Establishment of environmental protection courts and corporate foreign investment behavior

Environmental regulation, Foreign investment behavior, and carbon emissions for 30 provinces in China

Against the backdrop of rapid digital technology development, digital transformation has increasingly become a key pathway for enterprises to enhance their international operational capabilities. Based on data from Shandong Province's manufacturing A-share listed companies from 2011 to 2023, this study employs empirical methods such as the two-way fixed effects model, Probit model, and two-stage least squares method to explore the impact pathways of digital transformation on enterprises' foreign direct investment. The results indicate that digital transformation significantly promotes the scale of enterprises' foreign direct investment, and this conclusion remains valid after robustness and endogeneity tests. Mechanism analysis shows that digital transformation indirectly promotes enterprises' foreign investment behavior by improving supply chain operational efficiency. Heterogeneity tests further reveal that this promotional effect is more pronounced in state-owned enterprises and large enterprises, while it is not significant in non-state-owned enterprises and small and medium-sized enterprises. The study reveals the intrinsic logic between digital capability development and corporate internationalization, providing valuable insights for policymakers and business managers on how to effectively expand overseas markets through digital transformation.

Foreign investments, particularly portfolio flows are large and often distortionary as they have tendency to drop during periods of global crisis. They could trigger a crisis because of their volatile nature and depending on the level of country’s exposure to external shocks. The motivation for this study is consistent with the conjecture that high foreign investment inflows is consistent with higher reserve accretion and stability in the naira exchange rate. Overtime, there have deliberate policy measures to encourage foreign portfolio inflows. While these inflows, have always had a positive impact on the external reserves, there is always, the palpable fear of flow reversals or the possibility of sudden stop due to unforeseen crisis. The elasticity of substitution has not received enough attention in studies relating to domestic and foreign investment. In the light of this, our study seeks to investigate how Nigeria’s external reserves responds to changes in the domestic and foreign investment behavior. Thus, this paper investigates how Nigeria’s external reserves level responds to changes in domestic and foreign investment, thereby showing the kind of deliberate monetary policy adjustments that should be pursued overtime to achieve stability. The finding therefore recommends that the government should focus of domestic investment by expanding its revenue sources in order to allocate more resources for annual capital expenditure. The government should also embark on building capital goods to encourage domestic private investment the production of goods and services suitable to replace imported ones and provide opportunity for export of such goods and services.

How Does Language Impact Foreign Investing in a Multilingual Country?

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

Does foreign investment crowd in domestic investment? Evidence from Vietnam

Volumes of Foreign Real Estate Investment (FREI) have rapidly grown in many countries over the past decade (Mauck, Price (2017)). Thus, activities of foreign investors become increasingly important for domestic but also globalized real estate markets. So far, literature has quantified the effect of foreign capital on fundamental real estate parameters such as cap rates (see e.g. McAllister, Nanda (2016) and Kim et al. (2018)). Furthermore, researchers identified several determinants of foreign capital flows (see e.g. Lieser, Groh (2014)). However, the literature entails a gap if and to which extent differences in international cap rates (so-called yield spreads) affect foreign investors. Consequently, the functional relationship between the foreign investors’ calculus and international yield spreads is the fundamental research aim of the present study.This paper will utilize insights from real estate literature for national markets, which identified domestic yield spreads as a decisive factor to determine capital inflows into an asset class (Laposa, Mueller (2017)). The analysis will assess whether this national mechanism can also be observed on an international level by focusing on the United States (US) as the target country for foreign real estate investments. Thus, the empirical study will isolate the effect of international yield spreads on foreign inflows into commercial real estate in the US. These spreads are calculated as the difference between US yields and yields in several foreign markets (e.g. Germany, the United Kingdom, France, and others, which showed high investment activity in the US in the past). Hence, the central hypothesis states that positive spreads trigger inflows and consequently increase the transaction volumes of foreign investment. The latter will be tested by using regression models. These include time series analysis such as OLS as well as logistic models and Markov-Switching, following the existing literature methodically (see Tsolacos et al. (2014) as well as Laposa, Mueller (2017)), but also expanding it by including spreads as explanatory variables.To the best of the author's knowledge, there is no study, which investigates international yield spreads as a determinant for foreign real estate investment. Therefore, the paper will improve the understanding of investors’ calculus and contribute to the body of literature by shedding light on the impact of international yield spreads on foreign investment activity.

This study examines the interdependent trading behaviour of investors in foreign and local contexts with a particular reference to the Colombo Stock Exchange (CSE) of Sri Lanka to fill up the gap in the local literature regarding behavioural aspects and independence among foreign and local investors within their investment policies, procedures, and actions. Based on secondary data collected from a statistical sample drawn from daily trading statistics of CSE, covering both buying and selling actions of local and foreign investors for the period from 2007 to 2019, this study has examined the nature of four main investor groups namely foreign institutions, foreign individuals, domestic institutions, and domestic individuals in terms of daily purchases turnover, sales turnover, share volume traded purchases, and share volume traded sales data. The results showed that the local investors are quite irrational concerning the foreign investors. Hence, foreign investors' interdependence on local investors' behavioural information is weak. Local investors also highly rely on their trading behavior instead of being vigilant about the trading behaviour of foreign investors.

