Foreign Investment Research Articles

Cross‐border insolvency in the Balkans region

AbstractIn a constantly evolving world, it is necessary to safeguard trade and investment relations through the establishment of clear rules for cooperation between national courts and practitioners from different jurisdictions on cross‐border insolvency cases. While general provisions in national law or in treaties governing cooperation on foreign civil proceedings are helpful, specific provisions in insolvency legislation that regulate the management of insolvency proceedings with a cross‐border element contribute to legal certainty and support the flow of international trade and foreign direct investment. These may even signal to potential investors the openness of a particular jurisdiction to foreign investment and trade. A set of rules or framework for international cooperation on cross‐border insolvency cases enables efficient judicial decision‐making and positively influences insolvency outcomes, from the preservation of assets of the insolvency estate to the fair allocation of such assets to affected creditors and the successful rescue of the insolvent business. The importance of this subject matter is exemplified by global efforts to achieve greater cross‐border insolvency cooperation and harmonisation on substantive insolvency law. Such efforts include the UNCITRAL Model Law on Cross‐border Insolvency and Legislative Guide on Insolvency Law, as well as regional initiatives such as the Recast European Union Insolvency Regulation and the Uniform Law on Insolvency Procedures by the Organization for the Harmonization of Business Law in Africa, which have harmonised cross‐border insolvency rules across member states. This article uses economic analysis, recent jurisprudence and legal theory to explore the importance and evolution of cross‐border insolvency frameworks in selected Balkan countries: Greece, Romania and Serbia.

The Impact of Foreign and Domestic Institutional Investors on Nifty 50

The Impact of Foreign and Domestic Institutional Investors on Nifty 50

Foreign Investor Participation Reforms and Securities Market Performance in Kenya

This study investigated the influence of foreign investor participation reforms (FIPRs) on securities market performance in Kenya. It employed an exploratory research design, collecting primary data from firms participating in the securities market and 238 respondents who actively participated in the Kenyan securities market. Data was analyzed using SPSS AMOS, employing principal component analysis and confirmatory factor analysis to evaluate the associations between latent variables. Structural equation modelling was undertaken to evaluate any inherent relationship between the study variables. The findings revealed a significant positive influence between FIPR and several key indicators. An increase in FIPRs incentivized foreign investors to purchase more listed securities. As a result, foreign investors are shifting towards online trading due to reforms, which reduce the need for physical travel. The inherent taxation rate adjustment within the reforms has successfully drawn in more foreign investors into the local market. Generally, the results reveal a significant relationship between foreign investor participation reforms and securities market performance in Kenya, demonstrating the influence of these reforms in shaping domestic securities market outcomes. Given that investors constitute sixty-five percent of trading at the Nairobi Securities Exchange, attempts to further increase market activity must consider a reform agenda aimed at attracting foreign investors into the market

Does Technology Adoption Reforms Influence Securities Market Performance? Evidence from Kenya

The Kenyan securities market has been undergoing significant transformation, driven by technological advancements and other structural reforms. The adoption of the automated trading system was aimed at improving market efficiency by speeding up transactions and increasing market liquidity. Regulatory efforts by the Capital Markets Authority, including stricter governance systems at the Nairobi Securities Exchange, have enhanced transparency and accountability. However, market performance remains subdued due to global economic conditions, inflation and currency fluctuations. The Exchange is diversifying its product offerings with derivatives and Reits to attract more domestic and foreign investors. Despite these positive efforts, challenges such as limited liquidity in some securities, high concentration in a few blue-chip stocks, and economic instability persist. This paper aimed to investigate the influence of technology adoption reforms on Kenya's securities market performance. The paper employed an exploratory research design, collecting primary data from 154 firms and 238 respondents from 333 managers participating in the Kenyan securities market. The study conducted data analysis using SPSS AMOS, employing principal component analysis and confirmatory factor analysis to evaluate the relationships between latent variables. The findings indicate that the measurement items' regression weights had t-calculated values exceeding the critical threshold of 1.96 and were statistically significant (p < 0.05). This suggests that technological reforms are associated with a cumulative increase in the number of shares traded, particularly following the introduction of mobile-share trading. Furthermore, there was a significant link between technology adoption reforms and the reduction of transaction costs, attributed to the elimination of paperwork and procedural inefficiencies. The paper concludes that there exists a significant positive influence of technological reforms on securities market performance in Kenya, highlighting the critical role these reforms play in enhancing market efficiency by reducing transaction costs. The practical implication of these findings is that the market regulator can leverage emerging technologies and popularize their adoption to enhance market remote market supervision, improve trading transparency, and boost investor confidence through real-time monitoring and access to accurate data. These reforms support financial inclusion by expanding online trading, simplifying regulatory compliance through automated reporting, and encouraging innovation with advanced products like derivatives. This will also align Kenya's securities market with global standards, increasing competitiveness and attracting foreign investment. Nevertheless, the CMA must address cybersecurity risks to ensure the market remains secure and resilient in the evolving digital landscape.

