An Evolutionary Conceptual and Multidisciplinary Frameworks, Principles, and Criteria for FDI Inflows Determinants

The research objective of this paper is to explore the empirical linkages between economic growth and foreign direct investment (FDI), gross fixed capital formation (GFCF) and trade openness in India (TOP) over the period 1980 to 2013. The study reveals a positive relationship between economic growth and FDI, GFCF and TOP. This study establishes a strong unidirectional causal flow from changes in FDI, trade openness and capital formation to the economic growth rates of India. The impulse response function traces the positive influence of these macro variables on the GDP growth rates of India. The study also reveals that the volatility of GDP growth rates in India is mainly attributed to the variation in the level of GFCF and FDI. The study concludes that the FDI inflows and the size of capital formation are the main determinants of economic growth. In view of this, it is expected that the government of India should provide more policy focus on promoting FDI inflows and domestic capital formations to increase its economic growth in the long-term.

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Economic and legal instruments for the realization of foreign direct investment in infrastructure sectors of the economy

Problems of Innovation and Investment Development ◽

10.33813/2224-1213.22.2020.6 ◽

2020 ◽

pp. 47-55

Author(s):

Orshanska Marіana

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

High Growth ◽

Well Being ◽

Gradual Improvement ◽

Fdi Inflows ◽

Investment Projects ◽

Analysis And Synthesis ◽

High Level ◽

Fdi Attraction

The purpose of the article is to determine the nature, characteristics and keyproblems of the main types of economic and legal instruments for the realizationof foreign direct investment (FDI). the methodological basis of the study is asystematic approach to the processing and compilation of statistics and indicators,as well as methods for their comparison, analysis and synthesis and a method offorecasting decisions on the use of investment potential to increase the attractivenessand volume of FDI attraction. The scientific novelty of the research lies in theanalysis of greenfield and brownfield strategies as the main forms of FDIimplementation, the disclosure of the content and interpretation of data on thereal state of FDI attraction, the search for opportunities to improve the investmentclimate and effective mechanisms for attracting foreign investors. conclusions. Itis confirmed that the investment attractiveness and rating of the country in theinternational market are the main factors for attracting investors. Inaccessibleinfrastructure, inefficient judicial system, high level of corruption and imperfectlegislation are the main obstacles that need to be overcome in order to attractforeign investors’ funds, providing a full package of assistance and support ateach stage of the implementation of investment projects. Greenfield and brownfield(M&A) are the most effective forms of FDI in order to achieve high growth ratesof the domestic economy, improve the level of population well-being andinternationally enter Ukraine. An analysis of the statistics on the effectiveness ofinnovative enterprise development projects, the characteristics of economic andlegal instruments indicate the gradual improvement of the investment climate andthe promotion of FDI inflows into the region’s economy through the implementationof greenfield and brownfield strategies. Examples of effective implementation ofthese strategies in the creation of new enterprises, companies of foreignrepresentation, which are expanding their capacity and entering new domesticmarkets are given. Examples of the brownfield strategy have been analyzed torestart existing and high-quality structural and organizational changes in inefficiententerprises, which have given impetus to improving the economic environment,investment attractiveness of the economy of the region and the country as a whole.

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The Impact Of The Economic Determinants On FDI Inflows In Developing Countries:, Algeria As A Model In The Period 1990 - 2017

10.35658/1445-010-002-007 ◽

2019 ◽

pp. 72

Author(s):

Larbaoui manel ◽

Filali Boumediene

Keyword(s):

Developing Countries ◽

Fdi Inflows ◽

Economic Determinants ◽

The Impact

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An Empirical Investigation of India’s Outward Foreign Direct Investment: A Macro Perspective

Emerging Economy Studies ◽

10.1177/2394901519870764 ◽

2019 ◽

Vol 5 (2) ◽

pp. 79-88

Author(s):

Dikshita Kakoti

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Real Effective Exchange Rate ◽

