Do Market Size and Remittances Explain Foreign Direct Investment Flows to Sub-Sahara Africa?

2016 ◽  
pp. 87-107
Author(s):  
William A. Amponsah ◽  
Pablo Garcia-Fuentes
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Market Size

DETERMINAN PENANAMAN MODAL ASING LANGSUNG DI ASEAN

2012 ◽  
Vol 7 (1) ◽  
pp. 75
Author(s):  
Joko Susanto
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Data Model ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Statistical Data ◽  
Regression Equation ◽  
Panel Data Model ◽  
Market Size ◽  
Research Analysis

This research analysis the factors’ that determine the foreign directinvestment (FDI) in ASEAN’s countries especially Indonesia, Malaysia, Philippine and Thailand during 1990-2009. Multinational Enterprises’ (MNE) must decideto choose a locationfor relocating its’ factory by market seeking dan resources seeking strategy. Based on this statement, it can be obtained the regression equation with foreign direct investment is a function of market size, worker’s productivity and infrastructure of road. Statistical data of UNESCAP was used in this research. The regression was base on the panel data model, while the estimation was based on common effects model. This results showthat the market size, worker’s productivity and availability of infrastructure road could be an importance consideration for MNE’s in their choice for FDI.Keywords: foreign direct investment, market size, worker’s productivity, infrastructure of road

scholarly journals Allocation of foreign direct investment across brazilian states

2013 ◽  
Vol 43 (2) ◽  
pp. 241-269 ◽  
Author(s):  
Maurício Mesquita Bortoluzzo ◽  
Sergio Naruhiko Sakurai ◽  
Adriana Bruscato Bortoluzzo
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Foreign Investment ◽  
Direct Investment ◽  
Transport Infrastructure ◽  
Market Size ◽  
Consumer Market ◽  
Determining Factors ◽  
Econometric Study

Foreign direct investment (FDI) has become increasingly important for the Brazilian economy: the ratio of FDI inflow to the country's gross domestic product (GDP) increased from a 0.6% average in the 1980's to 2.5% from 2001 to 2010, according to data from UNCTAD. However, there is great inequality in the distribution of this investment among Brazilian federation units. This study aims at investigating the determining factors for the location of foreign direct investment across Brazilian states, based on an econometric study with panel data for the years 1995, 2000 and 2005. The results showed that foreign investment responded positively to consumer market size, quality of labor and transport infrastructure, but negatively to cost of labor and tax burden.

scholarly journals Analisis Ekspansi Gojek di Singapura Tahun 2018 Melalui Foreign Direct Investment (FDI)

2020 ◽  
Vol 3 (3) ◽  
pp. 262
Author(s):  
Al Dina Maulidya ◽  
Bagas Prasetyo ◽  
Marsha Salsabilla ◽  
Rizal Alif Prakasya
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Market Size

Gojek melakukan ekspansi ke sejumlah negara di kawasan Asia Tenggara pada tahun 2018. Salah satu negara tersebut ialah Singapura, ekspansi ini dinilai cukup berani. Singapura merupakan satu-satunya negara maju di Asia Tenggara, sekaligus sebagai negara asal raksasa ride hailing saingan Gojek, yakni Grab. Untuk itu, penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi ekspansi Gojek di Singapura tahun 2018. Penelitian ini merupakan penelitian deskriptif dengan teknis analisa kualitatif, dan mengumpulkan data menggunakan studi kepustakaan. Penelitian ini menggunakan konsep Foreign Direct investment (FDI), untuk menetapkan enam faktor penentu yang mempengaruhi ekspansi Gojek di Singapura. Hasil dari penelitian ini menunjukkan, jika setidaknya terdapat enam faktor penentu ekspansi Gojek di Singapura. Enam faktor tersebut ialah, pertumbuhan market size di Singapura, keterbukaan negara Singapura, rendahnya tingkat inflasi di Singapura, tingkat korupsi yang cenderung rendah di Singapura, adanya kebijakan pemerintah yang mendukung penanaman modal asing di Singapura, serta stabilitas politik yang tinggi di Singapura.

scholarly journals Using Pooled Model, Random Model And Fixed Model Multiple Regression To Measure Foreign Direct Investment In Taiwan

2011 ◽  
Vol 4 (12) ◽  
Author(s):  
Thomas Hiestand
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Random Effect ◽  
Labor Cost ◽  
Random Model ◽  
Market Size ◽  
Fe Model ◽  
Literacy Rate ◽  
Cost Distance ◽  
Fixed Model

Through out the paper, two questions will be answered. The first question is, which are the countries that contribute largely to Taiwan FDI? The second question the paper is going to explore is what are the factors that draw FDI into Taiwan. According to the current literature on FDI in other countries, the determinants of FDI are relative market size, relative labor cost, distance and literacy rate. Three versions of the empirical model were estimated. They are Pooled regression model, Fixed Effect (FE) model, and Random Effect (RE) model. Throughout the three models, the relative market size hypothesis was consistently proved to be a key determinant of FDI in Taiwan.

scholarly journals Determinants of Foreign Direct Investment: New Granger Causality Evidence from Asian and African Economies

2016 ◽  
Vol 8 (1(J)) ◽  
pp. 104-119
Author(s):  
Olawumi D Awolusi ◽  
Theuns G Pelser ◽  
Adedeji Saidi Adelekan
Keyword(s):  
Foreign Direct Investment ◽  
Granger Causality ◽  
Monetary Union ◽  
Significant Relationship ◽  
Direct Investment ◽  
Trade Openness ◽  
Market Size ◽  
Fdi Inflows ◽  
Infrastructural Development ◽  
Macroeconomic Condition

