Impact of Foreign Direct Investment on GDP Growth Rate in India: Analysis of the New Millennium

2019 ◽  
pp. 223-239
Author(s):  
Pooja Gupta ◽  
Vikku Aggarwal ◽  
Karan Champaneri ◽  
Kritika Narayan
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
New Millennium

scholarly journals FOREIGN DIRECT INVESTMENT AND EXPORT PERFORMANCE OF THE PAKISTAN COINTEGRATION AND CAUSALITY APPORACH

2015 ◽  
Vol 11 (1) ◽  
Author(s):  
Abdur Rahman Aleemi ◽  
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Export Performance ◽  
Gdp Growth ◽  
Local Market ◽  
Long Run ◽  
Gdp Growth Rate

FDI is a bridge between the world markets and local market and works as a way to increase the capabilities of the host country through investments that help in transfer of technology and creation of employment opportunities. The aim of this paper was to investigate the nexus of Foreign Direct Investment and the Export performance in the economic settings of Pakistan along in the presence of explanatory variables, based on well-established economic theory and long standing relationships. Supplementing the variables into a linear regression model, tested under the OLS and checked for the assumptions of normally and identically distributed errors, it was found that exports are positively affected by FDI and CPI whereas negatively affected by the interest rates in the case of Pakistan. Furthermore the long run relationship between the variables has been tested under the Johensen Cointegration test, which suggest that a long run relationship exist between the variables. Finally the direction of causality has been investigated with the help of Granger Causality test, indicating a bidirectional causality between CPI and interest rate, exports and interest rate, unidirectional causality from exports to CPI, CPI to GDP growth rate, interest rate to GDP growth rate, exports to FDI and exports to GDP growth rate.

scholarly journals FOREIGN DIRECT INVESTMENT AND EXPORT PERFORMANCE OF THE PAKISTAN COINTEGRATION AND CAUSALITY APPORACH

2015 ◽  
Vol 11 (1) ◽  
Author(s):  
Abdur Rahman Aleemi ◽  
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Export Performance ◽  
Gdp Growth ◽  
Local Market ◽  
Long Run ◽  
Gdp Growth Rate

FDI is a bridge between the world markets and local market and works as a way to increase the capabilities of the host country through investments that help in transfer of technology and creation of employment opportunities. The aim of this paper was to investigate the nexus of Foreign Direct Investment and the Export performance in the economic settings of Pakistan along in the presence of explanatory variables, based on well-established economic theory and long standing relationships. Supplementing the variables into a linear regression model, tested under the OLS and checked for the assumptions of normally and identically distributed errors, it was found that exports are positively affected by FDI and CPI whereas negatively affected by the interest rates in the case of Pakistan. Furthermore the long run relationship between the variables has been tested under the Johensen Cointegration test, which suggest that a long run relationship exist between the variables. Finally the direction of causality has been investigated with the help of Granger Causality test, indicating a bidirectional causality between CPI and interest rate, exports and interest rate, unidirectional causality from exports to CPI, CPI to GDP growth rate, interest rate to GDP growth rate, exports to FDI and exports to GDP growth rate.

scholarly journals Domestic Investment, Foreign Direct Investment and Macroeconomic Stability in Nigeria

2021 ◽  
Vol 04 (05) ◽  
Author(s):  
Saliu Mojeed Olanrewaju ◽  
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Inflation Rate ◽  
Oil Price ◽  
Gdp Growth ◽  
Domestic Investment ◽  
Real Gdp ◽  
Gdp Growth Rate

This study examines the relationship between the two major investment components (domestic investment and foreign direct investment) and macroeconomic stability in Nigeria. In order to capture the macroeconomic stability, some selected macroeconomic variables are presented, namely: real GDP growth rate (RGDPgr), trade openness (TOP), exchange rate (EXR), inflation rate (INFR), interest rate (INTR), private sector credit (PSC) which represent domestic variables and world oil price (WOP) which represent foreign variable. The study employs Johansen cointegration and Vector Autoregressive model as the estimation techniques. Findings from the study reveals that there is no long-run relationship between the selected macroeconomic variables and the two investment variables. The study also reveals that shocks and fluctuations from real GDP growth rate (RGDPgr), private sector credit (PSC), inflation rate (INFR), interest rate (INTR), exchange rate (EXR) and world oil price (WOP) strongly and significantly affect domestic investment in Nigeria; while the shocks and instabilities arising from real GDP growth rate (RGDPgr), inflation rate (INFR), interest rate (INTR), exchange rate (EXR), trade openness (TOP) and world oil price (WOP) majorly and significantly affect foreign direct investment in Nigeria during the period under review. The study therefore recommends that Nigerian government should provide stability measures in all the aforementioned macroeconomic indicators, as this will attract a higher level of FDI and this will create an enabling business environment for domestic investment to operate.

