Contribution Of FDI Research Articles

Influence of Foreign Direct Investment on Economic Growth in Fujian Province

This paper aims to study the influence of foreign direct investment on economic growth in Fujian Province, and explore its mechanism and effect. As a form of transnational capital flow, foreign direct investment not only brings capital and technology to Fujian Province, but also promotes the development of industrial structure upgrading, employment increase and international competitiveness improvement. In the context of global economic integration, exploring the contribution of FDI to Fujian's economic growth will help deepen the understanding of global economic interaction and provide references and suggestions for relevant policy making. The research method is mainly based on the analysis of the statistical data of FDI in Fujian Province, combined with relevant economic theories and empirical research, in order to comprehensively and systematically evaluate the impact of FDI on economic growth in Fujian Province. Through the research findings, we can provide valuable references for government departments, enterprises and academia to formulate and optimize policy measures to attract foreign direct investment and promote the sustainable development of Fujian Province's economy.

Contribution of FDI, fiscal policy, and labor force on inequality and economic growth: A case study in South Sulawesi, Indonesia

South Sulawesi Province faces a significant problem: economic growth that has not been inclusive. This study analyzes the relationship between foreign investment contribution, fiscal policy, and labor force to inclusive economic growth in South Sulawesi, Indonesia. The results of this study show two relationships, namely direct and indirect relationships. Judging from the direct influence. First, FDI and local native income positively affect the level of inequality. However, in contrast to general allocation funds and labor force variables, each negatively affects inequality. Meanwhile, FDI, general allocation funds, and local original revenues positively affect economic growth. However, in contrast to the variables labor force and inequality, each negatively affects the inequality level. When viewed from its indirect influence, FDI, general allocation funds, labor force, and local native income each positively impact economic growth through levels of inequality. The implication of this study is the importance of governments allocating FDI investments for infrastructure development that supports inclusive growth.

Contribution of FDI in Service Employment of India

In the globalized world, foreign direct investment (FDI) is seen as one of the best viable solutions for addressing the issue of insufficient funds in developing and less developed economies. Whether these economies follow the path of Balanced Growth or Unbalanced Growth; there always remains a crunch of domestic funds that can be mitigated through the availability of funds from foreign sources. In addition to the domestically generated funds, the Indian economy has relied on foreign funds and aid, for its growth and development needs from time to time and FDI has always remained an important component in this regard. While the review of the Indian growth pattern in the post-globalization era reveals that the service sector has evolved as the major income and employment contributory sector; this article tries to examine the dynamics of FDI inflow in the service sector and its contribution towards income and employment generation in this sector. Analyses of data from various sources such as CSO, NSSO, RBI and the World Bank reveal that the Indian service sector has continued to receive the highest share of FDI during 2004–2005 and 2019–20. Although, the contribution of FDI inflow towards income growth has been satisfactory; its contribution towards employment growth has been relatively lower.

Cloning, expression, and bioinformatics analysis of heavy metal resistance-related genes fd-I and fd-II from Acidithiobacillus ferrooxidans.

Five heavy metals were introduced into the bacterial heavy metal resistance tests. The results showed that apparent inhibition effects of Cd2+ and Cu2+ on the growth of Acidithiobacillus ferrooxidans BYSW1 occurred at high concentrations (>0.04 mol l-1). Significant differences (P<0.001) were both noticed in the expression of two ferredoxin-encoding genes (fd-I and fd-II) related to heavy metal resistance in the presence of Cd2+ and Cu2+ . When exposed to 0.06 mol l-1 Cd2+, the relative expression levels of fd-I and fd-II were about 11 and 13 times as much as those of the control, respectively. Similarly, exposure to 0.04 mol l-1 Cu2+ caused approximate 8 and 4 times higher than those of the control, respectively. These two genes were cloned and expressed in Escherichia coli, and the structures, functions of two corresponding target proteins, i.e. Ferredoxin-I (Fd-I) and Ferredoxin-II (Fd-II), were predicted. The recombinant cells inserted by fd-I or fd-II were more resistant to Cd2+ and Cu2+ compared with wild-type cells. This study was the first investigation regarding the contribution of fd-I and fd-II to enhancing heavy metal resistance of this bioleaching bacterium, and laid a foundation for further elucidation of heavy metal resistance mechanisms caused by Fd.

