Use Of Foreign Direct Investment Research Articles

The role of outward foreign direct investment as a filter for high energy intensity economies in the European Union

This study examines the effects of outward foreign direct investment (FDI) on energy intensity among the member countries of the European Union between 2000 and 2021. This relationship is deemed important in elucidating whether there is a process of filtering out energy-intensive companies where the use of FDI is employed to lead out production and improve energy intensity in the source country of the investment. To estimate this relationship, we employ feasible generalized least squares (FGLS) and panel corrected standard error (PCSE) for robustness purposes. Additionally, we complement our results with an estimation of the Granger causality relationships between our variables. Our findings reveal a highly significant trend wherein outward FDI from European Union countries tends to reduce energy intensity, thereby enhancing the productivity of the source countries of the investment. Conversely, only the technological productivity ratio exhibits a unidirectional causal relationship with energy intensity, while GDP per capita and natural resource rents serve as causes of energy intensity and vice versa. From this study, some policy recommendations can be derived whereby the European Union can continue to incentivize this filtering process to ensure better technological advancement in its production system, thereby improving the efficiency of the European industrial fabric.

Analysis of the Influence of FDI on Employment in China

Since the reform and opening up, China continuously improves the investment environment, the foreign direct investment (FDI) continues to grow, which has an impact on all aspects of our economic activity. In recent years, due to the influence of the novel coronavirus epidemic, China's employment situation has fluctuated to a certain extent. How to use foreign direct investment (FDI) to stabilize China's employment situation and increase the number of employment has profound practical significance. Based on this, this paper uses China's 2011-2020 provincial panel data to study the impact of FDI on employment in China. The empirical results show that FDI has a promoting effect on employment in China, and the robustness and endogeneity tests support this conclusion. In view of this, the government should make full and rational use of foreign direct investment, balance the distribution of foreign direct investment between regions, and guide the adjustment of the structure of investment introduction.

The impact of foreign direct investment on green innovation efficiency: Evidence from Chinese provinces.

Improving green innovation efficiency (GIE) is the key to achieve high-quality economic development in China, and the introduction of foreign direct investment (FDI) has become an important path choice to promote the GIE. Based on the data of 30 provinces in China, this paper explores the linear and nonlinear effects of FDI on GIE from both quantity and quality perspectives, and further analyzes the mediating role of environmental regulation level. The results show that: (1) From 2011 to 2020, the GIE of all provinces in China generally shows an upward trend. (2) The quantity and quality of FDI have a significant positive impact on the improvement of GIE in China's provinces, and this impact has regional heterogeneity. (3) The quantity and quality of FDI can promote the improvement of GIE in China through the level of environmental regulation (ER). (4) With the level of knowledge accumulation and GIE as the threshold variables, the quantity and quality of FDI have a single threshold effect on the GIE of China's provinces. The conclusions of this study provide some policy implications for local governments to make full use of FDI to perform green innovation activities.

Hurdles of Technology Transfer in Cameroon’s Petroleum Industry.

Technology (know-how) is a vital tool for the advancement and sustenance of any country especially in its petroleum sector as huge capital and technology is required to carry out crude oil extraction. In almost all African countries possessing petroleum, extraction is by multinational oil companies owned by developed countries. This is due to the fact that they possess the required technology. As such, many of these African states have included local content requirements in their petroleum legislations and one of such policies is technology transfers to enable them learn to extract their own resources. But over the years, these African states have still been unable to extract their own resources because of the lack of or obsolete technology acquired. Consequently, they still turn to multinational oil companies who are protected by international standards restricting performance requirements. Thus the desire of Cameroon and many other Africa states to tap from foreign technology has to an extent been a failure. Technologies are grouped into tangible technology such as tools, parts and finished goods, and intangible technology including patents, know-how and trade secrets. The transfer of these technologies can be achieved bilaterally, multilaterally, through commercial or non- commercial means by the use of Foreign Direct Investment (FDI) or licensing. Even though oil companies are not ready to part with their intellectual property (technology), Cameroon and many African states have hurdles preventing the assimilation, absorption and adaptation of their technology.

