Are the determinants of foreign direct investment same within the service sector? Evidence from bootstrap based bias corrected fixed effects model

2021 ◽  
Author(s):  
Jithin P ◽  
Sureshbabu M
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Fixed Effects ◽  
Service Sector ◽  
Fixed Effects Model

scholarly journals Determinan Aliran Masuk Foreign Direct Investment ke Negara-Negara Berpendapatan Rendah

2020 ◽  
Vol 7 (2) ◽  
pp. 174-188
Author(s):  
Rully Aprianto ◽  
Alla Asmara ◽  
Sahara
Keyword(s):  
Foreign Direct Investment ◽  
Random Effects ◽  
Direct Investment ◽  
Fixed Effects ◽  
Fixed Effects Model ◽  
Model Data

Modal merupakan faktor penting yang mendorong pertumbuhan ekonomi dan pembangunan. Investasi asing langsung (foreign direct investment – FDI) adalah salah satu bentuk modal terbaik dalam pembiayaan dan investasi proyek industri. Oleh karena itu, adalah hal yang penting untuk mengidentifikasi faktor-faktor yang memengaruhi FDI dan untuk menentukan tingkat pengaruh masing-masing untuk membuat kebijakan yang tepat di bidang ini. Penelitian ini menganalisis faktor-faktor penentu FDI di negara dengan pendapatan per kapita rendah. Analisis didasarkan pada sampel dari 10 negara berpendapatan rendah. Dengan menggunakan model data panel, digunakan tiga pendekatan, yaitu common model, random effects dan fixed effects model, untuk mengidentifikasi faktor-faktor yang memengaruhi FDI di negara-negara ini. Hasil penelitian menunjukkan faktor-faktor yang berpengaruh secara signifikan terhadap aliran masuk FDI ke negara-negara dengan tingkat pendapatan rendah adalah PDB (ukuran pasar), inflasi, produktivitas tenaga kerja, infrastruktur, keterbukaan perdagangan, dan stabilitas politik. Sementara kualitas kebijakan dan peraturan tidak berpengaruh secara signifikan.

scholarly journals Panel Data Analysis on the Influence of Environmental Regulations on the Inflow of Foreign Direct Investment in China

2020 ◽  
Vol 15 (7) ◽  
pp. 1035-1044
Author(s):  
Hao Hu ◽  
Lei Dong ◽  
Hao Zhang ◽  
Haiyan Tang ◽  
Desheng Yin
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Fixed Effects ◽  
Environmental Regulations ◽  
Panel Data Analysis ◽  
Entropy Method ◽  
Eastern Region ◽  
Fixed Effects Model ◽  
Location Selection ◽  
Investment In China

From the micro level, this paper thoroughly investigates the influence of environmental regulations (ERS) on the inflow of foreign direct investment (FDI) in China. Firstly, the entropy method was adopted to comprehensively measure the ERS intensities of 283 Chinese cities at prefecture level and above in 2003-2016. Then, the Cournot model was utilized to analyze how ERS affects FDI. After that, fixed-effects model was employed to empirically examine the impacts of ERS intensities in eastern, central, and western regions on FDI inflow. The results show that: The regression results on nationwide, central, and western samples indicate that the influence of ERS variable was significantly negative. This means ERS is indeed an important consideration of foreign investors in location selection. Besides, stricter ERS hinders the inflow of FDI, which agrees with the pollution haven hypothesis. On eastern samples, stricter ERS promotes FDI inflow, that is, the situation in eastern region meets Porter hypothesis. Finally, several suggestions were presented for policymakers based on the empirical results.

scholarly journals The Impact of Foreign Direct Investment, Capital Formation, Inflation, Money Supply and Trade Openness on Economic Growth of Asian Countries

2020 ◽  
Vol 2 (1) ◽  
pp. 25-34
Author(s):  
Xiuyun Yang ◽  
Muhammad Nouman Shafiq
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Money Supply ◽  
Direct Investment ◽  
Fixed Effects ◽  
Trade Openness ◽  
Capital Formation ◽  
Fixed Effects Model ◽  
Asian Countries ◽  
The Impact

Economic growth is currently an essential phenomenon for emerging countries worldwide and has gained the researchers' intentions. Thus, the current study aims to examine the role of foreign direct investment (FDI), capital formation, inflation, money supply, and trade openness on the economic growth of Asian countries. The data has been extracted from the twenty emerging Asian countries from 2007 to 2018 using the most popular database named World Development Indicators (WDI). The fixed-effects model, along with the robust standard error, has been used for checking the impact of predictors on the economic growth of Asian countries. The results revealed that the predictors such as FDI, capital formation, money supply, and trade openness have positive association with economic growth, while inflation has a negative association with the economic growth of Asian countries. These findings are suitable for the new arrivals who want to examine this area in the future and for the regular traders who want to develop policies related to economic growth.

