Foreign Direct Investment Trends Research Articles

Emerging Trends of Foreign Direct Investment in Developing Asian Economies with Special Reference to India

There has been a dramatic shift in the attitude of developing countries towards FDI in recent years. Most of the developing countries have adopted a much more favourable view of Foreign Direct Investment (FDI) inflows. Globalisation exposed the markets of developing countries to foreign shores. In this paper an attempt has been made to study emerging trends of FDI inflows in developing Asian economies from the year 1990 to 2015. Regional Distribution of FDI at global level and FDI policy reforms in India has also been highlighted. Study revealed that developing countries are growing at relatively faster rate than developed countries. Changes in international regulatory environment have helped in gathering momentum of FDI inflows in the developing Asia where a steady rise in FDI inflows has been witnessed due to existence of comparatively sound macroeconomic environment required for attracting the FDI inflows.

ATTRACTING FOREIGN DIRECT INVESTMENTS: THE CASE OF LATGALE REGION

Recent theoretical and empirical studies show that foreign direct investment (FDI) is crucial for sustainable development of countries and regions. The various discussions among the regional development institutions in Latvia on the importance of improving the environment for successful attraction of foreign investments have been initiated, as well as new strategic initiatives are in the process of development. The aim of the paper is to analyse the latest trends of inward FDI flows in Latvia and Latgale region in the context of global FDI trends. To attain the aim, the global FDI trends, the inward FDI flows in Latvia and Latgale region, as well strategic framework of Latgale region for attracting FDI were analysed.

A Journey of Growth of FDI (Foreign Direct Investment) in Indian Retailing

Foreign Direct Investment (FDI) in retail has recently generated tremendous high spirits for a few and concern for others. It is supported that it will open floodgates for foreign retailers to speculate and can modification the retail landscape forever in India. FDI in retailing is much talked concerning subject by politician, media, trade specialist and industry experts. The Indian Retail market particularly the small Kirana store is not so well known by the actual means of FDI. The views given by politicians on the topic are terribly numerous and changes from party to party and person to person that has supplementary confusion in mind of those individuals. Retailing in Indiais the pillar of economy and accounts for about 22 percent of its GDP. The Indian retail sector is estimated to be US $500 billion and one of the top five retail markets in the world. India is the fastest growing retail markets in the world with 1.2 billion people.The Retail Business in India is presently at the point of inflection. As of 2008, speedy amendments with investments of US $ 25 billion were being planned by many Indian international firms within the next 5 years. The present study intends to explore the growth trends of FDI in Indian retail sector and also determine the SWOT (Strengths, weaknesses, opportunities and threats) analysis of Indian retail Industry.Int. J. Soc. Sci. Manage. Vol-3, issue-2: 129-134

Impact of Foreign Direct Investment on Indian Economy

In Indian economy, Foreign Direct Investment has generated a lot of euphoria. Foreign direct investment (FDI) has been one of the defining features of the world economic system during the final two decades. The purpose of this paper is to provide an overview of the impact of foreign direct investment in Indian economy. Since 1991, after the introduction of LPG the flow of foreign direct investment (FDI) rapidly spread out across India; this increase was induced by an increase in mergers and acquisitions activities. This trend is gaining force, as Indian Government started to ask a question: What is the impact of FDIs in our country's enduring economic growth? Whereas the traditional and the purchasing power theory had it that could become the engine of growth for India through the transfer and diffusion of knowledge, there is now an increasing need to assess this claim by finding out the growth trend of FDI in India. This research report proposes to study the impact of FDI on the Indian economy, especially after two decades of economic reforms, and breaks down the challenges to position itself favorably in the worldwide competition for FDI.

Ties of Visegrad Countries with East Asia - Trade and Investment

As a consequence of the European recession, interest of Central European firms has increased towards Asian markets. Trade and investment relations seem to have intensified between the four Visegrad countries and East Asia. This paper aims to analyse trends of foreign direct investment and the development, geographical and commodity structure of the mutual trade. Our paper also briefly outlines the economic policy of the given countries for the further development of Visegrad-Asian relations. The applied method is the statistical analysis of Eurostat and National Bank data as well as Chinese statistics. Our main findings are the following: first, trade between the Visegrad region and East Asia is largely influenced by multinational companies in global value chains; second, these networks have interlinked the two regions increasingly strongly in the past years; third, the pattern and intensity of connection to multinational networks vary among Visegrad countries. Based on these findings we propose an economic policy that – apart from the support of local small firms – considers the efficient participation in global value chains.

