Foreign Investment Opportunities Research Articles

Juridical Review of Foreign Investment Opportunities in Reinsurance Business in Indonesia

This study aims to conduct a juridical review of foreign investment opportunities in the reinsurance business in Indonesia. Reinsurance is a type of insurance that is carried out by insurance companies to protect themselves from risks of significant losses. Indonesia, as a developing country with a rapidly growing insurance industry, has great potential to attract foreign investment in the reinsurance industry. This study uses normative juridical research methods by analyzing laws and policies related to foreign investment in the reinsurance industry in Indonesia. The results show that although the opportunities for foreign investment in the reinsurance industry in Indonesia are significant, there are still several obstacles that need to be overcome, such as complex regulations and intense competition with domestic reinsurance companies. This study is expected to contribute to relevant stakeholders in developing the reinsurance industry in Indonesia through more effective and efficient foreign investment.

Influence of Security Challenges on Data Gathering in Social Sciences Research in Nigeria

This paper examined how insecurity has negatively affected the data collection process in Nigeria with its overall negative implications for socio-economic development. It established that insecurity has raised both local and international concerns. Locally, socioeconomic interaction has remained under siege as a direct consequence of unabated incidents of insurgencies, kidnappings and robberies that have continued to intercept and disrupt major socio-economic growth-oriented processes. Internationally, images of insecurity in Nigeria as portrayed in the various media have continued to discourage foreign investors and other forms of inflow of foreign investment opportunities. Findings established that the process and quality of data collection have been largely affected as a result of insecurity which makes it difficult for committed researchers to access relevant sites and physical locations to secure reliable and valid data that would have supported objective research results and conclusions in the social sciences. The paper recommends that synergy among the various arms of the local security agents and commitment of the government towards the elimination of corruption in the war against insecurity will assist in enthroning the right research environment for the collection of reliable and valid data that can inspire growth-oriented socio-economic policy.

Pengaruh Investasi Asing dan Upah Minimum Provinsi terhadap Kesempatan Kerja Industri Besar Di Indonesia: dengan variabel moderasi pertumbuhan ekonomi

The studies aims to examine the effect of foreign investment and the Provincial Minimum Wage on job opportunities in large industries in Indonesia with the moderating variable of economic growth. The type of research used is descriptive and associative research. The data used in this study is panel data from 33 provinces in Indonesia in 2014-2018. The variables used in this study are foreign investment, UMP, economic growth and employment opportunities. This study uses moderated regression analysis, classical assumption test and hypothesis testing. The results Of the study show: (1) foreign investment has a significant positive relationship to large industrial employment opportunities in Indonesia, (2 provincial minimum wages are significant and have a negative relationship to large industrial employment opportunities in Indonesia, (3) economic growth is not significant and has a negative relationship positive on employment opportunities for large industries in Indonesia, (4) economic growth is able to moderate foreign investment on employment opportunities for large industries in Indonesia, (5) economic growth is not able to moderate the influence of the provincial minimum wage on employment opportunities for large industries in Indonesia. For the future to researchers so on to add other variables outside of this research variable to find out other variables that affect the employment opportunities of large industries in Indonesia.

Floods and economic growth in India: role of FDI inflows and foreign aid

PurposeThe paper aims to examine the effects of floods on economic growth in India from 1980 to 2019, taking into account the role of foreign direct investment (FDI) inflows and foreign aid.Design/methodology/approachThe study uses augmented Dickey–Fuller (ADF) and Phillip–Perron (PP) tests to determine the stationarity of the variables. Several models, including autoregressive distributed lag (ARDL), fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS) and canonical cointegration regression (CCR), are used to examine the impact of floods on economic growth.FindingsThe bounds test determines the long-term relationship between floods, FDI inflows, economic growth and foreign aid. According to the ARDL and FMOLS models, floods have a negative long-term and short-term impact on India’s economic growth. Furthermore, FDI inflows and foreign aid are beneficial to economic growth. The findings of the ARDL and FMOLS models are confirmed by the DOLS and CCR models. Granger causality establishes a unidirectional causality that extends from floods to economic growth. Further diagnostic tests show that the estimates are free of heteroskedasticity, serial correlation and parameter instability.Practical implicationsIndian government needs to invest more in research and development on flood management techniques. Institutional strengthening is also required to implement pre- and post-flood prevention measures properly. Sound disaster financing strategy and proper water bodies management should be prioritised. Foreign investment opportunities should be encouraged by strengthening international relations.Originality/valueThis is the first time-series study that analysed the effects of floods on economic growth in India. Moreover, the paper contributes to floods literature by applying several econometric models for robustness check.