The article is devoted to an analysis of the state and prospects for attracting foreign direct investment into the Ukrainian economy under martial law. The essence of the concept of “foreign direct investment” explored and its characteristic features are determined. It established that in the legislative acts of Ukraine only the concept of “foreign investments” presented for consideration and their content described. The role of transnational companies at the present stage of attracting foreign investment to Ukraine outlined. A list of transnational companies operating in the domestic investment market provided. An analysis of the dynamics of foreign direct investment in Ukraine carried out based on the principle of direction. The unstable nature of cash flows revealed. It established that a significant part of foreign direct investment in the overall structure made up of those directed to Ukraine. However with the advent of war in 2022, the already not very high investment attractiveness of the Ukrainian economy decreased. This significantly complicated the economic situation in the country and significantly decreased its investment activity. An assessment was made of the scale of capital reinvestment in Ukraine through “round tripping” operations. Their unstable dynamics established and it revealed that the most significant volumes of foreign direct investment were directed to industries and institutions engaged in wholesale and retail trade. The main investor countries for round tripping operations presented, of which a significant part belongs to Cyprus and the Netherlands. Because of the study, factors identified that negatively affected the processes of foreign investment in Ukraine and related to the war and business rules. Recommendations developed that take into account general economic and institutional conditions for activating the foreign investment market in Ukraine. Separate effective mechanisms for their implementation presented. The need to formulate a state investment policy to further attract foreign investment into the Ukrainian economy for recovery after the war noted. This is due to the priority of restoring the domestic industrial and agricultural complex, increasing the country’s export potential by implementing strategies to overcome the economy’s dependence on imported energy resources, etc.

Green innovation (GI) has the dual attributes of green development and being innovation driven, and it has become an inevitable choice for solving the prisoner's dilemma of environmental protection and economic development under the action of the concept of sustainable development in the new era. This paper aims to clarify how environmental regulation (ER) can achieve a win‒win situation of GI and environmental protection by using data from prefecture-level cities in China and creating a dynamic panel model, quantile model, spatial econometric model, and panel threshold model to empirically analyze the dynamic effect and spatial effect of ER on GI as well as the nonlinear characteristics of the relationship between them and to examine the moderating effect of foreign direct investment (FDI). The results show that ER significantly promotes the development of the GI level and that FDI can play a positive moderating role. The impact has regional heterogeneity, time period heterogeneity, and resource endowment heterogeneity. After several robustness tests, the empirical conclusions are still credible. Based on the empirical conclusions, this paper makes policy suggestions on ER, foreign investment introduction, and the coordinated development of regional GI.

This article analyses the impact of trade and foreign investment on a small but not so open economy, Australia, whose growth rate outpaced the majority of the OECD countries in the last decade. We model five channels of outward orientation: exports, imports, foreign direct investment, foreign portfolio investment and other foreign investment. A cointegrated vector autoregressive model, complemented by a robust Granger noncausality test, is specified to identify permanent channels of outward orientation. Imports and direct investment are found to have a growth effect in the long run. The effect of imports is almost three times that of direct investment.

Anchoring effect on foreign institutional investors’ momentum trading behavior: Evidence from the Taiwan stock market

<p>Foreign direct investments in the Republic of Croatia has been systematically monitored since 1993. During the war years, the inflow of foreign capital, both in the form of direct and portfolio foreign investments, was insignificant. Significant foreign investment activity has been present since 1996. Aware of the importance that FDI (Foreign Direct Investment) can have on the recipient country, both as a factor in accelerated economic development, and as a source for financing the deficit on the current account of the balance of payments, Croatia has declaratively promoted a policy of attracting foreign capital. Although in the first few years after the war this promotion was mostly aimed at the Croatian diaspora, under the pressure of the international community, privatization began in the banking and telecommunications sector, and since the post-war years, the largest amount of foreign capital has been directed there. Thus, in the second part of the 1990s, after the normalization of the situation in the country, Croatia collected a total of nominally around USD 4.5 billion in foreign direct investment, mostly through privatization, and the largest inflow of foreign currency was realized in 1999, in the amount of 1, 2 billion USD (first round of privatization of HT). This paper analyses the factors affecting foreign direct investment and the strengths, weaknesses, threats and opportunities for encouraging the inflow of foreign direct investment into the economic framework of the Republic of Croatia and presents the competitiveness index of the structures and activities of foreign direct investment in the Republic of Croatia. In conclusion, it can be emphasized that since independence, the Republic of Croatia has been making efforts to attract as many foreign investments as possible, while achieving limited results.</p>

A foreign enterprise's decision with respect to investing in a certain locality dramatically depends on factors that can help the enterprise increase profits and grow. One of the existing factors that cannot be ignored is the ``hand'' of state agencies. This paper sheds light on the impact of governance on foreign direct investment activities in the locality. The study deploys the quantitative method through a questionnaire survey to all foreign-invested enterprises in Lam Dong province. Regression analysis results from 54 opinions of business managers indicate that governance activities have an important influence on the investment of enterprises. These positive effects are attributed to two main factors called ``conditions on government apparatus'' and ``conditions on civil servants''. These factors comprise respectively transparency, the quality of administrative procedures, intervention from policy stability, the quality of civil servants, accountability, and political will of the entire local government system. This study supports the ``tectonic'' thinking of state agencies in managing foreign investment activities. With this result, the study not only contributes an important part to the theory of foreign direct investment in developing countries with the role of local tectonic government but also offers practical value in terms of promoting governments to regulate governance manners to achieve optimal efficiency.

Algorithmic insights: How FDI sources, digital financial inclusion, and geopolitics collide in Pakistan's environmental landscape.