Foreign Direct Investment Trends Research Articles

The Impact of Foreign Direct Investment on China’s Carbon Emissions

China is world renowned for its significant achievements in several fields. China’s economic growth has been prominent, with the country’s GDP ranking second globally. China’s Foreign Direct Investment (FDI) inflows have been significant, with the country now known as the second largest economy in the world. FDI however does have some negative consequences on China’s environment. While attracting FDI promotes economic growth through industrial upgrading, the deleterious impacts of the latter on the environment cannot be ignored. The current study analyses the actual use of FDI and carbon emissions in China from 1997 to 2018. Quantitative analysis was employed to analyze the trends of FDI and carbon emissions in China as a whole and in the respective regions, namely the eastern, central and western regions. Regression analysis was then conducted to analyze the impact of FDI on carbon emissions in China on the national level and regional levels, i.e., in the eastern, central and western regions. The conclusion of this article is that FDI will play a positive role in China’s overall carbon emissions. The study has important implications for policy. We recommend that the corresponding investment policies need to be formulated according to the different levels of economic development among the regions.

Longitudinal Analysis of Foreign Direct Investment in Ghana

Foreign direct investment (FDI) is a factor that drives the growth and develop- ment of an economy. The in ow of FDI spans across the various sectors of the economy. The study seeks to identify the trend of FDI in the country and also determine whether the number of projects and the sectors they are coming from ....... Keywords : Foreign Direct Investment; sector; project; Ghana DOI: 10.7176/JESD/12-15-06 Publication date: August 31 st 2021

An estimation of the macroeconomic determinants of income poverty in Pakistan? Evidence from a non‐linearARDLapproach

Poverty is considered a complex and multifaceted phenomenon that can be subjected to various socio‐economic factors. This study aims to assess the potential asymmetric influence of foreign direct investment (FDI) and trade openness, controlling for economic growth, health expenditure, and population size on income poverty in Pakistan from 1972 to 2018 by employing the Non‐Linear Autoregressive‐Distributed Lag (NARDL) approach. The results exhibit the presence of long‐run asymmetries among FDI, trade openness, and income poverty. The results also reveal that poverty reacts to the positive and negative trends in FDI and trade openness atypically. Moreover, the findings also confirm that population growth and health expenditures ameliorate the deleterious repercussions of income poverty. For policy‐makers having an interest in asymmetric nexus among FDI, trade openness, and income poverty. As per the findings, relevant policy level suggestions are recommended.

Estabilidad de los regímenes políticos e inversión extranjera directa, período 1969 al 2008

El objetivo de esta investigación es determinar los efectos que tiene la inversión extranjera directa (IED) en la estabilidad de los regímenes políticos democráticos y autoritarios. La inversión extranjera directa ha sido estudiada desde varios ángulos, desde la economía y otras pocas desde la ciencia política. Este ensayo es desde la ciencia política, por ello, se trata de llenar ciertos vacíos en la literatura, partiendo con una idea a priori: la tendencia ascendente de la IED conlleva a una mayor estabilidad de los regímenes políticos. Esta investigación establece la estabilidad de los regímenes políticos como variable dependiente, mientras que la inversión extranjera directa se establece como la variable independiente preponderante. Esta investigación se la realizó en 192 países mediante el uso de la metodología análisis de supervivencia (survival analysis). Según los resultados obtenidos, por un lado, el aumento de la IED tiene un efecto positivo en la estabilidad de los regímenes políticos. Por otro lado, las democracias fuertes son las más importantes para atraer la IED, en la que el régimen político de mayor importancia son las democracias parlamentarias.

