The impact of inward foreign direct investment bans on the configuration of global value chains

Climate change vulnerability and foreign direct investment attraction: The criticality of climate change readiness for Nigeria

In the context of martial law and the subsequent imperative for post-war recovery, the government of Ukraine has prioritized industrial parks (IPs) as a key instrument for business relocation, foreign direct investment (FDI) attraction, and the structural transformation of the national economy towards high-value-added processing. As of December 2025, the official Register of Industrial Parks includes 115 objects; however, a critical analysis of qualitative performance indicators reveals a stark disparity: only approximately one-third of these registered entities demonstrate signs of tangible economic activity. This disconnect creates a classic “market for lemons” scenario characterized by profound information asymmetry, where potential investors cannot readily distinguish between viable industrial sites and “paper parks”. This article proposes a comprehensive rating methodology (scoring system) for industrial parks, grounded in the principles of Inclusive and Sustainable Industrial Development (ISID) and Narrative Economics. The proposed approach integrates quantitative economic indicators with qualitative narrative markers to assess the “virality” and credibility of industrial park projects. The practical significance of the proposed rating lies in its ability to transform the investment climate from a state of uncertainty to one of measurable transparency. By providing a structured scoring system based on the synthesis of institutional stability, infrastructure readiness, and narrative strength, the study offers a tool for government agencies to optimize state support and for investors to mitigate risks. The results demonstrate that the application of such a rating can effectively eliminate information asymmetry, fostering a more resilient and attractive industrial landscape in post-war Ukraine.

This study provides evidence that military expenditure hinders sustainable development within the BRICS nations. Analyzing data from 2000 to 2022 using a Bayesian regression methodology for panel data, the results reveal that increased military spending negatively impacts sustainability in these emerging economies. Policymakers are urged to prioritize sustainable initiatives over expanding military spending to promote a long-term growth and stability. The effects of military spending on sustainable development vary depending on measurement metrics, such as military spending per capita or as a percentage of GDP. Additionally, it is found that international commerce and foreign direct investment (FDI) are vital for advancing sustainable development, while factors like corruption and energy consumption reduce sustainable development levels. The effect of economic growth on sustainable development remains ambiguous. The findings strongly indicate that military expenditure has a detrimental effect on the progress of BRICS countries toward achieving the Sustainable Development Goals (SDGs).

In recent years, the world economy has experienced a number of events that have created uncertainty, resulting in many studies on its economic implications. Nonetheless, there is still a dearth of empirical evidence regarding how economic policy uncertainty (EPU) affects foreign direct investment (FDI) in the context of Sub-Saharan African (SSA). Furthermore, studies have yet to investigate the moderating role of governance institutions in the relationship between uncertainty and FDI in the region. To close these gaps, the study used the novel instrumental variable panel quantile regression (IVPQR) and method of moments quantile regression (MMQR) on a panel of 23 SSA nations between 2004 and 2022. The study presents several noteworthy findings, including the following: (i) country-specific EPU substantially deteriorates the region’s FDI flows; (ii) world-based EPU boosts the flow of FDI into the region, suggesting that during times of global unrest, risk-averse foreign investors look for investment protection in the region to reduce their risk exposure or act as a hedge against financial losses brought on by the world-wide unrest; (iii) while domestic EPU enervates the region’s FDI, improvement in institutional quality mitigates the adverse effect of country-specific EPU on FDI; (iv) the influence of EPU and institutional quality on FDI is heterogeneous indicating that countries with high EPU experiences more devastating decline in FDI while those with high quality of institution, more improved FDI flows. The study highlighted the findings’ policy implications.

