FDI Trends Research Articles

Navigating Socio-Economic Forces: Understanding FDI Patterns in OECD Economies

This study investigates the FDI patterns’ ecosystem within the OECD regions. The goal is to understand the multifaceted interaction of socio-economic mechanisms driving such patterns. Using a quantitative survey that incorporates patterns of the past and dynamics of the present, the research paper discusses the role that FDI flows in OECD countries have played throughout history. The way study employs OECD data, national data, as well as relevant international institutions such as the UNCTAD and the World Bank is the methodological framework. The analysis of both qualitative and quantitative data underpins the study through the methodology which pays particular attention to the correlation analysis, linear regression, and multiple regression within its framework. The research paper was based on a sample of 38 economically diverse OECD member states and looks into what factors promote foreign direct investment inflows and outflows, and what these could be, for instance, the economic size, level of industrialization, and how the trade is shared across regions. Besides, the study also points out some areas that would be worthy of adding to the list of questions to explore, for example, digital transformation, its impact on the trends of FDI, and the significance of FDI in regional economic integration. These results point to the fact that study should pay more attention to emerging socio-economic conditions and research have to adapt them when designing the policies and future strategies within the framework of international economic relations.

ЗАЛУЧЕННЯ ІНОЗЕМНИХ ІНВЕСТИЦІЙ В ЕКОНОМІКУ УКРАЇНИ: ТЕНДЕНЦІЇ, ПРОБЛЕМИ ТА ПЕРСПЕКТИВИ ПОВОЄННОГО ВІДНОВЛЕННЯ

The global environment for international business and cross-border investment remains challenging in 2023. Although the economic obstacles that shaped investment trends in 2022 have subsided somewhat, they have not disappeared. Commodity prices, which spiked during the war in Ukraine, have come down, but the war continues and geopolitical tensions remain high. Recenupheavals in the financial sector in some developed countries are adding to investor uncertainty. The purpose of the study is to identify trends, diagnose problems, and develop promising directions for attracting foreign investment to the economy of Ukraine. In order to solve the set goal, the following scientific tasks were solved in the course of the study: the dynamics of the inflow of foreign investments and the structure of FDI into the national economy were analyzed by regional characteristics and by types of economic activity; the deterioration of the investment attractiveness of the national economy due to the reduction of the stock of FDI of Ukraine and the decrease of the index of investment attractiveness is substantiated; identified the strengths and weaknesses, opportunities and threats of attracting foreign investments to the economy of Ukraine based on the results of the SWOT analysis. In order to solve the set goal, the research determined FDI trends in the national economy and made conclusions about "investment shocks" associated with the global financial crisis of 2008, the start of the war in Donbas, COVID-19 and the full-scale war in Ukraine. This conclusion was reached by comparing the dynamics of the Investment Attractiveness Index of Ukraine with the flow of FDI into Ukraine, the trends of which were synchronized. For greater thoroughness of the research, the main foreign investors in the corporate segment were identified by the authors as companies (brands) that already had facilities in Ukraine at the time of the full-scale war and corporations that announced their intention to reinvest funds in Ukraine to support their assets. The authors substantiated the strengths and weaknesses, opportunities and threats of attracting foreign investments to the economy of Ukraine based on the results of a SWOT analysis.

Environmental perspectives on the impacts of trade and natural resources on renewable energy utilization in Sub-Sahara Africa: Accounting for FDI, income, and urbanization trends

Trade has remained a pivotal ingredient to the economic prosperity of many resources rich Sub-Sahara African (SSA) states over the years. However, an examination of the environmental aspects of trading activities amidst vast natural resources is critical to positioning Sub-Sahara African states on environmental sustainability path in their quest for economic prosperity. Unlike most extant studies that only focused on fossil energy facets of energy consumption, this study provides a synthesis of the impacts of trade and natural resources on renewable energy consumption in a bid to address environmental sustainability challenges in the SSA region. The empirical dissection hinges on the ARDL approach for available renewable energy consumption data while incorporating other relevant factors like the SSA's income level, FDI, and urbanization trends among the countries. From the results, the duo of openness to trade and urbanization posits significant detrimental impacts on the level of renewable energy consumption in the SSA region, while the impacts created by resources rent on renewable energy consumption level were insignificant. Conversely, a rise in income level alongside higher FDI was observed to be leading to a significant positive effect on renewable energy utilization with estimated long-run elasticity of ∼0.126 and ∼0.105 respectively. This implies that poverty reduction and foreign capital inflow can significantly boost the adoption and use of renewables in the SSA. As such, policy frameworks to harness essential FDI inflow for environmental benefits in view of clean energy consumption amidst vast resources were highlighted for the SSA authorities, while also emphasizing the need to guide against potential regional pollution haven tendencies.

