Foreign Inflows Research Articles

Effects of Foreign Direct Investment Inflows to Economic Growth: a Case of Turkey

Objective: The purpose of this study is to investigate the effects of Tax Competition for Turkey, as well as the aspects of basic taxes like Personal Income Tax and Corporation Tax and evaluate the results. In this context, the impact of foreign direct investments on economic growth in Turkey is investigated. Theoretical Framework: Theoretically, it is accepted that foreign direct investment will positively affect economic growth. This study investigates the practical implications of this theory for Turkey. Method: International Comparative Analysis and various tables and graphics were used in this study to analyse the variance of Personal Income Tax and Corporation Tax by years. In addition study applies regression analysis on direct foreign inflow and economic growth in Turkey for 1974-2019 period. Results and Discussion: Regression analysis was performed on the time series of foreign capital investments and economic growth. However, it is concluded that foreign capital investments do not positively affect economic growth over the 1974-2019 period since foreign capital investments in Turkey reached their usual level only after 2002. Research Implications: This study concludes that foreign direct investment (FDI) does not always positively affect economic growth for all countries. Originality/Value: The study is original in that it shows that a generally accepted theory may have different results in practice for some countries.

What leads some countries to experience larger decreases in foreign flows during low-flow episodes? Evidence from international portfolio flows

This paper investigates the drivers explaining the heterogeneous responses of foreign portfolio investors across 43 emerging markets and developing economies (EMDEs) during low-flow episodes. Our investigations reveal several findings: (a) During low-flow episodes, EMDEs with stronger macroeconomic/institutional fundamentals—e.g., larger foreign reserves, less public indebtedness, and better institutional quality—suffer fewer reductions in foreign inflows. (b) EMDEs with more open/developed financial markets attract more portfolio inflows during surges but suffer larger declines during stops. Hence, we provide evidence supporting the foreign investor differentiation (according to fundamentals) and the mixed blessing of financial sectors hypothesis.

The International Capital Flows and Domestic Savings–domestic Investment Nexus: A Comparative Evidence Between Heterogeneous Developing Regions

Drawing inspiration from Feldstein and Horioka’s (1980) (FH) puzzle, our study elucidates the impact of remittances and Foreign Direct Investment (FDI) on domestic savings and investment in two disparate yet globalized developing regions: Latin America and the Caribbean and South Asia. Utilizing an extensive dataset spanning from 1984 to 2021 and employing diverse methodologies, including Dynamic System generalized method of moment, Driscoll–Kraay standard error, fully modified ordinary least squares, and dynamic ordinary least squares, our findings reveal that remittances exert a positive influence on both domestic investment and savings across both regions. However, South Asia predominantly directs remittance inflows towards investment, while Latin America and the Caribbean exhibit a propensity towards saving these funds. As for FDI, the primary developing region predominantly channels these funds into investment, whereas the lower region prioritizes savings. The impact of control variables manifests varied effects across both regions. Ultimately, our study underscores the pivotal role of foreign remittances in supporting investment and savings, underscoring the profound influence of economic growth on these dynamics. This accentuates the imperative for governments to proactively allocate financial resources to optimize economic growth and fortify financial frameworks. Moreover, focused strategies are indispensable for adeptly managing foreign inflows while navigating external shocks such as international repayments, external debt, and aid. Additionally, enhancements in monetary and fiscal policies are imperative to sustain competitive interest rates and foster stable macroeconomic conditions, thereby fostering conducive environments for both public and private domestic savings. JEL Classification: F24; F3; P33; C23; O18

FUNGSI PENGAWASAN ORANG ASING OLEH KEIMIGRASIAN DI KANTOR IMIGRASI KELAS I TPI MAKASSAR

There is no doubt that the vast number of foreigners with diverse objectives and interests entering and departing Indonesian territory has an impact on a number of fields. Therefore, one method to deal with the problems caused by the foreign inflow—which, of course, cannot be isolated from immigration violations—is to monitor foreigners in Indonesia. This study demonstrates that, in compliance with Immigration Law Number 6 of 2011, the immigration office at TPI Makassar Class I Immigration Office has been successfully managing foreign nationals. Numerous elements, including those related to legal content, law enforcement, facilities, and infrastructure, have a significant impact on this. cultural and communal aspects. Nonetheless, there are still foreigners accessing Indonesian territory, so the procedure for gathering data on them needs to be enhanced.

