Study Of Foreign Direct Investment Research Articles

Impact Study of Foreign Direct Investment on Carbon Dioxide Emission, Economic Growth, Trade Openness for India following ARDL Approach

Foreign Direct Investment (FDI) is instrumental in increasing growth and development in many countries. The development outcomes of FDI must also be analysed, considering the long-term holistic implications of economic growth and environmental implications. Environmental consequences of FDI need to be analysed to better understand the developmental potentials of FDI. The objective of this study is to analyse the equilibrium relationship among carbon dioxide emission, inward FDI, trade openness, and economic growth considering India by using an autoregressive distributed lag model. This model overcomes the effect of endogeneity and indicates that there is a strong cointegrating relation between all the variables with significant long-run effects for economic growth and trade openness and insignificant results with carbon dioxide emission and inward FDI.

Financial Development: An Empirical Study of Foreign Direct Investment in Nigeria (1999-2021)

This study determined the effect of financial development on foreign direct investment in Nigeria. The study adopted Ex Post Facto research design. Data were obtained from Central Bank of Nigerian Statistical Bulletin from 1999 to 2021. The hypotheses were tested with regression analysis, and the result shows that credit to private sector and market capitalization were positively affected by foreign direct investment, though the effects were not statistically significant. Based on the findings, government should create enabling environment that will encourage foreign direct investment in the industrial production sector which will help to increase the nation gross domestic product

An Analytical Study of Foreign Direct Investment in the Gulf Cooperation Council (GCC)

The aim of this paper is to identify the critical determinants in the Gulf Cooperation Council (which will be referred to as GCC) for Foreign Direct Investment (FDI) inflows. Using the understanding of financial econometrics, the study discusses a significant positive association between FDI in Non-oil industries, while on the contrary, the negative association with the Oil industries. Natural resources are a path for some countries to attract FDI. Still, it does not achieve the main benefits of FDI, which are the introduction of new technology and the offering of job opportunities. Existing literature argues the suggestion that resource-rich countries attract less FDI because of resource (oil) price volatility. Statistical Models in Economics are used to analyze the data to achieve a conclusion. This study examines that natural resources discourage FDI in GCC countries, and helps identify policy reform priorities to support diversification and growth in the GCC through foreign investment.

A study of foreign direct investment in Indian insurance industry

A study of foreign direct investment in Indian insurance industry

An Analytical Study of Foreign Direct Investment in the Gulf Cooperation Council (GCC)

The aim of this paper is to identify the key determinants in the Gulf Cooperation Council (which will be referred as GCC) for Foreign Direct Investment (FDI) inflows. Using the understandings of financial econometrics, the study discusses a significant positive association between FDI in Non-oil industries, while on the contrary, the negative association with the Oil industries. Natural resources are a path for some countries to attract FDI but it does not achieve the main benefits of FDI, which is introduction of new technology and offering job opportunities. Existing literature argues the suggestion that resource-rich countries attract less FDI because of resource (oil) price volatility. Statistical Models in Economic are used to analyze the data in achieving the conclusion. This study examines that natural resources discourage FDI in GCC countries, and helps identify policy reform priorities to support diversification and growth in the GCC through foreign investment.

Sectoral Productivity – Allocation of FDI Nexus in Bulgaria after the 2008-2009 Global Crisis

Studies of foreign direct investment in Bulgarian economy have had a decades-long history since the beginning of the transition to a market economy. This subject was particularly topical in the early transition period, when foreign investments were expected to be a major driver of the recovery and renewal of Bulgarian economy. Thirty years later, the relevance of this topic has not diminished, given the extraordinary degree of globalization of the world business into which Bulgarian economy must successfully integrate. The main goal of the current study is to present preliminary results of a statistical analysis of the dependence of sectoral labor productivity on the level of foreign direct investment allocated to various sectors of Bulgarian economy. For this purpose, two basic specifications of econometric models are built, adapted for estimation using panel data for the 2008-2019 period. The models are estimated using annual data for the sectors defined in the framework of the International Standard Industrial Classification of economic activities (ISIC-2008). Statistically significant results are obtained on various effects of the sectoral allocation of FDI in Bulgarian economy.