Recently, Indian economy has experienced strong Foreign investment flows through Foreign Direct Investment(FDI) and Foreign Portfolio Investment (FPI). It's long term trend highlighted economy has received $748.78 billion through FDI since 2014-2025 whereas FPI has been boosted by equity market gains with total FPI asset under custody hitting $858 billion. A healthy and vibrant industrial sectors of capital markets is important for development of a nation. In the present scenario, sectors of Foreign investment in Indian economy for instance Automotive, Pharmaceuticals, Information Technology (IT), Textiles, Construction, power, equity segment and assets under custody (AUC) have attracted attention of investors to invest in these Industries particularly. This paper attempted to analyse some of sectors and their impact on Industrial Development in India by foreign investors. The present study is based on quantitative data and used secondary data of annual time series. Data has been collected from the report of Reserve Bank of India, Department for Promotion of Industry and Internal Trade (DPIIT),world Bank report etc. To study the impact methods are practised such as comparative sectorial analysis, Autoregressive Distributed Lag (ARDL) and Garch model has been used to estimate volatility spillovers of FPI to sectoral output. The results indicated strong and positive long-run relationship with capital intensive, technology-based sectors hence leading to stable output growth and value addition. On the contrary, the FPI inflows showed a strong but volatile connection between FPI inflows and construction and power industries, which is highly vulnerable to market sentiment. However, it was observed from study that the investment activities in industrial sectors of FDI and FPI have had significant impact on Indian economy.

This study examines the impact of key dimensions of foreign direct investment (FDI) on provincial exports in a developing economy context. Examining the population of 63 Vietnamese provinces in the period 2010–2023, the research, using a fixed-effects model with Driscoll–Kraay standard errors, reveals that FDI capital has a positive impact on provincial exports, while the number of FDI enterprises exerts a negative effect, highlighting the importance of investment quality over quantity. In contrast, FDI performance does not show a significant effect, suggesting that FDI profitability is not necessarily associated with provincial exports. Employment generated by FDI enterprises has a strong positive impact, underscoring the role of labor as a key transmission channel linking FDI with exports of Vietnamese provinces. These insights further support the FDI-led export perspective at the provincial level, highlighting the need for policies tailored to provincial contexts to enhance export competitiveness in Vietnam and other developing economies.

Financial development, which is an important driver of economic growth, also has critical impacts on environmental sustainability. This study takes a holistic approach to examining the environmental consequences of financial development through the ecological footprint indicator, which represents the ecological capacity required for the continuity of an economy. The Global Footprint Network states the ecological footprint must be below 1.5 gha to protect biodiversity. However, in 2022, Turkey’s per capita footprint was 2.58 gha. This shows its way of life isn’t sustainable, so policymakers need action plans based on solid data. Within this framework, the main objective of this study is to empirically examine the causal relationship between domestic loans, which are an indicator of financial depth, and foreign direct investment, which represents financial openness, in order to provide a more comprehensive perspective on the environmental impacts of financial development. The Toda-Yamamoto causality analysis was applied in the study covering the period 1985-2022. According to the analysis results, a two-way causal relationship was found between the ecological footprint and direct foreign investment, while a one-way causal relationship was identified between domestic loans and the ecological footprint. These findings show that both the national financial system and international capital flows have a direct impact on Turkey's environmental performance. The study's results emphasize that if the capital accumulation provided through these channels is directed toward environmentally conscious investment areas, it can give the financial development process a dynamic momentum focused on sustainability.

This study examines the bidirectional relationship between foreign direct investment (FDI) inflows and economic growth in Sudan using annual data from 1990 to 2023. The objective is to determine whether FDI-led growth or growth-led FDI exists in the Sudanese economy, given the country’s macroeconomic instability, political uncertainty, and structural challenges. The study adopts a time-series econometric approach. The Granger causality test is applied to examine the direction of causality between the variables. The findings reveal a moderate positive association between FDI inflows and economic growth; however, no significant short-run causal relationship is observed in either direction. These results suggest that foreign investment and economic growth in Sudan move together but do not systematically predict each other. The findings reflect the weak transmission mechanism between investment and growth in Sudan, which may be attributed to macroeconomic instability, institutional weaknesses, and reliance on resource-driven investment. The study provides important policy implications for improving the investment climate and strengthening the growth impact of foreign investment. Future research should examine long-run relationships and incorporate additional macroeconomic and institutional variables.

