Role Of FDI Research Articles

The Role of Fdi in Promoting Economic Growth Across Vietnamese Provinces: Evidence from Spatial Panel Models

The Role of Fdi in Promoting Economic Growth Across Vietnamese Provinces: Evidence from Spatial Panel Models

Impact of green technology and energy on green economic growth: role of FDI and globalization in G7 economies

With the increase in economic growth, the world is facing serious challenges concerning environmental sustainability. Hence, the green economic growth is imperative for sustainable and inclusive development. The objective of this study is to contribute to the existing literature about the factors that influence green economic growth. The study investigates the role of green technology, green energy, foreign direct investment, and globalization on green economic growth in G7 countries. The data of the study is collected from WDI, KOF Swiss Economic Institute, and OECD database and the data period ranges from 1995 to 2020. The existence of cointegration between the variables of the study was tested by Westerlund’s (Oxford Bull Econ Stat 69(6):709–748) cointegration test. Due to the presence of cross-sectional dependency, the study employed the cross-sectional autoregressive distributed lag (CS-ARDL) method to estimate the coefficients in the long and short run. The study also used a common correlated effect—mean group (CCEMG) estimator for robustness check. The findings of the study reveal that green energy and FDI positively contribute to green economic growth in the long and short run. The green technology also contributes positively to enhance green economic growth but only in long run. To accelerate green economic growth, G7 countries should incorporate policies promoting green energy and technology, while acquiring more foreign investments to ensure a sustainable development.

Sow Green, Reap Prosperity: Role of FDI towards Agricultural Sustainability in India

Sow Green, Reap Prosperity: Role of FDI towards Agricultural Sustainability in India

Nonlinearity in energy–employment nexus: the role of FDI, trade and growth in ASEAN-5

Nonlinearity in energy–employment nexus: the role of FDI, trade and growth in ASEAN-5

The Impact of FDI on High-Quality Development in the Yangtze River Economic Belt

This article utilizes the panel data of 31 cities in the Yangtze River Economic Belt from 2003-2018 to construct a panel model and empirically studies the impact of FDI on the high-quality development of the Yangtze River Economic Belt. The results show that FDI has a positive role in promoting high-quality development in the Yangtze River Economic Belt in the total sample regression. In subsample regressions, the role of FDI in promoting high-quality development in the upper, middle and lower reaches of the Yangtze River Economic Belt is not the same. Based on this, local governments in different regions should propose different foreign direct investment policies according to local conditions to promote economic transformation and upgrading.

Regression Analysis and Policy Recommendations for Attracting FDIs

Recognizing the importance of FDI for economic growth in general, and especially national labor productivity, Vietnam has made many efforts over the years to ensure the establishment of a favorable environment for FDI. investors through policies to encourage and attract FDI. In the theoretical basis, there have been many studies on the role of FDI in labor productivity, but most of them are at the enterprise. This study suggests: localities need to establish regulations and standards to select foreign investors with advanced and capable technology, contributing to increasing local labor productivity, contributing to sustainable development. Localities also need to strengthen research, development, creativity and technical improvement in the process of using technology; select appropriate technologies, prepare conditions for receiving and promote the technological level when approaching FDIprojects.

Impact of natural resources and globalization on green economic recovery: Role of FDI and green innovations in BRICS economies

Considering the green perspective of economic growth, researchers, policymakers, and environmental activists have shown their deep concerns in recent times. However, determining sustainable economic growth is not an independent phenomenon. Hence, this study examines the impact of natural resources, globalization, foreign direct investment, and environmental technologies on the green growth in BRICS countries during 1990–2020. Initial results confirm the presence of cross-sectional dependency and slope; therefore, we employ a cross-sectionally augmented autoregressive distributed lags (CS-ARDL) estimator. The empirical finding shows that globalization, environmental technologies, and human capital encourage green growth in the BRICS. In contrast, the inflow of foreign investment and dependency on natural resources reduces green growth. The results suggest that the government in BRICS should promote international association through economic, political, and social globalization along with green technology innovations to achieve sustainable economic growth. Policy suggestions are also provided to control the adverse effect of foreign investment and natural resources toward a green economic recovery.

Effects of financial development, FDI and good governance on environmental degradation in the Arab nation: Dose technological innovation matters?