The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries

2020 ◽  
pp. 206-226
Author(s):  
Metin Gürler ◽  
Funda Kara
Keyword(s):  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Fixed Effects ◽  
Oecd Countries ◽  
Fixed Effects Model ◽  
Causality Test ◽  
Section Data ◽  
Main Determinants ◽  
The Relationship

This chapter investigates the relationship between the OECD-FRRI issued by OECD and IMF-FDI issued by IMF for 36 OECD member countries. Cross-section data (CSD) analysis and panel data (PD) analysis consisting of random and fixed effects estimations were used in the study to investigate the relationship between Foreign Direct Investment (FDI) and Financial Development for OECD countries for the years 1997, 2003, and 2006 and the 7-year period of 2010-2016. Granger Causality Test (GCT) is also applied to test the direction of causality between two indicators. According to the Random Effects Model (RAM) and Fixed Effects Model (FEM) with PD analysis in the study OECD-FRRI is found as one of the determinants of IMF-FDI and IMF-FDI is found as one of the determinants of OECD-FRRI in OECD member countries. For CSD analysis, there is no significant proof to say OECD-FRRI is one of the main determinants of IMF-FDI and IMF-FDI is one of the determinants of OECD-FRRI in OECD member countries. For CSD, OECD-FRRI does not cause IMF-FDI whereas IMF-FDI causes OECD-FRRI.

The Effects of Information Technology Achievement and Diffusion on Foreign Direct Investment

2003 ◽  
Vol 2 (2) ◽  
pp. 161-178 ◽  
Author(s):  
Azmat Gani ◽  
Basu Sharma
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Fixed Effects ◽  
Unit Cost ◽  
Information And Communications Technology ◽  
Fixed Effects Model ◽  
New Information ◽  
High Degree ◽  
And Diffusion ◽  
Technological Achievement

AbstractForeign direct investment (FDI) and the new information and communications technology (ICT) have gained significant grounds in many parts of the world in somewhat parallel fashion. The objective of this paper is to assess the proposition that the level of technological achievement and diffusion is a determining factor in attracting FDI in high-income countries. A sample of technologically advanced countries was chosen on the basis of the technological achievement index (TAI). Crosscountry data for the period of 1994 to 1998 were used to estimate a fixed effects model. The empirical results obtained provide strong evidence that technology diffusion of new instruments of ICT, such as mobile phones and Internet hosts, are major pull factors of FDI. The results also provide evidence that robust economic environment, low unit cost, and high degree of openness are other essential determinants of FDI. We conclude that in order to retain and attract FDI, countries should create opportunities for useful innovations to be created and diffused, as well as maintain flexible, competitive and dynamic economic environments. The main policy implication for countries lagging in terms of attracting foreign investment is to build on reforms that emphasize creation and diffusion of ideas and products, as well as maintain a high degree of openness to new investors, especially in ICT.

scholarly journals Determinan Aliran Masuk Foreign Direct Investment ke Negara-Negara Berpendapatan Rendah

2020 ◽  
Vol 7 (2) ◽  
pp. 174-188
Author(s):  
Rully Aprianto ◽  
Alla Asmara ◽  
Sahara
Keyword(s):  
Foreign Direct Investment ◽  
Random Effects ◽  
Direct Investment ◽  
Fixed Effects ◽  
Fixed Effects Model ◽  
Model Data

Modal merupakan faktor penting yang mendorong pertumbuhan ekonomi dan pembangunan. Investasi asing langsung (foreign direct investment – FDI) adalah salah satu bentuk modal terbaik dalam pembiayaan dan investasi proyek industri. Oleh karena itu, adalah hal yang penting untuk mengidentifikasi faktor-faktor yang memengaruhi FDI dan untuk menentukan tingkat pengaruh masing-masing untuk membuat kebijakan yang tepat di bidang ini. Penelitian ini menganalisis faktor-faktor penentu FDI di negara dengan pendapatan per kapita rendah. Analisis didasarkan pada sampel dari 10 negara berpendapatan rendah. Dengan menggunakan model data panel, digunakan tiga pendekatan, yaitu common model, random effects dan fixed effects model, untuk mengidentifikasi faktor-faktor yang memengaruhi FDI di negara-negara ini. Hasil penelitian menunjukkan faktor-faktor yang berpengaruh secara signifikan terhadap aliran masuk FDI ke negara-negara dengan tingkat pendapatan rendah adalah PDB (ukuran pasar), inflasi, produktivitas tenaga kerja, infrastruktur, keterbukaan perdagangan, dan stabilitas politik. Sementara kualitas kebijakan dan peraturan tidak berpengaruh secara signifikan.

scholarly journals Impact of Natural Disasters on Foreign Direct Investment in South and South-East Asian Countries