FOREIGN DIRECT INVESTMENT AND THE IMPACT ON EXPORTS AND GDP GROWTH. A BRIEF GLOBAL PERSPECTIVE

People have been moving from one area to another since ancient times in order to exchange products from one nation with those from another in order to obtain what was lacking in the nation where they resided. These were the first product-to-product trades, and the latter was placed into circulation on money as a product-to-product trade. These early types of commerce have evolved significantly, and they continue to do so now as capital flows from one country to another. This phenomenon, which has influenced worldwide economic growth and improved living standards, saw significant expansion in the twenty-first century in the form of loans used to fund economic development in many nations, as well as ownership of financial assets. In the present era, domestic capital is insufficient for countries to thrive and remain competitive in global markets. For emerging economies, foreign investments that enter the host country as debt or money are crucial financial resources. In this paper, we will discuss the data on the development of exports and FDI of 22 countries from around the world and analysed the evolution of FDI, GDP and exports over a period of 40 years to see trends and patterns of FDI and Exports and their contribution to the economic growth of countries. Broken up in groups, the paper will compare and assess certain countries/regions, grouping and pairing them with economies or countries of similar growth/stance. Corroborating this statistics with recent global events and based on the previous statistics, this paper will try to predict the future trends of FDI around the world.

Role of Foreign Direct Investment in Indian Agriculture

The paper basically explains the nature and trends of FDI inflows in agriculture and subsectors of agriculture in India under two broad ways. In the first case, the linear trend was examined utilising linear semi-log regression model. In the second case, the nature of cycle and the cyclical trend were found out by applying H.P. Filter model. The linear trend, cycle and cyclical trend of FDI inflows in India in agriculture during 2000-01-2017-18, agricultural services during 2001-02-2021-22, agricultural machinery, tea and coffee, food processing, sugar and fertilisers respectively during 2005-2018 have been computed. Yet, the paper included the nature of global FDI inflows in agriculture very briefly. The paper observed that the linear trends in FDI in agriculture, agriculture service, food processing have been increasing significantly in which their cycle and cyclical trends are significantly meaningful. On the other hand, the linear trends of FDI in tea and coffee and agricultural machinery have been declining insignificantly in which their cycles and cyclical trends are significant in H.P. Filter model. However, the linear FDI trends in sugar and fertilisers sectors have been stepping up insignificantly. Their cycles and cyclical trends revealed insignificant. In the second part, the paper examined the nexus between the gross value added in agriculture and FDI inflows in agriculture from 2000-01-2017-18 and agricultural service during 2001-02-2021-22 using double-log regression model and found out that there is positive relation between them which indicated a stable model. The paper included some important policy measures for India.

Causal Relationship between Foreign Direct Investment and International Trade in Nigeria

International Trade and Foreign Direct Investment plays significant role in nation’s economic development, especially the developing countries of the world among which we have Nigeria economy. More important to the increasing trend and significance of FDI and Foreign Trade are the concept of substitutability and/or complementarities of these two economic agents and thus the need to examine the nexus between them using the data from 1970 and 2019. The study adopted Johansen co-integration test to confirm the existence of both long-run relationship among the variables while two different approaches of time and frequency domains were employed to uncover the direction of causality between the variables. The time domain approach used was VECM granger causality test while the frequency domain approach used was Breitung-Candelon causality test. The Johansen co-integration test outcome reveals the existence of positive long-run relationship between foreign direct investment and export and a negative long-run relationship between foreign direct investment and import. Finding further reveals unidirectional causality between FDI and import in the long run running from FDI to import, but there is bi-directional causality between FDI and export in the long-run. Also a unidirectional causality exists between Export and Import running from Export to import. This study concluded that FDI in Nigeria is favourable, with the positive long run relationship between FDI and export and negative long run relationship between FDI and import, and therefore suggest that the Government should come up with policies that will help the inflow of FDI into the economy.

