Influence Of FDI Research Articles

Sustainable Economic Growth in Vietnam: Exploring Resilience, Global Integration, and Innovation in a Changing Landscape

This article reviews the economic trajectory of Vietnam in light of sustainability, innovation, and global integration. In this context, a survey of 279 company managers from 120 small, medium, and large enterprises in Vietnam has been used to analyze some of the key variables that influence the economic landscape. The survey was done on the Google Forms platform, including companies from both the local and international levels. Our study sheds light on the important functions of innovation and global integration with regard to promoting sustainable development. We investigate the influence of FDI and international trade agreements on the economy of Vietnam by identifying such factors as resource management and competitive compliance. The findings show large obstacles and opportunities for improvement in innovation and sustainability. These include building full policy frameworks, incentives in innovative practices, and strengthening global integration. The findings from this research contribute to informed understanding and position implications that may be useful for academics, policymakers, and business leaders in how Vietnam can address its economic challenges while furthering sustainability and innovation.

Long-term Impact of FDI-Corruption Interaction on Domestic Investment in Nigeria

Over the past three decades, Nigeria has experienced unstable domestic investment and foreign direct investment inflows, and the country continues to face rising corruption and related problems. An ARDL technique has been adopted to explore the long-term FDI’s impact on domestic investment including evaluating if the FDI-domestic investment nexus is dependent on the control of corruption in Nigeria over this period. The bounds test result shows an evidence of a long-term relation amongst FDI, domestic investment and corruption control (including GDP per capita, lending rate, exchange rate and oil price). We find that increasing inward FDI reduces (crowd-out) domestic investment and greater corruption control (lowering corruption) leads to a higher domestic investment in Nigeria over the long-term. Also, the influence of FDI on domestic investment depends on (or varies with) the control of corruption. FDI crowd-in domestic investment at greater corruption control than at lesser corruption control in the long-term. Other significant long-term influencers of domestic investment are the exchange rate and oil price. Given these outcomes, the study offers some recommendations to boost domestic investment in Nigeria.

Financial Development, ICT Use, Renewable Energy Consumption and Foreign Direct Investment Impacts on Environmental Degradation in OIC Countries

This article examines the influence of financial development, ICT use, FDI and renewable energy on environmental degradation in 38 OIC countries using panel data from 2003 to 2021. For data estimation, the authors employed the CD test, slope homogeneity test, CIPS and CADF test, FGLS model, PCSE model and Dumitrescu Hurlin panel causality test. It is found that the variables have cross-sectional dependence, slope heterogeneity, heteroskedasticity, and autocorrelation in a model. The Westerlund test of cointegration also ensures the cointegration among variables in a model while panel unit root tests found the mixed integration order of variables. The FGLS model shows that FD and renewable energy consumption negatively and significantly influence CO2 emissions in OIC countries. The outcomes also show that the use of ICT and FDI inflows in OIC countries are positively related to CO2 emissions. The PCSEs model is used as a robustness estimation technique which also confirms the estimates of the FGLS model. The authors suggested that financial development should be promoted to finance green energy projects, design regulatory policies to prevent polluted technology from the FDI inflows and to prevent the harmful effects of ICT on the environment, the use of green energy resources in ICT use should be promoted.

Exploring the Impact of FDI and Technological Progress Path on Ecological Unequal Exchange within Manufacturing Industry in China

Under the premise of jointly promoting global ecological and environmental governance, as an important promoter of economic globalization and the main communicator of low-carbon technology, how does FDI contribute to EUE? In addition, technology can affect ecological inequality exchange by affecting production methods and other aspects, so what role does the path of technological progress play in it? These questions are the focus of this paper. Ecological unequal exchange is calculated using the MRIO model, and this study further examines the influence of FDI on this exchange in the manufacturing sector via technological progress using the systematic GMM model. The study discovered the following: (1) The full sample study reveals that FDI inflows can significantly reduce the EUE of the manufacturing industry, but FDI exacerbates the EUE in the manufacturing industry by further worsening it through the pathway of technological progress (2) Further research finds that the effect of FDI on the EUE in the manufacturing sector through technological progress path will be different due to the source of FDI vary, the causes of ecological unequal exchange, the time period, and the development of a technological progress path.