This study examines the impact of foreign exchange restrictions on economic stability and growth in developing countries with varying degrees of currency controls, including Zambia, Brazil, Chile, Colombia, Ghana, India, Indonesia, Nigeria, South Africa, and Tanzania. The research focuses on how these restrictions affect key macroeconomic indicators such as GDP growth, inflation, foreign direct investment (FDI) and the current account balance. Using the World Bank data from 1986 to 2022 and the Jamovi software, the study applies statistical methods to assess the impact of different levels of currency restrictions on economic outcomes. The results suggest that moderate restrictions generally contribute to a balance between economic stability and growth, while more severe restrictions may negatively affect FDI inflows and GDP growth, although they tend to stabilize inflation and the current account. This study highlights the complexity of exchange control policies and provides new insights into their effectiveness and trade-offs for policymakers.

International inequality grew during history. 200 years ago, rich countries were only 3 times richer than poor countries. By the end of colonialism in the 1960s they were 35 times richer. Today, they are about 80 times richer. Around the world, many developing and emerging countries have been praised for their economic success during the last two decades. Those results were often ascribed to the neoliberal policies of financial and trade liberalization that enabled the countries to attract foreign lending, especially Foreign Direct Investment (FDI), while increasing exports of the richest natural resources those countries have been endowed with. This work analyses how, despite their historical, geographical, and cultural distinctions, many Global South countries share important structural characteristics that constrain them to the same path of dependency and subordination. A productive and economic structure mainly devoted to extractive activities is matched with substantial financial inflows that increase foreign ownership in the strategic key industries of those countries. Focusing on Latin American countries and supported by a deep empirical analysis of balance of payments dynamics and international investment position statistics, this paper highlights the adverse dynamics of development strategies reliant on natural resource extraction and export activities. It questions the sustainability of such strategies and their capacity to reduce inequality at the international level.

This paper examines income convergence in Europe by jointly analyzing European Union member states and Western Balkan economies over the period 2004–2023. While classical growth theory predicts that poorer economies should grow faster than richer ones, empirical evidence for Europe remains mixed, particularly when institutional and structural heterogeneity is taken into account. Using panel data techniques, the study tests for absolute and conditional β-convergence and complements this analysis with an assessment of σ-convergence. The results provide strong evidence of absolute income convergence across the sample, indicating that economies with lower initial income levels tend to grow faster. Conditional convergence is also confirmed, although the direct effect of institutional quality weakens once structural factors such as foreign direct investment and human capital are included, suggesting that institutions operate primarily through indirect channels. An interaction analysis shows no systematic evidence that institutional quality alters the speed of convergence. Finally, σ-convergence analysis reveals pronounced regional heterogeneity, with strong convergence among new EU member states, stable but low dispersion within the Western Balkans, and more modest convergence patterns in the EU core. Overall, the findings highlight that European convergence remains uneven and highly conditional on institutional and structural characteristics.

The article analyzes the state and dynamics of China’s service sector develop­ ment as a key factor in enhancing the country’s international competitiveness. The study examines the parameters of China’s participation in international trade in services, which still lags significantly behind trade in goods. Nevertheless, the country places great emphasis on trade in services for a range of strategic, economic, and political reasons. China’s WTO commitments stimulated reforms aimed at market liberalization and attracting foreign direct investment. The country’s current specialization is concentrated in sectors such as construction, ICT, and transport. However, China tries to transit towards the export of higher value-added services, especially digital ones. The authors conclude that China’s further progress in international trade in services will be determined by the suc­ cessful development of its financial and tourism sectors, as well as its ability to enhance competitiveness in high-tech segments.

