Expansion Of FDI Research Articles

Natural resources, financial expansion and gross domestic savings influence to economic progress: a road to long-term sustainability

ABSTRACTThis study examined the impact of financial expansion, natural resources, gross domestic savings, and foreign direct investment on economic development in Pakistan, using annual data spanning from 1970 to 2020. We utilized the three regression techniques including Generalized Method of Moments (GMM), Cointegrating Regression analysis (FMOLS, DOLS, and CCR), and dynamic Autoregressive Distributed Lag (ARDL) to uncover the determinants influence on economic progress. The GMM technique findings reveal that natural resources and foreign direct investment have positively influenced the economic progress. Financial expansion and gross domestic savings both have a detrimental effect on Pakistan’s economic growth. Moving on to the effects of FMOLS, DOLS, and CCR, the natural resources and foreign direct investment favourably affected the Pakistan’s economic growth, whereas financial expansion and gross domestic savings adversely influenced the economic growth. Furthermore, the outcomes of dynamic symmetric (ARDL) approach in the short-run and long-run show that FDI and financial expansion have a negative impact on economic development, whereas natural resources and gross domestic savings have a favourable impact. In order to attain long-lasting and sustainable economic growth, it is crucial for the government to implement inventive policies and regulations that promote financial supply-side reform and enable various financial development initiatives.

Firm size and Chinese firms' internationalization speed in advanced and developing countries: The moderating effects of marketization and inward FDI

How can firm size influence outward FDI (OFDI) expansion speed of emerging market firms (EMFs)? Because firm size may have two opposing effects, this study explored this question in the advanced and developing country environments respectively. Applying theUppsala model (UM) and institution-based view (IBV), this research developed several hypotheses and examined them on a Chinese sample. This research found the different influences of firm size on EMFs’ OFDI expansion speed in advanced and developing countries. Marketization and inward FDI (IFDI) can moderate these influences. This research contributes to the UM and the internationalization speed research, updates our understanding of the IFDI-OFDI relationship, and solves the conflict associated with firm size.

Equilibrium or imbalance? Regional variations and evolutionary traits of two-way FDI coordination level in Yangtze River economic belt

Based on the VAR model, the two-way FDI data of the Yangtze River Economic Zone from 2005 to 2019 were used as the specimen. The correlation of the two-way FDI was observed using the VAR impulse effect through ADF root test and lag structure laboratory testing. The original study results demonstrated that there have been disparities in the spatial and temporal evolution of FDI and OFDI coordination levels between the eastern, central, and western city groups in the Yangtze River Economic Belt region from 2005 to 2019. The unequal expansion of FDI and OFDI is the phenomena that results in the gap between eastern and western cities. The development of the coupling coordination level between the east and west areas has been unequal due to variances in the natural environment, trade value, corporate expansion, and other variables. Contrarily, the Yangtze River Economic Belt’s western urban agglomerations have a lower level of coupling and coordination development than the region’s eastern urban agglomerations, with an overall declining phenomena from east to west. The coupling and coordinated development of two-way FDI within the economic belt, which has a significant impact on the rationalization of regional resource allocation, industrial structure optimization, and technology iteration with civilization construction, can be greatly facilitated, in our opinion, by strengthening uncoordinated regional development infrastructure and deepening regional economic-industrial links.

The Effect of Resource Endowment and Governance on Human Capital Development of Sub-Saharan African Countries

Human capital development is a process of enhancing the level of human capital capacity through attaining school and provides incentive-based training. The study helps to analyze the interaction between governance, resource and human capital in the study area. To conduct this study panel data type from 2005-2018 has been used, the data obtained from the World Bank database and the Penn world database and for analysis, both descriptive and system GMM panel data analysis have been used. The main reasons enforce to conduct this study is to checkup whether the resource endowment and governance important for human capital? Results of this study show that except for lag of human capital and voice and accountability other variables like resource endowment, labor participation rate, foreign direct investment, rule of law, and regularity quality are statistically and negatively affected human capital development. Given these results, the researcher recommended as, a responsible bodies in sub-Saharan African countries should be attained on the expansion of FDI that has to be especially concentrated on the manufacturing sector; an institution for good governance first should develop than formulate good governance principles, and finally develop resource merit institution in the favor of human capital development.

Relationship between Power Energy Consumption, FDI and Economic Growth: A Case Study of Pakistan

This study investigates the causal relationship between power energy consumption, FDI and Economic growth in Pakistan using time series data from 1965 to 2019. Johansen co-integration test is employed for finding out relationship and Granger causality test is used to find the direction of causality amongst the variables used. The results Granger test of causality finds unidirectional causality from FDI to GDP growth, a unidirectional causality relationship running from GDP growth toward power energy consumption and from foreign direct investment toward economic growth. Foreign Direct Investment has positive impact on the economic growth and economic growth stimulate energy consumption, so indirectly energy consumption is enhanced with the expansion of FDI, hence the government should pay full attentions to the security of foreign investors and enhance the energy production in order to enhance the economic growth of Pakistan.