The motivation of the study is to gauge the impact of financial development, FDI, Technological innovation, and good governance on environmental degradation in the Arab Nation for the period 1991–2019. Several techniques have implemented, including error correction-based cointegration, cross-sectional ARDL, Non-linear ARDL and Heterogeneous causality test for directional causality. The results of Slope of homogeneity, CSD and unit root test following CIPS and CADF, revealed that research variables are exposed with heterogeneity properties, cross-sectionally dependent, and all the variables become stationary after the first difference. The long-run cointegration between explained and explanatory variables established through error correction based cointegrating test. Referring to results derived from CS-ARDL, study exposed financial development has a detrimental effect on environmental sustainability, suggesting the intensification of CO2 emission and ecological instability. On the other hand, the role of FDI, GG, and TI exposed beneficiary in mitigating the environmental adversity. The asymmetric assessment revealed asymmetric association between explained and core explanatory variables which is valid in the long-run and short-run horizon. Finally, the casual association, study unveiled bidirectional causality between FDI, TI and ED [FDI←→ED; TI←→ED]. On the policy note, the study advocated that environmental improvement through financial channels should be efficiently monitored in the case of credit extension and incorporation with existing environmental policies.

Literature Review on Theories of International Trade and Policies Behind Modern World Trade

Purpose The essay aims to critically examine different theories proposed in the literature on international trade. Design/methodology/approach The essay is based on theoretical literature on the theories of international trade and working policies behind modern world trade globally. Findings The essay starts with traditional theories of international trade and an account of the mercantilist pattern of trade is provided, and comments are made on the use of simplified models in the classical theories. Significant focus is laid on the new trade theory and the use of strategic trade policies by advanced countries. A helpful supplement is provided regarding the role of FDI and technology in trade. A further effect of trade on growth is also analyzed. Theories of the 21st century are discussed with a call for models that can incorporate income inequality, political strategies, and other real-world factors. Research limitations/ implications The essay deals with only theoretical literature on international trade theories and policies. Findings and interpretation are subject to the theoretical development of international trade. Originality/ value The essay provided a critical explanation of international trade theories and tried to explain the paradigm shift in the theoretical framework of international trade.

Manufacturing Productivity and FDI Externalities: is Small Beautiful?

The role of FDI as a vehicle for economic growth is debatable in practice. On the other hand, the size of the company and the technological groups can influence the occurrence and magnitude of FDI externalities. Thus, this article investigates the impact of firm size on the occurrence of foreign direct investment externalities in the Portuguese industry from 1995 to 2007, by technology groups, using panel data at the firm level. To this end, we estimate the TFP and regress it on a set of variables, including the foreign presence in the same sector, upstream and downstream. The results show that only (small and large) companies in scale-intensive industries; and small firms in science-based industries benefit from the positive externalities of FDI. This suggests that firm size can influence the occurrence of FDI externalities in the manufacturing sector, but only in some technology groups. Based on the results, investment policy recommendations are made.

Role of FDI and energy intensity in mitigating the environmental pollution in the Chinese steel industry: does technological innovation makes a difference?

To accomplish China's sustainable growth, it is critical to identify the primary factors affecting environmental quality in the steel industry. In this positioning, foreign direct investment (FDI), energy intensity, and technological innovation have emerged as strong pillars of the steel industry. However, there are growing concerns of carbon emission from this industry which is still debatable. In this context, this study measures the effect of FDI, energy intensity, and technology innovation on environmental quality in the steel industry from 28 provinces of China. The study uses the provincial data for China over the period 2000-2018. In addition to examining unit root properties and cointegration, this study employed Augmented Mean Group regression for estimating long-run relationships among study variables. The findings reveal the negative effect of FDI and technology innovation on environmental quality. These findings indicate that FDI and technology innovation have shaped the energy intensity in the steel industry. The positive coefficient value of energy intensity shows that innovations for environmental conservation and energy usage are minimal and did not perform an integral part in lowering carbon emissions. These findings are important in formulating successful emission reduction policies after controlling the effects of urbanization and economic growth for the Chinese steel sector.