Foreign direct investment can enhance the development of clean energy in countries with critical materials

Foreign direct investment is a critical material extraction and revenue generation tool, but its role in reducing clean energy vulnerability is often overlooked. Here, we use the clean energy vulnerability index and explore how foreign direct investment mitigates energy shortages in countries abundant in critical materials such as bauxite, cobalt, nickel, manganese, and platinum. We found that from 2016 to 2021, foreign direct investment controlled large portions of critical materials in vulnerable countries, with 56% of bauxite, 59% of cobalt and nickel, 52% of manganese, and 57% of platinum. Redirecting 40% of foreign direct investment-controlled production towards the deployment of clean energy could reduce energy vulnerability in the Democratic Republic of Congo, Indonesia, South Africa, and Guinea. The foreign investment redirection could enhance global energy transition equity, offering a strategic pathway for aligning with sustainable energy goals.

The Impact of Foreign Direct Investment on Economic Growth in Vietnam

Objective: This article examines the relationship between foreign direct investment (FDI) and Vietnam's economic growth in the period 1991-2023. Theoretical Framework: Based on the theory of foreign investment and economic growth of economists such as Mankiw, Romer, and Weil (1992), Jones (1995), Binh & Lang (2008), and Tung & Duong (2019), the research team built the regression model that shows the relationship between FDI and GDPr. Method: The author collected data on FDI, and GDPr (variable representing economic growth) in the period 1991-2023 from GSO, International Financial Statistics, WB. The collected data was analyzed by software Eviews12. Results and Discussion: the results showed GDPR of one previous year and GDPR of the year under consideration has a positive relationship when last year's GDP fluctuated by 1%, GDPR of the year under consideration will fluctuate by 0.381721%. Between FDI and GDPR, there is a positive relationship, when FDI fluctuates by 1%, GDPR will fluctuate by 0.020825%. Research Implications: Research results support the view that foreign direct investment (FDI) plays an important role in promoting economic growth (g) in Vietnam. Originality/Value: From the research results, the author makes a number of recommendations to promote the attraction and effective use of foreign direct investment capital, supporting economic growth.

Drivers of Environmental Sustainability, Economic Growth, and Inequality: A Study of Economic Complexity, FDI, and Human Development Role in BRICS+ Nations

This study investigates the intricate relationships among CO2 emissions, income inequality, the Economic Complexity Index (ECI), foreign direct investment (FDI), the Human Development Index (HDI), and the economic growth across countries. Three distinct models are developed: the first examines their effects on economic growth, the second analyzes their impact on income inequality, and the third explores their influence on CO2 emissions. Advanced econometric methods, including Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS), are employed to ensure robust and reliable results. The findings indicate that income inequality impedes economic growth, whereas economic growth and greater economic complexity help reduce inequality. While FDI significantly boosts GDP growth, it also widens the income disparities and intensifies environmental degradation, raising questions about the sustainability and quality of foreign investments. In contrast, human development emerges as a vital driver of economic growth and a critical factor in reducing CO2 emissions, highlighting the value of investing in education, healthcare, and living standards to achieve sustainable development. These insights underscore the necessity for carefully designed policies that harmonize economic progress, social equity, and environmental sustainability.

Market Access Regulations for Foreign Investment in Cross-border E-commerce: A Comparative Study Between China and Malaysia<b></b>

This study conducts a systematic comparative analysis of market access regulations for foreign investment in cross-border e-commerce between China and Malaysia. Drawing on current regulatory frameworks and implementation practices, the research identifies significant patterns of convergence and divergence in how these two countries regulate foreign participation in their digital economies. Malaysia has adopted a relatively open framework characterized by streamlined registration procedures, liberal foreign equity policies, and transparent enforcement mechanisms, positioning itself as a gateway to ASEAN markets. In contrast, China maintains a more complex regime with multi-layered approval requirements, significant sectoral restrictions, and interventionist enforcement practices, reflecting its emphasis on digital sovereignty and state-directed economic development. The research highlights specialized economic zones—Malaysia's Digital Free Trade Zone and China's Cross-Border E-Commerce Pilot Zones—as key instruments of regulatory innovation in both countries. Case studies of Chinese e-commerce platforms entering Malaysia and Malaysian digital businesses entering China reveal asymmetric market access conditions with practical implications for investors. This comparative analysis contributes to our understanding of how different legal traditions and regulatory philosophies shape digital economy governance, while offering strategic insights for investors navigating these complex regulatory environments and policymakers seeking greater harmonization.