Dependency Theory to the Study of Foreign Direct Investment (FDI) and Its Relevance to the Horn of Africa: A Matthew Effect?

The central aim of the paper is to test the relevance of dependency theory in studying FDI and to achieve the main objective, the study employed qualitative case study design through dealing with wide ranges of secondary sources. The collected data were analyzed through thematic comparative analysis. This paper thus found out that the decreasing trade openness, low infrastructure development, macro-economic instability, low level of return on capital and exchange rate, increment of inflation rate proved that FDI in the horn of Africa has brought development inconsistency while a conspicuous profit and wealth for the affording states or institutions. Thus, dependency theory weighs more in explaining the relevance of FDI in the horn of Africa than its contemporary theories. Albeit, this paper counter argue the idea of dependency theory that foreign direct investment is wholly beneficial to Africa maintaining that a host state can achieve development incorporating FDI. Keywords: FDI, Dependency theory, Horn of Africa, Matthew Effect DOI: 10.7176/IAGS/97-02 Publication date: October 31 st 2022

An Analytical Study of Foreign Direct Investment in Saudi Arabia During 1979- 2019: ARDL Approach

An Analytical Study of Foreign Direct Investment in Saudi Arabia During 1979- 2019: ARDL Approach

Networks, stocks, and climate change: A new approach to the study of foreign investment and the environment

This study offers a new approach to the study of foreign direct investment (FDI) and the environment. We argue that both the accumulation of inward FDI and a nation's position in the global network of FDI could facilitate either environmentally beneficial spillover effects and technology transfers or the outsourcing and distancing of environmentally harmful and ecologically unsustainable economic activities. In other words, the environmental impacts, good or bad, are potentially greater for nations that occupy more central positions in the world's FDI network and for nations with relatively larger amounts of inward FDI. To test these arguments, we estimate cross-national longitudinal models of total carbon dioxide emissions and carbon dioxide emissions per unit of GDP. The results suggest that both emissions outcomes are positively associated with inward FDI stocks and FDI network centrality for the overall sample of nations, but these positive associations are much more pronounced for Global South nations than for Global North nations. Overall, the findings are consistent with the arguments that foreign investment facilitates the outsourcing of energy inefficiency and environmentally harmful production processes, leading to growth in fossil-fuel consumption and concomitant carbon emissions for receiving nations, especially in the Global South. We conclude by summarizing the limitations of our analysis, and outline some next steps for this new approach to the study of FDI and the environment.

Impactul investiţiilor străine asupra dezvoltărilor durabile

There have always been concerns for the study of foreign direct investment (FDI), however the most significant contributions and theories have been developed with the expansion of multinational companies, due to the need to explain investment behaviour in order to perform forecasts at national, regional and global levels. Recent studies show that the investment decision starts from the market size, which is the most relevant criterion for investors as the market will absorb the products and services they will produce. Companies are less interested in other issues, often referring only to the GNI indicator (Gross National Income), regardless of its expression as it is considered a relevant benchmark for making direct investments, without addressing the principles of sustainable development. That said, recent theories suggest that the investment decision should also take into account social and environmental aspects, given the legal obligation of companies to declare non-financial data regarding environmental issues, i.e., the impact of business activities on the environment, safety and health, the use of renewable and non-renewable energy, greenhouse gas emissions, water use and air pollution. In such a context, the study relies on the assumption that the investment decision is mainly grounded on the GNI criteria and, based on panel data, it was shown that this was one of the most decisive factors until the onset of the COVID-19 pandemic, which is reflected by the migration of capital according to the economic results obtained. Taking into account the shock generated by the recent pandemic, the study will be prolonged to investigate the extent to which this state of affairs will be maintained in the post-COVID-19 stage.