General Assessments Regarding the Evolution of Foreign Direct Investments in Romania

The article makes a critical analysis of the attractiveness of the Romanian legislative framework for foreign investors. The analysis goes beyond national borders and extends to Bulgaria, the Czech Republic, Poland and Hungary, as we believe that the states in the region, EU members and with a similar transition history, are formidable rivals for Romania in the race to attract FDI, able to capture the advantages of this type of investment to the detriment of Romania. In this part we emphasize the fact that, in the absence of increased attention paid to these issues, Romania risks losing its attractiveness for FDI, with negative consequences on its economic development. The research methods included observation methods, comparison methods and generalization methods, and the result of the research is its own considerations regarding the controversies of investment policy and FDI determinants, the controversies of the globalization process, the role of FDI in the global economy, such as and their positive role in modernizing Romania and enhancing future opportunities in the national economy.Keywords: foreign investors; economic development; FDI; transition; investment 

Foreign Direct Investment and Output Volatility Nexus: A Global Analysis

Volatility in output growth remains a genuine concern around the globe because of its detrimental effects on growth, poverty and welfare. In the realm of output volatility, the role of FDI and its consistency is particularly important and worth considering. This article examines the role of FDI inflows and specifically the instability in it on output growth volatility using a panel dataset of 141 world economies for the period 1971–2017. The study employs a variety of estimation techniques like pooled ordinary least squares (POLS), LS fixed effects (FE), LS random effects (RE), two stage least squares (2SLS) and generalised methods of moments (GMM). Findings of the study suggest that FDI acts as the volatility reducing factor, whereas uncertainty in it increases output volatility. On the policy front, this study recommends policies that not only encourage FDI inflows but also ensure the inflows to be more consistent and stable. Our results are robust corresponding to various above-mentioned estimation techniques and sensitivity analysis. JEL Codes: C23, E32, F21

The Effect of Non-Oil Diversification on Stock Market Performance: The Role of FDI and Oil Price in the United Arab Emirates

The Effect of Non-Oil Diversification on Stock Market Performance: The Role of FDI and Oil Price in the United Arab Emirates

Institutional determinants of FDI in Oman: Causality analysis framework

AbstractThis paper explores the institutional determinants of FDI in Oman and the role of FDI in enhancing Oman's economic diversification strategy. Time series data was collected for the selected institutional factors influencing FDI during the period 1996–2018. Unit root and Granger causality framework were used in the analysis. Results indicated that strong and clear property rights protection, corruption freedom, fiscal and trade freedom, cause FDI inflows in Oman, whereas business freedom had no effects. It is crucial for policy makers in Oman to strengthen these institutional factors, craft and implement a policy framework to sustain their efficacy, while improving business freedom towards an open economic model. This also includes strengthening the legal framework, combating corruption and reducing subsidies and other forms of favouritism towards state‐owned enterprises. Such policy measures, aimed at channelling FDI flow towards targeted sectors, would enhance Oman's diversification strategy and foster economic growth and development.

Demystifying pollution haven hypothesis: Role of FDI

This study explores the interrelationship between FDI, institutional factors, financial development and sustainability by revisiting the pollution haven (or halo) hypotheses. The data is sourced from the World Development Indicators (WDI) database over the period of 1990–2016, covering 21 developed and developing countries with high carbon emissions. The study uses dynamic panel data estimations by applying the generalized method of moments (GMM) and system-generalized methods of moments (Sys-GMM) over sample countries. The results indicate that FDI has a significant positive impact on environmental degradation. There is evidence of pollution haven hypotheses, especially in developing countries. We contribute to existing literature by revisiting the Environment Kuznets Curve (EKC) hypothesis and presenting the effect of FDI on carbon intensity in the light of institutional factors and financial development. The findings relating to FDI, institutional factors and financial development may cause researchers and policymakers to reiterate the sustainability dimension of foreign capital inflows in both developed and developing countries. We propose the policy framework to include a mandatory Statement of Environmental Disclosures for both listed and unlisted home and host companies at the time of their origin, expansion and fund raising in order to achieve sustainable business goals (SBGs).

Research on the Influence of FDI on Guangdong’s High-Quality Economic Development