2021 ◽  
Vol 9 (10) ◽  
pp. 300-307
Author(s):  
S. M. Moin Uddin Ahmed
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Natural Disasters ◽  
Standard Error ◽  
Direct Investment ◽  
Fixed Effects ◽  
East Asian ◽  
The Philippines ◽  
Fixed Effects Model ◽  
Asian Countries

Abstract: This paper examines the empirical relationship between natural disasters and FDI in 14 South and South-East Asian countries, 7 from South Asia, are Bhutan, Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka and the rest 7 from South East Asian countries, these are Cambodia, Indonesia, Lao PDR, Malaysia, the Philippines, Thailand and Vietnam taking panel data from 2000-2011. The two key variables are used in the analysis, foreign direct investment is the dependent variable; the total net inflows of FDI as a percentage of GDP is taken. The second key variable indicates natural disasters, the independent variable. Fixed effects model and Heteroskedasticity-Autocorrelation-Consistent (HAC) standard error are employed to estimate lagged and immediate impact of natural disaster on FDI. The empirical results show that natural disasters have a negative and statistically significant impact on FDI with two years of lag. The results indicate that post disasters management matters for attracting FDI inflow. Post disasters recovery systems and relevant policies should be able to improve the confidence of foreign investors and attractiveness of affected areas by establishing reliable and strong infrastructures and institutions. This would guide the policymakers for better fiscal decisions, mainstreaming the economic impacts of natural disasters in long-term economic planning for attracting FDI inflows and preparedness aftermath of natural disasters. Keywords: Foreign Direct Investment; Natural disasters; Panel data; Fixed effects model; HAC standard error

The Effects of Foreign Direct Investment on Human Development

2004 ◽  
Vol 4 (2) ◽  
pp. 1850025 ◽  
Author(s):  
Basu Sharma ◽  
Azmat Gani
Keyword(s):  
Foreign Direct Investment ◽  
Human Development ◽  
Low Income ◽  
Direct Investment ◽  
Fixed Effects ◽  
Low Income Countries ◽  
Fixed Effects Model ◽  
The Past ◽  
Economic Progress ◽  
Positive Effect

Various studies in the past have examined the effect of foreign direct investment on economic growth of both developed and developing countries. However, research on the influence of foreign direct investment on an expanded conception of socio-economic progress such as human development is absent. In this article, we examine the effect of foreign direct investment on human development (measured by the human development index) for middle and low-income countries for the period from 1975 to 1999 to fill in this lacuna. Regression results of a fixed effects model indicate a positive effect of foreign direct investment on human development for both the groups of countries.

The Impact of Foreign Direct Investment on Home Country Exports

2018 ◽  
Vol 09 (01n02) ◽  
pp. 1850005
Author(s):  
Vera Silva ◽  
Rosa Forte
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Fixed Effects ◽  
Manufacturing Industry ◽  
Home Country ◽  
Theoretical Point ◽  
Fixed Effects Model ◽  
Entry Modes ◽  
The Impact ◽  
The Relationship

Exports and foreign direct investment (FDI) are two alternative foreign markets entry modes. From a theoretical point of view, there are arguments which support two different relationships between FDI and exports: complementary and substitution. Most empirical studies, however, have concluded with a complementary relationship. Since existing studies at more disaggregated levels have focused solely on the manufacturing industry, this paper aims at studying the relationship between FDI and home country exports based on a large sample of Portuguese firms, belonging to manufacturing and services, for the period 2006–2012. Using a fixed-effects model, results obtained suggest that the control of heterogeneity between firms is essential to clarify the relationship between FDI and exports and this has been a factor often overlooked.

scholarly journals Changing Dynamics of Foreign Direct Investment in China’s Automotive Industry

2013 ◽  
Vol 3 (2) ◽  
pp. 69-96
Author(s):  
Lingling Wang ◽  
Bo Fan ◽  
C. Bulent Aybar ◽  
Aysun Ficici
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Automotive Industry ◽  
Direct Investment ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Chinese Economy ◽  
Chinese Government ◽  
Fixed Effects Model ◽  
Negative Role

China’s automotive industry has developed dramatically in recent years as more and more major multinational corporations (MNCs) in this industry began to invest in China.  Most of these investments have developed in the form of joint-ventures with Chinese state owned enterprises (SOEs). This paper contributes to the current literature by studying the effect of foreign direct investment (FDI) on the productivity of the automotive industry in China using panel data during the 1999 –2008 period. Channels through which FDI may directly and indirectly affect the productivity are investigated using pooled ordinary least squares model (POLS) and fixed effects model (FES) to estimate the influence of FDI on productivity in the automotive industry. The results suggest that FDI plays a negative role in this industry and suggests that there is a need for Chinese government to modify its policies and practices in order to improve the productivity of such a key industry in the Chinese economy.

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