An empirical study of foreign direct investment, human development and endogenous growth

In the context of growing bodies of researching in foreign direct investment (FDI), what could be better than effective external financial source for developing countries? It is undoubtable to observe that FDI could foster the slow economic growth and improve the human development. Employing the predictive proxy called 'human development index (HDI)' commenced since 2010 by United Nation Development Programme (UNDP), this paper investigates the three determinants including life expectancy, education and income level of economic development in 102 developing countries during the period 1990-2015 by two-stage least squares method, correcting the endogeneity problem with particular instrumental variables. Our findings confirm the existing literature and emphasise the constructive role of foreign capital flows and human capital on economic growth and institutional quality as well as macroeconomic variables and gender equality.

Husab and Ramatex as Foreign Direct Investments in Post-Independence Namibia :

In their rhetoric and agitation for freedom and independence, liberation movements envisioned a new economic order for the majority of their people that will thwart inequality and economic exclusion occasioned by colonialism and apartheid. The South West Africa People’s Organisation (SWAPO) – Namibia’s then leading liberation movement – promised economic opportunities for Namibians and was on record proposing a leftist economic order as opposed to capitalism. Most analyses of the postcolonial economic order in Namibia testify to the fact that these promises were not kept. Instead, Namibia followed a neoliberal and an outward-looking economic development path that prioritised the attraction of Foreign Direct Investment. This text analyses the content and character of neoliberalism in postcolonial Namibia by conducting a comparative analysis of two case studies of Foreign Direct Investment – Ramatex Textiles Namibia and Husab Uranium Mine. Using a qualitative research method, the text finds that in both cases, state and foreign elite convergence ensured a neoliberal environment characterised by general deregulation, exploitation of labour and relaxation of laws all in favour of foreign capital at the expense of the local population. The text argues that the continuation of a neoliberal approach to economic policy will deepen inequality in Namibia. Instead, it is proposed that Namibia must follow the path of a developmental state as is the case in Botswana, Tanzania and Mauritius.

An empirical study of foreign direct investment, human development and endogenous growth

In the context of growing bodies of researching in foreign direct investment (FDI), what could be better than effective external financial source for developing countries? It is undoubtable to observe that FDI could foster the slow economic growth and improve the human development. Employing the predictive proxy called 'human development index (HDI)' commenced since 2010 by United Nation Development Programme (UNDP), this paper investigates the three determinants including life expectancy, education and income level of economic development in 102 developing countries during the period 1990-2015 by two-stage least squares method, correcting the endogeneity problem with particular instrumental variables. Our findings confirm the existing literature and emphasise the constructive role of foreign capital flows and human capital on economic growth and institutional quality as well as macroeconomic variables and gender equality.

Governance, Information Spillovers, and Productivity of Local Firms: Toward an Integrated Approach to Foreign Direct Investment and Global Value Chains

Information spillovers from multinational enterprises to local firms in developing countries are examined in the literature on global value chains and foreign direct investment. However, global value chain studies and foreign direct investment studies are carried out independently and separately. While global value chain studies describe an important mechanism that underlies the productivity improvements of local firms in developing countries, most foreign direct investment studies attempt to assess econometrically the impacts on the productivity of local firms. This survey article concludes that an integrated approach incorporating the insightful perspective of global value chain studies into the empirical approach of foreign direct investment studies will likely reveal the channel through which information spillovers lead to the productivity improvements of local firms in developing countries.

Parent-firm advantages and management control effects on subsidiary performance in emerging economies: a study of foreign direct investment in Thailand

ABSTRACT This paper empirically investigates how parent management control and firm-specific advantages (FSAs) influence subsidiary performance in Thailand. We find that parent management control has a mediating effect on the influence of political risks and subsidiary goals on subsidiary performance for emerging market multinationals, whereas for developed country multinationals, it only shows a mediating effect on the influence of subsidiary goals on subsidiary performance. We also find that the FSAs of parent firms based in developed countries moderate and mediate the effect of parent management control on subsidiary performance.