Research on Employment Effect of FDI in Service Industry in Jiangsu Province

 In recent years, the global foreign direct investment (FDI) has shown a “service-oriented” trend, and the labor force has gradually begun to flow to the service industry. Introducing FDI into service industry can not only absorb part of employment with its job-creation effect, but also promote the improvement of employment quality. Under the guidance of market demand and the government, the proportion of FDI in China's service sector has gradually increased, and the service sector and service trade have become a new driving force for China's economic growth. The development of service industry in Jiangsu province has always been in a leading position in China. Meanwhile, Jiangsu province is also one of the main provinces where labor force gathers. Therefore, it is of theoretical and practical significance to study the employment effect of FDI in service industry in Jiangsu Province for relieving employment pressure and promoting the efficient use of FDI. This study firstly combs the relevant literature at home and abroad, which is divided into two aspects of employment quantity and employment quality. On this basis, the paper analyzes the mechanism of service FDI's influence on employment from these two levels and constructs the theoretical basis of this study. Secondly, this study analyzes the current situation of FDI and employment in service industry in Jiangsu Province. Then, empirical analysis is made on the data of Jiangsu province from 2007 to 2020, and the conclusion is drawn that FDI in service industry in Jiangsu Province can not only promote the increase of employment quantity in service industry, but also promote the improvement of employment quality in service industry. Based on the above analysis, this study puts forward relevant suggestions on how to make more efficient use of FDI to drive employment effect in Jiangsu province.

МОДЕЛЬНЫЙ ИНСТРУМЕНТАРИЙ ИССЛЕДОВАНИЯ МЕХАНИЗМА ПОТОКОВ ПРЯМЫХ ИНОСТРАННЫХ ИНВЕСТИЦИЙ

The unstable geopolitical situation in the world, crises, the coronavirus pandemic, as well as the impact of other external effects have negatively affected the process of attracting foreign direct investment to the country. In this aspect, it is necessary to use all scientific and methodological tools, as well as elements of econometric analysis to understand how the needs of regions in the use of foreign direct investment are formed. These investments are fundamental and contribute to the integrated development of socio-economic processes and systems. The authors have identified the key needs of the subjects of the Russian Federation in obtaining foreign direct investment. A regression model of the volume inflows to the region for the current period and the division of the subjects of the Russian Federation according to the average level of foreign direct investment inflows during the period under review are presented.

STIMULATION OF INVESTMENT PROCESSES IN THE ECONOMY OF UKRAINE IN ORDER TO INCREASE ITS COMPETITIVENESS

An urgent problem facing Ukraine is the justification of the need to stimulate investment processes to increase its competitiveness and gain a strong position in the international market. After all, ensuring the competitiveness of the economy is a priority of any state that cares about its place in the world market and its economic growth. The level of investment significantly depends on the economic attractiveness of Ukrainian enterprises, as competitive enterprises are an important factor in the success of investors. The formation of the country’s investment attractiveness is necessary to ensure its competitiveness, solve social problems. Effective use of foreign direct investment in the national economy can be an important factor in accelerating economic growth, optimizing the reproductive structure of the economy, solving many other strategic tasks. Accumulated foreign investment is one of the indicators that reflects the level of integration of the country into the world economy, the development of its foreign economic relations and the desire to create an open, export-oriented model of the economy. Ukraine lags far behind most countries with economies in transition in this regard. The paper presents the results of research by leading organizations on the investment attractiveness of Ukraine in 2020. It is established that increasing the country’s competitiveness entails an increase in investment. It is determined that the need for sustainable economic growth, which contributes to increased productivity, remains critical to improving living standards. Ways to improve the investment climate in Ukraine are proposed. The results of the work are a system of proposals to improve investment activity.

Colonialism to Neo-Colonialism: The Chinese Use of Foreign Direct Investment and the Case of Pakistan

The practice of neo-colonialism was initially introduced by the United States through the establishment of institutions like the Bretton Woods Institutions (IMF and World Bank) and continuing the legacy, China soon took over and had been using FDI to further its neo-colonial agenda in various parts of the world, including Pakistan. This research explores the history of colonization in the Sub-Continent and traces the origins of neo-colonization with a focus of the United States as a pioneer of the practice and China as the contemporary neo-colonizer. The research traces the transition from colonialism to neo-colonialism and examines the case of Pakistan as a victim of neo-colonialism, presenting the case based on evidence. The paper concludes that neo-colonialism is indeed colonialism with a changed outlook and proposes certain recommendations for Pakistan to minimize the impact of Chinese colonialism.

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.

Оценка влияния прямых иностранных инвестиций на местные инвестиции

The article presents an overview of research on the essence of foreign direct investment. At the same time, the impact of foreign direct investment on economic growth in developing countries and countries with economies in transition is analyzed optimistically in the study. Based on the analysis and research, scientific conclusions were formed on the effective use of foreign direct investment in Uzbekistan. Based on these findings, relevant suggestions and recommendations were made.