Thoughts on the demise of FDI

Abstract This essay addresses the recent deceleration in the pace of global FDI and asks whether multinational corporations are actually in retreat. It identifies the forces that are slowing the expansion of FDI, and sketches the role that multinational corporations will play in the future.

Technological upgrading in Chinese cities: the roles of FDI, pace and rhythm

ABSTRACTPreviously, most literature has argued that FDI spillovers are dependent upon the degree of foreign presence in host regions, but often neglected FDI expansion time-based characteristics’ roles. This paper therefore develops the constructs of pace and rhythm as key features of foreign expansion process. It moves the concept of time compression diseconomies beyond the firm level to cities, and hopes to investigate how technological upgrading in one region is influenced by the FDI expansion process. Based on the panel data set of 244 Chinese cities over 2004–2011, our results illustrate that irregular and unpredictable foreign expansions significantly diminish FDI spillovers in Chinese cities, and it also directly impedes technological upgrading in local area. Rapid foreign expansion process itself impedes technological upgrading, but it significantly enhances technology transfers and disseminations of FDI in Chinese cities. Moreover, this paper also provides implications to contribute to the theoretical framework, and helps policy-makers’ decision-making.

FDI Expansion Speed

Focusing on home-country effects, we investigate how FDI expansion is influenced by home government governance, government as a shareholder, and home country’s political relations with host countri...

Geography of FDI from Visegrad Countries in Russia

AbstractThe article investigates the Russian place in outward FDI geography of the Visegrad countries. The role of the neighborhood effect is shown. With the help of the authors’ special methodology for FDI calculations which overcomes deficiencies in the Bank of Russia’s statistics, the distribution of the Visegrad group’s FDI between Russian regions is studied. The authors demonstrate the presence of a hierarchical-wave model of spatial diffusion of FDI by investors in retail and banking. At the same time, it is found that Moscow and its surrounding dominate the recipient regions. It is also shown that Visegrad group investments in Russia are mostly made by enterprises which remove any political component. As a result, their FDI expansion to the Russian market is likely to continue as soon as the Russian economy returns to growth.

THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND INEQUALITY: EVIDENCE FROM THE AGE OF MARKET LIBERALISM

Mediante un panel de países selectos, este artículo muestra que la relación desigualdad crecimiento sigue una forma de U durante el periodo 1970-98, en el cual la desigualdad inicialmente decrece y posteriormente se incrementa con el crecimiento económico. La evidencia también muestra que este patrón creciente puede revertirse a mayores niveles de ingreso. Usando series de tiempos se ilustra que varios países presentan un punto mínimo en diversos años a lo largo del periodo, mientras que otros siguen una tendencia positiva permanente. Adicionalmente se observa que, un pequeño grupo de países revierte la tendencia de desigualdad creciente a niveles altos de ingreso y despliegan un punto máximo a finales del periodo. Estos países están asociados con estabilidad macroeconómica, eficiencia gubernamental y expansión moderada del comercio y la IED. Entonces, la relación desigualdad-crecimiento durante la era del liberalismo de mercado tiende a cambiar hacia una relación positiva, aunque puede revertirse posteriormente.

FDI in Cultural Space: Cultural Interconnectedness & FDI Expansion A Spatial Approach

FDI in Cultural Space: Cultural Interconnectedness & FDI Expansion A Spatial Approach

Rapid FDI expansion of firms from emerging markets: evidence from Poland

Rapid FDI expansion of firms from emerging markets: evidence from Poland

The Expansion of FDI by Emerging Countries in the Manufacturing Sector and the Industrialization of East Africa

The Expansion of FDI by Emerging Countries in the Manufacturing Sector and the Industrialization of East Africa

Accelerate or delay? The consequences of big step internationalization

This study tries to extend the internationalization theory by investigating the big step internationalization that is majorly selected by EM MNEs in recent years. I contend that the conventional wisdom does not consider the risk of being a late mover in the face of increased global competition. Using data on Chinese listed firms, I find that big step internationalization in the early stage accelerate the speed of subsequent FDI expansion, and this effect is more salient for firms choose acquisitions as their entry mode and have strong political connections with home country government. However, the board of directors’ international experience negatively moderates this effect.