Outward Foreign Direct Investment ◽

Fdi Inflows ◽

Long Run ◽

Increasing Trend ◽

Effective Exchange ◽

Short Run ◽

Effective Exchange Rate

Since 1990, globalization of Indian economy led to a speedy growth of foreign direct investment (FDI) inflows and simultaneously outward foreign direct investment (OFDI) also shows an increasing trend. However, India’s OFDI has attracted a little attention from the researchers and they have considered the OFDI in terms of commitments or approved equities. The motivation of this article is to investigate the India’s macro factors influencing actual OFDI flows from India by empirically recognizing four factors, namely gross domestic product, inward FDI, real effective exchange rate, and real interest rate over the period 1980–2016. The study has used Augmented Dicky-Fuller (ADF) and Phillips–Perron (PP) Unit root tests for checking the stationarity of the variable of the model. Later on, autoregressive distributive lag (ARDL) model and error correction mechanism is used for testing the long-run as well as short-run dynamics of the model. The result shows that all the selected variables have positive and significant influence on India’s outward investment flows.

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Causal Links between Trade Openness and Foreign Direct Investment in Romania

Journal of Risk and Financial Management ◽

10.3390/jrfm14030090 ◽

2021 ◽

Vol 14 (3) ◽

pp. 90

Author(s):

Malsha Mayoshi Rathnayaka Mudiyanselage ◽

Gheorghe Epuran ◽

Bianca Tescașiu

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Trade Openness ◽

Test Procedure ◽

Real Effective Exchange Rate ◽

Foreign Direct Investments ◽

Causality Test ◽

Fdi Inflows ◽

Distributed Lag ◽

Long Run

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

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Effects of China’s market-oriented economic reform, FDI inflows on electricity intensity

Energy ◽

10.1016/j.energy.2021.119934 ◽

2021 ◽

Vol 220 ◽

pp. 119934

Author(s):

Wei Zheng

Keyword(s):

Economic Reform ◽

Fdi Inflows ◽

Electricity Intensity

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Is Russia successful in attracting foreign direct investment? Evidence based on gravity model estimation

Review of Economic Perspectives ◽

10.1515/revecp-2016-0015 ◽

2016 ◽

Vol 16 (3) ◽

pp. 245-267 ◽

Cited By ~ 3

Author(s):

Oleg Mariev ◽

Igor Drapkin ◽

Kristina Chukavina

Keyword(s):

Foreign Direct Investment ◽

Gravity Model ◽

Host Country ◽

Direct Investment ◽

Recipient Country ◽

Developed Countries ◽

Likelihood Method ◽

Empirical Estimation ◽

Fdi Inflows ◽

Russian Economy

Abstract The aim of this paper is twofold. First, it is to answer the question of whether Russia is successful in attracting foreign direct investment (FDI). Second, it is to identify partner countries that “overinvest” and “underinvest” in the Russian economy. We do this by calculating potential FDI inflows to Russia and comparing them with actual values. This research is associated with the empirical estimation of factors explaining FDI flows between countries. The methodological foundation used for the research is the gravity model of foreign direct investment. In discussing the pros and cons of different econometric methods of the estimation gravity equation, we conclude that the Poisson pseudo maximum likelihood method with instrumental variables (IV PPML) is one of the best options in our case. Using a database covering about 70% of FDI flows for the period of 2001-2011, we discover the following factors that explain the variance of bilateral FDI flows in the world economy: GDP value of investing country, GDP value of recipient country, distance between countries, remoteness of investor country, remoteness of recipient country, level of institutions development in host country, wage level in host country, membership of two countries in a regional economic union, common official language, common border and colonial relationships between countries in the past. The potential values of FDI inflows are calculated using coefficients of regressors from the econometric model. We discover that the Russian economy performs very well in attracting FDI: the actual FDI inflows exceed potential values by 1.72 times. Large developed countries (France, Germany, UK, Italy) overinvest in the Russian economy, while smaller and less developed countries (Czech Republic, Belarus, Denmark, Ukraine) underinvest in Russia. Countries of Southeast Asia (China, South Korea, Japan) also underinvest in the Russian economy.

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