International Trade Law and Policy 15, no. 1 (March 21, 2016): 28–50. http://dx.doi.org/10.1108/jitlp-01-2016-0003.
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Purpose This paper aims to examine the dynamics of foreign direct investment (FDI) inflows into Indonesia. It is interested specifically in analysing and deliberating on two important policy questions: First, are all kinds of FDI useful from a policy perspective and what does the existing data on FDI reveal about the type of FDI inflows into Indonesia? Second, does the existing data help understand the extent of de facto bilateral linkages between Indonesia and other countries? Design/methodology/approach The paper offers an in-depth case study of Indonesia using extensive exploratory data analysis on FDI inflows into Indonesia. As discussed in the paper, the data investigation uses and reconciles available FDI data both from national and international sources to understand the usefulness of such data for policy analysis. Findings A data investigation of the trends in different types of FDI flows reveals a discernible downward trend in the ratio of mergers and acquisitions (M&A)–FDI ratio over the years. The paper argues that from a sequencing perspective, while a medium-to-long-term framework encouraging both domestic and foreign Greenfield investments could help Indonesia regain its growth luster, in the near term much more attention needs to be paid to FDI inflows in the form of M&As. Further, reconciling FDI and M&A data might help identify the original sources of FDI flows because existing data are based on flow of funds rather than ultimate ownership. Practical implications Since the Asian financial crisis, Indonesia has successfully embarked on a phase of economic and political transition post-Suharto, with the cornerstones of such a strategy being a process of greater democratisation and decentralisation. However, there have been growing concerns of economic growth stagnation in recent years. One of the policies to revive the economy’s lustre adopted by the government has been to attract greater FDI inflows. In this light, this paper examines the dynamics of FDI into Indonesia and deliberates on what kinds of FDI policymakers should focus on attracting to restore the country’s growth lustre. Originality/value The question of whether a policy to attract FDI should be careful in distinguishing the kind of FDI it wants to attract has not been sufficiently addressed in the related literature. This paper provides a framework to understand the different macroeconomic policy implications of types of FDI and provides extensive data analysis to not only understand the types of FDI but also sources of bilateral FDI inflows to Indonesia by reconciling FDI and M&A data.
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Bobrova, V., and K. Protasov. "Foreign Direct Investments in BRICS Countries." World Economy and International Relations, no. 2 (2013): 26–35. http://dx.doi.org/10.20542/0131-2227-2013-2-26-35.
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The analysis of Brazil's, Russia's, India's, China's and RSA's opportunities allows to speak about the further development of BRICS potential in the near future due to increase of the FDI flows both within BRICS and in its relations with third countries. China which to date selectively takes foreign investments giving special priority to their qualitative characteristics will remain the most long-term country. Russia continues to be one of global leaders in the field of resource development and a country with plenty of unrealized opportunities in the industrial sector. By today, there is still much tension around the issue of new growth drivers and investment climate improvement. Given the decrease in the investment attractiveness of the Western Europe which led the way as a FDI recipient in the past, in 2011 Russia's indexes doubled as compared to 2005. As far as the Russian economy development prospects are viewed as advantageous in the whole, everything will depend on the state policy coherence, where it's worth to study the BRICS partners' experiences.
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Hassan, M. Kabir, Mamunur Rashid, and Esther Castro. "Foreign Direct Investment and Investor Sentiment: A Causal Relationship." Global Economy Journal 16, no. 4 (October 15, 2016): 697–719. http://dx.doi.org/10.1515/gej-2016-0006.