RISK ASSESSMENT OF FOREIGN DIRECT INVESTMENT OF CHINESE AGRICULTURAL ENTERPRISES

With the global trend of foreign direct investment, Chinese agricultural enterprises have also increased the pace of foreign direct investment. At present, Chinese agricultural enterprises have invested in development in more than 30 countries, including Southeast Asia, Africa and Latin America. Ocean fisheries development is underway in the high seas of the Pacific, Atlantic, and Indian oceans. There are also planting and forestry bases in the Russian Far East and Central Asian countries. The benefits of Chinese agricultural enterprises' overseas investment are obvious. It is not only conducive to Chinese enterprises to use foreign resources, funds and technology, but also to avoid various barriers and increase the international market share. However, while encouraging China's agricultural enterprises to go global, we should also be clearly aware that the overseas direct investment of China's agricultural enterprises is still in the primary stage. The level of agricultural enterprises is still relatively low, and overseas direct investment faces a variety of risks. Analysis and studying these risks will help Chinese agricultural enterprises to effectively prevent and control them in foreign direct investment. By taking into account the integrity and dynamics of the overseas direct investment environment, the risk evaluation index system of foreign investment projects of Chinese agricultural enterprises is constructed. Representative items were selected for risk evaluation using hierarchical analysis and entropy weight coefficient method. The results show that there are prominent risk factors such as international agricultural market risk, political and legal risks of host countries, domestic institutional barriers and enterprise own technical restrictions. In order to prevent and reduce investment risks, the government should increase policy support and set up special agricultural overseas investment service institutions. Enterprises should establish an effective risk evaluation mechanism to promote the research and development and promotion of agricultural technology.

Foreign Direct Investment Trends and its influence on Per Capita Income in India

Foreign Direct Investment Trends and its influence on Per Capita Income in India

Foreign direct investment trends: an analysis of the structure and dynamics in the context of globalization

The phenomenon of the international investment activity in the context of globalization is investigated in the article. Foreign direct investment is the most important basis for further analysis of the world economy. The article discusses the current trends of the foreign direct investment flows with an emphasis on their geographical location. In particular, the inflows of FDI by region and national economies are considered. The specific features of modern factors of the foreign investments’ distribution by regions are determined. The study shows that some methodological approaches are useful in determining the level of national economies’ interconnection of the linked processes of international capital flows. The clustering method was used for the analysis of foreign investments and the minimum spanning trees for the selected groups of countries were constructed. From the defined list of countries, one group with similar trends in the FDI movement has been distinguished. The article stipulates that countries should consider the need for their active involvement in globalization processes and contribute to the formation of a favourable investment environment within the country.

Attraction of foreign direct investment in agriculture

Agriculture is an industry with potential and advantages for development, but it is increasingly difficult to attract foreign direct investment (FDI) flows. Up to now, the results of attracting FDI inflows into the agricultural sector have many limitations, not really reaching the industry’s potential. This study will assess the current situation of attracting foreign direct investments into the agricultural sector in Vietnam in terms of FDI capital scale, FDI capital structure based on agriculture standard, investment method, investment partners and by investment recipients. The Red River Delta is one of the two Vietnamese economic regions with highly agricultural production. With the tradition of agricultural production and many favorable natural, economic and social conditions, the Red River Delta can further develop into a major agricultural production area of the country, contributing to economic development of the region and the whole country. However, FDI investment in agriculture in the region is modest compared to the potential of the industry as well as compared to other sectors in the region. While FDI inflow into Vietnam and other sectors in the region tends to increase strongly, FDI into agriculture is very low and has not grown for a long time, which is contrary to the trend of FDI to other sectors of the Red River Delta as well as the whole country and also contrary to the FDI flows to global agriculture.

Whither WIR (Redux)?

The year 2020 marks the 30th anniversary of the World Investment Report (WIR), an UNCTAD publication that examines national, regional, and worldwide trends in foreign direct investment and foreign investment policies. I look back briefly at the first 30 WIRs and then look forward, asking: What next? Whither WIR? I argue that upcoming WIRs should address a mix of Big Questions and Grand Challenges and provide a baker’s dozen list of 13 possible themes.

