Macroeconomic, Political, and Institutional Determinants of FDI Inflows to Ethiopia: An ARDL Approach

2017 ◽  
pp. 123-151 ◽  
Author(s):  
Addis Yimer
Keyword(s):  
Fdi Inflows ◽  
Institutional Determinants ◽  
Ardl Approach ◽  
Determinants Of Fdi

Determinants of FDI inflows to Arab economies

2015 ◽  
Vol 25 (3) ◽  
pp. 325-356 ◽  
Author(s):  
Omar G. Aziz ◽  
Anil V. Mishra
Keyword(s):  
Fdi Inflows ◽  
Determinants Of Fdi

scholarly journals The Determinants of Foreign Direct Investment in China: A Spatial Panel Analysis

2016 ◽  
Author(s):  
Chen-Chen Yong ◽  
Siew-Yong Yew ◽  
Xin Huang ◽  
Mui-Yin Chin
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Eastern Region ◽  
Panel Analysis ◽  
Fdi Inflows ◽  
Spatial Panel ◽  
Panel Model ◽  
Spatial Panel Model ◽  
Investment In China ◽  
Determinants Of Fdi

China is currently the major foreign direct investment (FDI) destination arising from her open door policies since 1978. FDI has become a large impetus to China’s economic growth. However, the geographical distribution of FDI in China is severely biased with 83% concentrated in the eastern region. This is a result of not only differences in locational advantages but also the result of the initiating policies and temporal differences of FDI inflows among the regions. This study aims to examine the determinants of FDI and examine empirically the possible coherent policies for the three regions of China (Eastern, Central and Western) using the spatial panel analysis for the data within the period of 1994 to 2008. The empirical results show that the determinants of FDI vary among the three regions, depending on the motives of the investor and the results of policy bias. The entrepreneurial nature of competition of FDI among the provinces revealed by the spatial FDI factor is a conclusion that cannot be ignored. A more coherent policy on FDI inflows into China is an urgent necessity, though the policies for each region must be, of necessity, different for each of the three regions.   Keywords: Foreign Direct Investment, China, Spatial panel model, spatial variables JEL: F14, C33

The Balkan Paradox: Are Wages and Labour Productivity Significant Determinants of FDI Inflows?

2020 ◽  
Vol 23 (1) ◽  
pp. 144-162
Author(s):  
Maja Bacovic ◽  
Danijela Jacimovic ◽  
Milena Lipovina Bozovic ◽  
Maja Ivanovic
Keyword(s):  
Labour Productivity ◽  
Fdi Inflows ◽  
Determinants Of Fdi

Political stability and FDI in the most competitive Asia Pacific countries

2017 ◽  
Vol 9 (02) ◽  
pp. 140-155 ◽  
Author(s):  
Mamunur Rashid ◽  
Xuan Hui Looi ◽  
Shao Jye Wong
Keyword(s):  
Trade Openness ◽  
Political Stability ◽  
Building Blocks ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Asia Pacific ◽  
Fdi Inflows ◽  
Content Type ◽  
Liberal Trade ◽  
Determinants Of Fdi

Purpose Competitiveness is vital to attracting FDI into a country, which has led us to investigate the determinants of FDI in the top 15 most competitive countries in the Asia Pacific region. Design/methodology/approach We have analysed political stability alongside other commonly studied determinants of FDI. We have employed a panel data fixed-effect model on a 14-year sample data (2000-2013) involving the top 15 most competitive Asia Pacific countries. The Global Competitiveness Index was taken as the yardstick to identify these countries. We have used fixed effect, GMM-system, and Panel ARDL tests for robust results. Findings The GDP, trade openness and political stability positively influenced FDI inflows while inflation rate negatively impacted FDI inflows in the selected countries. Political stability was the most influential variable in the presence of other indicators. GDP, openness, and political stability exhibit significant long-run relationship with FDI inflows. Research limitations/implications To increase FDI flows, regulators should focus on building the image of the country, and possibly the region, by ensuring stable economic and political environment, maintaining macroeconomic stability through bi- and multi-lateral arrangements with neighbouring countries. Originality/value Regional relationships with neighbouring countries can be considered as the building blocks for attracting FDIs. These relationships can be strengthened based on liberal trade policies, openness in capital control, and cooperation in terms of political actions. One such recent issue in regional political cooperation include actions to reduce terrorism and corruption that help boost the confidence of the investors.

scholarly journals Do Macroeconomic Factors Defy the Expected Relationship with FDI Inflows in a Developing Country? An Econometric Analysis Based on Bangladesh

2021 ◽  
Vol 13 (10) ◽  
pp. 28
Author(s):  
Sk. Riad Arefin ◽  
Swarnil Roy ◽  
Avijit Mallik
Keyword(s):  
Inflation Rate ◽  
Positive Impact ◽  
Econometric Analysis ◽  
Education Spending ◽  
Causality Test ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Economic Determinants ◽  
Distributed Lag ◽  
Determinants Of Fdi