Chinese and South Korean investment in Poland: a comparative study

The paper is a comparative study on Chinese and South Korean foreign direct investment (FDI) in Poland. The comparison is presented in the broader context of Poland’s systemic transformation and the accession to the European Union, and comprises the FDI inflows into Poland. The characteristics of Chinese and South Korean companies operating in Poland include their entry strategies and motives of investment. A special attention is paid to linkages between FDI trends and trade, given a huge Poland’s trade deficit with Asian countries. The paper also analyses the incentives used by the Polish government and local authorities to increase Poland’s attractiveness as a location for foreign investors, mostly tax preferences in the economic special zones.

Role of Foreign Direct Investment in Accelerating Economic Growth of India

Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a major source of nondebt financial resource for the economic development of India. Foreign companies invest in India to take advantage of cheaper wages, special investment privileges like tax exemptions and others. For a country where foreign investments are being made, it also means achieving technical know-how and generation of employment. The continuous inflow of FDI in India, which is now allowed across several industries, clearly shows the faith that overseas investors have in the country's economy. The Indian government's policy regime and a robust business environment have ensured that foreign capital keep flowing into the country. The Government of India has taken many initiatives in recent years such as relaxing FDI norms across sectors such as defen, Public Sector Units oil refineries, telecom, power exchanges and stock exchanges, among others. This research articles aims to examine the impact of FDI on the Indian economy and contribution of FDI in different sectors. The present study is not only confined to evaluate the impact of FDI on gross domestic product but also to analyse the trend of FDI in India. The study has focused on the trends of FDI flow in India during 2000–2001 to 2014–2015 (up to June, 2015). It is mainly based on secondary source of information, and the relevant secondary data have been collected from various publications of Government of India, Reserve Bank of India, UNACTD's World Investment Report (2015) published by United Nations different journals, FDI fact sheets and others. During the liberalised era, India has attracted huge quantum of funds in the form of FDI; while the performance of FDI has been impressive and satisfactory, on several other fronts, it has been inadequate also.

Impact of Foreign Direct Investment on Economic Development of India

‘Globalisation’ and ‘Liberalisation’ constitute the central theme of economic policy in nearly all developing economies now. It is more so in the context of Asian countries. These economies have launched great plans for speedier development of infrastructure and industrial growth in recent decades. As developing economies in general and Indian economy, in particular, have pitched high hopes of support from the foreign direct investment (FDI) in development action, foreign investors see great potential of growth in India and find Indian policy favourable towards foreign investment which allows an equal level playing field for them. This article tries to assess the role of FDI in India and its prospect in future. It also attempts to define FDI, and spell out its characteristics, trends of inflow, participation investing partners and states of ‘Make in India’ move with FDI trends. This article also explains the nature of obstacles on way for large-scale FDI inflow in India.

FDI Inflows in India:Trends and Determinants

The paper analyzed the sector and country wise trend of foreign direct investment (FDI) inflows in India from 1991-92 to 2012-13. The paper found negative trends in sectors such as electrical equipment, transportation, chemicals, food processing and positive trend in the metallurgical and service sector. The paper also investigated the determinants of FDI inflows in India since 1980-81. The study was conducted taking data from various secondary sources. The study used OLS method to estimate various parameters of the determinants of FDI inflows. The paper found that lagged FDI inflow (one period), inflation rate, share of manufacturing sector in GDP, interest rate, per capita income were significant determinants of FDI inflows in India (except occurrence of riots). The variables taken showed expected signs, including the occurrence of riots. The paper included one dummy variable since 1991 to examine the impact of liberalization policy on FDI inflows and found that the variable was significant. This means that liberalization of the economy has increased FDI inflows in India.

Why hasn’t Macedonia succeeded for a long time in absorbing Foreign Direct Investment

Recently almost all countries of the world without exception developed countries or the developing countries are attracting foreign direct investments. The reason is that there is no dilemma that benefits of foreign direct investments in the host countries as well as domestic countries are greater than the damage that can have.Western Balkan countries also follow this trend for attracting foreign direct investment. Some of them have achieved notable successes, while the others have achieved less success. Macedonia is a country that during the last two decades ranks among the countries with smaller foreign direct investments.In the paper which I have chosen to analyze, in the start I gave a general overview of the meaning, role and importance of foreign direct investments for economic development of a country. Later I have analyzed the trend of foreign direct investments in the region, and especially in Macedonia. At the end sought and given reasons of locking foreign direct investment in Macedonia and recommendations to overcome such a situation.

Intercultural literacy is critical to success in a foreign country

As the growth trend of foreign direct investment continues, Kazakh managers are challenged to develop their abilities to adapt to the new cultural environment To that end, Kazakhstan business schools should help their students develop cross-cultural skills that are necessary to deal with people from different cultures. The article determines the importance of English language as the lingua franca in the modern international business. The knowledge of English provides crucial understanding, making effective decisions and establishing cooperation. Intercultural literacy provides business students with an opportunity to experience the details of other cultures through the establishment of a friendly relationship with members of another country.