The impact of development strategy choice on capital mobility and economic growth

AbstractForeign direct investment (FDI) has been widely acknowledged as a prominent vehicle to transfer technology, increase productivity and promote economic growth in recipient countries. However, FDI's contribution to economic growth can be more or less pronounced across countries conditioned on the development strategy adopted. This paper theoretically and empirically explores the impact of FDI inflows on economic growth when a comparative advantage development strategy is followed and when it is defied. By employing cross‐country panel data evidence for 72 countries over the 1971–2019 period, the results suggest that FDI is an essential driver for economic growth. However, the greater the level of defiance from comparative advantages estimated by the technology choice index (TCI), the lower the FDI inflow contributes to economic growth. The findings are more significant for the instrumental variable approach postulating the potential endogeneity of FDI and TCI and decomposed FDI by sector.

Measuring the macroeconomic determinants of agricultural price volatility: Implications for natural resource commodity prices for green recovery.

With rapid growth, green economic recovery has been a key agenda for the globe. However, the price volatility for natural resources plays a significant role in reshaping the green recovery. Therefore, the current study investigates the impact of green recovery, hum, a capital index, GDP growth, foreign direct investment and inflation on natural resource volatility in China from 1995 to 2020. In order to investigate the long-term association among selected variables, this study employs the Autoregressive Distributive Lag (ARDL) model. In addition, the current research uses the Aikaik information (AIC) criteria for the model selections. Obtained outcomes show the significant contribution of green recovery, human capital, GDP growth, FDI and inflation increase the natural resource price volatility level. However, to validate the results of ARDL, this study also used the ECM approach and validated the prior findings. On behalf of outcomes, the current study implies some imperative policies to attain the desired objective for green growth.

The Influence of TNC Investment Activity on the Economic Growth of Countries with Emerging Economy

TNCs provide asignificant part of the global industrial production. For developing countries, the issue of attracting FDI has never lost its relevance. TNCs have always been among the priority foreign investors and the main structural element of most world economies. TNCs solve critical issues of economic growth in developing countries with the help of foreign direct investment. The aim of this article is to study the dependence of a developing country’s economic growth on FDI, i.e. consider and explore the relationship between these two indicators. The object of the study is FDI and the GDP of Russia and Kazakhstan. Initially,the study was aimed at identifying the positive and negative aspects of TNCs through the analysis of FDI in Kazakhstan and Russia over the years of independence. Next, the study includes a regression analysis of the contribution of FDI to the GDP of Russia and Kazakhstan. SPSS software was used. The share of GDP for FDI for Kazakhstan and Russia was used as an independent variable. GDP for both countries was taken as the dependent variable. The analyzed period was from 1992 to 2020. Statistical data was used from official sources. Regression analyses performed with dependent variables are significant. Upon the research results, the independent variable for the RF model is higher than for the KZ model. Thus, the level of FDI contribution to GDP growth for Russia is much higher than for Kazakhstan.

The Contribution of FDI to Economic Growth in Developing Countries

The paper considers analyzing the effect of sector-specific foreign direct investment (the primary, secondary, and tertiary sectors) on economic growth in 19 developing countries for the period 2005-2018 following human capital, domestic investment, financial development, the openness of the economy, labor force, institutional quality, and natural resource richness as control variables through Arellano and Bond (1991) differenced GMM. It reveals that FDI in manufacturing has a positive and statistically significant influence on economic growth, whereas FDI in the tertiary sector has a statistically significant negative effect on economic growth, but FDI in the primary sector has a negative but negligible effect on economic growth. Lastly, it can be concluded from the above results that the more manufacturing FDI that countries attract, the greater their economic growth will be. Therefore, these countries should pay attention to it.

