Artificial neural networks and inclusive growth: A customized measurement approach and empirical analysis for the MENA region

During the late 1970s and early 1980s, many African countries experienced a profound slowdown in economic growth. The growth rate of real per capita GDP fell from 0.4% per year during the 1973-80 period to 1.2% per year during the 1980-89 period.' The causes-internal and external-of Africa's economic decline and the strategies for restoring economic growth are much debated. Nevertheless, broad consensus has emerged on the importance of (i) increasing total investment and (ii) promoting private-sector development and increasing its share of total investment for long-term growth.2 It is widely recognized that gross domestic investment fell substantially in Africa during the 1980s and remains severely depressed across the region. The proportion of total domestic investment in GDP fell from 20.8% per year during 1973-80 to 16.1% per year during 1980-89. In some countries, investment has fallen to less than 10% of GDP-a level that is insufficient even to replace depreciated capital. In Africa, the minimum investment needed to replace depreciated capital is estimated at 13% of GDP.3 In recent years, there has also been a growing recognition among many African leaders, faced with new realism and pragmatism, that the private sector could play a significant role in economic development. The focus in the longer term of structural adjustment programs and sectoral reforms adopted by these countries is on creating more appropriate incentives and a framework for private-sector development as the basis for achieving sustainable economic growth. In addition, multilateral and bilateral institutions have developed new initiatives with priorities for private-sector development. In 1989, the International Finance Corporation, an affiliate of the World Bank, es-

Inclusive green growth is a sustainable development mode in pursuit of economic growth, social equity, and environmental protection. At present, a large number of articles have discussed the impact of foreign direct investment (FDI) on economic growth, green growth, and inclusive growth. However, the research about inclusive green growth is mainly descriptive. This paper constructs China’s inclusive green growth index and analyzes the impact of FDI on inclusive green growth in China. Specifically, by constructing a super efficiency slacks-based measure model (which has two undesirable outputs: income disparity and environmental pollution) to calculate the Inclusive green growth index, this paper compares and analyses the differences and regional characteristics of China’s total factor productivity, inclusive total factor productivity, green total factor productivity, and inclusive green total factor productivity. We find that total factor productivity is decreasing after considering undesirable output, and the traditional total factor productivity is higher than the inclusive green total factor productivity by 0.112; at the regional level, the trend of the total factor productivity is gradually decreasing from east to west, which indicates that there are regional differences in inclusive green growth of China, and there is room for improvement. Meanwhile, we construct a panel vector autoregressive model (PVAR) and use generalized impulse response function and variance decomposition to analyse the influence of FDI on China’s inclusive green total factor productivity. The results show that FDI is beneficial to the promotion of inclusive green total factor productivity in China, and environmental pollution in the FDI process is an important factor hindering the inclusive green total factor productivity.

Foreign direct investment and financial development are critical in enhancing the growth of the host economy. This study investigates the asymmetric impact of foreign direct investment (FDI) and financial development (FD) on growth in Nigeria. To accomplish this objective, the study employs time-series data and a nonlinear Autoregressive Distributed Lag (NARDL) framework to decompose FDI and FD into positive and negative changes. We use GDP growth as the regressor, FDI and trade openness as explanatory variables, financial development as a mediating variable, and the human development index and the exchange rate (EXR) as control variables. The results of this study show that FDI and positive financial development (+ve) significantly increase the GDP growth rate in the short and long terms. At the same time, negative FDI and financial development shocks reduce growth, suggesting that improvements in the financial sector and FDI potentially drive economic growth. Results also indicate that the mediating variable (FDI*FD) is significant, showcasing that financial development facilitates FDI's growth impact. Based on our empirical outcome, the paper concludes that FDI and FD are critical in enhancing growth. The findings of this study suggest that government and policy analysts should encourage FDI by initiating environmentally friendly policies and establishing an adequate institutional framework to protect and promote foreign investment not only in Nigeria but also in other developing countries. Significantly, absorptive capacity, such as the financial sector, should be strengthened to optimize FDI's impact on growth.

