Policy Suggestions to Promote Foreign Direct Investment by Small and Medium-Sized Enterprises into Developing Countries

The surge in foreign direct investment (FDI)—investment with managerial control by the foreign investor, usually a multinational corporation—has been the major driver of globalization in the past two decades and the accelerator of economic development in many developing countries. It has, however, bypassed Turkey. By all relevant relative measures found in the United Nations' annual World Investment Report, Turkey has failed to attract much FDI.

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FOREIGN DIRECT INVESTMENT IN SERBIA

10.51738/kpolisa2021.18.1r.4.01 ◽

2021 ◽

pp. 253-265

Author(s):

MILOŠ PJANIĆ ◽

MIRELA MITRAŠEVIĆ

Keyword(s):

Developing Countries ◽

Foreign Direct Investment ◽

Financial Markets ◽

Direct Investment ◽

Employment Growth ◽

Home Country ◽

New Technology ◽

Foreign Direct Investments ◽

Education Innovation ◽

National Economies

In the process of globalization, the importance of foreign direct investment has changed significantly, because today they represent one of the most important factors of competitiveness, development and application of new technology, education, innovation and economic development. As a significant form of financing national economies, foreign direct investment is a form of investment that is realized outside the home country, where one of the most important goals of both developed and especially developing countries is to attract as much foreign direct investment. A large number of developing countries, including Serbia, have liberalized restrictions on foreign investment and free trade in the last two decades, liberalized national financial markets and begun privatization processes. Due to numerous problems and consequences of economic crises they have faced, many developing countries, as well as Serbia, view foreign direct investment as one of the most important factors for stimulating trade, employment growth, openness of national economies, and establishing overall macroeconomic stability. The aim of this paper is to point out the importance and dynamics of foreign direct investments in Serbia, as well as the key incentives for their attraction. Also, in addition to the theoretical review of foreign direct investments, the effects of foreign direct investments are presented in the paper.

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The Rise of Transnational Corporations from Developing Countries in the Second Half of the 20th Century

Istoriya ◽

10.18254/s207987840017589-6 ◽

2021 ◽

Vol 12 (11 (109)) ◽

pp. 0

Author(s):

Alexey Kuznetsov

Keyword(s):

Developing Countries ◽

Foreign Direct Investment ◽

Direct Investment ◽

Global Economy ◽

World Order ◽

Developed Countries ◽

Global South ◽

Business Environment ◽

Outward Foreign Direct Investment ◽

Foreign Direct Investment Stock

The article highlights three stages of the formation of multinationals from developing countries. Although first Argentine TNCs appeared at the turn of the 19th — 20th centuries, in the majority of the Global South countries TNCs appeared in the 1960s — 1980s. With the collapse of the bipolar world order, which in many developing countries was accompanied by significant internal political and economic transformations, the second stage of foreign expansion of TNCs from the Global South began. Indeed, in 1990 they accounted for 6 % of global outward foreign direct investment stock, while the figure was 10 % by the end of 2005. We date the beginning of the third stage to the financial and economic crisis of 2007—2009, since multinationals from developing countries as a whole are more successfully overcoming the period of turbulence in the global economy. By the end of 2020, they accounted for 22 % of global outward foreign direct investment stock, and during the COVID-19 pandemic crisis they generally exported more than 50% of the capital. The modern foreign expansion of such TNCs has many reasons, differs greatly from country to country, and often differs slightly from the specifics of Western multinationals. At the same time, initially, “late internationalization” in developing countries had two main vectors — the use of new opportunities for South — South cooperation and overcoming, through the creation of subsidiaries in highly developed countries, the shortcomings of the business environment of “catching up” countries.