Through econometric analysis, this study investigates the effects of various economic factors on foreign direct investment (FDI) inflows in Bangladesh from 1980 to 2019. ARDL (Autoregressive Distributed Lag) has been used to estimate the economic determinants of FDI inflows in Bangladesh after removing the trends from the independent variables. Empirical results revealed that GDP, Fixed Telephone Subscribers, Inflation Rate, and Education Spending are the eminent economic determinants of FDI. Subsequently, a Granger causality test and Vector Auto Regression (VAR) confirmed the absence of any long-term impact of these variables on FDI. From the analysis, it is evident that the ADF (Augmented Dickey-Fuller) test is necessary to remove the trend from these variables and corner those variables for the ARDL method to find the significant ones that have substantial impacts on FDI in Bangladesh. GDP, Fixed Telephone Subscribers, Inflation Rate, and Education Spending are found to be statistically significant while all of them having a positive impact on the FDI. Even though this study matches with many other previous studies conducted by researchers, some exciting findings contradict the expected result and open new doors for further research.

scholarly journals Determinants of Foreign Direct Investment: A Panel Data Analysis for Sub-Saharan African Countries

2019 ◽  
Vol 9 (1) ◽  
pp. 80-87 ◽  
Author(s):  
Semra Boğa
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Trade Openness ◽  
Gdp Growth ◽  
Annual Data ◽  
African Countries ◽  
Fdi Inflows ◽  
Sub Saharan ◽  
Determinants Of Fdi

The aim of this study is to investigate the determinants of FDI inflows in Sub-Saharan African countries. In this study, panel data analysis was performed by using annual data from 23 countries for the period of 1975-2017. The Pesaran (2004) Cross-Section Dependence Test was performed to test correlation and IPS Unit Root Test was applied to reveal the stationary level between the units. Based on the PMG estimator results GDP growth, trade openness, domestic credit, natural resources and telecommunication infrastructure are all found to be the determinants of FDI inflows in Sub-Saharan countries in the long term. But, in the short term, only the GDP growth and trade openness determines the FDI inflows.

Endogenous thresholds for the determinants of FDI inflows: evidence from the MENA countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatma Taşdemir
Keyword(s):  
International Trade ◽  
Financial Development ◽  
Natural Resource ◽  
Developing Economies ◽  
Emerging Market ◽  
Push Factors ◽  
Fdi Inflows ◽  
Content Type ◽  
Financial Depth ◽  
Determinants Of Fdi

PurposeThis paper investigates the main drivers of foreign direct investment (FDI) inflows for a balanced panel of 11 Middle East and North Africa (MENA) economies over the 1995–2017 annual period. The author postulates that the impacts of the main pull (growth) and push (global financial conditions, GFC) factors may not be invariant to endogenously estimated thresholds for structural domestic conditions (SDCs) including trade and capital account openness, financial development, human capital (HC) and natural resource endowments.Design/methodology/approachThe author investigates whether the main SDC provide endogenous thresholds for the impacts of basic pull and push factors on FDI inflows for the MENA sample by employing panel fixed effects threshold procedure of Hansen (1999). As a robustness check, the author also present the results of the dynamic panel data two-step system generalized method of moments (GMM) estimation, which explicitly consider the potential endogeneity of SDC along with main pull factor for the evolution of FDI inflows.FindingsGrowth, GFC and SDC are important drivers of FDI inflows. The impacts of SDC tend to be higher in countries with higher financial depth, openness to international trade and finance and lower natural resource and HC endowments. The sensitivities of FDI inflows to GFC are substantially higher in the countries which are more open to international trade and capital flows and higher levels of financial depth. FDI inflows are found to be pro-cyclical and this pro-cyclicality tends to be much higher for the episodes exceeding the SDC thresholds.Practical implicationsImproving SDC including higher openness to international trade and finance and financial development may be effective in encouraging FDI inflows. The findings support an argument that, better SDC are crucially important not only for attracting FDI but also achieving the growth benefits of FDI inflows. Therefore, improving SDC appears to be an important growth-oriented policy agenda for emerging market and developing economies (EMDEs) including MENA.Originality/valueThe impacts of the main push and pull factors on FDI (and capital) inflows may be nonlinear. The literature often tackles the nonlinearity issue either by some interaction specifications or imposing exogenous thresholds. The literature, however, is yet to comprehensively investigate whether the main SDC provide endogenous thresholds for the impacts of basic pull and push factors. The author aims to contribute to the literature by estimating endogenous SDC threshold levels for the impacts of the main determinants of FDI flows for MENA.

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