Digital FDI and economic recovery post-covid-19 pandemic: the case of the United Kingdom

The objective of this research is to analyze trends of Digital FDI in the United Kingdom, and its role in post-COVID-19 pandemic economic recovery. The results of this research suggest that digital FDI will be a key driver of economic growth after the pandemic. Therefore governments must adopt policies and measures to create a favorable environment for digital FDI. Following a resilient success in 2019 in attracting FDI, and with investors seeing the country as likely to recover its attractiveness faster than the European average post-COVID-19 crisis, the UK starts from a strong base.

THE IMPACT OF REPETITIVE XENOPHOBIC ATTACKS ON FUTURE FOREIGN DIRECT INVESTMENT: A CASE OF SOUTH AFRICA

The debate of the link between xenophobia and importance of foreign direct investment is of interest. A phrase says it all, “One cannot want foreign money and hate foreign businesses at the same time.” Does South Africa, as a country, love foreign investment, and by extension, foreign investors? A ‘yes’ and a ‘no’ answer will do for this question. Foreign direct investments are the most desirable form of capital inflows to emerging and developing countries. Many benefits are linked to accrue to a nation because of FDI inflows. FDI is climatic sensitive, and usually goes where it is wanted most and where conducive environment prevails. The South African nation is dominated by unending violence that also targets foreigners including their businesses. Effective policies to curb xenophobia seems to be lacking. There exist xenophobia denialism among the political leaders, making it more difficult to halt the problem. Letting the nation continue turning into a hostile destination for foreigners may pose a great investment challenge in the longer term. The path that South Africa is walking today, of protecting and failing to address issues of xenophobia, have a long term impact to investment in the country. Conflicts and violence attacks, hence xenophobia, continue to affect FDI flows several years into the future. The trend of net FDI has already shown a downward trend that may be attributed to issues of unrest persistent in the economy. The study strongly indicate that repetitive xenophobic attacks significantly impact future FDI inflows negatively. Immediate action is required to minimize the damage caused by xenophobia in the country. Investment climate restoration is required to ensure favorable economic growth path for the country. KEYWORDS: Economic Growth, Foreigners, Foreign Direct Investment, Instability, Investment, Investment Climate, Socio-economic Development, Violence, Xenophobia, South Africa

CHINA’S INVESTMENT CLIMATE AND IT’S CONTRIBUTION TO THE GLOBAL SUSTAINABLE DEVELOPMENT ACHIEVEMENT

The article analyzes the factors affecting China’s investment attractiveness, the features of creating a favorable investment climate in China, and investigates new trends of FDI in China. The article highlights the main directions of attracting foreign direct investment in the Chinese economy. The paper aims to systematize the theoretical aspects of the state’s investment attractiveness and analyze the investment attractiveness of the Chinese economy at the present stage of development. The purpose of the article is to determine the PRC’s contribution to global sustainable development, taking into account the fact that the PRC is strengthening its position in the world arena due to the inflow of foreign investments. The article initially examines the role of foreign direct investment in the development of the state’s economy. Each country has a specific approach to attracting foreign investment, which is predetermined by the level of socio-economic development, the degree of external openness, and the established objectives. Therefore, the first stage of the research was an analysis of investment inflows and outflows. Changes that took place due to the implementation of the “open door” policy were considered. Then the advantages and disadvantages of China’s policies aimed at stimulating foreign investment were analyzed in detail. We studied the state and dynamics of investment processes in the PRC, examined the specifics of the regional and sectoral structure of foreign investment in China, evaluated the economic essence and classification of foreign investment, forms and methods of state regulation of foreign investment, as well as some aspects of the legal regulation of investment activity in China. We have systematized the main advantages and risks of the PRC investment climate. It was found that, despite the significant investment attractiveness of China, there are many investment risks. Still, the Chinese government continues reforms aimed at improving the investment climate of the state. A review of China’s position in the ratings of investment attractiveness, such as the Ease of doing the business score, the Global Competitiveness Index, and the Global Sustainable Competitiveness Index was carried out. It was made an intermediate conclusion that foreign capital is increasingly rushing to developing countries, especially to the dynamically developing economies of the BRIC countries, the undisputed leader in attracting foreign investment among which is China. The work results give every reason to predict the growth of foreign investment in the PRC’s economy since the country is characterized by stable and positively dynamic development. It is also assumed that the inflow of investments into the PRC’s economy is reciprocal since China is smoothly turning from a recipient of investments into an investor ready to contribute to global sustainable development.