This study is aimed at establishing the impact of foreign direct investment and financial development on carbon dioxide emission and clean energy using 44 countries in sub-Saharan Africa ranging from 1998 to 2017. Employing a second generation unit root test in conjunction with Pooled Mean Group, the study established that financial development have significant positive impact on clean energy consumption in sub-Saharan Africa. This was found to be consistent in both low-income and middle-income countries in sub-Saharan Africa. Financial development is however found to be significantly negative with carbon dioxide in sub-Saharan Africa and middle-income countries. This relationship is only positive in the low-income countries. Foreign direct investment does not have any significant impact on clean energy consumption in sub-Saharan Africa. A significant impact is noted after the decomposition of the sample into low-income and high-income countries. In low-income countries, foreign direct investment inflows impact positively on clean energy consumption. This relationship is however negative with middle-income countries. The link between foreign direct investment and carbon dioxide is significantly positive in the whole sample and also in low-income countries. These long-run relationships have been confirmed by the causality test.

The decoupling of carbon emissions has also become the dependence of countries’ development. Finance plays an important role in decoupling economic development from carbon emissions. This paper explores the impact of financial development in different regions on the decoupling of carbon emissions from economic growth, using the Tapio decoupling elastic model and the method of fully modified least squares (FMOLS) to study the impact of financial development on carbon emissions in six regional panels from 1995 to 2020: and Foreign direct investment (FDI), urbanization, population, and infrastructure as control variables. The results turn out that financial development will promote the decoupling of carbon emissions from economic growth in the ECA region. For EAP, SSA, AC, SA, and MENA regions, financial development will promote the growth of carbon emissions, and due to the different economic development dynamics of different countries, the positive effects of financial development on carbon emissions are heterogeneous. The impact of FDI, urbanization, and infrastructure on carbon emissions varies from region to region. The population will promote the growth of carbon emissions, regardless of the region. In addition, the ECA region is the most countries that has achieved the strong decoupling and is the first to realize the transition from weak decoupling to strong decoupling. Therefore,the ECA, EAP and AC region should accelerate the construction of a green financial system to promote the decoupling of economic growth and carbon emissions. The SSA, SA and MENA region should speed up the transformation of economic development mode and move towards weak decoupling or even strong decoupling.

Nearly all developing countries actively seek capital and technology from the advanced countries. Although private direct foreign investment (mainly in the form of multinational enterprise) is viewed with ambivalence by many developing countries, it is nonetheless true that direct investment remains a substantial source of capital and is sometimes the only source of specific technologies. Indeed, given the slow growth in official external assistance, developing countries are becoming more, not less, dependent on direct foreign investment. While disbursements of official development assistance by the OECD countries rose 43% from 1961 through 1970, direct investment flows rose almost 90% over the same period. In the later year, the flow of direct investment was more than two-fifths of all official assistance, $3.2 billion compared to $7.8 billion.1 Furthermore, the United States and other major capital exporting countries would prefer, for economic as well as ideological reasons, to channel more of their capital outflows to developing countries through private investment. It is highly probable, therefore, that developing countries will continue to rely on direct foreign investment in the foreseeable future to carry out their development programs. It is against this background that the present study seeks to identify the empirical determinants of direct foreign-investment flows in the manufacturing sectors of developing countries. Our purpose is to select from the many economic, social, and political features of a developing country those features that are critical to making that country attractive or unattractive to private foreign investors. Available empirical studies are limited

Introduction S.Motamen-Samadian The Effects of Capital Inflows and Openness on Financial Development in Emerging Markets S.H.Law Macroeconomic Effects of Capital Flows: The Case of Mexico C.A.Ibarra Blind Bargaining and the Effects of Foreign Direct Investment on Recipient States: The Case of Post-Soviet and Eastern European Countries N.Ass & M.Beck Foreign Exchange Risk Management in Emerging Markets: The Case of Malaysia A.Shukri Yazid & M.Shaladdin Muda FDI in North Africa: A Comparative Perspective A.Aghrout & M.Hodd The Impact of Foreign Direct Investment on Trade: Evidence from Tunisia's Trade R.Mekki Foreign Direct Investments Inflows into the Emerging Markets: Driving Forces and Lessons for Africa H.P.Ngowi Economic Growth and Foreign Direct Investment in the MENA Region: A Comparative Analysis L.Wahid

This research analyses the role of foreign direct investment (FDI) and official development assistance with financial development in determining the economic growth (EG) of selected Asian countries by using data from 2003 to 2018. In this research, we investigate the important role of official development assistance (ODA) and foreign direct investment along with other variables affecting GDP in selected Asian countries. By using panel data, a random effect technique is used to highlight the impact of ODA and FDI on GDP in selected Asian countries. The study results showed that official development assistance, urban population growth, and financial development have increased GDP in these countries. Findings suggest that a stable economic and political environment must be provided for further foreign aid and foreign direct investment. More credit facilities must be provided to the general public for more investment and economic growth.