Wheels of Progress: Analyzing the Influence of FDI on the Expansion of India's Automotive Sector

Wheels of Progress: Analyzing the Influence of FDI on the Expansion of India's Automotive Sector

The Influence of ZIS, Islamic Human Development Index, and Investment on Indonesia's Economic Growth: An ECM Model Analysis

Economic growth refers to the generation of additional income for a society within a specific time frame through economic activities. This is often measured by GDP. However, despite an increase in GDP, Indonesia's economic growth as a developing country is still considered unoptimal. Therefore, the purpose of this research is to analyze the impact of ZIS, I-HDI, FDI, and Domestic Investment on Indonesia's economic growth from 2013 to 2022, spanning ten years. This study adopts a quantitative approach and uses an ECM model. The findings indicate that ZIS, I-HDI, and Domestic Investment have a significant positive long-term effect on economic growth, but their impact is not significant in the short term. Conversely, FDI has an insignificant negative effect on both long-term and short-term economic growth. When analyzing all the factors simultaneously, the results demonstrate that ZIS, I-HDI, FDI, and Domestic Investment collectively have a significant effect on economic growth in both the long and short term. Building on these findings, policymakers should delve deeper into the specific mechanisms through which ZIS, the Islamic Human Development Index, FDI, and Domestic Investment influence economic growth in both the short and long term. By understanding the intricate connections between these factors and economic growth, policymakers can develop more targeted and effective strategies to promote sustainable and balanced economic development.

Examining the Impact of External Debt, Natural Resources, Foreign Direct Investment, and Economic Growth on Ecological Sustainability in Brazil

Although some recent papers have explored the impacts of external debt on environmental sustainability, the impacts of external debt on the load capacity factor (LCF) have been ignored. In this regard, this work aims to examine the influence of renewable energy, FDI, and external debt on the LCF in Brazil over the period 1970–2021; this indicator implies the country’s strength to promote the population based on current lifestyles. This paper uses the novel augmented autoregressive distributive lag (A-ARDL) technique. The findings from the A-ARDL show that renewable energy positively influenced ecological sustainability by promoting the LCF by 0.451% in the short run and 0.038% in the long run. In addition, the findings show that an increase in the rent of natural resources promotes the LCF. In contrast, the outcomes illustrate that an increase in the external debt led to an adverse impact on ecological sustainability by decreasing the level of LCF by 0.093% in the short run and 0.162% in the long run. Furthermore, the findings demonstrated that FDI negatively affects the ecological sustainability quality by reducing the LCF in the country. The study provides beneficial recommendations to policymakers in Brazil for achieving sustainable development in Brazil.

Investigation of FDI's influence on India's Fiscal Improvement: verification by ADF & ARDL Scrutiny

Investigation of FDI's influence on India's Fiscal Improvement: verification by ADF & ARDL Scrutiny

Foreign Direct Investment, Financial Development, and Economic Growth in ASEAN Countries

blished: Feb 28, 2024 Abstract Foreign direct investment can be a solution to overcome domestic capital limitations. The spillover effect from FDI does not necessarily exist but needs to be created. Advanced domestic financial development will encourage the positive influence of FDI on economic growth. This research analyzes the relationship between foreign direct investment, financial development, and economic growth in ASEAN countries from 1999 to 2019. Additionally, it also aims to analyze the effect of inflation, exchange rates, and human capital on economic growth. The research method uses panel data analysis using Fixed Effect Model (FEM). The research results show that foreign direct investment, exchange rates, and human capital have a positive and significant effect on economic growth. Inflation has a negative and significant effect on economic growth. Financial development strengthens the effect of foreign direct investment on economic growth. Thus, domestic financial development needs to be improved in order to maximize greater benefits from the presence of FDI.

IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMIC GROWTH

This study examined the impact of FDI on Nigerian economic growth during the period 1999-2020, the research uses both primary and secondary sources of data. The primary data was gotten from the interviewees of Nigerian ministry of trade and finance while the secondary data was mainly sourced from the world bank indicator. The objectives of this work are to examine the influence of FDI on economic growth of Nigeria, to investigate the effect of governance on the economic growth of Nigeria and to understand the effect of domestic investment of Nigerian economic growth. The variables used are FDI, economic growth, governance and domestic investment. The findings of this research disclose that FDI positively affect Nigerian EG during the period of study especially from 2018 to 2020. It also revealed that, it is the kind of natural resources which the country has that attracted FDI into the country. As the findings suggest, it is necessary for Nigeria to entice FDI so as to boost its economic growth. The research suggest that there is need for government to enhance the FDIs environment so as to take the benefit of the latest international interest in the event of Nigeria by applying strong macroeconomic strategies, refining the investment climate, encouraging innovations, establishing a transparent legal system which will not favor local investor from international investor, improving good and quality infrastructure and lastly the government should implement strategies which would make FDI to become so attractive in investing into the country.

