Investment In Countries Research Articles

Private climate investment, coal transition and digitalization in the major coal-consuming countries

This paper examines the relationship between private investment, digitalization, and coal rent in major coal-consuming countries from 1999 to 2019. Using the CS-FMOLS technique, the results show that a 1% increase in the ICT Development Index raises coal rent by 0.24%, underscoring digitalization's role in enhancing coal industry profitability. Conversely, a 1% increase in private participation in infrastructure reduces coal rent by 0.35%, as private investments focus on sustainable energy. The study concludes that while private investment supports clean energy, digitalization extends coal reliance. To support coal transition, policies should promote green ICT production, renewable energy, green finance, and good governance in sustainable projects.

Public Investment and Economic Growth in Different Countries

Public Investment and Economic Growth in Different Countries

Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS

Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS

Aligning nuclear energy with the circular economy in OECD countries

This paper aims to provide insight into the role of nuclear energy consumption in achieving circular economy status within the Organization of Economic and Co-operation Development (OECD) countries. Most of the scholarly work in this field examines the relationships between nuclear energy, income, and sustainability. However, a research gap exists regarding the effects of nuclear energy on the circular economy and vice versa. To address this knowledge gap, this research investigates the relationship between nuclear energy and the circular economy, while accounting for the role of environmental taxes and greenfield investments in OECD countries. Empirically, this study relies on the augmented mean group estimator and method of moment quantile regression approaches for conditional distribution on different quantiles. The findings suggest a robust positive relationship between nuclear energy and the circular economy, suggesting nuclear energy helps OECD countries to achieve economic circularity. In contrast, environmental taxes are associated with a detrimental effect on the circular economy. Furthermore, income and green field investment contribute to the achievement of a circular economy.

Policy approaches to increase external investment by US pension funds in African countries

AbstractLimited external investment has dampened the prospect for a prosperous African continent that capitalises on economic integration and its demographic dividend. This article explores US pension funds as a candidate for increased investment by framing it through an institutional lens and the scholarly understanding of the risk–return dynamics in private capital allocation. The original research is centered on interviews of senior‐level professionals who work in the US pension fund investment ecosystem as well as experts at multilateral organisations. It identifies the primary investment impediments articulated in interviews and offers approaches policymakers in OECD member countries could undertake to increase the scale of US pension fund investment in African countries. These include: (1) Transform guarantee programs in size, scope, and risk tolerance; (2) Establish large pass‐through investment vehicles; (3) Focus resources to improve capital markets in African countries; and (4) Mandate development organisations to coordinate and proactively collaborate with firms in the US investment ecosystem.

Uncovering Economic Growth Dynamics: The Role of Idiosyncratic Risk

Research Originality: This study provides a new perspective on the dynamics between foreign direct investment (FDI), idiosyncratic risk, and economic growth in ASEAN countries using structural equation modeling (SEM). It contributes to the literature by highlighting the nuanced role of idiosyncratic risk in shaping regional economic outcomes.Research Objectives: The study aims to examine the direct and indirect impacts of FDI inflows, idiosyncratic risk, and sectoral variables (manufacturing, agriculture, and services) on economic growth in ASEAN from 2013 to 2023.Research Methods: The study uses data from the ASEAN Statistical Database and applies SEM to estimate the relationships between these variables.Empirical Result: The main findings indicate that FDI inflows have minimal impact on idiosyncratic risk, as evidenced by regression coefficients below 0.001 for inward and intra-ASEAN FDI. In contrast, idiosyncratic risk significantly impacts economic growth. The results also reveal that sectoral variables such as manufacturing, agriculture, and services exhibit weaker associations with economic growth.Implications: This information suggests that policymakers should focus on exploiting idiosyncratic risk to improve economic development, while acknowledging the limited direct impact of FDI on risk management, thereby debating more appropriate strategies to promote sustainable economic growthJEL Classification: A11, E60, H11

An Analysis of the Modi Government's "Global South" Strategy

Since the outbreak of the Russia-Ukraine conflict, the Modi government has continually increased its focus and investment in the "Global South," driven by considerations of changes in the international landscape, India's role as a major power, national security concerns, and domestic factors for economic and social development. The Modi administration has ramped up strategic investments in countries within the "Global South," enhancing cooperation and promoting development among these nations, while also advocating for reforms in international multilateral cooperation institutions. This has elevated India's international influence and improved its diplomatic environment. However, India's hegemonic tendencies toward its neighbors are apparent, which may constrain China's proactive activities within the "Global South." As a natural member of the "Global South," China should maintain strategic stability and collaborate with India to safeguard the common interests of this group.