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Past studies investigated a number of fundamental variables influencing FDI in various countries. This study offers extensive evidence on the impact of investor sentiment on net FDI flows in Malaysia. Using a vector error correction framework, this study analyzed the net FDI flows in Malaysia for 56 quarterly observations between 1998 and 2011, and reported a strong positive connection between investor sentiment index and FDI flows in the presence of other macroeconomic variables in the long- and short-run. Other important factors deciding FDI in Malaysia are real GDP, interest rate and currency value. FDI exhibited a bi-directional Granger causality with investor sentiment and gross domestic product. FDI is also Granger caused by interest rate. Decomposing the sentiment index to two sub-indexes, we find that the attitude dimension of the index hold greater influence on FDI than the market trading dimensions although both are significant. The study concludes that expectation around financial market, expected economic condition of the country and the region (i. e. ASEAN), and interest rates are important determinants of FDI in Malaysia. It is one of the findings of this study that FDI cannot be attracted simply based on economic stability of the country; rather a conducive regional atmosphere is indeed necessary. Consequently, our findings suggest that rather than implementing policies to improve macroeconomic conditions, governments should attempt to improve the perception and outlook of Malaysia to foreign investors in order to increase FDI flows into the country. Investing in bilateral (and/or multilateral) relationships can be one of the steps to create a positive impression for the region to attract more foreign companies.
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Ežmale, Sandra. "ATTRACTING FOREIGN DIRECT INVESTMENTS: THE CASE OF LATGALE REGION." SOCIETY. INTEGRATION. EDUCATION. Proceedings of the International Scientific Conference 4 (May 26, 2016): 256. http://dx.doi.org/10.17770/sie2016vol4.1556.
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Recent theoretical and empirical studies show that foreign direct investment (FDI) is crucial for sustainable development of countries and regions. The various discussions among the regional development institutions in Latvia on the importance of improving the environment for successful attraction of foreign investments have been initiated, as well as new strategic initiatives are in the process of development. The aim of the paper is to analyse the latest trends of inward FDI flows in Latvia and Latgale region in the context of global FDI trends. To attain the aim, the global FDI trends, the inward FDI flows in Latvia and Latgale region, as well strategic framework of Latgale region for attracting FDI were analysed.
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Maslii, Vadym, and Sviatoslav Pytel. "Statistical analysis of geographical structure foreign direct investment in Ukraine." Herald of Economics, no. 2 (August 10, 2021): 160. http://dx.doi.org/10.35774/visnyk2021.02.160.
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Introduction. Foreign direct investment occupies a significant place in financial flows and creates tools through which stable and long-term ties between countries are formed. Investment flows, which are both balanced and geographically and conjunctively disproportionate, can have positive and negative consequences for the host country’s economy. Particular attention should be paid to the qualitative parameters of the foreign investment process, which include the country of origin of investments, that is, their geographical location.Purpose. The purpose of the article is a comprehensive study of the geographical structure of foreign direct investment in Ukraine throughout the time-period of our country’s existence as an independent participant in the process of foreign investment.Method (methodology). In the process of researching the selected topic, the following methods were used: monographic – in order to study the results of existing analytical research, the object of which is the process of foreign investment in Ukraine and its aspect as the geographical structure of foreign investments is investigated; method of calculating the relative values of the structure – for the research of the geographical structure of foreign direct investment in Ukraine, which made it possible to abstract from a specific numerical expression of the volume of parts of the population; tabular – for submission of analytical information about the object of research; graphic – for visual presentation of the obtained statistical data on the geographical structure of foreign direct investment in Ukraine. Results. International investment activity has a significant impact on the geographical structure of FDI in Ukraine. During the study period (1995 - the end of 2019) the main investors were European countries. They exported to Ukraine annually about 50 % of the total invested capital, and in 2006-2011s, this figure reached 70 %. Investments from the European Union play a crucial role in Ukraine’s foreign direct investment process.According to the research, over the past 25 years there have been significant transformations in the territorial geographical structure of FDI in Ukraine. First of all, the number of investor countries has increased and the role of leaders, such as the United States, Germany, and the United Kingdom, has decreased. The role of investments from offshore countries and countries equated to them, such as Cyprus, Belize, the Bahamas, the British Virgin Islands, the Netherlands and others, has significantly increased. If in early 1995 the share of investments from these countries was about 11%, then at the beginning of 1998 this figure was 20 %, at the beginning of 2008 - 33%, at the beginning of 2011 – 51 %, and at the end of 2019 - 60 % respectively. It should be noted that there is no significant investment from South America, such as Brazil, Mexico and Venezuela, the industrialized countries of East and Southeast Asia and China, which is one of the 10 leading countries in the world. In this direction, promising investment cooperation should be expanded by concluding investment agreements taking into account the interests of future investors.Perspectives. In our opinion, promising in the future are studies of sectoral and territorial structure of FDI in terms of the largest countries of investors, assessment of their impact on the economic development of Ukraine in order to make effective management decisions in attracting foreign investors.