Analysing the Influence of Logistics, Corruption, FDI and GDP on Global Competitiveness: a Cross-Sectional Study

Analysing the Influence of Logistics, Corruption, FDI and GDP on Global Competitiveness: a Cross-Sectional Study

The role of governance quality on mobilizing environmental technology and environmental taxations for renewable energy and ecological sustainability in belt and road economies: A methods of Moment's quantile regression

Climate change poses a pressing and urgent peril to the overall welfare of the planet, with far-reaching implications for human livelihoods. The aim of this research is to explore the influence of environmental technologies, environmental taxes, and FDI in B&R economies on increasing renewable energy use and lowering ecological footprints. It also strives to examine how the quality of governance in B&R nations affects the promotion of these environmental initiatives. This study presents interesting results by employing a unique Method of Moments Quantile Regression approach for the period from 1996 to 2018. This highlights the government's ability to effectively utilize environmental technologies and implement a streamlined taxation system, bolstering the renewable energy industry and addressing environmental concerns. Moreover, the study highlights the beneficial impact of governmental initiatives in attracting environmentally friendly investments in the renewable energy sector. However, significant reforms are necessary to execute taxation policies efficiently and offer strong backing for technological progress in the renewable energy industry, aiming to decrease carbon emissions substantially. The findings suggest a need for policy recommendations to increase renewable energy consumption and rectify ecological imbalances, with a focus on matching government goals and reforms associated with environmental taxation and technology.

Exploring the Neo-Colonial Influence of Chinese FDI and Western Power on the Evolution of Labor Market Policies in a Developing Country

AbstractDespite the influx of Chinese FDI at the dawn of the 21st century and decades of neo-liberal, market-oriented economic policies in Africa, the pervasive nature of institutional voids (particularly in the labor market) has been constantly flagged as an impediment to socio-economic development in the continent. This has prompted calls for more research into the ability of independent African states to pursue viable labor market policy options, from a business system perspective. While institutional theory (specifically the notion of institutional voids) suggests the use of market-supporting and contract-enforcement structures and processes to enable the efficient functioning of the economy, it does not address the effect of strong external ‘powers’ on weak local institutions in developing countries. This study qualitatively explores how the shifting geopolitical landscape (power) from Western to Chinese sources of FDI shaped the nature and evolution of labor market institutions in Cameroon. The findings show that an entrenched parochial and crony Cameroonian institutional context was at the mercy of transnational forces playing a pivotal role, rather than coherent national socio-economic policy options, in shaping labor market institutions in the country. In an act of political complicity, the dynamics that flowed from Chinese FDI have engendered a regressive turn toward the failed nationalistic labor market policies pursued by Cameroon after independence. This article contributes to revealing the debilitating role of Chinese and Western FDI, and the ensuing dynamics, in the creation and sustenance of labor market institutions in a parochial developing economic context characterized by regulative institutional voids.

The Impact of FDI on Innovation in Developing Countries: The Mediating Role of Governance

While most studies in the existing literature focused on the direct relationship between FDI and innovation, this paper further analyzes whether governance in developing economies mediates this relationship. A 25-year cross-sectional time-series data from 1995 to 2019 were collected from the World Bank Development Indicators and the Worldwide Governance Indicators (2019) databases. This panel dataset was estimated using a system GMM. A novel finding emerged from the investigation: the positive impact of FDI on domestic innovation is mediated by two governance variables: voice and accountability and regulatory quality. This suggests that the impact of FDI on domestic innovation is strengthened when combined with the effects of mediating variables. The results imply that, in the absence of high governance quality, the traditional policy prescription—such as increasing government spending on R&D and education—may not be adequate to promote FDI's innovation spillovers. The findings suggest that governments in developing nations should work to improve the voice & accountability and regulatory quality indicators by ensuring that citizens take part in the decision-making to promote the flow of knowledge and information that fosters innovation. This will help to strengthen the influence of FDI on domestic innovations. In addition, the governments should foster an environment that is welcoming to foreign investment and implement the appropriate regulatory reforms, such as those that strengthen competition protection, property rights protection, and transparency in the operations of the organizations implementing policies.

Influence of FDI on China's Green Marine Economy

China attaches great importance to the protection of Marine resources, the development of Marine economy and the construction of a maritime power. FDI is highly concentrated in China's coastal areas and accompanied by space spillover, which affects the development speed and quality of Marine economy. Does FDI improve the efficiency of China's Marine green economy? Based on the panel data of 11 coastal provinces and cities in China from 2004 to 2020, the "efficiency evaluation system of Marine green economy" is constructed from the dual perspective of environmental constraints and resource conservation, considering the unexpected output and measuring the efficiency of Marine green economy with the ultra-efficiency SBM model. Then, under the geographical weight and economic geographical weight, the FDI spatial index is constructed to study its influence on the efficiency of Marine green economy. The results show that FDI space can improve the efficiency of Marine green economy in China. FDI has a negative effect on the efficiency of Marine green economy, but after considering the spatial factors, the FDI spatial index has a positive promotion effect on the improvement of the efficiency value, and the promotion effect is more significant under the weight of economic geography and space.