With the transition of China's economy from the stage of rapid growth to the stage of high-quality development, the influence of the introduction of FDI on the high-quality development of regional economy has become more and more an issue to be discussed. This paper selects Guangdong Province as the frontier of China's reform and opening up. Combining with the new development concept of innovation, coordination, green, development and sharing, the high-quality development system of Guangdong's economy is constructed and the high-quality development index of Guangdong's economy is measured by entropy weight method. On this basis, empirical analysis of FDI on the quality of Guangdong province's economic development. Research shows that FDI can significantly promote the high-quality economic development of Guangdong, where technological progress and government intervention are important factors to promote the high-quality economic development of Guangdong, while industrial development hinders the high-quality economic development of Guangdong, urbanization has a positive role in promoting the high-quality economic development of Guangdong. However, the results were not significant. The results of quantile regression showed that for different levels of high-quality economic development, the promoting effect of FDI presented differences, specifically, with the improvement of the level of high-quality economic development, the promoting effect of FDI on high-quality economic development presented a gradual downward trend. Guangdong is in the important stage of the high-quality economic development to the objective and the role of FDI on Guangdong economy high-quality development, to distinguish the different economic development level of high-quality parts for the sensitivity of the FDI, specific aim ground is made science and Guangdong economy development stage of FDI into high-quality policy, to ensure high-quality economic growth is of great significance in Guangdong.

Does globalization exacerbate income inequality in two largest emerging economies? The role of FDI and remittances inflows

Using the annual data from 1980 to 2013, this study explores the effects of economic globalization on income inequality for a sample of two emerging economics, China and India, by endogenizing FDI inflows, remittances inflows, sectoral output, infrastructural development, human capital formation, government size, urbanization and economic growth as relevant determinants into the income inequality model. By applying combined cointegration method of Bayer–Hanck (J Time Ser Anal 34(1): 83–95, 2013) and ARDL bounds testing of cointegration approach of Pesaran et al. (J Appl Econom 16(3):289–326, 2001); it finds that there is the existence of a long-run relationship among the variables in our inequality model for both India and China. After confirming cointegration among the variables, the long-run results based on ARDL model surprisingly revealed that economic globalization widens the income inequality in India but the same factor reduces the income inequality in China. Contrastingly, both the FDI and remittances inflows significantly contribute to reduce income inequality in China, while the same worsens the income inequality in India. In examining the role and effects of structural changes in both the economies from the changing sectoral contributions of output in total output (industry sector and service sectors) in our model, it exposes the fact that the changing sectoral growth contribution has been leading to rising income inequality in China while the same has been resulting in reduction of income inequality in India. The infrastructural development has led to rising income inequality in both the countries, while human capital formation as expected reduces income inequality for both the countries. It also observes that economic growth, urbanization and government size enable both the economies to improve in their pattern of income distribution which have significant implication for public policy of both the economies while aiming at reducing poverty and inequality.

The Role of Foreign Direct Investment and Trade on Environmental Quality in Vietnam

The study of environmental pollution plays an important role in controlling emissions in the production activities of FDI enterprises as well as export goods. Vietnam is a country with a large proportion of FDI contribution and high export value. Therefore, there should be studies to assess the actual effects of FDI and the openness of the economy (trade) on the environment. Therefore, the authors conduct research on the role of FDI and trade on environmental quality in Vietnam. With data collected from 1990 to 2018 (from the period of Vietnam's economy opening up) through the ARDL (Autoregressive Distributed Lag) model, the results show that FDI has a positive impact on CO2 emissions in the short term but has no impact on the long-term (In this study, CO2 is considered to represent environmental quality). The trade has a positive impact on CO2 emissions in both the short term and long term. The results of the study show the actual shortcomings of FDI as well as production activities in the export enterprises in Vietnam. From the results of this research, the author also provides the causes and remedies to control of CO2 emissions from two activities of foreign direct investment and trade.

Role of FDI on Employment Scenario in India

Employment generation is treated as an important stimulus for enhancing growth in the developing countries. It is quite easy to believe that FDI inflows can provide the solution for many economic issues in the economy, but in case of employment creation this effect is quite convoluted in India. The central objective of this paper is to find out the relationship between FDI inflows and employment generation in India during the period 1991 to 2018. This research paper uses secondary data from different published sources to analyse the influence of FDI on employment generation in India using the relevant descriptive analysis.FDI has both backward and forward linkages in employment creation in India. FDI shows a three times increase in growth rate in the second decade than in the first decade, i.e., during 2002 to 2012 in the service sector in India. Banking and insurance sector is the first in attracting major FDI proposals followed by the telecommunication sector, which is in second position in attracting FDI in India. In the service sector FDI generates highest job opportunities than any other sector in India. The result of this study shows that employment generation in India during the last two decades is quite detectable, but FDI inflows may not be regarded as a major factor for this growth rate. Thus the government of India should take some policy measures to captivate employment generation in India basically in organised sector.