Previous studies on the determinants of foreign direct investment (FDI) have predominantly focused on developed and emerging economies. However, there seem to be few studies concentrating on a comparative analysis of vast African and Asian countries. This paper analysed drivers of foreign direct investments (FDI) to Asian and African economies using a panel dataset from 1980 to 2013.This study used Granger causality test, under vector error correction modelling (VECM) to test for causality among the variables. While the drivers of FDI inflows were measured using five dimensions as proposed by Anyanwu; the dependent variable, FDI inflows, was proxied by the ratio of FDI flows to gross domestic product (GDP). Findings revealed that variables manifesting the determinants of FDI inflows positively affected FDI into these continents. Specifically, factors such as trade openness, macroeconomic condition, infrastructural development, and monetary union have positive and significant effect on FDI to Asian economies. No significant relationship was found between FDI inflows and market size to the Asian continent during the study period. On the other hand, trade openness, macroeconomic condition, market size and infrastructural development have positive and significant effects on FDI inflows to African economies although there was no significant relationship between FDI inflows and monetary union to the African continent during the study period. In fact, there were bi-directional relationships between FDI inflows and some of the determinants in both continents. Theoretically, this model provides predictive implications on improved FDI inflows, given the activities of critical variables manifesting as determinants of FDI inflows.

scholarly journals Dumping The Competition, And Scarring Off Investors: The Impact And Influence Of The South African Anti-Dumping And Competition Measures On Foreign Direct Investment

2015 ◽  
Vol 14 (4) ◽  
pp. 669
Author(s):  
Omphemetse S. Sibanda
Keyword(s):  
Foreign Direct Investment ◽  
South African ◽  
Direct Investment ◽  
Competition Law ◽  
Market Size ◽  
Trade Policies ◽  
The Public ◽  
Foreign Companies ◽  
Regional Influence ◽  
The Impact

Since the dawn of democracy South Africa has embarked in a process of dismantling protectionist business and trade policies, and made the countrys stream of commerce one of the preferred globally. The countrys sound competition and trade policies, natural resource endowments, market size and regional influence, attracted foreign businesss and foreign direct invetsment (FDI). Equally the country has been under pressure to protect the domestic industries from injurious competition and business, through sector specific laws, anti-dumping and countervailing duties laws, investment and competition regime. The concern has been the likilelihood of the introduction of trade and competition barriers, and the allienation of FDI. This paper critically examines the impact the countrys antidumping and competition law and practice upon foreign direct investment. Domestic industries have never been shy file anti-dumping and anti-competition suits against foreign companies, sometimes even against the public interest outcry. Relevant examples of these suits include the famous Wal-Mart anti-competition case, and recently the Brazilian frozen fowl meat anti-dumping case.

scholarly journals Impacts of remittances on foreign direct investment in South East Asia - An empirical investigation

2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Pham Dinh Long ◽  
Nguyen Van Duc
Keyword(s):  
Foreign Direct Investment ◽  
East Asia ◽  
Direct Investment ◽  
Empirical Investigation ◽  
Positive Impact ◽  
Market Size ◽  
South East Asia ◽  
Data Set ◽  
Small Market ◽  
Per Capita

This study investigates the effects of remittances on attracting foreign direct investment flows to South East Asia. Using a balanced panel data set for seven countries in the 2000-2013 period, we find that remittances have a direct positive impact on attracting FDI. Significantly, the result also shows a negative correlation between remittances and FDI attraction in countries with low per capita income and small market size.

scholarly journals What determines foreign direct investment in Russia?

2020 ◽  
Vol 6 (53) ◽  
pp. 311-322
Author(s):  
Oleg Gurshev
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Local Development ◽  
Statistical Significance ◽  
Labour Productivity ◽  
Arima Model ◽  
Historical Context ◽  
Market Size ◽  
Open Market ◽  
Positive Effects

AbstractThis article focuses on the determinants of inward foreign direct investment (FDI) in Russia. The article briefly describes the historical context of foreign investment policymaking in Russia since the beginning of the economic transition to an open market economy after the dissolution of the Soviet Union. When compared to other developing countries, Russia's FDI stocks continue to lag despite a set of proactive measures undertaken by the national government. Following the literature review, the most commonly cited determinants explaining inward FDI in Russia include market size, labour productivity, trade and investment barriers, domestic exchange rate, rule of law and institutional framework.This article aims to contribute empirically to the study of determinants of inward FDI in Russia.This article uses the Pseudo-Poisson Maximum Likelihood (PPML) estimation technique, the robustness of the PPML estimation is then verified using a standard autoregressive integrated moving average (ARIMA) model with the Durbin–Watson autocorrelation test.Our benchmark results suggest the efficiency-seeking motive of FDI over a market seeking and horizontal motive as a main reason for inward FDI in Russia. The ARIMA regression indicates the absence of statistical significance of economic openness and variables of labour productivity. Overall, the market size and tax rate variables have the most positive effects on the inward FDI, while barriers to trade and sanctions have the most negative effects. The results confirm that for transitional economies, integration into the world economy, proactive local development and tax cuts for outside investors remain to be critical when it comes to attracting FDI.

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