The Brazilian Green Revolution

This article analyzes the critical geopolitics of knowledge production in Brazil during the 20th century. It offers a critical appraisal of recent calls to decolonize political geography by locating the role played by actors and institutions in the Global South within the broader narrative of the Green Revolution. Historical accounts of the Green Revolution have only recently started to incorporate perspectives of and attribute agency to actors in the Global South. However, Brazil has largely been left out of the geographical scope of the Green Revolution. This article focuses on U.S.-Brazilian geopolitical relations behind an effort to reproduce the U.S. model of higher education, rural extension and agricultural research in Brazil. I argue that the confluence of Brazil's geopolitical importance with opportunities for foreign investment in its agricultural sector brought together U.S. and Brazilian experts and expertise to modernize Brazilian agriculture. The case of transnational soybean research illustrates the importance of this relationship in transforming Brazil's agricultural sector and limiting alternatives. This article offers an account of how the geopolitics of knowledge production shape the long-term institutional legacies of national research institutions.

A Study on Dynamic Asset Allocation Strategy for Optimal Portfolio Selection

We use iterative numerical procedures combined with analytical methods due to Rapach and Wohar (2009) to solve for the dynamic asset allocation strategy for optimal portfolio demand. We compare different optimal portfolio demands when investors in each country have different access to overseas and domestic investment opportunities. The optimal dynamic asset allocation strategy without foreign investment opportunities leads domestic investors in Korea, Hong Kong, and Singapore to allocate more funds to domestic bonds than to domestic stocks. However, the U.S. investors allocate more wealth to domestic stocks than to domestic bonds. Investors in all countries short bills at a low level of risk aversion. Next, we investigate dynamic asset allocation strategy when domestic investors in Korea have access to foreign markets. The optimal portfolio demand leads investors in Korea to allocate most resources to domestic bonds and foreign stocks. On the other hand, the portfolio weights on foreign bonds and domestic stocks are relatively low. We also analyze dynamic asset allocation strategy for the investors in the U.S., Hong Kong, and Singapore when they have access to the Korean markets as overseas investment opportunities. Compared to the results when the investors only have access to domestic markets, the investors in the U.S. and Singapore increase the portfolio weights on domestic stocks in spite of the overseas investment opportunities in the Korean markets. The investors in the U.S., Hong Kong, and Singapore short domestic bills to invest more than initial funds in risky assets with a varying degree of relative risk aversion coefficients without exception.

English

This study used a count data model to analyse the factors that affect fish consumption in Qatar after the blockade; aiming for effective evaluation, formulation and implementation, of policies for the fishery sector. To achieve this, the community of Qatar is divided into three groups based on their fish consumption rate: high, moderate, and low consumer. The determinants of fish consumption were confirmed using the Poisson model, namely demographic and attitude variables. The findings showed that consumption rates were high (90%); both Qataris and White-collars belonged to the moderate consumers group (52 and 41%, respectively), while Blue-collars occupied the larger portion of the highest consumer category (36%). Fish consumption determinants in Qatar with positive effect included employment, health awareness, and number of children; in contrast, negative determinants included higher level of education, high price, and accessibility to purchase fish.  The study is the first to focus on socio-economics and attitudinal variables to understand the factors that determine fish consumption that in turn, encourages policy formulation. The study supports the government policy to open foreign investment opportunities to meet consumption demands and preserve marine resources. Furthermore, managers may use information on fish species to manage fish stock, especially identifying fish species that are highly consumed. They will therefore formulate the necessary policies for sustainable marine fishery. Key words: Marine, consumption, Qatar, blockade, tilapia, sustainability.

Russian Territories of Outrunning Development in Mono-Cities: Current and Prospective Opportunities for Foreign Investment into Manufacturing

The paper describes a new form of investment attraction recently introduced in Russia—territories of outrunning socio-economic development (TOSEDs). These initiatives provide tax and other benefits to 20 territories in the Far East and to 90 cities in which a considerable number of jobs are concentrated in a single factory (mono-cities). Using secondary sources and interviews, we present the initial legislation for TOSEDs, the evolution of the initial legislation, and the functioning of TOSED residents. We also identify several opportunities for foreign investors who have installed or intend to install their new manufacturing facilities in TOSEDs.