Using Generalized Method of Moments (GMM) panel data analysis to examine the relationship between Foreign Direct Investment (FDI), financial development and economic growth in a group of 70 developed and developing countries from 1988 to 2002, it is found that the impact of FDI on economic growth is ambiguous. FDI may either increase or decrease the growth rate of the economy, depending on the financial market development indicators used in the study. The findings, however, support the notion that a certain level of financial sector development is a significant prerequisite for FDI to have a positive effect on economic growth. Policy implications are clear that since it has been stated that the economic performance depends to some extent on the development of domestic financial sector, effort should be made to reform and improve the development of domestic financial and banking sector in order to benefit more from the presence of FDI. (ProQuest: ... denotes formulae omitted.) Introduction There are few channels through which Foreign Direct Investment (FDI) permanently affects the growth rate, depending on the different models of economic development. In Solow-type standard neoclassical growth models, FDI is traditionally viewed as a crucial source in increasing the capital stock of a country. According to this school of thought, there is no difference between domestic and foreign capital in affecting economic growth. Moreover, it is suggested that, with the assumption of diminishing returns to capital, the impact of FDI on growth is crucial in the short run, but not persistent in the long run (Barro and Sala-i-Martin, 1995). In endogenous growth models, the potential of FDI in influencing growth is greater. In the literature, the role of FDI in growth can be explored through production function. Different from Solow-growth model, foreign capital will influence the path of domestic capital significantly, that is, either crowd-in or crowd-out domestic investment. If foreign capital produces a crowdin effect on domestic capital (or the relationship is complementary), then the impact of FDI on growth will be larger. Furthermore, if the presence of FDI affects local capital differently, for example, by the way of expanding the variety of intermediate and capital goods, then it can lead to improvement in the productivity level of the recipient country (Borensztein et al., 1998). Besides, FDI also affects labor via job creation. The role of FDI, nevertheless, is more significant in transferring technology and know-how that are embodied in human capital. The effect of FDI would be limited if the recipient country does not meet the minimum threshold of the absorptive capacity in terms of human capital, technological skills and domestic financial development (De Mello, 1997; Levine, 1997; and Borensztein et al., 1998). Therefore, the presence of FDI inflows will entail crucial knowledge transfer in terms of training, skill acquisition, new management practices and organizational arrangements. All of these will contribute to a higher level of productivity and efficiency of human capital or labor, which will lead to a higher level of economic growth. In line with the findings, single-country studies for Australia (Caves, 1974), Canada (Globerman, 1979), and Mexico (Blomstrom and Persson, 1983) found that the presence of Multinational Enterprises (MNEs) had positive effects on local productivity. In contrast, studies for Morocco (Haddad and Harrison, 1993) and Venezuela (Aitken and Harrison, 1999) concluded that there was no evidence that MNEs had a positive effect on the productivity growth of local firms. In another study, Kholdy (1995) determined the causality relationship between FDI and spillover efficiency, as defined by higher labor productivity and capital formation, in Mexico, Brazil, Chile, Singapore and Zambia. However, he argued that there is no causality linkage between FDI and labor productivity in the countries under consideration. …

Most developing countries are plagued with harsh economic realities, which motivate them to seek sustainable economic growth and development in line with goal eight of the United Nations Sustainable Development Goals. To this end, this paper investigated the source of external financing that is most helpful for achieving inclusive growth in lower-middle-income West African countries. The study is a panel analysis of annual data extending from 2000 to 2019. The study employed the Emirmahmutoglu and Kose Bootstrap Granger Causality Test, Westerlund Cointegration Test, Common Correlated Mean Group estimation technique, and Augmented Mean Group estimation technique for econometric analyses. The long-run empirical results from the study showed that both foreign direct investment and foreign aid have positive and significant effects on inclusive growth, although the impact of foreign direct investment is greater than that of foreign aid. A bi-directional causality was also found to exist between inclusive growth and foreign direct investment, while no causal relationship was detected between inclusive growth and foreign aid. Given the study’s empirical outcomes, it is recommended that West African countries prioritize macroeconomic policy reforms that provide enabling conditions for foreign direct investment to thrive rather than pursue foreign aid that more often than not are misdirected.