Assessing the Impact of COFDI on Economic Growth in African Belt and Road Initiative Countries: An Empirical Two-step System GMM and DID Analysis

This study examines the impact of Chinese outward foreign direct investment (COFDI) on economic and industrial growth across 35 African Belt and Road Initiative (BRI) economies from 2005 to 2020, utilizing panel data and econometric methods such as a two-step system generalized method of moments (SGMM) and difference-in-differences (DID). The findings confirm that COFDI stock positively influences economic and industrial growth, although its impact varies significantly across regions. A comparative analysis of pre- and post-BRI periods highlights the initiative’s role in enhancing COFDI’s effectiveness, reinforcing its contribution to Africa’s development. Subregional analysis further reveals diverse effects, emphasizing the need for tailored policy approaches. The study underscores COFDI’s crucial role in Africa’s economic transformation, demonstrating that BRI participation amplifies its benefits. Given the complexity of these impacts, region-specific policies are essential to maximize the advantages of foreign investments and ensure sustainable economic and industrial growth. JEL Classification F21, O55, F63, O40

Deciphering Developmentalism: A Legal-Economic Examination of Indonesia’s Administration

Abstract This paper analyses the development of Indonesia’s legal and economic frameworks from the Soekarno era through the presidency of Joko Widodo (Jokowi), with a focus on the intersection of legal reforms, investment policies, and developmentalism. Under President Soekarno, the legal framework reflected a nationalist approach that limited foreign investment, while the New Order era, although initially marked by economic growth, suffered from systemic corruption and inconsistent policy enforcement. The post-Reformasi era saw significant legal changes aimed at decentralization, but these efforts led to regulatory fragmentation and conflicting legal norms at the regional and central levels, undermining investment climate stability. Jokowi’s administration has continued the developmentalist agenda, emphasizing deregulation and debureaucratization to improve the legal and regulatory environment for investment. However, despite these legal reforms, challenges persist, including overlapping regulations and inconsistent legal implementation. Furthermore, Jokowi’s approach to developmentalism has raised concerns regarding the erosion of human rights protections and democratic principles, echoing historical patterns of legal and economic centralization. The paper concludes that, while legal reforms have made progress in facilitating investment, further harmonization and institutional strengthening of the legal system are necessary to achieve sustainable economic development while safeguarding democratic governance and human rights in Indonesia.

Economic prospects of Gwadar port for Pakistan: Opportunities amidst regional competition

The Gwadar port is a significant turning point in the Pakistani economy because of its advantageous strategic position and attributes that allow it to actively participate in the area that connects the Chinese economy and Central Asia, particularly the countries of Central and South Asia, by the sea. The aim of this study is to explore the economic prospects of Gwadar Port by examining its role in enhancing trade connectivity, attracting foreign investment, and fostering regional integration through initiatives like the China-Pakistan Economic Corridor (CPEC). It highlights the port’s capacity to stimulate industrial growth, generate employment, and boost Pakistan’s maritime economy. However, Gwadar’s development faces significant challenges, including regional competition from ports like Chabahar, geopolitical rivalries, internal security issues, and infrastructure bottlenecks. The study adopts a descriptive and analytical methodology to assess both the opportunities and constraints associated with Gwadar’s economic trajectory. Ultimately, the paper argues that with strategic policy implementation, Gwadar can serve as a cornerstone of Pakistan’s economic revival amid complex regional dynamics. This study recommends completing this project and giving strategies to tackle with the challenges to Gwadar port.