Island climate change adaptation and global public goods within the Belt and Road Initiative

The Belt and Road Initiative (BRI), a project conceptualized and developed by the Chinese state, aims to enhance international cooperation, address issues of shared regional and global concern, and create opportunities for foreign direct investment in struggling economies. The BRI can be seen as a system for supplying global public goods, including sustainable development within which issues related to climate change sit. A great many small island states and territories are participating in the BRI, particularly in its constituent 21st-Century Maritime Silk Road. However, the BRI has not yet placed sufficient focus on climate change adaptation or issues specific to small islands. Furthermore, the BRI’s conceptual basis in rhetoric of mutual dependence and a community of common destiny have not always been evident in the individual activities that have been carried out within the BRI. If the BRI’s goals are to be taken seriously, it must do more to focus on the needs and perspectives of island communities, particularly with regard to climate change adaptation. This paper presents a framework for action to strengthen the BRI’s approach to islands and climate change adaptation in terms of information sharing, scientific and technological cooperation, financial support, and capacity building within a global governance framework.

Introduce Foreign Capital or Introduce Core Technology? A Case Study of Huakong Seg Co., Ltd.

Technological progress is the basic motive force of the development of productivity. The acquisition of technology can be achieved through technology introduction and technology innovation. There are different opinions on whether introducing foreign capital is conducive to the improvement of technological progress of domestic enterprises. But few directly focus on whether introducing foreign capital can introduce core technology. Based on the real case of Shenzhen Huakong Seg Co., Ltd. introducing foreign capital, this paper explores the determinants of introducing foreign capital into core technology, and explores the underlying causes from the perspective of motivation of foreign shareholders and local government behavior. According to this case, our conclusions are: (1) Realizing the comparative advantage of technology is the real motivation of the technology transfer of foreign capital, while core technology is the fundamental source of the comparative advantage of technology, and foreign capital often transfers the outdated technology rather than the core technology. (2) Local governments’ overuse of preferential measures provides opportunities for foreign investment to export backward technology and retain core technology while gaining technological control benefits. (3) The introduction of foreign capital does not necessarily bring about technological upgrading effects to the enterprises that attract foreign investment. Contributions of this paper are as follows: Firstly, it focuses on core technology when studying on the technical effect of foreign capital, which supplements to the existing literature. Secondly, it combines the characteristics of the times to attract technology”, which will help us understand the deep logic behind the mode transformation from technology introduction to technological innovation advocated at present. Thirdly, it describes in detail the whole process of the technology transfer of foreign capital and the specific types of technology transferred through a real case, which helps to overcome the limitations of the existing archival studies that are difficult to distinguish the quality of technology. Fourthly, it demonstrates that core technology is the fundamental source for foreign capital to obtain comparative advantage benefits, which provides a realistic basis for the current high-level state to emphasize that core technology cannot depend on foreign capital. This paper also reveals the mechanism that alienation of local governments’ motivation for attracting foreign capital may expand the space for foreign capital to obtain the comparative advantage of technology, which is beneficial to further deepening the policy of opening up to the world and improving the behavior of local governments in attracting investment.

The impact of fish production on marine trade balance and foreign direct investment: An empirical study of the GCC economies

This study aims to identify the impact of fish output on the marine fish trade balance, as well as foreign investment opportunities in six Gulf Cooperation Council (GCC) countries over the period of 1985–2016. We applied several panel estimation techniques, including fixed effects (FE), generalized method of moments (GMM), instrumental variable-fixed effect (IV-FE), and panel ARDL.FE model estimates show that marine fish production has a positive and significant effect on the marine trade balance, with a 1% increase in fish production leading to a more than 1%increase in the trade balance. Estimates of system GMM and IV-FE methods, which allow for the controlling of endogeneity, suggest an even larger effect. When we consider the relationship with foreign direct investment (FDI), FE, GMM and IV-FE show no significant effects. However, the ARDL model shows a statistically significant long-term relationship between fish production and both trade balance and inward foreign direct investment.