Study on the Effect of Foreign Investment on Anhuis Industrial Structure Optimization

With the deepening implementation of the strategy of the rise of central China, the degree of opening up of Anhui Province has increased year by year. It is of great significance to study the impact of foreign direct investment in the optimization of industrial structure in Anhui Province and how to achieve efficient economic development during the 13th Five-Year Plan period. Using the method of empirical analysis, the time series data from 1997 to 2014 reflects the characteristics of the actual utilization of foreign direct investment and industrial restructuring in Anhui Province. There are significant differences in the contribution of the three industries to the added value of each industry. From the short-term effect, the actual use of foreign direct investment in the secondary industry contributes the most to its added value. From the long-term effect, the actual use of foreign direct investment in the second industry contributes the most to the current added value. Foreign direct investment has promoted the industrial structure of Anhui Province to a certain extent, but it has aggravated the imbalance of the industrial structure at the same time.

ТИПОЛОГІЗАЦІЯ МЕХАНІЗМІВ ПРЯМОГО ІНОЗЕМНОГО ІНВЕСТУВАННЯ: ІНСТИТУЦІЙНИЙ АСПЕКТ

У статті розкрита сутність та особливості інституційного підходу до залучення та використання прямих іноземних інвестицій. Здійснена типологізація механізмів прямого іноземного інвестування шляхом виокремлення їхніх фінансової, фіскальної та інституціональної складових і визначено відповідні інструменти, які можуть носити як стимулюючий, так і обмежуючий характер.

A Hierarchical SBM-Tobit Approach for Examining the Influencing Factors of Industrial CO2 Emission Efficiency in the Yangtze River Delta

As the most developed region, the Yangtze River Delta (YRD) has been one of the largest CO2 emitters in China. Chinese Government has proposed the concept of YRD urban agglomeration to improve its competitiveness. To this end, we evaluate industrial CO2 emission efficiency (ICEE) of 26 cities in YRD and its space-time distribution during 2006-2015 by applying SBM-undesirable model and the method of GIS visualisation respectively. Moreover, we used Tobit model to study factors influencing ICEE. The results are as follows: 1) ICEE of YRD increases in fluctuation during our study period; 2) there is a spatial cluster in the distribution of ICEE; 3) the proportion of industrial research and development funds to regional GDP (R&D), population size (PS) and the degree of opening up to the outside world (OPEN) positively influence the ICEE, while industrial energy structure (IES) and the actual use of foreign direct investment (FDI) negatively do.

STUDY ON ENVIRONMENTAL EFFECTS AND REGULATION OF FOREIGN DIRECT INVESTMENT (FDI) IN CHINA

The environmental pressure brought by foreign direct investment (FDI) to China has been an increasingly common topic. It is the current and later policy tropism to protect environment all-sided and keep the environmental elements continual use in making use of FDI in China. Environmental effect of FDI is a double blade sword. This paper first analyzes the environmental effects of FDI and the terms of its positive effect, and then analyzes the negative environmental impacts of FDI in China. Further, the paper empirically analyzes the impact of FDI on China s Eastern, Central, Western environment by using the panel-data model. The analysis shows that, in China, both the enlargement of FDI stock-induced economic scale and the change of FDI stock-induced economic composition deteriorate the environment, while the FDI stock-induced technology transfer improves the environment. The different environmental control degrees of each district in China resulted in that regional transfer of industrial pollution occurs on a certain degree. Analysis of results about the environmental model in the three regions is also in accordance with that of the national model. FDI produces negative effects on the three regional environments. Although the regional distributions of FDI in China decrease progressively from East to West, the environmental influence of FDI increases progressively from the East to the West. China should change the economic growth pathway, creatively adopt advanced techniques which are represented by resources-saving and environmental friendly developing modes, adjust the industrial development direction of FDI, blaze new trail in environmental control system, establish the long-term strategy and plans which are good for sustainable development. By doing these, positive environmental effect of FDI would be achieved.

The impact of the state on inflow and efficiency on foreign direct investment

It is widely known and well documented in practice that foreign direct investment already two decades dominating on the global level as a promoter of economic growth and development, particularly in developing countries and countries in transition. However, the use of foreign direct investment in a manner that contributes to the long-term development goals, is the main task and the main challenge facing policy-makers in countries in transition. Practice has proved that, in order to attracting larger flows and fully absorbing the benefits of foreign direct investment, governments in the economies in transition should not only follow the 'open door' policy for foreign direct investment, but also to more liberal regime for foreign direct investment used in combination with other measures of policy support. Serbian authorities during the last ten years achieved remarkable results in terms of creating a favorable environment for attracting foreign direct investment. However, in the previous transition period, it is achieved a relatively low level of FDI inflow, followed by relatively minor modification to the model entry, points to the urgent need to undertake measures aimed at improving the quality of the environment. The aim of this paper is to highlight the importance and role of government in stimulating the inflow and creating the conditions for maximum use of the positive developmental effects of foreign direct investment, and based on comprehensive analysis of investment environment in Serbia points to the possible directions for its improvement.