The Impact of Foreign Direct Investment, Trade Value on the Economic Growth of Greater Mekong Subregion (GMS)

In the study entitled “The impact of foreign direct investment, trade value on the economic growth of the Greater Mekong Subregion countries” which aims to study the changes of foreign direct investment, trade value on the economic growth of the Greater Mekong Subregion countries (GMS) from 2005–2022, and analyze the impact of foreign direct investment, trade value on the economic growth of the Greater Mekong Subregion countries (GMS), The data used in the study is geographical data. This study uses descriptive statistics to analyze changes and uses the estimation method of ordinary least squares (OLS) through a statistical program. Through the analysis of changes in foreign direct investment, trade value, and gross domestic product of GMS, it was found that, since GMS was established in 1992, the condition of foreign direct investment, trade value, and gross domestic product of GMS has been changing continuously due to the influence of Chinese investment that has come to invest in the region in terms of transportation infrastructure and electricity. In terms of trade, there are trade relations among the group of GMS countries, focusing on facilities for transportation and trade in the region. Cooperation in the region, contributing to economic growth and reducing poverty, as well as responding to the demand for products in the region, developing agriculture in urban areas, promoting GMS as a tourist source, and making the total domestic product of the countries in the region grow. A temporary drop in foreign direct investment, trade value, and gross domestic product of the GMS is due to the Mekong Delta member countries being affected by the financial crisis in Asia, political unrest, the financial crisis in China, and the spread of the COVID-19 disease. Analysis of the effect of foreign direct investment and trade value on the economic growth of the GMS countries by testing the relationship found that both the value of foreign direct investment and the value of international trade are related in the same direction to economic growth: if the value of foreign direct investment in the GMS countries increases by 1%, it will result in an increase in the total domestic product by 0.1225%, and if the value of trade in the GMS countries increases by 1%, it will result in an increase in the total domestic product by 0.7566% through statistical significance of 0.01.

ЭКОНОМИЧЕСКИЙ ПОРТРЕТ КАЗАХСТАНА: НОВЫЕ ВЕХИ

Recent years have been marked by steady growth of the Kazakh economy, which is supported by the dynamic development of key sectors and the active introduction of new technologies. In 2024, the country continues to successfully adapt to the changing global economic environment, including commodity price volatility and global economic turmoil. The Kazakh economy has demonstrated steady positive dynamics, which is due to the stable growth of key industries and innovative development. Despite global economic challenges and fluctuations in commodity prices, the country continues to demonstrate adaptability and sustainability of economic growth in 2024. International financial institutions and analytical centers agree that the Kazakh economy will maintain moderate growth rates in 2024. This indicates a gradual recovery from global economic turmoil. An important factor contributing to such development is the diversification of the economy, aimed at reducing dependence on commodity exports and stimulating domestic consumption, infrastructure projects and innovation. The Kazakh government is actively working to improve the country's investment attractiveness, support small and medium-sized businesses and develop human capital. These measures are aimed at ensuring sustainable economic growth and improving the well-being of the population. This article provides an in-depth analysis of the current economic state of Kazakhstan, including the dynamics of GDP and GRP, as well as development prospects.

The causal relationship between government investment and economic development in ASEAN countries

The purpose of this article is to evaluate the impact of public investment on economic growth. The data was used from the annual data of the Asian Development Bank (ADB) for 6 countries in ASEAN during 2000-2022. The methodology used in the project is to apply the unit root test to the stationarity properties of individual time series and establish the cointegration relationship between non-stationary variables using methods related to cointegration testing in the long-run. The error correction model (ECM) considers the impact of the variables public investment, public expenditure and budget revenue from taxes on short-term economic growth and long-term growth thereby calculating the adjustment speed and adjustment time of the model and using the Granger causality test with fixed effects for analysis of unbalanced panel data to comprehensively analyze the relationship between public investment and economic growth. Data analysis and processing were performed using Stata software version 17. The findings that public investment has a long-term impact on economic growth and has a two-way causal relationship in all countries. The authors provide policy implications to make public investment more effective contributing to promoting the country's socio-economic development, reviewing and improving the legal system on public investment, restructuring public investment while strongly enhancing the efficiency and quality of public investment, inviting and attracting foreign direct investment (FDI) capital, diversifying capital sources and creating more motivation for the private economic sector to develop and promulgate solutions to develop high-quality human resources.