Patriotic Internationalists and Free Immigration: The British Labour Party’s Internationalism in Debates on Immigration Restriction, 1918–1931

As highlighted in the recent controversies over European immigrants and the refugee ‘crisis’ that culminated in Brexit, Labour’s struggle in balancing its internationalist principles with policy administration has been a constant theme in the party’s immigration and refugee policy. This article situates the Labour Party’s discussion on the 1919 Aliens Act in the context of post-war internationalism, and contends that the change in focus from pre-war advocacy of the British liberal tradition to internationalist concerns reflected both the socialist proclamation of the Labour Party and the liberal internationalism of the time. The 1919 Aliens Act was deemed an example of selfish nationalism likely to undermine international peace and workers’ solidarity. At the same time, however, Labour also sought to shake off the suspicion that advocacy of free immigration could pose – that the party prioritized foreigners over Britons – by reconciling internationalism with patriotism. Insisting that true internationalism be built upon love of one’s home country, Labour politicians did not give up their patriotic and national claims, and accepted that a state could restrict the inflow of foreigners in times of national difficulty.

Resource dynamics and economic expansion: Unveiling the asymmetric effects of natural resources and FDI on economic growth with a lens on energy efficiency

Sustainable development recognizes the crucial role of a sustainable environment as a foundational component. Addressing climate change is acknowledged as a global challenge that requires a collective approach to effectively combat this issue. While developed economies often experience a higher prevalence of this problem, it remains essential to develop a strategy that goes beyond national borders in managing natural resources and their influence on sustainable economic progress. Hence, this research inspects the linkage of natural resources, FDI, and economic growth in the USA from 1990 to 2022. The study also included energy efficiency as a control variable. Pertinent time series procedures such as DF-GLS and Phillips-Perron tests of unit root specification while Johansen cointegration test for equilibrium and Bootstrap quantile regression for primary estimates have been utilized in the research. The research also included robustness check analysis through FMOLS, DOLS, and CCR as parametric procedures, while simple quantile regression as a non-parametric robustness method. The outcomes reveal that data of the variables are static at differences in both methods and long-run equilibriums in the variables. The empirical outcomes suggest that natural resources are asymmetric with economic expansion in the USA. Natural gas rents positively impact economic expansion, leading to resource blessings, while mineral resources have a resource curse in the economy. Moreover, energy efficiency and FDI stimulate economic growth across all quantiles. The robustness check protocols follow the same trajectory and found that outcomes are robust, valid, and reliable in both linear and non-linear methods. It is recommended that NRR be expanded and channelized into the real sectors of the economy, along with the encouraging role of foreign inflows and investments in energy efficiency to attain sustainable development in the USA.

Analysis of Variation in Foreign Inflows by Different Categories of Foreign Portfolio Investors

The liberalisation of Indian financial markets has smoothened the capital flows of international institutional investors, resulting in rising foreign investor participation in the domestic equity and debt markets. Since the reforms of the 1990s, India has become one of the favourite investment hubs of foreign institutional investors (FIIs) across the globe. The research aims to analyse the variation in contribution to foreign inflows by the three different categories of foreign portfolio investments (FPIs) and the determinants of inflows of the categories of FPIs. The study is based on the use of secondary data collected from the National Securities Depository Limited and the Securities Exchange Board of India. One-way ANOVA has been employed to examine the variation in inflows by different categories of FIIs. Autor regressive distributed lag model has been used to understand the factors determining the inflows of FPIs. The results of the study revealed that there exists variation in the inflows of investments among the different categories of FIIs. The variation in inflows by different categories into equity instruments was significant, while the inflows into debt instruments were not significant. Furthermore, the highest inflows were seen from the second category of FIIs. JEL Codes: C32, G2

Impact of Exchange Rate Shock on Foreign Direct Investment in Nigeria.

This study examines the underlying forces of foreign direct investment (FDI) response to the exchange rate shock in Nigeria, covering the period 1981 to 2021. Including long-run analysis, this study employs the VEC model innovation accounting as an econometric analysis technique. The outcomes reveal that in the long run, exchange rate appreciation, a thriving domestic investment environment, and economic size positively drive foreign inflows. Conversely, rising economic instability, particularly associated with increasing price levels, negatively impacts foreign investment. The Innovation accounting analysis indicates that FDI positively responds to shocks in exchange rates, GDP, and capital. However, the strength of these responses diminishes over time. The relationship with consumer price index (CPI) shocks appears more complex, with varying reactions over the specified horizon. Hence, policymakers are urged to prioritize exchange rate stability, promote economic growth and innovation, and enhance the domestic investment environment. Addressing economic instability and inflation is crucial, necessitating robust policies to maintain economic stability. Continuous monitoring of CPI is advised, and long-term policy planning is recommended to ensure sustained positive impacts on FDI. Additionally, international collaboration is encouraged to foster a stable global investment environment.

