Foreign Direct Investment Efficiency Research Articles

Economic effect of foreign direct investment in the oil and gas sector of Azerbaijan

The article studies the economic effect of foreign direct investment in the oil and gas sector of Azerbaijan. As a study result it was determined that it is most appropriate to direct foreign investments to the sectors capable of creating high added value. Since these investments are mainly oriented to industrial production and processing sector, there are wide export opportunities here. For the economic development of the oil and gas industry, it is advisable to increase the qualitative component of foreign direct investment. In general, the directions of foreign direct investment in the oil and gas sector correspond to the interests of the Republic of Azerbaijan, which means that it is necessary to increase the efficiency of foreign direct investment. This is possible due to optimization of strategic and operational business processes at the level of investor companies. Thus, as a result of the study, it can be said that the inflow of foreign direct investment in the oil and gas sector has had a positive impact on economic growth in the country as a whole. Keywords: oil and gas sector; foreign investment; foreign direct investment; investment environment assessment; economic development.

Research on the Efficiency and Influencing Factors of Korea's Foreign Direct Investment in RCEP Partners

Purpose - In this paper, we, taking South Korea's foreign direct investment in RCEP partners as an example, will examine its investment efficiency in these countries and analyze the main influencing factors, making suggestions for further liberalizing and facilitating its investment in and even for promoting its trade and economic cooperation with them.
 Design/methodology - In this study, we look at the panel data of South Korea and the other 13 RCEP countries (Brunei excluded) from 2000 to 2019 and apply the stochastic frontier analysis to measure its foreign direct investment efficiency and explore the influencing factors in RCEP countries. We examine the investment potential of South Korea in these places.
 Findings - We find that South Korea's average investment efficiency in RCEP countries reached 0.62, indicating large investment potential. We also find that its investment efficiency in RCEP partners was heterogeneous. Our study reveals that South Korea’s foreign direct investment is significantly positively correlated with the market size and population of the two countries, as well as with whether the host country has a coastline and rich natural resources, while negatively with geographic distance. It shows that free trade agreements, economic freedom, and regulatory quality play significant roles in improving investment efficiency.
 Originality/value - Through theoretical and empirical analysis, we deal with the efficiency and influencing factors of South Korea's direct investment in RCEP partners, proposing new drivers for facilitating its trade and investment in these countries and comprehensively evaluating the efficiency and revealing the trend of its FDI in these countries. In this paper, we put forward a solid theoretical basis for empirical analysis of the future economic and trade development between South Korea and its RCEP partners and give objective insights for further improving its foreign direct investment efficiency and tapping its investment potential.

A Comparative Study to Measure the Efficiency of Foreign Direct Investment in Poverty Reduction in Egypt and Some Arab Countriesة

A Comparative Study to Measure the Efficiency of Foreign Direct Investment in Poverty Reduction in Egypt and Some Arab Countriesة

Business environmental factors affecting the efficiency of foreign direct investment emterprises in agriculture in VietNam

This study investigates potential impact of business environment factors toward investment efficiency of foreign direct investment (FDI) enterprises with the context of Vietnamese agriculture sector. The authors combined qualitative research methods (expert interviews) to develop research and quantitative models (EFA, CFA and SEM) to test research hypotheses. The findings revealed a direct influence of business environment among a sample of 68 enterprises, including: (1) Macro environment; (2) Intra-sectorial factors and (3) Inter-sectorial factors on business performance (profit, cost, export revenue, market share). In conclusion, some implications are proposed for more appropriate mechanisms and policies to improve the efficiency of business environment and at the same time increase the attraction of FDI for the Vietnamese agriculture.

ENSURING COORDINATION OF INTERREGIONAL COOPERATION AND INVESTMENT INNOVATIVE ACTIVITY

The study shows that there is the increase in foreign direct investment by type of economic activity to identify increased investment attractiveness. It is investigated that the trend of efficiency of foreign direct investment in Ukraine in relation to economic development is negative for revealing the level of economic development. Article analyzes the growth of the ratio of foreign direct investment per capita in percent in order to identify the need to increase the international investment attractiveness of Ukraine. Author considers that to increase the level of foreign investment it is necessary to promote the development of interregional cooperation: economic growth, decent working conditions, implement quality education, information-communication technologies, tourism development, foreign trade, agricultural sector, construction development, transport infrastructure, personnel training, development of industry and energy.

Shadow Economy and the Efficiency of FDI Inflow: The case of ASEAN Economy.

This paper focuses on the influence of shadow economy on the efficiency of foreign direct investment (FDI) inflow to the Association of Southeast Asian Nations (ASEAN). The panel stochastic frontier analysis with time varying technical inefficiency is employed to evaluate the efficiency level of inward FDI in nine ASEAN countries over the 2003 to 2017 period and examine the significant determinants affecting the efficiency of FDI inflow to ASEAN. The estimated results demonstrate that the efficiency levels of the FDI in such ASEAN countries are low. They also reveal that the market size and trade openness have significantly positive influences on the efficiency in attracting FDI to ASEAN countries. Moreover, the large shadow economy tends to significantly lower the ASEAN's FDI inefficiency, whereas a higher control of corruption significantly generates the FDI inefficiency in ASEAN.

Evaluating the efficiency of foreign direct investment: A regional dimension

Evaluating the efficiency of foreign direct investment: A regional dimension

Analysis of criteria for evaluating the efficiency of foreign direct investment

Analysis of criteria for evaluating the efficiency of foreign direct investment

Technical efficiency of FDI firms in the Vietnamese manufacturing sector

Abstract The study examines technical efficiency of Foreign Direct Investment (FDI) firms in the Vietnamese manufacturing sector by applying stochastic production frontier model and making use of cross-sectional data in the period 2009-2013. The average level of technical efficiency of FDI firms is about 60% and it is higher than that of domestic firms (including private firms and state-owned firms). In addition, the study also analyses correlation between technical efficiency of FDI firms and other factors. It finds that there are positive correlations between FDI technical efficiency and net revenue per labour, firm’s age or export activities in 2013. However, the study is unable to find evidence of a relationship between FDI technical efficiency and infrastructure or firm’s investment activities.

An Empirical Study on the Technical Efficiency of Foreign Direct Investment in China with Environmental Constraints

This article uses a slacks-based measure (SBM) model to evaluate the technical efficiency of foreign direct investment (FDI) in China’s thirty provinces with environmental constraints. Meanwhile, this article also employs the Charnes-Cooper-Rhodes (CCR) model to measure the technical efficiency of FDI without environmental constraints. By comparing these two results under different assumptions, we find the technical efficiency with environmental constraints in most provinces is lower than that without environmental constraints. In terms of technical efficiency, Central China is the highest, Eastern China comes second, and Western China is the lowest in both cases. Besides, the excess pollutant emission is the primary factor that results in the technical inefficiency of FDI.