Сучасний стан та тенденції розвитку аграрного сектору України

Annotation. The article analyzes the current state and development trends of the agricultural sector of Ukraine, which has become one of those sectors of the Ukrainian economy that are developing very dynamically in recent years. Thanks to this sphere of the national economy that a significant part of gross added value is created, revenues to the budgets of all levels are formed, foreign exchange revenues from exports grow, and the investment process is actively carried out. The special role of the agricultural sector in the socio-economic life of the country is due to the unique combination of favorable climatic conditions and geostrategic position, the ability of Ukraine to occupy an important place in the international food market. Therefore, the study of the state and development trends of the agricultural sector of Ukraine is relevant. Purpose. The purpose of the article is to research the state and trends of the agricultural sector in the economy of Ukraine. Results. The article identifies the place of the agricultural sector in the country’s economy. The key macroeconomic indicators of the agricultural sector are analyzed. The dynamics of the share of agricultural products in total value added, the share of the rural population in the general structure of the population, the structure of employment of the population of Ukraine by all types of economic activity, as well as the share of the employed population in agriculture. It is determined that one of the urgent problems of the agricultural sector of Ukraine’s economy is to attract investments that are necessary to modernize the industry and ensure its competitiveness. The factors that contribute to attracting investment are identified. The volume of foreign direct investment in the agricultural sector and trends in foreign direct investment in the share capital of the agricultural sector are considered. The main obstacles to intensifying investment processes are highlighted. The financial results of the agricultural sector, the growth trend and the dynamics of profitability of agricultural enterprises are studied. The priority directions of the state regulation of the agrarian sector are offered. Conclusions. Considering the state and development trends of the agricultural sector of Ukraine, we can conclude that the agricultural sector occupies an important place in the economy and plays an important role in the socio-economic life of Ukraine. Taking into account the above areas and sound public policy will contribute to the further development of the agricultural sector of Ukraine. Keywords: agricultural sector; dynamics; development; agriculture; agricultural enterprises; investments; areas for improvement.

Current Trends in Foreign Direct Investment in Developing Countries

Current Trends in Foreign Direct Investment in Developing Countries

Foreign Direct Investment in Russia (Late 1980s - Late 2010s)

Foreign direct investment in Russia in a historical aspect are discussed in the article. It is noted that theoretical studies on this issue have led to a better understanding of the economic mechanism and the behavior of various participants in the economic sphere at both the micro and macro levels, which has opened up new areas of research in the field of economics. It is stated that an understanding of why a company initiates foreign direct investment in a particular country or increases their volume, allows us to present the main motives of the management of firms to invest, rather than to export or outsource production to national firms. The purpose of this study is to identify the main trends in foreign direct investment in the Russian Federation in various historical periods. A review of economic indicators on attracted investments, reflected in the relevant economic reports of the Central Bank of the Russian Federation, as well as other documents, a periodization of direct foreign investment in the Russian Federation was made. Based on the analysis, the authors propose to consider five periods: from the late 1980s to 1999, from 2000 to 2007, from 2008 to 2013, from 2014 to 2019 and from 2020 to the present, which have their own characteristics. Attention is paid to the fact that foreign direct investment in the Russian Federation during these periods was uneven, due to serious political contradictions in the international arena.

Risk, financial stability and FDI

All Foreign Direct Investment (FDI) involves risk. Augmenting the international finance literature, we assess the effects of financial system risk on FDI trends through considering both origin and host country effects. Motivated by the sovereign debt crisis and based on a dataset including bilateral FDI holdings, this paper investigates the implications of sovereign and bank-related risk on FDI in the Eurozone. Strikingly, we find that in terms of banking risk, it is only that encountered in the country of origin that has an impact on FDI choices. However, we find that sovereign risk, in both origin and host countries, have effects. As a corollary, we suggest that although poor financial discipline by host governments has been widely blamed as the primary factor likely to frighten off overseas investors, it is amongst FDI supplying nations that the effects of sovereign yields seem most pronounced. Policymakers in countries seeking to attract FDI should not only be attentive to domestic conditions, but also be aware of the financing environment that multinational enterprises (MNEs) encounter in their home countries and how this might impact on their choices.