INVESTASI ASING DI ACEH SETELAH BERLAKU UU NO. 11 TAHUN 2006

The problems associated with conducting research are the extent to which Aceh needs foreign investment in developing its region. The most important question is whether the foreign investment opportunities that exist in Law No. 11 of 2006 can be implemented as desired by the parties. It is also questionable what are the constraints of foreign investment activities in Aceh after the implementation of the Act.This writing uses qualitative descriptive analytical method with emphasis on library research in order to obtain data, in addition also using field research as primary data.The results of the study can be summarized that the main foreign investment opportunities are the existence of peace and security so that all parties including foreign investors are protected from security disturbances. Law Number 11 Year 2006 provides a great opportunity for Aceh to bring in foreign investors, but the Aceh Government does not fully use the opportunity because of a clause limiting the controversial authority with the given authority, which is to comply with prevailing norms, standards and procedures nationally. Constraints impeding foreign investment in Aceh after peace and the realization of security are rules that make investors and operators unimpeded, among others, due to the norms, standards and procedures imposed for foreign investment activities in Aceh as serious obstacles that need to be solved.

The International Active Fund Management Industry: Concentration Cross Effects

We introduce an international active fund management industry model, in which competing managers, each having heterogeneous incentives (effort productivities, costs), search for domestic versus foreign investment opportunities. In equilibrium, incentive heterogeneity leads to a novel prediction: increasing foreign competitiveness, which improves (worsens) domestic manager incentives, induces an increase (decrease) of both domestic performance and size. Empirically, we find that 30 global markets’ performance and size, on average, decrease with U.S. concentration. This evidence is consistent with our theoretical predictions but is inconsistent with extrapolation of single-country (implying homogeneous incentives) equilibria to one “global village” [e.g., Feldman, Saxena, and Xu (2020)].

Where should China's thermal power industry prioritize its B&R investment? A study based on an environmental site selection analysis

The Belt and Road initiative (B&R) provided high-level opportunities for China's outward foreign direct investment. This study uses China's thermal power industry as an example for selecting optimum investment locations based on the host countries' environmental regulations. The study proposes an environmental site selection model based on a principal component and panel regression analysis. Considering the results of the principal component analysis, the main influencing factors affecting China's thermal power industry outward foreign direct investment (CTP-OFDI) and the comprehensive score of B&R countries were screened. In addition, the regression analysis provided a ranking of attractiveness scores for each country. Combining the analysis and results, the study draws the following conclusions. (1) The factors influencing investment are diverse and comprehensive, and the main influencing factors include three aspects, industrial development, the social and political situation, and the ecological environment. (2) Environment regulations are a significant factor and have a negative relationship with CTP-OFDI. (3) The B&R countries could be divided into the preferred, alternative, inferior, and avoidable investment locations. To conclude, the countermeasures and suggestions for improving investments are proposed based on the results of the environmental site selection model.

Historical Evolution and Spatial Development of Tourism in Cuba, 1919–2017: What is Next?

ABSTRACTThe main objective of the article is to analyze the historical evolution and spatial development of tourism in Cuba, from its beginnings in 1919 to present day (2017). The potential of Cuba as an international destination is considered with a focus on examining various factors leading to changes in types of tourism development and tourist markets over time. In this evaluation, it is clear that the socio-economic and political history of Cuba has been intricately linked with the development of tourism. Specifically, policy, regulations, and government organization leadership are investigated for their influence on tourism development. Additionally, this paper identifies four important events that are significantly transforming the current landscape of tourism in Cuba, including the lift on domestic travel restrictions, increased emphasis on self-employment and private sector tourism enterprises, evolving diplomatic relations with the US, and opportunities for foreign investment in the tourism sector. Scenarios for future development are considered in light of these events whose effects on Cubans and Cuban tourism are still not fully known.

The impact of gold mining and agricultural concessions on the tree cover and local communities in northern Myanmar

Myanmar offers unique opportunities for both biodiversity conservation and foreign direct investment due to projected economic growth linked to natural resource exploitation. Industrial-scale development introduces new land uses into the landscape, with unknown repercussions for local communities and biodiversity conservation. We use participatory mapping of 31 communities, focus groups in 28 communities, and analyses of forest cover change during 2000–2010 using MODIS vegetation continuous fields images, to understand the social and environmental impacts of gold mining and agricultural concessions in Myanmar’s Hukaung Valley (~21,800 km2). Local communities, particularly the poorest households, benefit from work and trade opportunities offered by gold mining and agricultural companies but continue to depend on forests for house construction materials, food, and income from the sale of forest resources. However, gold mining and agricultural concessions reduce tree cover, potentially reducing access to forest resources and further marginalizing these households. Our analyses do not provide evidence that long-term resident communities contributed to forest cover loss between 2000 and 2010. We argue that landscape management, which recognizes local community rights to customary community use areas, and appropriate zoning for commercial land uses and protected areas could contribute to both local livelihoods and protect biodiversity throughout Myanmar during economic growth.