Contribution of Foreign Aid to the Economic Growth of Nepal

Foreign aid is an important factor for the rapid economic development, growth, and fulfillment of resource gaps in developing countries like Nepal. This paper analyzes the contribution of foreign aid and other foreign inflows of capital like foreign direct investment (FDI) and remittances to the GDP of Nepal. This paper examines the role of foreign aid on the economic growth of Nepal by using secondary time series data from 1996/97 to 2019/20. This paper also used the data series of the same period for trend analysis of foreign aid in Nepal. The secondary data obtained from the World Bank-World Development Indicator has been analyzed using ordinary least squares regression. This paper uses GDP as a dependent variable, foreign aid as a major independent variable, and FDI and remittances as supporting independent variables. The empirical results of this paper prove that there is a positive and significant relationship between GDP and foreign aid inflow to Nepal. The empirical results also prove that there is a positive and significant relationship between GDP and remittances. Similarly, there is also a positive and significant relationship between GDP and FDI.

Foreign Capital Inflows and Macroeconomic indicators: Are Developing Economies in the Trap of the Dutch Disease Hypothesis?

The Dutch disease phenomenon has been related to foreign inflows into emerging economies in particular, including foreign aid, migrant’s remittances, and foreign direct investment. A surge in these inflows is expected to yield a rise in the real exchange rate. Recipient countries have seen a decline in industry as a result of the rise in the non-marketable sector and the slump in the marketable sector. This study empirically investigates the mechanisms of real exchange rate adjustments to migrant remittances, ODA, and FDI toward emerging economies. For the analysis covering the years 2001–2020, dynamic panel data approaches, difference GMM and system GMM, are used to investigate the incidence of Dutch Disease in 84 emerging economies. Numerous econometric studies have shown that Dutch Disease does exist in emerging economies. The Dutch Disease theory is supported by an expanded study that has included the empirical analysis of both industrial (marketable) and service (nonmarketable) sectors.

Retraction: Foreign inflows, commercial law, and dutch disease: evidence from developing economies

Retraction: Foreign inflows, commercial law, and dutch disease: evidence from developing economies

Hot money inflows and bank risk‐taking: Germany from the 1920s to the Great Depression

AbstractThis paper explores the origins of German banks’ risk‐taking in the years preceding the 1931 crisis. The 1920s were marked by a large and prolonged increase in capital flows into Germany, chiefly from the United States and the United Kingdom. This coincided, at the individual bank level, with a rise in leverage and a fall in liquidity. We examine possible connections between the two phenomena. Our analysis is based on a combination of historiographical work and statistical modelling based on a newly hand‐collected bimonthly dataset on German reporting banks from 1925 to 1935. Bank by bank we examine the effects of foreign inflows on decisions related to leverage, lending, and liquidity. The Dawes Plan of 1924 and the relative absence of a too‐big‐to‐fail (TBTF) environment allow us to mitigate endogeneity concerns. We suggest that while capital inflows did not seem to impact banks’ liquidity decisions, their impact on leverage was non‐negligeable.

Saving, Foreign Inflows and Economic Growth: Evidence from Selected Developing Countries

Saving, Foreign Inflows and Economic Growth: Evidence from Selected Developing Countries

Saving, Foreign Inflows and Economic Growth: Evidence from Selected Developing Countries

Saving, Foreign Inflows and Economic Growth: Evidence from Selected Developing Countries

Saving, Foreign Inflows and Economic Growth: Evidence from Selected Developing Countries

Saving, Foreign Inflows and Economic Growth: Evidence from Selected Developing Countries

Anaysis of Interest Rate Spread, Financial Development and Foreign Capital Inflow Nexus in Nigeria

ABSTRACT: The world has gone through various economic crises in the past century, and their effects have had varying implications on the economies of countries all over the world. In a bid to help stabilise economies all over the world, various measures have been put in place. Some of these measures include regulations and policies by the Bretton Woods institutions (World Bank and International Monetary Fund) and their agencies. The idea behind these measures is to ensure sustainable growth and development among member states and other countries of the world. Some of these policies include the privatization and liberalization policies of the Bretton Woods institutions as well as other policies bordering on such economic and social benefits for people all over the world. The Nigerian economy in our contemporary time can be described as passing through a rather 'volatile' phase with respect to interest rate, financial development and foreign capital inflow. Thus, this study investigated the impact of interest rate spread and financial development on foreign capital inflow in Nigeria. Several studies have been carried out using different methodologies, such as; co-integration equation, multivariate vector auto regressive (VAR) model and vector error correction technique. Each methodology used was in line with the objective of the research in question. However, to achieve its objective, this paper adopted the Classical Linear Regression Model. The results of the study showed that financial development has a positive impact on foreign capital inflow, while interest rate spread on the other hand, was also found to have a positive impact on foreign capital inflow. Other control variables such as market capitalization and treasury bills rate were also found to positively affect foreign capital inflow, while the all share index had a negative impact on foreign capital inflow. Some economists have opined that the Nigerian economy is currently going through a phase of recession. In order for large scale investments to be made within the country, there is a need for foreign participants to be attracted to the Nigerian economy and pull their resources, both financial and non-financial into the country (but, not without regulation). However, for these investors to have confidence to make investments in the Nigerian economy, there has to be a high degree of economic stability in the country. This can be supported by enacting and implementing policies that can enhance the quality of interest rates spread and financial development within the country. The policy implication here involves enhancing financial development through sound policies and adopting competitive interest rates, could increase the rate of foreign inflow into the economy. In view of this, it is also recommended that government policies should target interest rate competitiveness, financial and economic development as well as sustainability.

