A NEW DIMENSION TO THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND HUMAN CAPITAL: THE ROLE OF POLITICAL AND CIVIL RIGHTS

This chapter examines innovation in socio-institutional environments of three largest and most diverse emerging markets: Russia, India and China over the period 1990-2014. It considers formal (proxied by corruption) and informal (proxied by trust) institutions and non-linear forces. It also examines the role of Foreign Direct Investment (FDI) in (the likelihood of) fostering innovation and of two research and development (R&D) inputs: R&D expenditures and personnel. A significantly positive direct effect of trust and a negative direct effect of corruption are confirmed, whilst there is a significant non-linear decreasing relationship with trust and increasing relationship with corruption. Interestingly, FDI and R&D expenditures are found to decrease innovation, whilst R&D personnel increase innovation output across the sample.

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The relationship between domestic and outward foreign direct investment: The role of industry-specific effects

International Business Review ◽

10.1016/j.ibusrev.2005.09.004 ◽

2005 ◽

Vol 14 (6) ◽

pp. 677-694 ◽

Cited By ~ 18

Author(s):

Pontus Braunerhjelm ◽

Lars Oxelheim ◽

Per Thulin

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Outward Foreign Direct Investment ◽

Specific Effects ◽

The Relationship

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The Role of Financial Development in the Relationship Between Foreign Direct Investment and Economic Growth: A Nonlinear Approach

Review of Pacific Basin Financial Markets and Policies ◽

10.1142/s0219091519500097 ◽

2019 ◽

Vol 22 (02) ◽

pp. 1950009 ◽

Cited By ~ 1

Author(s):

Elya Nabila Abdul Bahri ◽

Abu Hassan Shaari Md Nor ◽

Tamat Sarmidi ◽

Nor Hakimah Haji Mohd Nor

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Financial Development ◽

Absorptive Capacity ◽

Direct Investment ◽

Global Financial Crisis ◽

Using Data ◽

Relationship Of ◽

The Relationship

Financial development is recognized as an absorptive capacity in the relationship between foreign direct investment (FDI) and economic growth. Therefore, FDI effect on economic growth is contingent with the level of financial development. However, existing studies also show that financial development dampens economic growth through the “too much finance harms economic growth” hypothesis. Hence, there is a question of how far financial development should be developed to optimize the benefits of FDI on economic growth. The novelty of this study is that it reexamines the role of financial development in FDI-growth relationship by including the interaction term between FDI and the nonlinearity of financial development on economic growth in the period following the 2007–2008 Global Financial Crisis. Interestingly, our results demonstrate that the nonlinear relationship of financial development on economic growth is a U-shaped curve by using data from the 2009–2013 period, for 65 developing countries, which contrast the findings from previous studies. The absorptive capacity effects work nonlinearly, in that FDI accelerates growth after reaching a certain level of financial development, and that the positive effect originates from a minimum level. The study thus suggests that the level of financial development needs to be increased since it serves as a form of absorptive capacity enabling the positive growth effects of FDI in the recipient countries.

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The Mediating Role of Economic Openness on the Relationship between Foreign Direct Investment, and Economic Growth: A Case Study of Sudan (1980-2014)

SSRN Electronic Journal ◽

10.2139/ssrn.2714878 ◽

2016 ◽

Author(s):

Ibrahim Fize Abdelrasoul

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Direct Investment ◽

Economic Openness ◽

Mediating Role ◽

The Relationship

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Bounds test approach to the relationship between human capital and foreign direct investment as regressors of economic growth in Turkey

Applied Economics Letters ◽

10.1080/13504851003742426 ◽

2011 ◽

Vol 18 (6) ◽

pp. 561-565 ◽

Cited By ~ 3

Author(s):

Ahmet Ozyigit ◽

Fehiman Eminer

Keyword(s):

Economic Growth ◽

Human Capital ◽

Foreign Direct Investment ◽

Direct Investment ◽

Bounds Test ◽

The Relationship

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Role of Sanctions and Macroeconomic Determinants on FDI Inflow: A Case Study

10.20944/preprints201911.0357.v2 ◽

2020 ◽

Author(s):

Mehdi Rasouli Ghahroudi ◽

Li choy Chong

Keyword(s):

Foreign Direct Investment ◽

Exchange Rate ◽

Direct Investment ◽

Inflation Rate ◽

Positive Impact ◽

Fdi Inflows ◽

Macroeconomic Determinants ◽

The Relationship ◽

Moderating Role

In this paper, we investigate the role of sanctions in the relationship between macroeconomic determinants and foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI inflows into Iran. The empirical results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run impact on FDI inflows in Iran. Our findings also show that GDP growth rate and trade openness have no significant effect on FDI. Our results indicate that sanctions do not have a significant moderating role in the relationship between macroeconomic factors and foreign direct investment. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanction has a positive impact on the inflation rate and exchange rate in Iran. Finally, our findings show that sanctions have had a significant impact on Iran's economic growth in recent years due to increasing the severity level of sanctions.

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