Intellectual Property Rights as Determinant of Foreign Direct Investment Entry Mode: The Case of Greece

Foreign direct investment continues to expand rapidly, enlarging the role of international production in the world economy. This expansion in business activity reflects trade and investment liberalization in many countries. The location decisions on FDI depend on a country's broader set of factors such as market openness and deregulation, competition regimes, development policies and intellectual property rights, that influence not only international foreign direct investment, trade but also the transfer of technology. Patents are one form of the exclusive intellectual property rights conferred by the state in order to promote science and technology. International technology transfer comes through three channels, FDI, joint ventures and licenses. The increase of international technological diffusion has enhanced the importance of intellectual property rights and particularly of patents. This paper aims at providing evidence linking the patent protection to technology transfer and inward foreign direct investment in different industry sectors in Greece. Strengthening Greece's IPR regime is seen as a prerequisite for the attraction of foreign multinationals to transfer technology, increasing the growth and the innovative activity. It also examines the role of other factors in attracting more FDI as the market openness, country risks and so on. A proper understanding of the above relationship will help firms and government to create appropriate intellectual property policy in order to encourage the growth and expansion of FDI in Greece.

FDI in Romania between EU and the Global Economic Crisis

Abstract In the context of globalization, foreign direct investment represent the main way of participation in international economic exchanges for Romania. The presence of FDI in Romania is a tradition since the early twentieth century, but they had a limited application in the postwar period and until 1989. The liberalization of the legal framework after 1989 led to the expansion of FDI in all fields of activity with beneficial effects on the national economy. Given the considerable negative impact of the economic crisis on FDI inflows in Romania, this paper aims to analyze the evolution of FDI in Romania after 1989 with special reference to two issues: adhering to the EU and the global economic crisis. The conclusions of this analysis can be used as general guidelines to reconsider the policies and instruments to attract FDI in Romania in the post crisis.

Globalization and the German industrial production model

Globalization is transforming the German manufacturing production model. German manufacturing MNCs are shifting from servicing global demand via exports to a strategy of “produce where you sell” FDI expansion in emerging global markets. This strategy is generating recursive dynamics that are transforming the demographic and role composition of German home country production locations. This, in turn, poses challenges for the German systems of industrial relations and for industrial policy that are only beginning to be addressed. Overall, the article’s take home conceptual message is that contemporary manufacturing globalization processes are recursive: i.e.: actions taken outside of Germany, on all levels, have consequences for—and involve change in—organizations and practices within Germany.

Focus on industrial districts and local production systems. Esportazioni e investimenti diretti all'estero nelle imprese distrettuali italiane

The paper describes the internationalization strategies of industrial districts, analyzing export flows and FDI expansion. Industrial districts confirm both a high export propensity and a more intense FDI activity, compared to non-districts areas specialized in the same industries. Moreover, industrial districts internationalization strategies present a wider and more diversified geographical span and a high propensity to serve, both with FDI or exports, markets more distant from a geographic and cultural point of view. Export flows and FDI appear to be more related in the case of district areas, with FDI significantly contributing to explain export performances in the 2010-2012 period.

Regulating Self-Interest Under Globalization: Balancing Market Power with Institutions

I construct a two-country multisectoral model of capital accumulation, endogenous technological change, trade, and foreign direct investment, whose steady states explain the main features of globalization: (a) increased economic participation of transnational corporation (TNC) profits, (b) coexisting development, underdevelopment and miracle growth, (c) increased inequality in leading countries, and (d) increased capital accumulation, lowering interest rates along the globalization transition. In addition, applying results in tax competition, including tax havens and the political process, I explain how higher TNC profits lead to (e) more conservative policies and lower taxes; weakening institutions vis a vis the increased level of market power under globalization. Finally, analyzing the transition dynamics shows (f) global investment has two characteristic modes, FDI expansion and economy-wide growth. An outline of the history of market power in the US provides a context for understanding the impact of this increased market power under globalization. We show that industrial market power has been the norm in the US economy at least since the Second Industrial Revolution, and that economic competition has been insufficient to regulate market power. Labor market and other institutions were essential components for balancing market power and attaining prosperity. I thus use the tools of economic growth to analyze our contemporary dynamic setting in its historical context. This allows me to argue that global welfare requires global institutions, such as international agreements, that can regulate market power, redistribute income, and eliminate the tax havens that distort production towards an excessive internationalization. One possible beginning is to harmonize TNC taxes across countries.

Internal Capabilities, External Competition and Firm Performance: A Case Study for an Accelerated Internationalization Firm in Manufacturing

There are increasing firms go to foreign markets quickly to reach their international strategy, particularly some firms come from emerging economies. It is hard to explain in the conventional theory of gradual internationalization, and different from the viewpoints of born-global. We argue that this previous discussion does not consider enough the risk of being a late mover in the face of changing period of its industry. This study explores the circumstances under which capabilities accumulated, changing and globalization, a strategy of undertaking outward foreign direct investment at a quicker speed, could be a considerable strategy. Using a case study on Chinese firm, we find that rapid FDI expansion enhances firm performance in industries where are competitive intense and paradigm-changing, and when it is done by firms with superior internal capabilities.