Purpose: Our study seeks to measure the impact of Foreign Direct Investments (FDI) in the services sector on the productivity of municipalities in the state of São Paulo. Theoretical framework: FDI in the services sector has become increasingly important for emerging economies due to the spillover effects, which can boost regional economic development. Methodology/Approach: This study uses econometric modeling to measure the impact of services FDI at the municipal level in the state of São Paulo, the most FDI-intensive region in Brazil. To do so, this study employs an unbalanced panel of data that includes all FDI-receiving municipalities in the state between 2010 and 2016. Findings: Our results point to a positive relationship between FDI in services sectors and municipal productivity. Research, practical & social implications: This study outcomes offer valuable perspectives for the formulation of public policies aimed at attracting foreign investments. They also have important implications for the service sector and could be a reference for future studies on the subject. Originality/ Value: This study addresses FDI in emerging countries, an important discussion given the impact of this type of investment on economic development and social indicators. In addition, this paper expands the FDI literature beyond the manufacturing sector. Keywords: Foreign Direct Investment; Foreign Direct Investment in Services; Spillovers; Productivity.

This paper investigates the relationship between Foreign Direct Investment (FDI) and economic growth in a group of 16 Arab countries from 1970 to 2008. The empirical analysis also addresses the role of what are identified in the literature as local for deriving growth benefits from FDI. Using a dynamic panel approach, it is found that the impact of FDI on economic growth in Arab countries is limited or negligible. The findings also suggest that financial development, trade openness, human capital and infrastructure quality are not significantly improving Arab countries' capacity to reap growth benefits from FDI. The paper suggests that the preconditions should not be seen as of equal importance. The sectoral composition of FDI plays a critical role in deriving FDI growth benefits which might make it a necessary precondition for FDI to promote economic growth, while other factors such as financial development, trade openness, human capital and infrastructure quality could be seen as sufficient preconditions for reaping FDI growth dividends. The paper's findings have important policy implications as Arab countries can turn to domestic policy solutions to direct FDI inflows to the dynamic sectors and focus not only on FDI quantity but also on FDI quality. Meanwhile, efforts should be made to reform and improve institutional quality, macroeconomic policies, and domestic financial markets.Keywords: FDI, Economic Growth, Arab CountriesJEL classification: F21, O40, O43(ProQuest: ... denotes formulae omitted.)1. INTRODUCTIONCapital is the cornerstone of any production process at both the micro and the macro-economy levels. Capital can be obtained through domestic sources as well as through foreign sources, which is mostly in the form of Foreign Direct Investment (FDI). FDI inflows have multifaceted features which make them preferable to other sources of capital. These features include filling savings-investment gaps, relaxing foreign exchange constraints, and consisting of a bundle which includes not only capital but also technology, knowledge, and marketing and managerial skills (Grossman and Helpman, 1992; Walz, 1997; Pradham, 2003).FDI has become the most stable and the largest component of capital flows to developing countries. As a result, FDI is considered an important element in the economic development process. Yet the role of FDI in the economic growth/ development process has for long been a topic of intense debate. To date, the empirical evidence of the effect of FDI on economic growth is not conclusive.While one stream of research has indicated a positive impact of FDI on economic growth, another stream reports otherwise. A third stream of research suggests that the effect of FDI on a host country's economy is dependent on the country's absorptive capacity in terms of its human capacity and the level of economic and financial development (Hermes and Lensink, 2004; Makki and Somwaru, 2004).FDI flows around the world have dramatically increased in the past three decades. World FDI flows rose from $54 billion in 1980 to $208 billion in 1990, then to $1,401 billion in 2000 before falling to $1,114 in 2009. Arab countries were not an exception to this trend. Total FDI inflows to Arab countries increased from a mere $502 million in 1970 to $1,288 million in 1990, then jumped to $6,056 million in 2000 before soaring to $47.6 and $79.2 billion in 2005 and 2009, respectively (UNCTAD). These trends reflect the increasing importance of FDI flows both for recipient and exporting countries.This paper aims at answering two main questions. First, did FDI inflows contribute to economic growth in Arab countries over the period 1970-2008? Second, can country-specific features and initial conditions explain cross-country variations in the growth benefits of FDI? Answers to these questions provide insights into how changes in economic and institutional conditions can affect FDI prospects for Arab countries, as well as inform policy responses for acquiring growth benefits from FDI in the future. …

The purpose of this study is to examine the impact of trade openness and foreign direct investment (FDI) on wages in China using a panel data set of 27 manufacturing sectors over the period of 2001 to 2016. The effects are separated into three groups: total industries, capital-intensive industries and labor-intensive industries.
 