Investment Climate in Financial Services in Africa (Country Attractiveness Indices)

The African continent today stands at a threshold of opportunities. The continent is heterogeneous in its cultural, economic and geographical aspects in so far as the domain contains more than 50 countries and different economic and regional blocs. Trivial to say that the diversity embodied in geographical, economic and cultural aspects extends to the financial front as well. Understanding this diversity is important and here the attempt is to build on the same. This goes along with the fact that in this contemporary era, a sound financial system lies at the heart of a well-functioning economy. Financial services like credit, savings, banking, insurance, payment etc. are closely tied with all sectors of the economy; hence, governments strive to close the gap between the financial needs of entities and access of services available to them.This paper is an attempt to study the investment climate of financial services in the African continent by first studying the domestic state of affairs in the sector and then the macro governance indicators pointing out towards the amenability of the domestic environment to foreign investment. The paper begins with an overview of the current state of financial system in Africa through the study of several indicators like per capita GDP, ratio of liquid liabilities to GDP, log of liquid liabilities etc. After this broad overview of Africa’s performance in the financial sector, the paper looks at financial conditions in each region of Africa viz. East Africa, Southern Africa, West Africa, North Africa and Central Africa in greater detail. The analysis is carried out using calculation of various indices that unveil a country’s performance compared to its respective region as well as compared to the whole of Africa. The entire exercise is, thereby, an attempt to understand how a country is doing absolutely and relatively to its region and its continent in terms of domestic and foreign investment opportunities.

La Competitividad Sistémica de la PYME del Distrito Federal, México

The objective of this work was to apply the model of systemic competitiveness, SMEs in Mexico City. Developing four levels of competitiveness: macro level (economic environment), meso level (regional environment), Level Goal (Environment Socioeconomic) and micro Level (internal factors). Data collection was done through fieldwork and archival research. The main findings are among the major strengths of the economic environment: high level of gross domestic product, high labor productivity and fiscal autonomy, the main weaknesses: the unions and the unemployment rate; meanwhile stand between foreign investment opportunities between threats and insecurity, corruption and difficulty in business transactions. In the regional setting a positive and 1 perfect relationship between the number of economic units and per capita GDP was found. With regard to socio-cultural factors, presents lower levels of poverty and unemployment to the rest of the country. Finally, at the micro level, the competitiveness of SMEs is in direct relation to the size of the company and the industry sector shows higher competitiveness trade and services sectors.

Follow the Yellow Brick Road: Websites as Catalysts for National Development

Small-island developing states (SIDS) enhance their competitiveness by advertising development initiatives that promote and encourage direct foreign inward investment opportunities in major markets. Failure to make use of information communication technologies (ICTs) can undermine national development initiatives with transformative potential. Based on this logic, some Caribbean governments have followed international best practices of businesses and have moved towards the creation of websites and the establishment of portals or gateway sites on the World Wide Web to announce their presence. One of the practical implications of such initiatives is based on the assumption that once websites are built, persons will come. Although for many, the development of a website appears to be an innocuous endeavour this mistaken perception in most cases has led to several sites being designed and commissioned as technical projects mostly employing techno-centric approaches. These policies often ignore the accompanying important socio-technical institutional considerations, such as the importance of timely and accurate information to potential business clients or prospective developers, language capabilities, and a range of standards, guidelines, rules and legislative changes. The central thesis of this conceptual paper is that if member states of the region properly conceptualise and design websites and portals they can be used to achieve strategic national and international development objectives of egovernance in its broadest meaning. The arguments are intended to stimulate thought among policy makers and the private sector alike in the Caribbean with a view to bringing about change that will promote sustainable development.

Financing Development: The Power of Regionalism

The reciprocal opening of markets for goods and financial services provides opportunities for foreign direct investment and its related fresh inflow of long-term capital, and developing countries must have sustained access to these markets in order to grow. Global integration efforts are essential in this process, but they need to be complemented by a certain degree of regional cooperation, which may include the provision of regional public goods and services essential for development that are not provided by markets of single nations. This report brings together the views of experts and policymakers on the benefits and limitations of regionalism. In dealing with the multiple issues of regionalism, the authors offer fresh insights and discuss ways in which Regional Development Banks (RDBs) may serve as catalysts for collective action. The authors also propose ways in which RDBs should modify current practices.