A Study of Foreign Direct Investment (FDI) on Manufacturing Industry inIndia: An Emerging Economic Opportunity of GDP Growth and Challenges

The economic development of a country is based on its Industries Revolution with more production and promotion (Less Import and more Export of Product ) which are mostly possible through the revolution of agriculture, industries etc. in many sectors . The developments are easily possible when Foreign Direct Investment (FDI) comes to India and enters in 1991. It is an important source of Economic development in India, because it helps to bring close the different economies of the country by investing capital through FDI in various resources like manufacturing, infrastructure, transport, technology, services, productivity and hospitality etc. This paper seeks to present “The Role of Foreign Direct Investment (FDI) on Manufacturing Industry in India: An Emerging Opportunity of GDP Growth and its Challenges” particularly studies about the role and Importance of FDI in manufacturing sector. Here, the researcher has taken the hypothesis (Ho), maximization of FDI in manufacturing Sector in Industry it develops the economic condition of the factory as well as the Country with maximizing GDP (He). Where this paper taken two variables of study for extracts how it impact on the manufacturing sector of the country and how it affects the economic growth of GDP. It analyzes about the growth of economy and manufacturing sector of Indian Companies due to liberalization of Economic Policy of the Country as well as the policy framed by the honorable Prime Minister Mr. Narendra Damodar Das Modi’s dream Project of “Make in India” and Smart Cities” etc. In this research article, the researcher has focused on the center of Foreign Direct Investment (FDI) on manufacturing Industries of India. By investing more FDI it facilitates the economic development & as well as increase the growth of the domestic Product (GDP) of the country and found its positive impact in every sector of industrial life and Human life in order to maintain a sustainable & moderate life style.

Does national sentiment affect foreign direct investment, and if so, how? Additional evidence

Studies of foreign direct investment (FDI) decisions typically assume that decision makers and stakeholders act rationally. Drawing on studies conducted at the individual level, this study focuses instead on affect and explores theoretically and empirically how national sentiment influences FDI decisions. In particular, we develop a typology for understanding national sentiment along two axes—positive versus negative and accumulated versus transient—and investigate their separate influences on FDI. The results indicate that negative sentiment has a greater influence on FDI than positive sentiment and that accumulated sentiment has a greater influence than transient sentiment. This study complements conventional FDI research by demonstrating that national sentiment offers additional explanatory power beyond the variables known to influence FDI decisions. Moreover, our study shows that research conducted at the individual level can be useful for understanding the influence of affective elements on FDI decisions.

The International Movements of Capital and Labour: A Study of Foreign Direct Investment and Migration Flows

The International Movements of Capital and Labour: A Study of Foreign Direct Investment and Migration Flows

A Case Study of Foreign Direct Investment and Economic Growth Relationship in Turkey

Foreign direct investment is believed to enhance long-term economic growth of a country through knowledge spillovers and technology transfers. This paper is an empirical attempt to check the effects of the foreign direct investment (FDI) on the economic growth (GDP) of Turkey. The paper uses time span from 1980 to 2017 for statistical analysis. Johansen co-integration and Granger causality tests were applied for empirical analysis. The results of the tests confirmed the presence of the co-integration between GDP and FDI as it was expected from the beginning. Furthermore, Granger causality test showed the unidirectional causality from FDI to GDP.

Determinants of Foreign Direct Investments in Agriculture of Danube Region

The research investigates the determinants of foreign direct investments in agriculture in the countries of Danube region. Pooled model of agricultural foreign direct investment inflows based on the theoretical framework of Ownership Location Internalization paradigm was formulated and estimated by using ordinary least squares method and panel data for the period from 2009 to 2016. The results suggest that the foreign direct investments in agriculture of the region are primarily resource-seeking, although market-seeking investments are also present. There is also evidence of sector-specific impact of certain frequently examined determinants which contradict theoretic expectations and highlight the importance of the sector-level studies of foreign direct investment. The research adds to the limited literature concerning foreign direct investment determinants in the context of agriculture and has significant implications for the agricultural and foreign investment policymakers.