The Analytic Solutions of the Fractional-Order Model for the Spatial Epidemiology of the COVID-19 Infection

This paper provides a mathematical fractional-order model that accounts for the mindset of patients in the transmission of COVID-19 disease, the continuous inflow of foreigners into the country, immunization of population subjects, and temporary loss of immunity by recovered individuals. The analytic solutions, which are given as series solutions, are derived using the fractional power series method (FPSM) and the residual power series method (RPSM). In comparison, the series solution for the number of susceptible members, using the FPSM, is proportional to the series solution, using the RPSM for the first two terms, with a proportional constant of ψ Γ n α + 1 , where ψ is the natural birth rate of the baby into the susceptible population, Γ is the gamma function, n is the n th term of the series, and α is the fractional order as the initial number of susceptible individuals approaches the population size of Ghana. However, the variation in the two series solutions of the number of members who are susceptible to the COVID-19 disease begins at the third term and continues through the remaining terms. This is brought on by the nonlinear function present in the equation for the susceptible subgroup. The similar finding is made in the series solution of the number of exposed individuals. The series solutions for the number of deviant people, the number of nondeviant people, the number of people quarantined, and the number of people recovered using the FPSM are unquestionably almost identical to the series solutions for same subgroups using the RPSM, with the exception that these series solutions have initial conditions of the subgroup of the population size. It is observed that, in this paper, the series solutions of the nonlinear system of fractional partial differential equations (PDEs) provided by the RPSM are more in line with the field data than the series solutions provided by the FPSM.

Does financial development improve economic growth? The role of asymmetrical relationships

This paper investigates the impact of financial development on economic growth in India, a major emerging economy. We estimate more flexible models than typically found to capture potentially asymmetric relationships while accounting for trade openness, foreign direct investment, and technological development. We document a cointegrating and asymmetric relationship between the key variables using nonlinear and standard autoregressive distributed lag models. We find a consistently negative impact of financial development and foreign inflows on economic growth in India in the long and short run, while trade liberalization and technological development have positive effects. Our findings, therefore, suggest caution regarding financial market liberalization in India.

Indonesian Stock Market Return Volatility and Foreign Portfolio Capital: Evidence Before and During Covid-19 Pandemic

The Covid-19 pandemic increased uncertainty in the Indonesian stock market. This paper aims to investigate foreign and domestic investors' behavior in the Indonesian stock market, especially during the Covid-19 pandemic. The method used was E-GARCH and DCC-GARCH. The results showed that the impact of shocks from bad and good news was greater on the return volatility during the pandemic. The shocks had a positive impact on the increase in the spillover effect of NFI's volatility to return volatility in the short and long term before the pandemic, but this did not happen during the pandemic. There is an indication of bias of forecasting errors and prospect theory in the behavior of investors in the Indonesian stock market. Conservatism bias is also indicated in the behavior of foreign investors. Keywords: Covid-19, E-GARCH, DCC-GARCH, net foreign inflow, return volatility

Macroeconomic Signals and Indian Real Estate Firms

Purpose: India's real estate sector has been growing in size and influenced the country's economic growth. This paper studies the link between listed real estate firms in India and macro-economic activities and growth. Therefore, it examines the effect of rural production, foreign inflows, capital market growths, and money flows on the activities of real estate firms listed in the Indian stock exchanges.
 Methodology: The paper uses data of 65 listed real estate firms from 2001 to 2016. It uses a multivariate regression model to examine the relationship, and the effect of the rural economy, financial markets, international flows, and money flows on real estate firms. The regression models use firm-specific measures and different determinants of macroeconomic variables for the analysis.
 Findings: The findings suggest that macroeconomic variables signal a potential increase in the real estate industry's performance. An increase in foreign direct investment leads to increasing real estate activities. Personal remittances bring more revenues for real estate firms but not the stock returns of these firms. Capital markets growth has limited influence on this sector. Money flows, notably savings, positively affect the real estate industry. However, the rural economy does not significantly affect real estate activities.
 Unique Contribution to Theory, Policy and Practice: The study proposes that Indian real estate sector needs more transparent and regulatory structures to reap the benefits of the expected growth of the economy. Government should bring policies to capital market reform specifically towards real estate industry to generate interests among domestic and international investors in this sector.