Impact of globalization, foreign direct investment, and energy consumption on CO2 emissions in Bangladesh: Does institutional quality matter?

Bangladesh's recent doorway to the spectacular growth trajectory is largely associated with the shared contributions of globalization, FDI, trade, economic growth, urbanization, energy consumption, innovation, and institutional quality that affect its natural environment. Earlier studies hardly incorporated these dynamics together especially innovation and institutional quality to examine their impacts on environmental degradation in Bangladesh. This study attempts to scrutinize the effect of globalization, foreign direct investment, economic growth, trade, innovation, urbanization, and energy consumption on CO2 emissions in the presence of institutional quality in Bangladesh over the period 1972-2016 by utilizing dynamic ARDL simulations' model by Jordan and Philips (2018). The investigated results depict that globalization; foreign direct investment, and innovation have a negative effect on CO2 emissions in improving environmental quality while economic growth, trade, energy consumption, and urbanization positively impact CO2 emissions and hence stimulate environmental degradation both in the long and short run. Besides, institutional quality measured by the political terror scale (PTS) affects CO2 emissions positively and thereby degrades the quality of the environment in both the long and short run. Therefore, policy implication should go toward encouraging globalization, foreign direct investment and innovation; and the sensible utilization of income growth, trade potentials, energy consumption, urbanization and institution is required for the sake of environmental quality in Bangladesh.

A comparative study of contribution of fdi and domestic industrial investment in nepalese economy

This study has been conducted for the comparative study of contribution of foreign direct investment and domestic investment in Nepalese economy. For this theoretical analysis, different research studies have studied to draw the fundamental issues of effect of FDI and domestic industrial investment in the economy. The simple linear regression model has been applied to measure the impact of FDI and domestic investment on GDP and industrial GDP as well as employment. The contribution of FDI and domestic industrial investment has been analyzed by taking the data of 20 years during the period of 2000/01-2019/20. There has been significant contribution of FDI and domestic industrial investment in Nepalese economy. The results show that there are significant positive relationship between FDI and domestic industrial investment on GDP, industrial GDP and employment in the study periods.

THE IMPACT OF FOREIGN DIRECT INVESTMENT ON EXPORT OF HIGH-TECHNOLOGY PRODUCTS: THE ROLE OF FINANCIAL DEVELOPMENT AND REGULATORY QUALITY

This study aims to reveal whether financial development and regulatory efficiency have a noteworthy role in developing countries ' relationship between foreign direct investment and export of high-tech products. Rich panel data from 70 developing countries for the period 2002-2015 are used in the analysis to examine the relevant relationship. The Generalized Moments Method (GMM) is utilized in the study, since it allows to control the endogeneity relationship between variables. Findings shows that financial development and regulatory quality level affect the contribution of FDI on exports of high-tech products in developing countries. According to results, in countries where regulatory quality and financial development level are higher, FDI may contributes positively to export of high technology products. However, it couldn't be found any significant relationship for countries which have less regulatory quality and financial development level.

Assessment of the Effect of FDI on Employment in the Enterprise Sector in Vietnam

Since the Foreign Investment Law was first promulgated in Vietnam in 1987, the inflows of FDI to the country have increased significantly over the years. Among the contributions of FDI to the socio-economic development of the country, interest is placed on employment creation. The purpose of this study is to assess the effect of FDI on employment in the enterprise sector in Vietnam. The empirical study is conducted at the local level with all 63 provinces nationwide in the period from 2006 to 2014. The results reveal that FDI enterprises have a higher effect on employment creation than domestic enterprises. Beside, a positive relation between the share of FDI enterprises (in terms of the size of FDI in relative to the total capital resource) and the growth of employment in the enterprise sector is found which implies that the relatively larger presence of FDI enterprises can have positive spillover effects on employment growth. However, the spillover effects of FDI are considered limited.