Foreign Direct Investment in India: Emerging Trends and Patterns

This paper examines the trends in foreign direct investment (FDI) in India during 1980-2018 and the emerging patterns of the FDI inflows in the country during the last two decades (i.e., 2000 - 2019). Our analysis, based on the secondary data collected from UNCTAD and DPIIT, reveals that the ongoing FDI liberalization measures started in India since 1991 have resulted in a dramatic upsurge in the FDI inflows as well as a stock of FDI in the country. The share of India in the global FDI inflows has increased in the post-liberalization period. Still, there was no perceptible increase in India’s share in the global FDI stock during this period. Detailed examination of the patterns of the FDI inflows in India revealed that the equity capital had been the largest component of the FDI in India.Moreover, its share in the total FDI inflows has been increasing during 2000 and 2019. Mauritius and Singapore have been the two important sources of FDI inflows into India, contributing more than half of the FDI flows during the last two decades; this was mainly because these countries were considered as tax heavens for investors from other counties for routing their investments to India. Sector-wise distribution of FDI in India during the last two decades of the post-liberalization period (i.e., during 2000 - 2019) has shown that the service sector has emerged the largest recipient of FDI replacing the manufacturing sector. Our analysis has clearly shown the impact of liberalization on enhancing the FDI flows as well as stock in India and also in changing patterns of FDI distribution in the country.

Covid-19 and investment — an UNCTAD research round-up of the international pandemic’s effect on FDI flows and policy

The shuttering of commercial activity in the face of the Corona (Covid-19) pandemic will have a dramatic effect on the global economy. UNCTAD’s Division on Investment and Enterprise has been monitoring the impact on investment, as well as its implications for development.1 In the face of the unprecedented circumstances, this issue of the Transnational Corporations furnishes a brief overview of this work, notably from the perspective of foreign direct investment (FDI) and investment policy. UNCTAD’s World Investment Report (forthcoming, June 2020) will provide an expanded and in-depth analysis of FDI trends and investment policy developments that also accounts for the impact of the pandemic.

Advantages, Disadvantages and the Performance of Foreign Direct Investment in the Republic of Kosovo 2008-2019

Economic development is an aspiration for every country in the world including Kosovo. Foreign Direct Investment (FDI) plays a very important role in the economic development of Kosovo which is in the process of transition. For Kosovo, it is essential to have an accelerated pace of economic growth, lower unemployment, higher quality of life, lower demographic migration and lower poverty rates, thus attracting FDI has a direct and very important role to play. Although Kosovo has a large number of advantages for attracting foreign investment, there are also a number of challenges or disadvantages that are very evident which negatively impact on current and potential investors in the future. Based on the data analysis, the overall trend of FDI has declined in recent years, therefore it is very important for Kosovo to develop further steps to improve the business climate in Kosovo and attract foreign investments.
 The purpose of this paper is to analyze the performance of FDI in Kosovo 2008-2019, to analyze the advantages and disadvantages of doing business in Kosovo, to identify where Kosovo stands in terms of doing business and what is new for Kosovo in a way that improve the business environment and attract foreign investment. To achieve this goal of comparative analysis and identification, the integrative review method was used. 
 Key words: Republic of Kosovo, Direct Foreign investments, Business environment, Economic Development, Doing Business.

FOREIGN DIRECT INVESTMENT TRENDS

The beginning of this century is characterized by deepening globalization and one of the main features of this process is global foreign direct investment flows. The relevance of foreign direct investment as a source of economic growth is inevitable and it has sound theoretical foundation. Despite this fact, many forces shaping the global economy receive a significant amount of attention, but foreign direct investment is often overlooked. Technological progress, trade and foreign direct investment are interrelated. Namely, foreign direct investment has greatly accelerated the spread of innovation and technology, while the technological advances especially in the era of Industry 4.0 have been driving the dynamics of foreign direct investment. Due to expected positive impacts, many countries are continuing policy efforts aimed at attracting foreign direct investment. However, foreign direct investment is experiencing new trends. Over the last few decades the global map of inward and outward foreign direct investment has changed significantly. There are new players with increasing roles in the global foreign direct investment area which are reshaping the world economy. Global foreign direct investment is undergoing a shift as emerging markets countries both inflows and outflows rise dramatically. For example, China’s outbound foreign direct investment has been growing dramatically in recent years, and impacted significant shifts in the global economy. Motives for foreign direct investment, as well as the type are changing due to globalization and new trends, especially high liberalization of trade. The proliferation of global value chains also influenced foreign direct investment trends. One of the examples is necessity of rethinking the framework on motives of foreign direct investment when analyzing emerging market multinational enterprises and their interdependent relationships within global value chains. The contribution of the paper is three-fold. Firstly, the paper gives an overview of key global and regional foreign direct investment trends. Secondly, key factors, as well as potential impacts of these changes are explored. Thirdly, paper offers recommendations for new investment policies.