Foreign investment has been considered to be an important source of investment in developed economies which are deprived of necessary avenues for mobilising funds internally. But, the flow of foreign investment is circumscribed by many factors. Technically speaking, changes in exchange rate influences the flow of foreign investment to a country. Exchange rate movements and FDI inflows in India exhibit a long-run relationship, although short-run causal effects are weak. Johansen test confirms a long-run relationship between the variables. Granger causality results show no strong short-run causal link. The VECM results indicate a significant long-run adjustment mechanism. Exchange rate movements play an important role in shaping foreign direct investment dynamics in the long run. While short-run causal effects are limited, impulse response analysis indicates that exchange rate shocks can temporarily stimulate FDI inflows. Augmented Dickey–Fuller (ADF) test, Johansen Cointegration Test, Impulse Response Function (IRF), Grange Causality Test (GCT), Vector Error Correction Model (VECM), are used in this paper. Keywords: FDI, Net FDI, FPI, Underinvestment, Volatility, Foreign Trade Balance, Exports and Imports, Dollar-Rupee Exchange Rate

The study attempts to explore the dynamic interlinkages among foreign direct investment (FDI) inflows, informational globalisation (ING) and global value chain (GVC) empirically in the G20 nations from 1990 to 2019. The trade and growth effects of FDI are widely discussed in theoretical and empirical literature in the context of globalisation in different countries and regions. The noteworthy progress of information and communication technologies (ICT) has also been a substantial factor in the FDI-trade-growth relationship, as observed in various contemporary studies. However, the existing studies cannot provide a suitable answer with explicit scenarios regarding the relationship between FDI and GVC in the context of the latest form of global trade in the era of ING, which encompasses both globalisation and digitalisation. To conduct the empirical exercises examining the dynamic relationships among FDI, ING and GVC, the study chooses G20 nations, which represent around 85% of the global gross domestic product (GDP), over 75% of the global trade and FDI flows, and about two-thirds of the world’s population ( OECD, 2022 , Twenty-eighth report on G20 investment measures ). World Bank (2022 , World Development Indicators (WDI) ) provides country-wise annual data on FDI. The year-wise quantitative measures of the ING for selected countries are obtained from the KOF Globalisation Index (2022 , KOF Globalisation Index 2020 ). The study collects country-wise yearly data on GVC from the UNCTAD-Eora (2023 , UNCTAD-Eora global value chain database ) GVC database. In the panel cointegration and vector error correction mechanism (VECM) framework, the empirical estimations applying the panel fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods reveal the bidirectional causality between FDI and GVC and FDI and ING, and unidirectional causality between ING and GVC in G20 economies. JEL Codes: F01, F20, F41

Purpose This study aims to examine the effect of different connectivity levels of Global Cities (GCs) in the international expansion of Multilatinas. The authors propose a taxonomy of Multilatinas’ international expansion that accounts for the connectivity levels of their home and host GCs. Design/methodology/approach Using crosstabulation analyses supplemented by chi-squared and Fisher Exact tests, the authors analyzed the internationalization expansion efforts of the 100 largest multilatinas in 395 internationalization moves that occurred between 2000 and 2024. Findings This manuscript makes a significant theoretical contribution to the existing literature, as the research demonstrates that full acquisitions are the preferred entry mode of multilatinas in GCs, sectoral preferences impact the connectivity level of GCs, differences in home vs host connectivity levels impact the internationalization of Multilatinas and the country of origin impacts the selection of the Host GCs Research limitations/implications This manuscript analyzes foreign direct investment (FDI)-intensive internationalization decisions, such as mergers and acquisitions (M&A) and Greenfield Investments, leaving unstudied FDI-light entry modes, such as licensing, franchising and export. Practical implications The authors uncover differences in countries’ preferences for various levels of GC connectivity and develop a taxonomy for multilatinas’ international expansion to GCs. Originality/value The research’s originality stems from using GCs as the location unit for the internationalization of multilatinas, as country-based analysis obscures microlevel drivers that better explain multilatinas’ entry-mode choices. Moreover, the authors developed a novel taxonomy for multilatinas’ internationalization based on connectivity differentials between home and host GCs, providing a nuanced framework for understanding their international expansion strategies.