Modeling the Factors Influencing the Occurrence of Economic Crises in Sudan Using Logistic Regression (2011–2023)

This study aimed to determine the relationship between political changes, internal conflicts, inflation, and foreign investment growth with the occurrence of economic crises. The impact of political and economic variables on economic crises in Sudan was analyzed using an appropriate statistical model. Logistic regression was employed to examine the effects of these variables. The results indicated that political changes and internal conflicts significantly influence the likelihood of economic crises. Additionally, an increase in foreign investment positively affects the probability of economic crises, while inflation showed no significant impact on the occurrence of economic crises in Sudan. Furthermore, logistic regression demonstrated its efficiency in analyzing the factors influencing economic crises by accurately identifying the most impactful variables. The study recommended enhancing political stability and resolving internal conflicts. It also suggested that the government should adopt effective policies to control inflation and regulate foreign direct investment. Moreover, the study emphasized the importance of developing advanced analytical models that integrate time series models with logistic regression for economic crisis analysis. Additionally, it recommended utilizing logistic regression in economic policies as a predictive tool to assist policymakers in taking preventive measures against potential crises

An empirical assessment of financial prudence among South African individuals: investigating savings and investment behaviour

This study provides an empirical assessment of financial prudence among South African individuals, focusing on savings and investment behaviour. Prior research highlights a positive correlation between national savings rates and economic growth, with countries exhibiting high saving rates often experiencing stronger economic prosperity. However, as of 2023, South Africa's gross saving rate remains around 17%, ranking the lowest among BRICS nations. In contrast, countries like China and India boast saving rates above 40% and 30% respectively, underscoring South Africa's persistent challenge in fostering a robust savings culture. Despite various initiatives aimed at increasing the national savings rate, these efforts have yet to yield significant improvements. This research explores whether financial prudence characterised by conservative spending and careful planning in the face of future income uncertainty—could contribute to higher personal savings rates. To investigate this, an experimental design was employed where participants were presented with a hypothetical lottery payout scenario to gauge their prudence and its effect on saving behaviour. Analysis of the data indicated that while individuals generally displayed a lack of prudence, prudence itself has a notable influence on savings. Based on these findings, the study recommends that financial products and services in South Africa be designed to be affordable, accessible, and suited to the needs of the population. Additionally, it advocates for government investment in small businesses, job creation, and efforts to attract foreign investment to support a more robust savings culture.

The Socioeconomic determinants of foreign capital inflows in selected Sub-Saharan African Countries

Foreign capital inflows (FCI) are essential for economic growth in developing countries. This study examines the socioeconomic factors affecting FCI in 31 Sub-Saharan African (SSA) countries, utilizing panel data from 1985 to 2019 and employing the System GMM dynamic modeling approach. The findings indicate that when foreign direct investment (FDI) is treated as an endogenous variable, real interest rate (RIR), life expectancy (LEX), GDP growth rate, and food security (foodsec) have significant positive impacts. Conversely, the real exchange rate (RER) and inflation (INF) negatively correlate with FDI. Human capital investment is not statistically significant while the relationship between lagged FDI and current FDI is positive but nonsignificant. When foreign portfolio investment (FPI) is considered an endogenous variable, only food security exhibits a positive and statistically significant factor, suggesting that food security can enhance FPI flows. The study recommends that SSA countries aiming to attract more FCI should focus on improving healthcare, food security, and education. It is also suggested that countries should develop highly skilled R&D employees, public and private scientific research institutions, and industrial concentration in a country because they fundamentally drive the development and success of foreign capital flow levels. Central banks should also implement effective strategies to optimize capital flows by advancing financial institutions.

Державне регулювання іноземних інвестицій у контексті підвищення ефективності національної економіки

One of the main objectives of the study is to determine the role of foreign investments in ensuring economic growth and structural modernization of the national economy, especially in the context of economic challenges caused by the war and post-war recovery. The authors highlight the importance of foreign investments as a source of technological innovations, infrastructure development, and job creation, which contribute to sustainable economic development. Based on the analysis of the dynamics of foreign direct investment (FDI) in Ukraine from 2010 to 2024, it can be concluded that the investment situation was strongly dependent on political and economic stability. In 2010-2013, there was a steady growth in FDI and a positive balance of portfolio investments, which indicated the attractiveness of the Ukrainian market for foreign investors. However, starting from 2014, due to the annexation of Crimea, the war in Donbas, and political instability, investment volumes significantly decreased, which was reflected in a negative balance of FDI and an increase in investment risks. Starting in 2016, a gradual recovery of investments was observed, but the global COVID-19 pandemic in 2020 worsened the situation again. In 2021, despite a short-term revival of investment activity, with the onset of the full-scale invasion by the Russian Federation in 2022, FDI volumes decreased once again. However, in 2023-2024, there has been some recovery in investments, primarily due to support in the form of loans, aid, and intergovernmental programs, which provides hope for the restoration of Ukraine’s investment attractiveness in the long term. A quantitative analysis of the dependence of Ukraine's GDP on the dynamics of various types of foreign investments was also conducted using correlation-regression analysis methods. The results indicate a strong positive impact of FDI on GDP growth, as well as the importance of diversifying investment flows to ensure sustainable economic development. The article also develops proposals for improving the regulation of foreign investments with an emphasis on enhancing economic efficiency, stability, and promoting the sustainable development of Ukraine's economy in the context of global changes.