scholarly journals Factors driving IPO variability: evidence from Pakistan stock exchange

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqas Mehmood ◽  
Rasidah Mohd-Rashid ◽  
Chui Zi Ong ◽  
Yasir Abdullah Abbas
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Gdp Growth ◽  
Stock Market Index ◽  
Treasury Bill ◽  
Content Type ◽  
Market Index ◽  
Gdp Growth Rate

PurposeThe objectives of this study are twofold. First, it intends to investigate the symmetric link between initial public offering (IPO) variability and the determinants of the stock market index, treasury bill rate, inflation, GDP growth rate and foreign direct investment. Second, this study intends to examine the asymmetric link between IPO variability and the aforementioned determinants, namely the stock market index, treasury bill rate, inflation, GDP growth rate and foreign direct investment.Design/methodology/approachData from 1992 to 2018 were gathered from the country of Pakistan in order to achieve the above objectives. Augmented Dickey–Fuller (ADF) and Phillips Perron (PP) unit root tests were employed to determine the data's stationarity properties. The Auto Regressive Distributive Lags (ARDL) model was utilized to examine the symmetric links, and the Non-Linear Auto Regressive Distributive Lag Model (NARDL) was employed to determine the asymmetric links. While the long-run co-integration was examined using the ARDL bound test, the short-run dynamics were tested using the error correction method (ECM).FindingsThe macroeconomic variables of the stock market index, treasury bill rate, inflation, GDP growth rate and foreign direct investment are found to pose significant short-run and long-run symmetric and asymmetric effects on IPO variability. These results indicate the significance of the aforementioned variables in enhancing IPO variability. The findings also demonstrate the typical reactions of inflation, GDP and FDI towards negative and positive shocks in IPO variability and inflation. This evidence implies that Pakistan's poor capital market development is reflected in the country's weak macroeconomic factors. At the same time, the reduced IPO variability in the country also reflects the lack of confidence among prospective issuers and investors due to Pakistan's weak macroeconomic indicators.Originality/valueThis is the first study of its kind to properly investigate the symmetric and asymmetric effects of the macroeconomic variables on Pakistan's IPO variability.

scholarly journals DAF Determinants Affecting Economic Growth – Evidence for Western Balkans Countries

2020 ◽  
Vol 9 (1) ◽  
pp. 36-46
Author(s):  
Esat Ali Durguti ◽  
Emine GASHI ◽  
Filloreta Demiri Kunoviku ◽  
Milaim Mehmeti
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Inflation Rate ◽  
Secondary Data ◽  
Gdp Growth ◽  
Western Balkans ◽  
Economic Growth Rate

The purpose of this paper is to find out if selected determinants have any effect on the economic growth rate using the strong balanced panel data for the Western Balkan countries for the period 2001-2017, and the data used are on an annual basis, which in total there are 102 observation periods. For the realization of the paper, secondary data and an advanced dynamic approach were used, such as pooled OLS methods, fixed and random effects model, to test economic growth rate as dependent variable, and explanatory variables such as working remittances to GDP, exports to GDP, imports to GDP, foreign direct investment to GDP and inflation rate.  From the generated outputs, it is true to say that working remittances to GDP, exports to GDP, and imports to GDP have an effect that influences economic growth, respectively GDP growth. Even though foreign direct investment to GDP and inflation rate does not have a significant effect on economic growth, respectively GDP growth.   Keywords: Economic growth; macroeconomic determinants; panel data. JEL code: O47, O11, C23  

scholarly journals Analysis of Cambodia’s macroeconomic development

2021 ◽  
Vol 235 ◽  
pp. 01015
Author(s):  
Qiming Tang ◽  
Meijuan Li
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Direct Investment ◽  
Rapid Development ◽  
Trade Deficit ◽  
Foreign Exchange Reserve ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Import And Export ◽  
Economic Growth Rates

From 2012 to 2018, the annual GDP growth rate of Cambodia exceeded 7%, maintaining rapid development for 7 consecutive years, and it is one of the fastest economic growth rates among developing countries in Asia in recent years. The overall unemployment rate is low, the inflation is moderate and controllable, the trade deficit between import and export, the net inflow of foreign direct investment is increasing by years, and the foreign exchange reserve is growing steadily. In the future, the macro economy of Cambodia will continue to maintain a strong growth momentum.

scholarly journals The Determinants of Foreign Direct Investment in Pakistan: an Empirical Investigation

