Foreign Direct Investment Capital Flows Research Articles

Opportunities and Challenges in Attracting Foreign Direct Investment Capital in Vietnam

Foreign direct investment (FDI) plays a significant role in the Vietnamese economy in the context of deep and wide integration and great fluctuations in the world economy. With the appropriate policy orientation of the Party and State since the reform in 1986, FDI capital flows into Vietnam have experienced a fluctuation but have achieved great successes, making significant contributions to the development of the economy. The image of Vietnam's healthy and attractive investment environment is increasingly strengthened, but there are also challenges to overcome. This research, based on secondary data, shows an overall picture of FDI attraction, opportunities, and challenges in attracting FDI and proposes several recommendations to relevant stakeholders to attract FDI capital into Vietnam in the context of an increasingly volatile environment.

What Drives Cross-Border Mergers and Acquisitions and Greenfield Foreign Direct Investment Capital Flows? Reconsideration in the Case of the Selected Former Yugoslav Countries

Bearing in mind the different nature and the impact of various types of foreign direct investments (FDI) on the one hand, and the specific macroeconomic environment in the post-socialist countries on the other hand, in this paper we reexamine the selected macroeconomic factors that affect the two types of FDI inflows (cross-border mergers and acquisitions and greenfield FDI) in four countries of the former Socialist Federal Republic of Yugoslavia. The study employs the balanced panel data framework and covers twelve-year period (2006-2017). Having performed the Hausman test, we use the random effect model and provide evidence that: (1) the key FDI macroeconomic determinants in stable business conditions, examined in numerous research studies, can have a different impact on FDI in times characterized by unstability and financial crisis, (2) some determinants of FDI inflows have different importance and direction in the case of cross-border M&A and greenfield FDI. Our findings are relevant for policymakers who should reconsider the key factors that fuel the FDI inflows towards their developing economies.

Is FDI doing good? A golden rule for FDI ethics

Ethical and economic perspectives on foreign direct investment (FDI) often appear in opposing frameworks. To combat this antagonism, this research proposes a consolidation between foreign private wealth and general welfare in host countries. The first contribution of this study is to provide a comprehensive conceptual approach to the study of FDI ethics. The second key contribution is to present empirical analysis of the differential influence of the level of democratic rights on foreign employment, new projects, and FDI capital flows. Results suggest that FDI incentivizes general welfare in least developed countries with high degrees of volatility. Additionally, policymakers face a dilemma in which democracy and legal rights seem to be mutually incompatible with fostering foreign employment. Practitioners find a way to evaluate the ethical implications of international business activities. The study analyzes FDI data from 161 countries between 2003 and 2010 by means of the FDI gravity equation.

The Determinants of New FDI Capital Flows into the EC: A Statistical Comparison of the USA and Japan

This article reviews the link between European integration and foreign direct investment (FDI) into the European Community (EC). A model is constructed using comparable US and Japanese data on new FDI flows for 1984‐89. The data are clustered and pooled to enable intra‐EC differences in the model to be investigated. It is found that new FDI has been linked to conventional host characteristics variables, whose effects vary considerably between groups of member countries. Differences between the equations for the USA and Japan are attributed to the contrasting degrees of establishment of US and Japanese affiliates. For Japanese firms, as comparative outsiders (compared with US firms), the impact of the announcement of the single market programme (SMP) has been marked.