An Investigation of the Impact of Foreign Direct Investment on Economic Growth: A Case Study of Mauritania

Purpose: This paper aim to investigate the impact of Foreign Direct Investment (FDI) on the economic growth of Mauritania for the period 1976 to 1995 quarterly data. It evaluated the Gross Domestic Product (GDP) performance and the trends of FDI and Gross Fix Capital Formation (GFCF) in Mauritania. Methodology/sample: to demonstrate the relationship between Mauritanian Gross Domestic Product (GDP) and Foreign Direct Investment (FDI) and Gross Fix Capital Formation (GFCF) Multiple-Regression-Model has been applied along side with various econometrics techniques such as Unit-Root Test, Granger-Causality Test and Ordinary Least Square (OLS). GDP in this model is used as dependent variable whereas FDI and GFCF are measured as independent variables. Findings: According to the results, Unit Root Test indicated that all the variables included in the model were not stationary at level except FDI, whereas GDP and GFCF are stationary at first difference. The model is overall significant with the positive and significant relationship of GDP, FDI and GFCF (divya). Result also indicate a good fit for the model with R2=85%. The Granger Causality Test revealed that there was no causality between the variables since all p-value obtained are more than 5%. Practical implications: Based on the empirical result of this paper, policy recommendation proposed that for Mauritania to generate more foreign direct investment, hard work should be made at solving problems of government involvement in business; relative closed economy; corruption; weak public institutions; and poor external image, and political instability.

FDI in Africa: A Comparison of the Indian and Chinese Experience

Over the last decade there has been a gradual but marked shift in the main donors of FDI funding for Africa from the traditional western developed countries to the BRICs nations. India and China in particular have become significant players in the continent. How far this altered trade and investment relations is assisting the creation of opportunities or posing new challenges for the African economy has attracted considerable scholarly and government attention. While it is obvious that any increase in FDI is welcomed by Africa as it helps boost economic growth and development, there are also concerns about the exploitation of natural resources. It is against this backdrop that this paper seeks to investigate the nature and trend of foreign direct investments made by India and China in Africa, over the past decade. While comparing the quantitative data, the focus will be on revealing similarities and dissimilarities in the patterns of development cooperation of the two Asian giants in Africa to provide better insight on the specific consequences of Indian and Chinese FDI for economic development in Africa.

Foreign direct investment in China's real estate market

This paper analyzes the recent trend of foreign direct investment in China's real estate market (FDIRE). It develops a panel regression model to examine the determinants of FDIRE in China. It incorporates a new explanatory variable to test the difference between FDIRE in coastal areas of China and in other areas. Such variable was never incorporated in models of previous studies. The result reveals that GDP per capita and the number of foreign real estate enterprises are the most significant factors affecting foreign investment in China's real estate market. This reflects that China's economic growth and its increasingly open market have a significant contribution to the rising trend in foreign investment in its real estate market. The newly incorporated regional factor COASTAL in the panel regression model shows that FDIRE in China still concentrates in coastal areas. However, there is more investment in those fast growing areas in recent years. It is suspected that FDIRE may overheat China's real estate market. Thus the Chinese government should monitor the real estate market carefully to stabilize the house price.

Multiple Regression and Structural Analysis of Foreign Direct Investment (FDI) in Ghana (1994-2010).

Foreign Direct Investment (FDI) has been one of the topical issues in international economics, especially, from the past decade. Empirical research on FDI in developing countries, such as Ghana, has been relatively scarce even though there has been a lot of work on the trends in FDI. This study attempts to examine the trend of Foreign Direct Investment (FDI) in Ghana and its relationship with some selected economic indicators such as exchange rate, inflation, interest rates, Gross Domestic Product (GDP) as well as employment and the structural stability of FDIs with respect to the variables. Yearly data on FDI was used for the study spanning from 1994 to 2010. Results from the study indicated that FDI inflows into the country had experienced an increasing trend and undergone structural changes over the period under study. Furthermore, exchange rates and GDP growth played a significant role in attracting FDI into the country. Key words: structural change, stochastic, chow test, trend, multiple regression.