A Review of Renewable Energy Investment in Belt and Road Initiative Countries: A Bibliometric Analysis Perspective

Since the proposal of the “Belt and Road” initiative (BRI) in 2013, China’s renewable energy investments in the countries along the route have shown rapid growth and diversification. These investments have shifted from initial product exports and engineering contracts to deeper equity investments and financing cooperation. They not only promote a global energy structure transformation towards green and low-carbon development but also bring significant economic growth and social progress to the participating countries. This study aims to systematically review the research status and trends of renewable energy investments in “Belt and Road” countries through comprehensive bibliometric analysis. Utilizing the Web of Science database and VOS viewer 1.6.17 software for visualization, this research reveals the publication trends, high-impact articles, institutional collaborations, and author networks in this field. Additionally, through keyword co-occurrence network analysis, three core research themes are identified: investment motivations, synergy effects, renewable energy consumption, and international cooperation. This systematic bibliometric analysis not only outlines the current research landscape but also provides important insights for identifying emerging research directions, thereby supporting more in-depth investigations into renewable energy investments within the “Belt and Road” initiative.

Adaptive strategies for investor-state arbitration: A framework for emerging economies to safeguard national interests and attract investment

In the realm of international investment, Investor-State Arbitration (ISA) plays a crucial role in resolving disputes between investors and states. Emerging economies often face unique challenges in this context, balancing the need to attract foreign investment with the imperative to safeguard national interests. This review presents a framework for adaptive strategies designed to help emerging economies navigate the complexities of ISA while optimizing both investment attraction and national protection. The framework emphasizes a dual approach: enhancing the attractiveness of a country for foreign investors and fortifying mechanisms to protect national interests. Key components of the framework include the development of robust legal and regulatory environments that align with international standards while accommodating national priorities, and the adoption of transparent and equitable dispute resolution processes. The framework advocates for the integration of tailored dispute resolution clauses in investment treaties that consider the specific needs and vulnerabilities of emerging economies. Additionally, it recommends the establishment of dedicated institutions and expertise to manage ISA effectively, ensuring that states are well-prepared to address and resolve disputes. Emphasis is placed on proactive engagement in treaty negotiations, leveraging strategic partnerships, and fostering dialogue with investors to create a balanced and mutually beneficial investment climate. The review also highlights the importance of continuous review and adaptation of legal frameworks to respond to evolving global standards and investment trends. By implementing these adaptive strategies, emerging economies can enhance their attractiveness as investment destinations while safeguarding their sovereignty and national interests. The proposed framework provides a comprehensive approach to managing ISA, balancing the imperative of attracting investment with the need to protect national resources and regulatory autonomy.

All in the same key? How state policy pressure and local fiscal pressure jointly shape Chinese firms’ OFDI within Belt and Road initiative

ABSTRACT This study aims to examine the effect of state policy pressure on firms’ international expansion and how it is affected by the difference in the public fiscal situation across home-country subregions. Based on longitudinal data from 2013 to 2021 for 4,323 listed firms in China, the results show that: (i) firms that face higher policy pressure from the Belt and Road Initiative (BRI) are more likely to increase their outward foreign direct investment (OFDI) in countries along the BRI route; (ii) this positive relationship is less pronounced for firms headquartered in regions experiencing greater fiscal pressure; (iii) the moderating effect of local fiscal pressure on the relationship between BRI policy pressure and firms’ OFDI to the BRI countries is less pronounced when firms are owned by the central government. These findings shed light on how firms’ strategic responses to the home-country institutional environment are contingent upon both competing institutional pressures and organizational attributes.

Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments

Factors Influencing Foreign Direct Investment in Muslim Countries: The Role of Financial Developments

The Impact of Policy Quality and Political Stability on Foreign Direct Investment in ASEAN Countries: An Institutional Economics Analysis

This investigation pivots on the impact of policy quality and political stability on foreign direct investment within ASEAN countries. Both facets form essential components of a country's political risk profile; a lower risk profile, characterized by sturdy policy quality and political stability, tempts investors to channel their capital into preferred investment destinations. Our research employs a panel data regression analysis across seven ASEAN nations; Indonesia, Malaysia, Singapore, Thailand, Vietnam, the Philippines, and Brunei Darussalam, from 2012 to 2022. The Common Effects Model emerged as the optimal panel model during our study. We found that policy quality negatively impacts foreign direct investment, signifying that investments are perceived unprofitable due to the policy quality in the ASEAN region. In counterpoint, political stability has a positive effect, confirming that stable political circumstances in the ASEAN region draw investor interest. These significant findings validate that policy quality and political stability significantly sway foreign direct investment within ASEAN countries, making them crucial considerations for prospective investors.

Safe Havens Characteristics of Islamic Stock Indices During Bearish and Bullish Markets: A Case of Developed and Developing Countries

Purpose — This study examines the performance of Islamic and conventional indices during bullish (positive) and bearish (negative) markets while the economic and financial conditions are different. Design/Methodology/Approach — This study uses GARCH (1,1) and wavelet-assisted cross-spectral, cross-correlation analyses to investigate the performance of Islamic and conventional stock indices and study the presence of safe havens, which reflect low volatility in the indices during times of market turbulence, for investors during bearish and bullish periods from 2019–2021. Findings — The paper finds that there is high and persistent volatility in Islamic indices in bullish markets, while in bearish periods the Islamic indices show low volatility persistence; and conventional indices were highly volatile during crisis periods. Also, the impact of news shocks on Islamic indices was intense before COVID-19, while after that news, shocks had a high impact on the conventional indices. The wavelet coherence analysis shows that there is high coherency between Islamic and conventional indices in developed countries but in developing countries, the opposite prevails. Originality/Value — The study is the first to use both Generalised Autoregressive Conditional Heteroskedasticity (GARCH) and wavelet coherence models for examining Islamic and conventional stock indices during bearish and bullish markets, especially in the COVID-19 pandemic era. Practical Implications — The results conclude that there are safe havens present in Islamic indices in both developing and developed countries, especially the United States (US), the United Kingdom (UK), India, and Indonesia, while in other countries the presence is weak. Both GARCH and wavelet coherence models show the same results regarding the presence of volatility and safe havens for investors in different countries.

Do tax incentives for innovation attract high‐technology investment from emerging markets? Evidence from China's outward foreign direct investment

AbstractWe examine whether the innovation box regime (IBR), a tax incentive with lower tax rates on intellectual property (IP)‐related income, attracts high‐technology investment from emerging markets. Using the staggered difference‐in‐differences (DID) method, we find that China's high‐technology investment in IBR countries, relative to non‐IBR countries, increases significantly after the implementation of IBR. This finding is robust to a battery of sensitivity tests. The mechanism analysis suggests that the attraction of the IBR for high‐technology investment is realised through the encouragement of innovation, and this finding is also verified in the heterogeneity analysis. We also find that the IBR has a positive effect on high‐technology investment only if the tax incentives apply to pre‐existing IP before the regime implementation, and the ease with which enterprises can directly use the latest technologies in the host country does not have an impact on the effectiveness of the IBR. Moreover, the effect of IBR on M&A is larger than that on greenfield investment. Our study contributes to the literature and policy assessment on IBR.