"유럽연합(EU)의 대(對)한국 FDI 동향 분석과 코로나19 이후 유치 확대 방안"

본 연구의 목적은 유럽연합(EU)의 한국에 대한 FDI의 동향을 분석하고 코로나19 이후 유입 확대 방안을 제시하는 것이다. 한-EU FDI의 결정요인이나 추이에 대한 정량적 분석을 시도하지 않고 동향 분석과 전략적 대응책을 제시하는 정책연구이다. 코로나19의 영향으로 이후 글로벌 투자 정책과 트렌드에는 구조적인 변화가 야기될 것이다. EU는 한국에 대한 FDI 최대 투자국이지만 유입의 변동성이 크다. 절충이론에 따라 FDI의 복합적인 결정요인을 고려하더라도 공급자 중심의 관점에서는 FDI의 질적 확대 전략을 추진할 수 없다. 한국은 디지털 전환 시대의 산업 혁신 및 구조조정과 연계되는 융복합적인 FDI 유치 전략을 추진해야 한다. 코로나19 이후 글로벌 환경 변화에 선도적으로 대응하기 위해 EU에 대한 산업별 필수 FDI 수요 지도와 실천 로드맵을 작성함으로써 FDI 유치 체계를 혁신하고 이행 실효성을 높여야 한다. 수요자 중심적인 제안형 FDI를 활성화하기 위해서는 한-EU FTA 이행점검 체계와 연계하여 양국 간 협력관계를 강화할 필요가 있다. 금융 세제 지원을 포함한 혁신적인 지원 특례를 적용해야 할 것이다. 한국이 EU에 배타적 인센티브를 제공함으로써 수요 중심의 FDI의 질적 확대가 가능할 것이다.

FDI Trends and Characteristics in Kosovo

Abstract In recent years, Kosovo has had a strong volatility in attracting foreign investment into the domestic market, which has been accompanied not only by the decline in FDI flows but also by the quality of investments. Kosovo has not been able to catch the trend of FDI absorption just as it takes place in an important part of developing economies; it is also failing to follow the success of neighbouring countries. The success of further development of Kosovo’s economy cannot be imagined without the strong presence of foreign-owned businesses as a guarantee that this goal will become objectively achievable. The aim of the study is to examine recent trends and characteristics of FDI flows and patterns in Kosovo. This study adopts a qualitative research method using secondary data taken mainly from Kosovo’s Central Bank and Business Registration Agency. The present study concludes that FDI in Kosovo is mainly oriented to the Real Estate, Rental and Business sectors. Moreover, the main FDI contributors are businesses from the EU countries and Turkey. A majority of FDI inflows in Kosovo have been predominantly dominated by five countries.

FDI Trend and Its Contribution Toward Labor Absorption in East Java

This study aims to examine and analyze the effect of investment through number of FDI project and amount of FDI capital toward labor absorption and its trend and distribution at East Java Province in Indonesia. The study period was eighteen years from 2000 to 2017 by using secondary data of Principal License issued by Indonesia Investment Board in the form of combination between times series data and crosssectional data (5 cities/regencies in East Java) also known as panel data. Hypothesis testing in this study is conducted by using Panel Data Regression Model under Eviews 7. Test of 2 (two) hypothesis with level of significance α = 0.05 obtained the following results: First, amount of FDI capital has a positive but not significance effect on labor absorption. Second, number of FDI project has a positive and significance effect on labor absorption. The distribution of FDI in East Java still in disparity, only spread in some big cities/regencies (Surabaya, Sidoarjo, Gresik, Pasuruan and Mojokerto) with sector preference about secondary industry such as chemical industry, metal industry, food industry, other industry and trade and reparation.