 First, by comparing the determinants of three groups of industries, it shows that the impact of trade openness on wages only significant and positive in labor-intensive industries while the impact of FDI on wages is significantly positive in both capital-intensive industries and labor-intensive industries. Second, in the case of total industries, trade openness and FDI are insignificant to wages. Labor productivity, research and development (R&D) expenditure, the proportion of skilled workers to total skilled and unskilled worker are significantly positive to wages. In contrast, the proportion of female workers to total employment and the proportion of state-owned enterprises to total enterprises are significantly negative to wages. Third, for capital-intensive industries, the impact of trade openness on wages is insignificant while the impact of FDI is significantly positive on wages. Moreover, labor productivity, R&D expenditure and the proportion of skilled workers to total skilled and unskilled workers are significantly positive to wages. Finally, for labor-intensive industries, the impact of trade openness and FDI are both significantly positive to wages. Furthermore, labor productivity, R&D expenditure and the proportion of skilled workers to total skilled and unskilled workers are significantly positive to wages. However, the proportion of female workers to total employment and the proportion of state-owned enterprises to total enterprises are significantly negative to wages.
 
 Last but not least, the results imply that the benefits of trade and investment policies of China on industrial wages should be made more inclusive to all types of industries, either capital or labor-intensive industries.

In international development, the relationship between economic development and foreign direct investment (FDI) has long been a topic of great interest.Although this interest has provided a wealth of information regarding the effects FDI on growth in developing countries, there has been little empirical analysis of the linkages in Vietnam compared with other developing countries.Therefore, this study investigates the impact of FDI inflows on economic development including economic growth and financial development in Vietnam.By using robust estimation method, this study aims to assess the current state of the qualitative link between environmental quality and FDI.In addition, the study uses comparative and absolute methods to evaluate.The method of synthesis and analysis aims to clarify the role of FDI in economic growth in Vietnam as a basis for giving effective measures to attract and manage FDI and promote growth.Empirical results show that FDI, domestic investment, and trade openness positively impact economic growth.Moreover, the impact of government consumption on economic growth is negative and not statistically significant.Ultimately, this paper suggests that the Vietnamese government should improve regulations governing business operations by easing the process of starting a business, controlling prices, and augmenting cooperation between training centres and Foreign-invested enterprises. Research purposeUtilizing data from 1990 to 2019, the purpose of this study is to investigate the impacts of FDI inflows on financial development, economic growth, and further explore the factors influencing the economic development and regulatory quality by using robust least squares (RLS) method. Research motivation In international development, the relationship between economic development and foreign direct investment (FDI) has long been a topic of great interest. Although this interest has provided a wealth of information regarding the effects FDI on growth in developing countries, there has been little empirical analysis of the linkages in Vietnam compared with other developing countries. Therefore, this study investigates the impact of FDI inflows on economic development including economic growth and financial development in Vietnam. Research design, approach, and method:-The object of the study is to investigate the impacts of FDI inflows on financial development and economic growth -Research scope: + About space: Effects of FDI inflows on financial development and economic growth are presented for Vietnam.+ About time: The period from 1990 to 2019.-Research data: Data is collected from the World Bank, General Statistics Office of Vietnam, Statistical Yearbook.-Estimation method: Robust Least Squares (RSL) Main findings: Empirical results from RLS confirm the positive, significant impact of FDI and financial development on economic growth in Vietnam.Furthermore, domestic investment, trade openness also have similar effects while the effect of government consumption is negative and negligible.Practical/managerial implications: Empirical findings suggest that policymakers should adopt different measures to attract FDI as well as enhance labor quality to make the most use of these FDI inflows.

Reviewing Impacts of Foreign Direct Investments on the Macroeconomic Performance of Developing Countries