The Impact and Contribution of FDI to Saudi Economy During King Abdullah Regime

Foreign Direct Investment resulted in the disclosure of different investment chances and opportunities through active investment promotion agencies. A country must execute various reforms capable of improving the fundamental determinants of FDI for achieving a high percentage of Foreign Direct Investment. These reforms among others include improving investment laws, reducing political risk and level of corruption, establishing a consistent legitimate and regulatory environment, freeing repatriation of funds and capital, as well as opening up to international trade. Saudi Arabia adopted generous incentive policies for attracting foreign capital and invite Foreign Direct Investment during king Abdullah regime. These policies present positive incentives while eliminating negative disincentives. Positive incentives consist free custom duties, reductions of tax and export zones, by the government of Saudi Arabia. Disincentives elimination to investments indicates the removal of overlong and rigid systems as they can delay visas issuance, restraint travel and complicate the licensing and registration of a project. This paper discusses the impact of FDI on Saudi economy during King Abdullah regime and finally, ascertains the contribution of FDI to Saudi Economy during King Abdullah regime.

The Empirical Analysis on the Import and Export Technology Effect of Agricultural FDI in China

ABSTRACT The paper analyzes the formative mechanism of the import and export technology effect, the trade contribution and squeezing effect on technology of agricultural FDI, and further regionally discusses this issue in China. The contribution of agricultural FDI to the import and export of agricultural products is remarkable. The agricultural FDI and growth rate of international trade had crowding out effects on domestic agricultural investment. There is a significant positive correlation in the study of regional technical spillover. Agricultural FDI investment enhances the ability of agricultural research and development, to produce technology spillover. Midwest regional technology spillover is not obvious.

The Role of Foreign Direct Investment and Trade on Environmental Quality in Vietnam

The study of environmental pollution plays an important role in controlling emissions in the production activities of FDI enterprises as well as export goods. Vietnam is a country with a large proportion of FDI contribution and high export value. Therefore, there should be studies to assess the actual effects of FDI and the openness of the economy (trade) on the environment. Therefore, the authors conduct research on the role of FDI and trade on environmental quality in Vietnam. With data collected from 1990 to 2018 (from the period of Vietnam's economy opening up) through the ARDL (Autoregressive Distributed Lag) model, the results show that FDI has a positive impact on CO2 emissions in the short term but has no impact on the long-term (In this study, CO2 is considered to represent environmental quality). The trade has a positive impact on CO2 emissions in both the short term and long term. The results of the study show the actual shortcomings of FDI as well as production activities in the export enterprises in Vietnam. From the results of this research, the author also provides the causes and remedies to control of CO2 emissions from two activities of foreign direct investment and trade.

An Inventory of Concrete Measures to Facilitate the Flow of Sustainable FDI: What? Why? How?

The Inventory was prepared in the framework of the investment facilitation for development project undertaken by the International Trade Centre (ITC) and the German Development Institute (DIE). It is an informal and unofficial compilation of investment facilitation measures, their rationale and ways in which these measures are—or can be—implemented in practice. It is a capacity-building tool meant to help participants engaged in the WTO negotiations of a multilateral framework on investment facilitation for development, paying special attention to measures that directly increase the development contribution of FDI. Following the agreed scope of the WTO negotiations, it does not include measures related to investment protection, investor-state dispute settlement (ISDS) and market access. The Inventory can also be of use to investment promotion agencies seeking to facilitate FDI flows.