Economic growth, foreign direct investment and corruption nexus in sub-Saharan African countries: moderation model

This study aligns with Sustainable Development Goal 8 which borders on “economic growth by ensuring FDI inflows continue to increase so as to spur sustained economic growth”. It contributes to the economic growth literature by evaluating the role of FDI inflows and corruption on economic growth. The Sub-Saharan African region has witnessed an increase in FDI inflows for the last three decades. However, economic growth has been reducing. For example, the region witnessed a contraction in economic growth to 2.7 percent in 2022 down from 4.4 percent of 2021. The literature indicates that corruption can impede FDI inflows from translating to high economic growth. Many studies have examined the role of FDI inflows in economic growth but have not studied the moderating effect of corruption thus creating a gap for this study. To achieve the objective, the study uses the Fixed Effects Panel data approach on unbalanced panel data for 46 sub-Saharan African countries from 1998 to 2021 to interrogate the nexus. The results revealed a positive relationship between FDI inflows and economic growth. The findings align to the endogenous growth model that explains the link between foreign direct investment and economic growth. However, corruption was found to reduce the effectiveness of FDI inflows in realizing economic growth. The study therefore recommendsthat the governments of the Sub-Saharan Africa countries need to address corruption so as to achieve the desired economic growth. They should implement measures focusing on improving institutional quality to control corruption. In addition, the policy makers should relook at anti-corruption initiatives aimed at reducing poor governance. For instance, financing anti-corruption agencies and legislating their independence to ensure corruption is reduced.

Spillover effects of natural resources on the attractiveness of foreign direct investment in ECOWAS countries

The economies of Economic Community of West African States (ECOWAS) countries are linked by geography and by a policy of capital mobility. Consequently, the attractiveness of foreign direct investments (FDI) in one country is likely to be influenced by factors that explain FDI in neighboring countries, such as the endowment of natural resources. However, previous empirical studies have overlooked the spatial interaction effects of natural resources on the attractiveness of FDI in ECOWAS countries. In addition, natural resources are factors of production that can justify the location of a Multinational Enterprise in one country at the detriment of another, due to differences in the availability of natural resources. Thus, the main objective of this research is to fill this research gap by analyzing the spatial interaction effects of natural resource exploitation on the attractiveness of FDI in ECOWAS countries. Therefore, the dynamic Durbin Spatial Model (SDM) estimation method with a distance matrix was used for the analysis, covering 12 ECOWAS countries over the period 2007–2020. In addition, the use of the distance-inverse matrix with the dynamic SDM was used to analyze the spatial effects of different types of natural resources in order to test the robustness of the results. In terms of the results obtained, the findings show that the further ahead a country is in exploiting its natural resources, the more it negatively influences the attractiveness of new FDI in its bosom to the benefit of its neighboring countries, which are relatively behind in exploiting their natural resources. Specifically, the mining and forestry exploitation generates positive spillover effects, while oil and natural gas exploitation has negative spillover effects on the attractiveness of FDI from neighboring countries. A synchronization policy and a policy of compensating for the negative externalities linked to the exploitation of natural resources between ECOWAS countries would therefore make it easier to attract FDI and stimulate economic and social development.

Revaluating the Sustainable Development Thesis: exploring the moderating influence of Technological Innovation on the impact of Foreign Direct Investment (FDI) on Green Growth in the OECD Countries

The Sustainable Development Goals (SDGs) advocate for advancing green growth, a concept that balances economic prosperity with environmental protection. At the core of this vision are principles of sustainable consumption, production, and energy usage, all aimed at mitigating climate change and safeguarding ecosystems. This study investigates how technological innovation influences the relationship between Foreign Direct Investment (FDI) and green growth in OECD member countries. Specifically, we examine two facets of green growth: production-based CO2 productivity and demand-based CO2 productivity. We employ empirical analyses using the EKC and STIRPAT framework, which includes Ordinary Least Squares (OLS), smoothed instrumental-variables quantile regression (SIVQR), and System GMM methodologies, to uncover significant insights. Our analysis reveals that FDI impedes green growth, while technological innovation is pivotal in enhancing it. This pattern holds steady across various time frames and renewable energy sources. Furthermore, our findings indicate that combining FDI and technological advancement leads to heightened production-based CO2 productivity but diminished demand-based CO2 productivity. We also identify the presence of an environmental Kuznets curve for production-based CO2 productivity. Adding to significant scientific value by demonstrating how technological innovation moderates FDI's impact on green growth in OECD countries, we advocate for fostering collaborative partnerships between foreign investors and local innovators to leverage global expertise while advancing green objectives. Additionally, policy interventions should focus on stimulating demand for eco-friendly products and services to bolster demand-based CO2 productivity.