Against the backdrop of global value chain restructuring and the deepening of regional integration in South China, Dongguan remains an important destination for export-oriented foreign direct investment (FDI). Utilizing annual data from 1995 to 2024 and employing a Vector Error Correction Model (VECM), this paper empirically analyzes the dynamic impact of FDI on Dongguan's export structure. The export structure is measured by two core indicators: the share of high-tech product exports (LEXS1, reflecting the technological structure of exports) and the share of general trade exports (LEXS2, reflecting the trade mode structure). The findings indicate that FDI maintains a long-term equilibrium relationship with Dongguan's export structure, although the direction of its effect diverges across the two indicators. FDI exhibits a sustained and stable positive effect on the transformation of the trade mode, whereas its impact on the technological structure of exports displays time-varying characteristics—being positive in the short term and negative in the medium term. Although FDI is an important influencing factor, it has not yet come to dominate the evolution of the export structure, with the inertia of the export structure itself still accounting for a significant proportion. This phenomenon reflects the complexity inherent in releasing the structural dividends of FDI. Consequently, it is necessary to optimize the technology spillover environment and cultivate indigenous innovation capabilities to facilitate the transition of FDI from "quantitative accumulation" to "qualitative enhancement."

This study examines the impact of institutional quality and technological innovations on entrepreneurship development in the South Asian region. Using data from 2010 to 2024 for all South Asian countries except Afghanistan, we investigate the relationship between entrepreneurship development as dependent variable and technological innovation and institutional quality as independent variables. We have also considered foreign direct investment, financial development, and economic growth as control variables. Applying the Two-step system generalized method of moments, it is observed that technological innovation, institutional quality, and economic growth have a positive and significant impact on entrepreneurship development whereas foreign direct investment and financial development have a positive but insignificant impact. It is further observed that the interaction between institutional quality and technological innovation significantly influences entrepreneurship development. This study provides appropriate policy recommendations for the government, regulatory authorities, institutions, and other relevant stakeholders to strengthen the entrepreneurship ecosystem in South Asia in the future.

This study examines the effect of tax incentives on revenue generation of Nigeria Revenue Service (NRS), utilizing annual dataset from 1990 to 2023 and applying a Vector Error Correction Model (VECM) for analysis. The findings reveal a distinct dynamic between tax incentives, inflation, and foreign direct investment across different time horizons. In the long run, the tax incentive annual allowance does not have a significant impact on revenue, while the tax incentive investment allowance presents a significant negative impact, suggesting it detracts from revenue generation. Conversely, inflation positively influences revenue, highlighting its role in enhancing government income. In the short run, the tax incentive annual allowance significantly reduces revenue, whereas the investment allowance shows no notable impact. Both inflation and foreign direct investment do not significantly impact revenue in the short term. To optimize NRS revenue generation, this study recommends reevaluating the structure of tax incentives, particularly the investment allowance, and implementing more targeted, performance-based incentives. Additionally, maintaining a stable inflation environment and improving regulatory frameworks to attract foreign direct investment are essential for long-term revenue enhancement.

This study examines the macroeconomic and institutional determinants of financial development in Indonesia by employing the Fourier Autoregressive Distributed Lag approach. The methodology is chosen to account for mixed integration orders and smooth structural shifts that characterize emerging economies. In the long run, government effectiveness and interest rates are significant positive drivers of financial development, while economic development, inflation, foreign direct investment, and political stability are not statistically significant. The insignificance of economic development, reflecting Indonesia’s persistent informality and crisis-induced disruptions, instead supports institutional theory, which highlights governance quality as a central determinant of financial deepening. In the short run, inflation, foreign direct investment, interest rate, and government effectiveness exert significant influences, while the Fourier sine and cosine terms confirm the importance of nonlinear dynamics, capturing both immediate shocks and gradual reforms. Meanwhile, the error correction term indicates rapid convergence to the long-run equilibrium. Overall, the findings demonstrate that financial development in Indonesia is shaped less by economic expansion than by institutional strength, macroeconomic management, and structural adjustments. The study concludes that enhancing governance effectiveness, maintaining monetary and price stability, and integrating foreign capital more effectively into domestic markets are critical for sustaining resilient and inclusive financial development.