Sectoral Contribution of FDI in India (With special reference to Automobile, Telecommunication, Services and Computer Hardwares &amp; Softwares sectors)

After opening of the Indian economy, the contribution of Foreign Direct Investment to the Indian Economy is remarkable. The Foreign Investments not only brings in capital into the host country but also the technological advancements, best practices in managing the company and also efficiency. The Government of India is concentrating on attracting the FDI more than the FII. This is because Foreign Direct Investment is more stable and it has a presence in the host country. On the other hand, FIIs are unstable and they invest in the shares of the company and also they move out the capital when the market conditions are not favourable for them. Also the Government of the day is focusing on attracting more Foreign Direct Investments. This is evident from the jump in the Ease of Doing Business Index rank of India in the recent report. This article tries to analyse the Sectorwise contribution (Automobile, Telecommunication, Services and Computer Hardwares &amp; Softwares sectors) of FDI in the Indian economy. The analytical tools such as regression and correlation have been used. The results show that the computer hardware and software sector has contributed the most to the GDP of India among the sectors considered. The least contributor is the Telecom Sector. The study has also given some suggestions to the policy makers so that the different sectors of the economy remain attractive to the FDI.

Chinese investments abroad: examining the spillover effects in Eastern and Central Europe

PurposeChinese investments abroad are being scrutinized more stringently because host governments fear that Chinese companies would steal domestically grown technology and know-how or be duped into a debt trap. The purpose of this paper is to provide a narrative of Chinese investments in a region that is neither developed nor underdeveloped – Central and Eastern Europe. The authors aim to provide an alternative view of Chinese investments abroad.Design/methodology/approachThe authors base their narrative on face-to-face semi-structured interviews with eight Chinese firms that carried out mergers and acquisition activities in the region.FindingsThe respondents claim that they saved companies and jobs in the aftermath of the global financial crisis. Access to the China market and elsewhere has increased as a result of these investments. Transfer of technology has gone both ways depending on which partner had superior technology.Research limitations/implicationsIt is important that Chinese investors emphasize the positive spillover effects from their investments, such as jobs saved, potential technology transfer and increased exports, when applying for FDI approval from host governments. Host governments, on the other hand, should evaluate each Chinese investment on its individual merits.Originality/valueThere is little that has been researched on the contributions of FDI from developing countries to host economies. This paper is an early attempt in this direction.

Do foreign direct investment in Ivory Coast increase CO2 emissions

Purpose- In this paper, we study, on the basis of an endogenous growth model, the effect of foreign direct investment on CO2 emissions in Ivory Coast from 1975 to 2014. Methodology- The preferred econometric tool is the ARDL model. Findings- The results show a positive relationship between CO2 emissions and FDI whose associated coefficient is significantly different from zero in the short term. This result suggests that the contribution of FDI to CO2 emissions is minimal. Indeed, if FDI increases by 1 point (100%) then CO2 emissions increase by 0.03%. In the long term, the results suggest that the increase in FDI will lead to an increase in pollution with an associated coefficient significantly different from zero. As in the short term, this result also shows that the contribution of FDI to CO2 emissions is minimal in the long term. A 1 point increase in FDI (100%) leads to an increase in CO2 emissions of 0.14%. Conclusion- The improvement of the business, investment and trade climate in Ivory Coast, must be supported by social measures intended, in particular, to protect the health and safety of workers. Because environmental degradation due to an increase in emissions of CO2 supplies can have a negative impact on human health and bring about a decrease of economic growth.

The Relationship Between FDI, Poverty Reduction and Environmental Sustainability in Tunisia

Our goal in this paper is the study of the impact of FDI on poverty and sustainable development in the case of Tunisia and during the study period from 1985 to 2015. In addition, we use the test unit root of cointegration test, the model error correction of FMOLS and Granger causality. In the case of Tunisia, we find that all variables are integrated of order 1. Thus, we can use the cointegration test. Indeed, the result of the null hypothesis test of no cointegration was rejected at the 5% threshold, which explains the presence of a cointegration relationship between FDI, sustainable development and poverty. Finally, we present and interpreted the results of the estimated FMOLS model and Granger causality test to study the contribution of FDI to the poverty reduction and sustainable development in Tunisia. We find that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions. We find that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions. We found that the LIDE variable measuring foreign direct investment has a significant negative impact on the GINI index. We notice the LCO2 variable that measures the CO2 emissions has a negative and significant impact on poverty as measured by the poverty gap at $ 1.91. We prove that direct foreign investments have a significant negative impact on CO2 emissions.