Foreign Investment and Export Management and Analysis - Kosovo Case

Foreign Direct Investment (FDI) has a special and specific importance for the Republic of Kosovo taking into account the conditions and economic development, which in turn impact the economic development and social improvement of the country. For the state to have a greater absorption of FDI, significant improvement should be made in improving the management capacity in order to create a motivating environment for foreign investment, which is related to the improvement of macro-factors and microfactors at the country level in order to make the environment as attractive as possible for FDI. The purpose of this paper is to present the trend of FDI, the trend of export with a keen eye on Kosovo and to present the correlation of FDI with export. Firstly, at the beginning of this paper, a theoretical review of the literature on definitions of FDI in economic terms and definitions of export is presented. Secondly, the trend and comparison of FDI and exports over the years is presented. Thirdly, FDI trends in Kosovo were analyzed by the country of origin of these investments, etc. Fourthly, in the context of this paper, an analysis in terms of investment management at the country level in order to create an attractive investment environment was made. Fifthly, as part of this paper, empirical analyzes showing the correlations between FDI and Export in the Kosovo case have been made. FDI trends in Kosovo have been decreasing over the years, which must be improved by creating a motivating environment for both domestic and foreign investors.

One district one factory policy of Ghana, a transition to a low-carbon habitable economy?

Ghana has proposed ‘One district, one factory’ policy which would bridge the income gap, improve standards of living, ease dependency ratio, and build up the economy. Based on the past trend of foreign direct investment (FDI) of Ghana, we examine the possible impact of this policy on its environment, validating the pollution haven or halo effect. We examined the validity of the environmental Kuznets curve (EKC) hypothesis. Augmented Dickey–Fuller and Phillips–Peron unit root tests were conducted to examine the presence of unit root among the variables. Johansen cointegration test was also used to examine the long-run relationship. The autoregressive distributed lag approach to cointegration, Granger causality test, and fully modified ordinary least square were the estimation methods employed. A unidirectional relationship was found between FDI and economic growth, FDI and energy consumption, and FDI and CO2 emissions. We found that the EKC was not valid for Ghana, but the pollution haven hypothesis was confirmed for Ghana. We therefore conclude that ‘One district one factory’ policy would only be beneficial if Ghana attracts cleaner industries, environmental regulations get much stringent, and environmentally related taxes are elevated.

Impacts of Foreign Direct Investments (Fdi) on the Nigerian Economy

Foreign Direct Investment (FDI) is real investment interaction of the rest of the world with domestic economy. Whether this interaction mar or make economic growth depends on the area of strength of each country and usage. The relative increased trend of FDI into the extractive industry especially during the present democratic dispensation compared to the non – extractive sectors pose a question as to whether the quantum add the same way to economy growth in the country, hence this study. The study was meant to determine the effect of foreign direct investment on the Nigeria economy with the ultimate purpose of looking at the relative performance of foreign firms in both the private and public sectors of the economy, determine the relationship between foreign investment and growth of Nigerian economy, as well as evaluate the various contributions of FDI to technological and expertise base of Nigeria. To enhance efficient and effective prosecution of the study, a total sample size of fifty(50) respondents out of a total population of one hundred (100) staff of the foreign exchange market and banks ( both senior and junior were selected for the study). The investigation made use of both primary and secondary sources of data. While text books, journal articles, and other internet materials were reviewed for secondary data, personal Interviews and questionnaires were also used as instruments to gather primary data for the work. A total of nine (9) research questions and two (2) research hypotheses were formulated and used in this study, just as the study was based on stratified random sampling design. Some of the major findings of this work include that FDI; has significant impact on economic growth of Nigeria, accelerates infrastructural development in Nigeria, contributes to the development of Nigeria economy, has positive and negative Impacts on an economy, is adequately spread to all the sectors of Nigerian economy, represents a cornerstone strat