Qualified foreign institutional investors and corporate ESG performance: Evidence from China

Qualified foreign institutional investors and corporate ESG performance: Evidence from China

Air pollution leakage embodied in international trade: Foreign–investment–contribution–based accounting and structural decomposition analysis

Air pollution leakage embodied in international trade: Foreign–investment–contribution–based accounting and structural decomposition analysis

Environmental Degradation Channels and Economic Growth in Nigeria (1990-2023)

Rapid global economic growth has increasingly been linked with rising environmental degradation, particularly in emerging economies, creating a need for balancing economic expansion and environmental sustainability. Nigeria, with carbon emissions reaching approximately 127.942 megatons and a declining GDP per capita of $1,621 in 2023, exemplifies this critical challenge. This study examines the impact of environmental degradation on the Nigerian economic growth between the periods 1990 and 2023 using the Fully Modified Ordinary Least Squares method to test the hypothesis of the Environmental Kuznets Curve (EKC). It specifically investigates the impact of trade openness, foreign direct investment (FDI), and per capita health expenditure channels in affecting the relationship. The results showed a marginally significant positive correlation between economic growth and carbon dioxide emissions (?=0.028, p=0.066). This suggests that Nigeria is still in the early stage of EKC, where economic expansion is still having a negative environmental impact. While trade openness had no effect, FDI had a significant negative impact on economic growth (?= -0.174, p=0.003), suggesting that current foreign investments may have negative environmental effects. Economic growth was significantly boosted by health expenditure per capita (?=0.876, p=0.000), highlighting the significance of this investment in reducing the negative health effects of the environment and increasing productivity. The study recommends that Nigeria’s National Environmental Standards Regulatory and Enforcement Agency should intensify environmental regulations and encourage green foreign investment in the bid to abate the negative environmental effects linked with economic development. Additionally, the Federal Ministry of Health should increase per capita health spending to enhance labour productivity and reduce environmental health risks, thus facilitating a sustainable economic trajectory that mirrors the EKC turning point.

Spatial effects of environmental factors on foreign direct investment: evidence from Chinese cities

China’s rapid economic growth and the influx of foreign investment have greatly contributed to increased pollutant emissions. As a result, the country faces growing challenges in balancing environmental protection with green economic development. It is crucial to understand the spatial variation in foreign direct investment (FDI) and environmental pollution across cities, as well as the impact of pollution during periods of severe environmental degradation. This study analyzes the spatial distribution and changes over time of FDI and environmental pollution in Chinese cities from 2010 to 2019. It also explores the spatial effects of environmental pollution on FDI. Using a generalized differences-in-differences (DID) model, the research examines how China’s Atmospheric Key Control Zone (AKCZ) policy has affected FDI in cities and their neighboring areas. The results show that cities with higher pollution levels attract less FDI, and pollution in one city can deter investment in surrounding areas. On the other hand, better air quality in a city tends to encourage FDI in nearby regions. The AKCZ policy has a positive impact on FDI within the designated cities but causes a “siphoning” effect in neighboring areas. Well-designed environmental policies are essential for aligning environmental protection with the attraction of foreign investment, ultimately supporting the sustainable development of urban economies.

Structure of Financial Position Report in Accordance with International Standards and its Comparison with NAS

This article looks at how financial position reporting practices have grown in Uzbekistan. It compares national accounting standards (NAS) to international standards (IFRS). The study shows why it's key to bring Uzbekistan's financial reporting in line with global practices. This has an impact on making enterprises more stable and helps to make better decisions. The article breaks down the layout and setup of balance sheets under both NAS and IFRS. It points out main differences in how assets and liabilities are shown when it comes to liquidity. The research reveals how these differences change how clear and comparable financial results are. It gives insights on how using international standards can boost financial openness. The article stresses that financial statements and accounting records are vital to check a company's financial standing. They allow for good analysis of changes, performance comparisons, and benchmarking. In the end, bringing financial reporting in line with international standards is crucial to draw in foreign investment and ensure lasting economic growth in Uzbekistan.