2003 ◽  
Vol 42 (4II) ◽  
pp. 697-714 ◽  
Author(s):  
Zahir Shah ◽  
Qazi Masood Ahmed
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
High Growth ◽  
Developed Countries ◽  
Annual Growth Rate ◽  
Managerial Control ◽  
Fdi Inflows ◽  
Gdp Growth Rate ◽  
International Transactions

The changing modes of international transactions and the cross-border mobilisation of factor resources, in pursuance of transnational production, constitute new dimensions for sustained economic growth. Foreign Direct Investment (an influential element of this process) is defined as the source of acquisition of managerial control by a business enterprise of a foreign country over a business activity in a host country [Graham (1982)]. The changing perceptions and more attractive policies of the host developing nations have changed the destinations of FDI flows from industrially developed countries to high growth developing centres. FDI stock held by developing countries has risen from $ 132.95 billion in 1980 to $ 1438.48 billion in 1999. Their share in inward stock has reached to 30.14 percent in 1999 as against 26.2 percent in 1980. FDI inflows during this period were raised from $ 4.42 billion to $ 208.0 billion, at an annual growth rate of 22.5 percent while GDP growth rate for that period was 3.9 percent.

scholarly journals Does Corruption Act as a Deterrent to Foreign Direct Investment in Developing Countries?

2020 ◽  
Vol 11 (1) ◽  
pp. 18-34
Author(s):  
Sanjib Guha ◽  
Niazur Rahim ◽  
Bhagaban Panigrahi ◽  
Anh D. Ngo
Keyword(s):  
Growth Rate ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Growth Rates ◽  
Growth And Development ◽  
Direct Investment ◽  
High Growth ◽  
High Growth Rate ◽  
Foreign Firms ◽  
Gdp Growth

Developing countries institute policies to attract Foreign Direct Investment (FDI) that promotes growth and development. Corruption disrupts and complicates the implementation of policies that govern the inflows of FDI and the operations of foreign firms; such interference with policies is more than likely to disrupt and lower the inflows of FDI. This paper evaluates whether or not corruption reduces inflows of FDI into each and every developing country. Our study shows that developing countries with high growth rate (> 6% annual GDP growth) attract more FDI than countries with low growth rates although they are both steeped in corruption. Multi-national Corporations (MNCs) seem willing to cope with corruption in countries with high growth rates.

scholarly journals Impact of External Debt on Economic Growth in Jordan for the Period (2010-2017)

2019 ◽  
Vol 11 (4) ◽  
pp. 114 ◽  
Author(s):  
Khaled Abdalla Moh’d AL-Tamimi ◽  
Mohammad Sulieman Jaradat
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Direct Investment ◽  
External Debt ◽  
Empirical Literature ◽  
Gdp Growth ◽  
Annual Data ◽  
Gdp Growth Rate ◽  
Independent Variable ◽  
The Impact

The study investigates the effect of external debt on economic growth in Jordan by using annual data for the period (2010-2017) by using external debt as a percentage of gross domestic product (GDP) as an independent variable, and GDP growth rate (A proxy for economic growth) as a dependent variable. The study starts with theoretical literature for the impact of external debt on economic growth, then empirical literature for previous studies that analyze the same relationship, after that analyzing the impact of external debt on economic growth in Jordan during the period (2010-2017). The study finds the same conclusion as previous studies that there is a negative and significant impact of external debt on economic growth during the study period, and recommends relying on other financing methods like foreign direct investment.

scholarly journals Do Military Expenditure and Conflict Affect Economic Growth in Sri Lanka? Evidence from the ARDL Bounds Test Approach

2016 ◽  
Vol 8 (3) ◽  
pp. 1
Author(s):  
Abdul Rasheed Sithy Jesmy ◽  
Mohd Zaini Abd Karim ◽  
Shri Dewi Applanaidu
Keyword(s):  
Growth Rate ◽  
Civil War ◽  
Sri Lanka ◽  
Military Expenditure ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
Bounds Test

Conflicts in the form of civil war, ethnic tensions and political discord are of enduring concern and a major bottleneck to economic development in Sri Lanka. Three decades of civil war and unethical political culture have caused severe economic problems for the country, including slower rate of growth and a huge defence expenditure. The aim of this study is to examine the effect of military expenditure and conflict on per capita GDP growth rate in Sri Lanka from 1973 to 2014 using the Solow growth model and ARDL bounds test approach. The results of the bounds test are highly significant and lead to cointegration. The negative and significant coefficients of the error correction term illustrate the expected convergence process in the long-run dynamic of per capita GDP. The estimated empirical results show that, the coefficients of military expenditure and conflict are negative and statistically significant in the short-run as well as in the long-run in determining per capita GDP growth rate in Sri Lanka. Hence, it is critically important to take necessary action to decrease military expenditure and provide an efficient political solution to the problem of minorities, specifically in the post-war period.

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