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Foreign Direct Investment, Economic Freedom and Economic Growth: Evidence from Developing Countries

International Journal of Economics and Finance ◽

10.5539/ijef.v8n11p200 ◽

2016 ◽

Vol 8 (11) ◽

pp. 200 ◽

Cited By ~ 5

Author(s):

Md. Shakib Hossain

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Foreign Direct Investment ◽

Standard Deviation ◽

Poisson Regression ◽

Direct Investment ◽

Economic Freedom ◽

Random Effect ◽

Estimating Equation ◽

Generalized Estimating Equation

<p class="Default">This paper has explores the interplay between economic freedom, foreign direct investment and economic growth using panel data analysis for a sample of 79 developing countries from 1998 to 2014 by considering the level of economic freedom, as provided by the “Heritage Foundation”. Panel unit root, pedroni residual co-integration test, generalized least square (GLS), feasible GLS (FGLS), pooled OLS, random effect, fixed effect, poisson regression, prais-winsten, generalized method of movement (GMM) and generalized estimating equation (GEE) methods have used to estimates the relationship. According to the OLS and generalized method of movement the coefficient implies that a one standard deviation improvement in business freedom, trade freedom, size, investment freedom, property rights, freedom from corruption, labor freedom, financial freedom, fiscal freedom, monetary freedom increases FDI by 21.4%, 15.6%, 21.6%, 17.5%, 11.55, 9.1%, 6.9%, 8.5%, 7.4%, 10.3% and 56.1%, 45.3%, 58.3%, 51.6%, 33.7%, 39.2%, 47.4%, 41.6%, 32.5%, 38.5% points respectively and for the economic variable ,the coefficient implies that a one standard deviation improvement in GDPG and GDPPC increases FDI by 24.1%, 17.4% and 30.2%, 33.4% points respectively. By using the other method like random effect, fixed effect, poisson regression, prais-winsten and generalized estimating equation (GEE) method explores that economic freedom in the host country is a positive determinants of FDI inflows in developing countries and also the result suggests that foreign direct investment is positively correlated with the economic growth in the host countries.</p>

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Dynamic Causal Relationships among GDP, Exports, and Foreign Direct Investment (FDI) in the Developing Countries

International Letters of Social and Humanistic Sciences ◽

10.18052/www.scipress.com/ilshs.14.1 ◽

2013 ◽

Vol 14 ◽

pp. 1-19 ◽

Cited By ~ 3

Author(s):

Mohsen Mehrara ◽

Amin Haghnejad ◽

Jalal Dehnavi ◽

Fereshteh Jandaghi Meybodi

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Foreign Direct Investment ◽

Strong Evidence ◽

Direct Investment ◽

The Other ◽

Fdi Inflows ◽

Long Run ◽

Short Run ◽

Growth Hypothesis

Using panel techniques, this paper estimates the causality among economic growth, exports, and Foreign Direct Investment (FDI) inflows for developing countries over the period of 1980 to 2008. The study indicates that; firstly, there is strong evidence of bidirectional causality between economic growth and FDI inflows. Secondly, the exports-led growth hypothesis is supported by the finding of unidirectional causality running from exports to economic growth in both the short-run and the long-run. Thirdly, export is not Granger caused by economic growth and FDI inflow in either the short run or the long run. On the basis of the obtained results, it is recommended that outward-oriented strategies and policies of attracting FDI be pursued by developing countries to achieve higher rates of economic growth. On the other hand, the countries can increase FDI inflows by stimulating their economic growth.

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INVESTASI ASING LANGSUNG DAN PERTUMBUHAN EKONOMI DI WILAYAH ASEAN PERIODE 2004-2016

Jurnal Ekonomi dan Bisnis ◽

10.24123/jeb.v23i2.2012 ◽

2019 ◽

Vol 23 (2) ◽

pp. 57-66

Author(s):

Aditya Febriananta Putra ◽

Suyanto . ◽

Irzameingindra Putri Radjamin

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Foreign Direct Investment ◽

Significant Role ◽

Direct Investment ◽

Negative Impact ◽

Positive Impact ◽

Accelerate Development ◽

Fixed Capital Formation

Exertions to accelerate development carried out by developing countries in general are oriented towards improving or improving people’s lives. Developing countries are characterized as countries that lack capital, savings and investment. The role of Labor has a significant effect but has a negative impact on economic growth. Agriculture and Service also performance a significant role, despite having a positive impact on economic growth. While other variables, namely Fixed Capital Formation, Foreign Direct Investment, Export, Manufacture, and Fertility showed insignificant results on economic growth.

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