FACTORS AFFECTING INWARD FOREIGN DIRECT INVESTMENT: CASE OF ASEAN COUNTRIES

The goal of this study is to identify the determinants of foreign direct investment in members of ASEAN countries (will be known as ASEAN-9 and ASEAN-7 from 1990 to 2017 by using Pooled Least Square as the model.The results show that market size, trade openness, infrastructure, research & development, and inflation have positive effects on inward FDI which can be considered as determinants of FDI. On the other hand, human capital and real interest rates show a negative sign.This study also discussed the FDI trend after the global finance crisis in 2008. The results indicate that the annual trend for FDI after 2008 is positive, which means there is no big impact from the global financial crisis of 2008 on FDI inflows.Based on the results, GDP, infrastructures, and trade openness become the important factors to attract foreign investors. Therefore, government can improve through policies, such as easing trade procedures, or improving the quantity and quality of the infrastructure.The difference finding is found on the negative result of human capital effect on inward FDI. Thus, the quality of human resources still needs improvement because it can improve thelow-tech into high-tech destination countries for FDI.

The Past, Present, and Future of FDI: Towards a better Global Economics

We document past, present, and future of FDI trend in recent decades that goes substantially beyond the advanced economies. This rigorous study also examines the influence of FDI on economic growth using macro variables for a global perspective. Six macro variables namely, FDI, physical capital, trade, human capital, labor force, and infrastructure were used in this study. We did a panel analysis on data from 2002 to 2017 and used rigorous two-way fixed effect model. This study finds that both FDI and trade openness enhance economic growth. Open door policies are more beneficial for the entire world; capital also plays a significant role in this process. Further, FDI plays a role with human capital but vocational training, skilled labor force and education are the most important factors to attract FDI. In the last decade, overall sub-Saharan African, EU and Central Asia, Latin America and Caribbean regions have observed a significant economic growth through FDI. The future of FDI in a high populated area is very gleaming. The overall result indicates that FDI accelerates economic growth in the globe.

Determinants of outward FDI from emerging economies

Research background: The last four decades have witnessed an upsurge of multi-nationals from emerging markets alongside a narrowed gap in growth prospects between developed and emerging economies. UNCTAD statistics show that FDI flows from emerging economies have gone steady since 1980 and occupied more than one fifth of global FDI stock in 2015. Japan led the reverse FDI trend when it started to invest abroad in the 1960s and 1970s. Two decades later, in the 1980s-1990s, the reverse FDI trend was continued by so-called Asian tigers, then recently by those rapidly-industrializing economies in Southeast Asia as well as China and India in East and South Asia.
 Purpose of the article: The main goal of this paper is to contribute empirically to the study of the determinants of FDI outflows from emerging economies.
 Methods: In order to derive empirically testable hypotheses this paper refers to theoretical Knowledge-Capital model developed by Markusen (2002). The model is estimated using the Poisson-Pseudo Maximum Likelihood estimation technique. The specific research hypotheses derived from the theory are verified using a panel dataset of 38 home emerging countries and 134 host countries over the period 2001?2012.
 Findings & Value added: In this paper, we distinguish between horizontal and vertical reasons for FDI. Our estimation results support the hypothesis that main-stream theory of multinational enterprise can explain FDI flows from emerging economies, implying the significant roles of total market size, skilled-labor abundance, investment cost, trade cost as well as geographical distance between two countries.

FOREIGN DIRECT INVESTMENTS UNDER IMPACT OF POLITICAL RISKS: THEORETICAL SURVEY

Beyond well-known economic indicators, political structure and social characteristics of a host country also have special importance for investors’ decisions. Political risk indicators cover mainly democratization level, political/government instability, war, immigration problems, problems with neighboring countries, internal and external conflicts, corruption level, military and religious influence on politics, law and order, ethnics tensions, property rights protection, national security and geographic situation - all of these factors also deeply affect decisions on FDI. Also, some basic social characteristics for host countries can play the catalyze role for FDI, such as literacy rate, education opportunities etc. The aim of this study is to examine theoretically the relationship between political and economic risks on the one hand with FDI on the other. It is aimed to show the theoretical background for the political and economic risk factors. Statistical figures on the FDI trends worldwide will be also presented.