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Antevski, Miroslav. "A foreign direct investment: Characteristics, patterns, and effects." Medjunarodni problemi 60, no. 1 (2008): 61–92. http://dx.doi.org/10.2298/medjp0801061a.
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The author researched the foreign direct investment flows, patterns and effects in conditions of regional economic integration in Europe. The foreign direct investment presence results in two effects: first, increase in competition, and second, creation of forward and backward linkages between domestic firms and foreign affiliates. The benefits of foreign direct investment for their host countries take the form of various types of externalities or spillovers (of technology, knowledge, productivity). The potential spillover benefits could be realized if domestic firms have the capacity to absorb foreign technologies and skills.
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Mamphey - Otibo, Dorothy. "A Comparative Study of Foreign Investment Laws in Ghana and South Africa: –A Review." International Journal of Technology and Management Research 2, no. 3 (March 12, 2020): 17–27. http://dx.doi.org/10.47127/ijtmr.v2i3.63.
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Over the last decade, Ghana and South Africa have been among some African countries that have become more entrenched in foreign direct investment (FDI). The past quarter of the century has witnessed a remarkable growth in world foreign direct investment flows, coupled with the evolving investment strategies of national policies globally. This paper examines and compares the legislative frameworks and regulatory policies governing FDIs in South Africa and Ghana and the hurdles that need to be overcome to ensure smooth implementation of these policies. This has become evident in their current enactment of their regulations with the object of promoting investments in these economies. However, these jurisdictions have restrictions placed on their regulations; hence, putting frustrations on foreign direct investments. It appears that although in terms of overall statutory FDI regulations, African countries are on the average not more restrictive than other developing nations, some of these countries have obstacles that are both severe and restrictive such as land ownership, whether discriminatory or general in nature, act as an important deterrent to foreign investment. This discussion would focus on comparing restrictions imposed by legislation or policies affecting Soith Africa anf Ghana with regards to foreign direct investment. And disputes that emerge due to the restrictions among the jurisdictions.Keywords: Foreign Direct Investment, Economic Growth, International Law, Legislative Framework, Regulatory Bodies, Bilateral Investment Treaties.
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Chirkin, S. A. "Foreign direct investment in Latin America and the Caribbean – the evolution of flows." International Trade and Trade Policy 7, no. 3 (October 14, 2021): 50–63. http://dx.doi.org/10.21686/2410-7395-2021-3-50-63.
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The article examines the flows of foreign direct investment (FDI) in the countries of Latin America and the Caribbean (LACB) for the period from 2010 to 2020. The sources of capital inflows, their structural components, as well as the distribution of attracted investments by sectors of the recipient countries ' economies are analyzed. Quantitative indicators of FDI inflows and outflows for individual countries and for the region as a whole are presented, highlighting general trends. The trend of a decrease in the volume of attracted FDI in the LACB is emphasized. It is concluded that the decrease in foreign direct investment in South American countries confirms the direct dependence of FDI inflows on macroeconomic conditions and fluctuations in world commodity prices. Changes are noted in the approaches of multinational corporations to invest capital abroad in the context of the COVID-19 pandemic in favor of their local or cross-border use. The assessment of the actions of the authorities of the states of the region to attract foreign investment is given. The article examines the situation in the field of unresolved investment disputes involving the countries of the region and its impact on investment attractiveness. The role of Chinese FDI in the region, including its effectiveness in political terms, is considered separately.