Exploring the Influence of Urbanization, Trade, Human Capital, FDI and Money on Poverty in case of Selected Developing Countries

This study explores the influence of Urbanization, Trade, Human Capital, FDI, Money on Poverty of developing countries. To capture this effect, panel data of 20 developing countries has been collected through World Development Indicators (WDI) from 2006 to 2022. For the purpose of analysis, Im, Pesaran and Shin W test – unit root test has been applied to check the stationary and to choose the appropriate technique i.e. Panel ARDL technique. The unit root test observes the mixed order of integration about the selected variables. Moreover, the results of ARDL conclude that poverty in selected developing countries is reduced by Trade openness, Foreign Direct Investment, Households Consumption Expenditure, Domestic Investment and Human Capital Index. On the other side, poverty is increased by Urbanization and Money supply in the longrun. Convergence from shortrun to longrun has also been found which is evident from cointegrating term.

Asymmetric influence of China's outward FDI and exports on trade-adjusted resources footprint in belt and road node countries: Moderating role of governance

This research explores the asymmetric influence of China's outward FDI, technical efficiency, and trade openness on consumption-based natural resource footprints. It also analyses the moderating role of institutional governance across Belt and Road Initiative (BRI) countries using the Method of Moments Quantile Regression (MMQR) from 2003 to 2020. Panel cointegration, slope heterogeneity, and non-stationarity have been confirmed by the preliminary analysis. Natural resource footprints increase significantly due to Chinese outward FDI and decrease due to technical efficiency, high-quality governance, and inward trade openness. The moderating role of institutional governance shows that resource consumption reduces with improved governance when foreign investment moves into the county. Economic expansion is a major and direct contributor to natural resource footprints across all three quantiles. Manifestly, the influence of the above regressors substantially varies at lower, medium, and higher quantiles. Improving institutional governance is crucial for long-term natural resource management in Belt and Road host countries.

Comparative Study on the Influence of FDI on Economic Growth in Bangladesh and Its Neighboring Countries

Due to globalization, there has been a significant amount of growth in foreign direct investment, exports, imports and remittances which exaggerate the interaction between states, regions and firms. It became obvious for the developing countries like Sri Lanka, Pakistan, India and Bangladesh to take the advantage and stimulate their economic growth through trade and investment. Literature shows that the relationship among these macroeconomic variables is ambiguous as some of the macroeconomic variables have positive impact on growth and others have negative impact, and vice-versa. Keeping this in mind, this paper examines what influence that foreign direct investment, export, gross capital formation, labor force participation and remittances have on economic growth based on a time series data to realize the meticulous scenario. Both descriptive and inferential statistics were implied here where RGDP was response variable and the rest five were explanatory variables. Ordinary Least Square method of multiple linear regression and correlation were carried out and the results disclose that gross capital formation and remittance have significant positive influence, export has significant negative impact on RGDP for most of the countries, and foreign direct investment has significant positive influence only in Pakistan. It will be worthy to say that foreign direct investment, exports and remittances have roles to play for a country’s development as long as they become greater in terms of volume and their ratio to GDP.

Research on Promoting Effect of Coordinated Development of Two-Way FDI on Integration of Two Industries

This paper takes 30 provinces and cities in China as the research object, andanalyzes the influence and mechanism of two-way FDI coordinated development on the integration of the two industries based on two-way fixed effects. The study found that: The coordinated development of two-way FDI in provinces and cities has significantly promoted the convergence of two industries in our country, and the promotion is mainly realized by improving the level of technological innovation and optimizing the structure of human capital. Further analysis shows that the coordinated development of two-way FDI plays a more significant role in promoting the integration of the two industries and capital-intensive service and manufacturing industries in the eastern and central regions. Therefore, it is recommended that all regions should adhere to the two-way open strategy, enhance the level of technological innovation and increasing talent introduction plan, further optimize the structure of regional human capital, establishing reasonable industrial policy, promote the depth of the two fusion.

The impact of energy consumption, FDI, and economic growth on CO2 emissions in Central Asia. Empirical evidence from panel ARDL

Utilizing Panel ARDL and a panel Granger causality test, this paper examines the influence of GDP, energy usage, FDI, and trade openness on carbon dioxide (CO2) emissions in three specific Central Asian countries: Kazakhstan, Kyrgyz Republic, and Uzbekistan, from 1997 to 2021. PMG approach findings indicate that energy usage, FDI, and trade have a statistically significant positive impact on CO2 emissions, but GDP has a negative and statistically significant effect on CO2 emissions. In the short-run, only FDI and energy consumption have statistically significant impact on CO2 emissions, negative and positive, respectively. Granger non-causality test also verifies that each variables have a granger cause on CO2 emissions in Central Asian countries.