Trend of FDI and Economic Growth: A Study on Bangladesh

Trend of FDI and Economic Growth: A Study on Bangladesh

Tendencias de la industria del automóvil en Guanjuato, México

Abstract The objective of this article is to analyze the trend of Foreign Direct Investment (FDI) in the state of Guanajuato, in particular, that attracted by the automotive industry during the period 2000-2016. This study uses a quantitative methodology to describe the behavior and general trends of the total fdi flows, the data used were gathered from official statistics sources and the results from a research project carried out from 2014 to 2017. The main conclusions drawn are: FDI in the automotive industry has allowed Guanajuato to become one of the main emerging and dynamic center of this sector in Mexico. There is a positive impact on the economic development of the State, measured through created employment, exports, and economic growth, among others. The main factors that have promoted the FDI flows are: a) infrastructure, low wages, skilled workforce, etc., and b) State industrial policies have implemented attractive incentives for the companies. JEL Classification: F21, L62, L52 Resumen El objetivo de este articulo es analizar la tendencia de la Inversion Extranjera Directa (IED) en el estado de Guanajuato, en particular, la recibida por la industria automotriz durante el periodo 2000-2016. Este estudio utiliza una metodologia cuantitativa para describir el comportamiento y las tendencias generales de los flujos totales de IED, los datos utilizados se obtuvieron de fuentes estadisticas oficiales, asi como de un proyecto de investigacion llevado a cabo de 2014 a 2017. Las principales conclusiones son: la IED recibida por la industria automotriz ha permitido que Guanajuato se convierta en uno de los principales centros emergentes y dinamicos de este sector en Mexico. Existe un impacto positivo en el desarrollo economico del Estado, medido a traves del empleo creado, las exportaciones y el crecimiento economico, entre otros. Los principales factores que han promovido los flujos de ied son: a) infraestructura, bajos salarios, mano de obra calificada, etc., y b) las politicas industriales estatales han implementado incentivos atractivos para las empresas.

Foreign Direct Investment and Economic Stability: The case of Arab Peninsula

Abstract Purpose – The purpose of this research paper is to present the study regarding foreign direct investment and its relationship with economic stability. The case of Arab peninsula is discussed throughout the paper. Methodology – The secondary research design was selected and the exploratory study was conducted. The time series analysis was presented by exploring the FDI investment in Oman, Jordan, Saudi Arabia, Kuwait, Bahrain and Qatar. The data three-year data was collected by studying the FDI investment reports shared by Santander Trade. Findings – The findings of study presents the information regarding increase and decrease in FDI in countries from Arab Peninsula. The findings show that Qatar, Kuwait and Bahrain are able to accelerate their FDIs due to political and economic stability, but Saudi Arabia, Oman and Jordan are having downward FDI trend. Implications – This paper benefits academically and practically by providing the three years trend which can help investors to explore the favourable countries within Arab Peninsula for FDIs. On another side, the academic practitioners can utilize this study to conduct the future study by comparing least and most significant countries within Arab Peninsula for foreign investments.

Foreign Direct Investment Dynamics in Hungary

The study discussed the dynamics of FDI in Hungary during the period from 1991 to 2015. The impact of FDI, FDI trends and determinants of FDI in Hungary were discussed. Empirical literature observed that FDI positively influenced economic growth in Hungary through boosting human capital development levels, total factor productivity, economic transformation, innovation, research and development, additional capital in the economy, modern technology, increased volume of additional capital and technology transfer. The study also revealed that most of the net FDI inflow into Hungary originated from developed countries and the least FDI net inflow came from transitional economies during the period under study. The general trend of FDI net inflow into Hungary followed a mixed pattern, with some years experiencing a positive net FDI inflow whilst other years were characterised by negative net FDI inflows. What is clear however is that FDI net inflow was consistently positive and experienced a positive growth following the integration of Hungary into the EU bloc of countries? The accession of Hungary into the EU removed barriers for the movement of capital, people, goods and services within the EU, reduced the cost of doing business and improved trade openness. These are the key locational advantages of FDI which improved FDI inflow into Hungary for a sustained period of time after the EU accession. The study also empirically tested the determinants of FDI in Hungary using the OLS multiple regression model with data ranging from 1991 to 2015. In contradiction to most previous studies on the subject matter, trade openness and financial development were found to have had a negative influence on FDI. The study also observed that inflation had a positive influence on FDI, contrary to Sayek (2009) who revealed that higher inflation levels erodes the foreign investors’ profits, thereby making the host country not an attractive investment destination. However, exchange rate, education and economic growth had a positive but non-significant impact on FDI in Hungary, consistent to both theoretical and empirical literature. The implication of the study is that the Hungarian authorities are urged to design and implement policies aimed at improving education and economic growth in order to attract more FDI. Practical steps need to be taken by the Hungarian authorities in making sure that the value of the local currency is not overvalued and that trade openness is controlled and managed so that it does not reach a point where it begins to negatively affect FDI inflows.