A model of foreign direct investment flows at the municipal level in South Africa

PurposeThe purpose of this paper is to assess the relationship between South Africa's foreign direct investment (FDI) and economic fundamentals at the municipal level.Design/methodology/approachThe paper develops a data set and an econometric model to analyze FDI flows at the municipal level in South Africa.FindingsThe empirical results derived from municipal level data support the findings in some of the established literature (which for the most part uses country‐level data) and indicates: that FDI tends to flow to areas with high factor (capital, labour and land) productivity; and that increases in higher labour productivity lead to higher investment.Research limitations/implicationsThis paper has used a cross‐section of municipalities. A further area of research would be to carry out a similar exercise with panel data.Practical implicationsThese findings indicate that FDI flows can be considered at the municipal level and this justifies the need for careful selection of the geographic basis for economic policy and development planning.Originality/valueWhereas most studies on FDI use country‐level data as standard geographic units of analysis, this paper analyzes FDI flows at the municipal level.

Foreign subsidiaries as a channel of international technology diffusion: Some direct firm level evidence from Belgium

The use of foreign direct investment as a channel of international spillovers is by now fairly established in the empirical literature on innovation and growth. It is often argued that subsidiaries of foreign multinational enterprises are a mechanism through which technological know-how flows across borders. For foreign subsidiaries to be channels of international spillovers, these subsidiaries need to source know-how internationally and transfer their know-how to the local economy. Using direct firm level evidence from the Belgian Community Innovation Survey on the occurrence of technology transfers, we find that foreign subsidiaries are indeed more likely to acquire technology internationally. But after controlling for the superior access to the international technology market that foreign subsidiaries enjoy, we find that these firms are not more likely to transfer technology to the local economy as compared to local firms.

Further Evidence on Japanese Direct Investment in U.S. Manufacturing

This paper examines the cross-industry determinants of the importance of Japanese direct investment activities in U.S. manufacturing through an extension of the analysis in a recent article by Bruce Kogut and Sea Jin Chang (1991). The results indicate significant positive roles for Japanese technology and marketing assets. While U.S. technology assets are insignificant, a significant negative effect for U.S. marketing assets suggests that entry barriers related to marketing are more important than any use of foreign direct investment by Japanese firms to access these assets. In addition, U.S. government policies toward defense-oriented industries appear to act as a deterrent to Japanese direct investment. Copyright 1996 by MIT Press.

Patterns of foreign direct investment by large New Zealand firms

Introduction Environmental factors such as government policy. location of the home country firm, and industry mix have a direct impact on the internationalization of the firm. The impact of these factors is particularly significant in the case of firms in the New Zealand economy. New Zealand is a “late” internationalizing country. As a small economy, highly dependent on overseas trade earnings. New Zealand firms have serviced their markets principally through exportin, (7 modcs, using overseas agents and distributors. Use of other forms of market servicing, such as foreign direct investment (FDI). has been inhibited by the impact of factors relating to govcrnmcnt policy, lOCilti0fl and industry mix. Kccont economic reforms and structural adjustment in New Zei~l~~nd have resulted in iI changing pattern of international activity for SOIIIC ol’ NCW Zealand’s larger firms, in particular the use of FDI as ;L market entry mode. The ohjcctivc of this paper is to report on iln on-going longitudin:~l study of the FDI of the New Ze;ililnd firm. The initial phase of the resenrch covers the period 19X4-1987. Subsequent research which updates the activities 01 firms in the study wils undertaken between 19X7-1992. Little has been written on the New Zealand firm experience, although some work has been done at the aggrt,‘ *~~‘~te and industry level. albeit from ;I different perspective. (Britton, 1991; Le Heron, 1990). The nature of the discussion therefore is preliminary. and the conclusions tentative, as the patterns of international activity are only just emerging. It is also the result of inconsistent and often incomplete data. which is available to describe these relatively recent phenomena. The first section of this paper develops a theoretical framework for the pattern of FDI activity by the New Zealand firm. The second section documents the background to FDI activity.by New Zealand firms. The third section describes the patterns of international activity and characteristics of FDI by ;1 small sample of eight firms in four different industry sectors. The small size of the sample is due to the relatively small number of firms who have undertaken FDI since the starting date of the study, 1984. and the small number of larger firms in the New Zealand economy. The data has been drawn from published sources. company annual reports and interviews with Patterns of Foreign Direct Investment