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Pujari, Sudharsana Reddy, and Rajasekhar Mamilla. "Estimating the Long-run Equilibrium among Foreign Direct Investment, Foreign Portfolio Investment and Economic Growth: The Case of Indian Economy." PRAGATI: Journal of Indian Economy 9, no. 1 (2022): 43–63. http://dx.doi.org/10.17492/jpi.pragati.v9i1.912203.
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Foreign institutional investment (FII) and foreign direct investment (FDI) play a vital role in the economic development of a country as these capital flows bridge the gap between the domestic savings and the amount required for achieving the targeted capital formation. This paper tries to study how these capital flows are helping India in enhancing the economic activities. It attempts to confirm the long-run and short-run relationship among the foreign direct investment, foreign institutional investments and Index of Industrial Production (IIP) in India during April, 2012 to March, 2020. Johansen cointegration test is applied to confirm the presence of long-run equilibrium and Vector Error Correction Model is applied to study the long-run and short-run properties of the variables. Finally, we have applied Impulse Response Function to understand the dynamic behaviour of the variables in the model.. It is found that the three variables- FDI, FII and IIP are cointegrated in the long-run. However, there is no causality running from FDI and FII to IIP as per the results of VECM Model.
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Drapkin, I. M., S. A. Lukyanov, and R. I. Groznykh. "Foreign Direct Investment and International Trade: Empirical Analysis of Mutual Influence." Journal of Applied Economic Research 19, no. 4 (2020): 41–457. http://dx.doi.org/10.15826/vestnik.2020.19.4.021.
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Foreign direct investment and international movement of commodities are interrelated in the world economy. At the same time, the nature of this relationship and the causality issues are ambiguous and need to be studied from both theoretical and empirical sides. The aim of this paper is to estimate empirically the mutual influence of foreign direct investment and international trade in the modern economy. The econometric model is based on the gravity approach, the estimation is made using the Poisson pseudo maximum likelihood method on the data for 67 host and 109 home FDI countries for the period of 2001–2016. The hypotheses on the positive mutual influence of foreign direct investment and international trade are tested. A positive and significant influence of export and import flows on inward foreign direct investment is observed. The largest impact of export and import on foreign direct investment is observed when a two-year lag is considered. We could not reveal a significant influence of foreign direct investment on export and import flows either within one year, or for the lagged FDI values. The authors argue that pro-trade government policy, aimed at the integration of the country into global value chains is an important factor stimulating the inflow of foreign direct investment to the country. From the practical point of view, understanding the causal linkages between export, import and foreign direct investment helps state authorities better forecast the direct and indirect effects of various trade policy incentives.
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Schoeman, N. J., Z. Clausen Robinson, and T. J. De Wet. "Foreign direct investment flows and fiscal discipline in South Africa." South African Journal of Economic and Management Sciences 3, no. 2 (June 30, 2000): 235–44. http://dx.doi.org/10.4102/sajems.v3i2.2609.
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This paper investigates the impact of fiscal policy on foreign direct investment (PDI) in South Africa during the past 30 years. Casual empirical analysis reveals a definite linkage between FDI flows and variables such as the deficit/GDP ratio, representing fiscal discipline, and the tax burden on foreign investors. This relationship is substantiated by econometric analysis. Given the economy's large degree of dependence on foreign capital, the government may contribute to an investor-friendly environment by adjusting fiscal policy. Some inroads have been made in this regard with the government's Medium-term Expenditure Framework (MTEF), which projects a policy of strict fiscal discipline in years to come. However, the tax burden is still relatively high and, due to its impact on foreign direct capital flows, requires urgent attention.
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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.