The Integration of Western Balkan Economies in Global Economic Flows

In the last decade of the twentieth century, the process of internationalization of production and trade has been intensified. It is a process of opening of national markets in terms of free flow of goods, capital and labor. Moreover, it contributes to sustainable development by offering better conditions under which goods are produced and traded. From the moment of independence countries of Western Balkan have chosen to become democratic societies followed by other advanced transition countries. All countries of the Western Balkan (WB) have accepted the market economy as the basic orientation and long-term perspective of their social and economic development. This fact constant of the new economic reality in the WB region had certain significance to their further development. The main objective of this paper is to show the effects of globalization on the level of integration of the WB in the global economic flows. This paper uses a cross-country comparison methodology and examines the following aspects: progress made with capital account liberalization on the economy of Western Balkan region, what are the changes in the structure of trade, as well as the involvement of these countries in the global financial system. The process of trade and capital-account liberalization enabled transitional countries to gradually integrate into international trade and financial flows at the end of the 1990s. The effects of such processes have been demonstrated in increased inflow of foreign direct investments, increasing international trade and increasing foreign exchange reserves.The paper is divided into five sections. Section 2 deals with the impact of capital flows on the economy of Western Balkan countries. Section 3 analyzes trends in Trade reorientation of economies of Western Balkan. Section 4 analyzes trends in foreign direct investment (FDI) flows.The findings and discussion presented in previous sections of this article ends with conclusions that the WB countries achieved significant progress in the reorientation of trade and start the process of reintegration into the international financial flows. From an economic point of view, the past decade has shown that all the WB countries largely depend on their cooperation with the EU, either through foreign direct investment, loans or grants. Effect of geographic proximity is an important factor that influenced on high level trade exchanges with the EU gave companies from EU a major competitive advantage in initiating the international expansion of their activities in neighboring countries (WB region). Thanks to the reforms and the promising economic outlook region of WB become a place where investors with regional ambitions had the greatest potential for cross border expansion. This is especially important in the context of the region's aspiration to join the EU.

Planting the Flag: Why Institutional Void Entrepreneurship Can Foster Foreign Direct Investments Inflows

The main assumption of the New Institutional Economics (NIE) is that the better a country establishes its institutional environment, guaranteeing safeguards for investments, the more investments will occur in this state. Foreign Direct Investment (FDI) inflow, for instance, depends not only on the institutional strength of the host country, but also on the entrepreneurial decision of the investor; FDI trends are derived from an entrepreneurial evaluation of institutional conditions and the possible gains and risks of performing the investment. It is therefore possible to consider “institutional void entrepreneurship,” entrepreneurs who tend to invest in states with institutional voids in order to gain extra rents by exploiting this institutional gap. Keeping this objective in mind, the present research intends to evaluate which institutional domains (legal, economic and politic) are more significant for FDI attraction. To this end, we analyse two regions, Latin America and Sub-Saharan Africa, collecting data on international organizations and executing ten econometric models, based both on ordinary last squares regressions (OLS) and fixed- and random-effect panel data. The results demonstrate that despite the importance of the institutional environment, the property rights score (legal domain) is more important than other domains. Moreover, in contrasting the two distinct environments we found that the importance of property rights can be conflicting, reinforcing the argument that institutional void entrepreneurship can flourish in regions with poorer institutional safeguards.

Regional analysis of foreign direct investment in Lithuania

Regional analysis of foreign direct investment in Lithuania

Direct investment in South East Asia by the NIEs: trends and prospects

Newly industrialising economies (NIEs) in Asia are actively investing in other countries within the region. There are two types of foreign direct investments (FDI). One is characterised by high technology transfers and financing from large companies, the other by comparatively low technology transfers from small and medium scale groups. Of the NIEs, Korea is predicted to expand its FDI within the 1990s, while Hong Kong is expected to move its industry base away from the colony. Singapore and Taiwan are both foreseen to expand into more advanced investments. Other FDI trends and patterns are discussed.

A Study on FDI Trends in India – An International Approach Towards Nation Building

India, the capital deficient country needs more capital from outside the country. Capital is one of the significant elements of factors of production. The industrial development of any country fundamentally depends on the availability of capital. Because of shortage of capital, particularly, underdeveloped and developing countries need more capital for their survival and technology for competing with other countries. Inadequacy of capital is a foremost obstacle for industrial growth of developing nations. The role of Foreign Direct Investment (FDI) is very much a significant in the economic development the country. The amount of FDI, compared to China and other developed countries is quite less. The Indian Government has reviewed policy to attract more FDI and these policy measures boosted the FDI inflows and out flows. But in the recent years, the amount of FDI has been declining. The procedures for FDI approval, environmental clearance, legal aspect, etc., are time consuming. In this paper attempt is made to analyze the direction and impact of FDI on the Indian economy. Global foreign direct investment (FDI) inflows rose 16 per cent in 2011, surpassing the 20052007 pre-crisis level for the first time, despite the continuing effects of the global financial and economic crisis of 2008-2009 and the ongoing sovereign debt crises. This increase occurred against a background of higher profits of transnational corporations (TNCs) and relatively high economic growth in developing countries during the year. The study is based on the secondary data and information.