Institutional determinants of FDI in Oman: Causality analysis framework

Author(s):  
Omer Ali Ibrahim ◽  
Sonal Devesh ◽  
Mughees Shaukat

2019 ◽  
Vol 15 (2) ◽  
pp. 245-261 ◽  
Author(s):  
Justin Paul ◽  
Pravin Jadhav

Purpose Foreign direct investment (FDI) is a strategic decision for achieving competitive advantage by multinational enterprises. The purpose of this paper is to explore the role of institutional determinants of FDI using data from 24 emerging markets including China, India, Indonesia, Turkey, Thailand, Malaysia and Pakistan. Design/methodology/approach In order to identify factors that attract FDI in emerging markets, this study has used data from sources such as the World Bank, Index of Economic Freedom and UNCTAD. Findings The findings of this research indicate that infrastructure quality, trade cost measured by tariff and non-tariff barriers, institutional quality measured by effective rule of law, political stability, regulatory quality and control on corruption are significant determinants of FDI in emerging markets. Originality/value This is the first study to analyze the sectoral institutional determinants of Inward FDI in the important emerging economies, to the best of authors’ knowledge.



Author(s):  
Pravakar Sahoo

The Foreign Direct Investment (FDI) environment underwent a sea change in South Asian countries during the 1990s, and more so in recent years. Though FDI inflows to South Asian countries have witnessed increasing trends, FDI inflow is still relatively low. In this context, the paper examines the determinants of FDI for South Asian countries with emphasis on infrastructure development, trade openness and reforms. The results reveal that major determinants of FDI in South Asia are market size, labor force, infrastructure stock, trade openness and economic reforms. Further, the panel causality analysis shows that there is a strong relationship between infrastructure development and FDI inflows. Therefore, the South Asian countries need to maintain their growth momentum, improve infrastructure facilities, frame policies for better use of abundant labor force and continue economic reforms with focus on trade policies to attract more FDI.



Author(s):  
Shaohui Wang ◽  
Anaheed Ayoub ◽  
BaekGyu Kim ◽  
Gregor Gössler ◽  
Oleg Sokolsky ◽  
...  


2020 ◽  
Vol 11 (1) ◽  
pp. 44-58
Author(s):  
Ljubo Jurčić ◽  
Sanja Franc ◽  
Antea Barišić

AbstractBackground: Foreign direct investment (FDI) flows are unevenly distributed around the world and determined by different factors. The literature points out to economic and non-economic determinants of FDI flows, while the latter have shown to generate ambiguous effects across regions.Objectives: The primary goal of this paper is to examine the relationship between non-economic determinants and the FDI inflow in Croatia from 1996 to 2017, thus capturing different periods of the economic cycle. The importance of non-economic institutional determinants of FDI is analysed in parallel with the economic determinants.Methods/Approach: This study uses available data on FDI per capita and a set of non-economic (institutional) and economic determinants. We employed the OLS regression analysis to determine the significance of FDI inflow determinants and compare the relevance of non-economic to economic factors.Results: Results of this exploratory study show that institutional quality variables included in the model (regulatory quality, political stability, and government effectiveness, the rule of law and control of corruption) could not be pointed out as important determinants of the FDI inflow in Croatia. Economic variables GDP per capita and average gross wage prove to be important in determining the FDI inflow in Croatia.Conclusions: The research results point to a variety of FDI determinants among countries and economic cycle periods. Given the evidence from Croatia, variations, especially in institutional determinants, might be caused by the diverse FDI inflow characteristics and specificities of receiving economies.



Author(s):  
Avik Sinha ◽  
Tuhin Sengupta ◽  
Atul Mehta

It has been seen in literature that shadow economic activities is a determinant of tourism. In the background of poor enforcement of law and incidence of corruption, it has been hypothesized that tourism development might be a determinant of shadow economic activities. In this study, we analyze how tourist arrivals and development of shadow economy are associated in Thailand, following a frequency-domain causality analysis framework. Through wavelet coherence, it has been found that there exists co-movement between tourist arrivals and development of shadow economy in the short run, while the long run coherence can be seen during the post-tsunami period. By employing wavelet-based causality analysis, bidirectional causal association has also been found between tourist arrivals and development of shadow economy across different frequency levels. In order to promote the sustainable tourism, the government should have a control over the black-market activities, and encourage people-public-private partnerships to enhance the informal economy.





2020 ◽  
Vol 8 (2) ◽  
pp. 68
Author(s):  
Bilgehan Tekin

The purpose of this study to examine the relationship between financial development and human development in the health and welfare dimensions of developing countries. This study aims to determine whether the financial developments of the countries have an effect on the basic human development of the individuals and whether human development indicators have an impact on financial development. In this study, the relationship between financial development and human development has been tried to be revealed by using data obtained from developing countries. Financial development levels of the countries were measured with the developed financial development index. The index is calculated by using M3 / GDP, private sector loans / GDP and loans to banks from private sector / GDP ratios. The human development index is calculated by considering various health indicators and GNP per capita. The data includes annual data for the period 1970-2016. Pedroni and Kao cointegration analysis and Dumitrescu & Hurlin panel causality analysis were performed in the study. According to the results of the study, the cointegration relationship was determined between the two variables. There is also a two-way causality between the variables.



e-Finanse ◽  
2020 ◽  
Vol 16 (1) ◽  
pp. 20-26
Author(s):  
Taiwo A. Muritala ◽  
Muftau A. Ijaiya ◽  
Olatanwa H. Afolabi ◽  
Abdulrasheed B. Yinus

AbstractThis paper examines the causality between fraud and bank performance in Nigeria over the period 2000-2016 for quarterly financial data using Johansen’s Multivariate Cointegration Model and Vector Autoregressive (VAR) Granger Causality analysis. The results show a long-run relationship between the variables. Bank performance was found to be linked to Granger fraud variables and vice versa at 10% significant level. This study reveals that there was a direct causal relationship between bank performance and fraud because increase in fraudulent activities in the banking sector leads to reduction in bank performance. Hence, this study recommends that internal control systems of banks should be strengthened so as to detect and prevent fraud. In this way, bank assets would be protected.



2017 ◽  
Vol 31 (1) ◽  
pp. 9
Author(s):  
Sang-Hoon Lee
Keyword(s):  


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