Impact of China’s outward foreign direct investment on green total factor productivity in “Belt and Road” participating countries: a perspective of institutional distance

2020 ◽  
Author(s):  
Fangming Xie ◽  
Bing Zhang
Keyword(s):  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Institutional Distance ◽  
Outward Foreign Direct Investment ◽  
Factor Productivity ◽  
Belt And Road

Cultural and Institutional Distance of China’s Outward Foreign Direct Investment Toward the “Belt and Road” Countries

2020 ◽  
pp. 1-19
Author(s):  
A. K. M. Mohsin ◽  
Hongzhen Lei ◽  
Hasanuzzaman Tushar ◽  
Syed Far Abid Hossain ◽  
Mohammad Ebrahim Hossain ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Distance ◽  
Outward Foreign Direct Investment ◽  
Belt And Road ◽  
The Belt And Road

Does foreign direct investment spillover total factor productivity growth? A study of Indian drugs and pharmaceutical industry

2017 ◽  
Vol 24 (7) ◽  
pp. 1937-1955 ◽  
Author(s):  
Nitin Arora ◽  
Preeti Lohani
Keyword(s):  
Foreign Direct Investment ◽  
Pharmaceutical Industry ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Spillover Effect ◽  
Foreign Firms ◽  
Factor Productivity ◽  
Content Type ◽  
Domestic Firms ◽  
Tfp Growth

Purpose Foreign firms have certain advantages which may spillover to domestic firms in the form of improvements in total factor productivity (TFP) growth. The purpose of this paper is to empirically observe the presence of TFP spillovers of foreign direct investment (FDI) to domestic firms through analyzing source of TFP growth in Indian drugs and pharmaceutical industry. Design/methodology/approach This paper examines the sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry over the period 1999 to 2014. The data of 304 firms has been used for estimation of the growth rates of TFP and its sources under stochastic frontier analyses based Malmquist productivity index framework. For frontier estimation, the Wang and Ho (2010) model has been executed using translog form of production function. Findings The results show that there exists significant TFP spillover effect from the presence of foreign equity in drugs and pharmaceutical industry of India. The results also show that the major source of TFP fluctuations in the said industry is managerial efficiency that has been significantly affected by FDI spillover variables. In sum, the phenomenon of significant Intra-industry (horizontal) efficiency led productivity spillovers of FDI found valid in case of Indian drugs and pharmaceutical industry. Research limitations/implications The number of foreign firms is very less to imitate the significant impact of foreign investment on TFP growth of Indian pharmaceutical industry at aggregated level; and the Wang and Ho (2010) model is failing to capture direct impact of FDI on technological change under Malmquist framework. Practical implications Since, there exists dominance of domestic firms in Indian drugs and pharmaceutical industry, the planners should follow the policy which not only attract FDI but also benefit domestic firms; for example, developing modern infrastructure and institution which will further help domestic firms to absorb spillovers provided by the Multinational Corporations and also accelerate the growth and development of the economy. Social implications In no case, the foreign firms should dominate the market share otherwise the efficiency spillover effect will be negative and the domestic firms will be destroyed under the self-centric approach of foreign firms protected by the recent patent laws. Originality/value The study is a unique attempt to discuss the production structure and sources of TFP spillovers of FDI in Indian drugs and pharmaceutical industry with such a wide coverage of 304 firms over a period of 16 years under Wang and Ho (2010) model’s framework. The existing studies on TFP spillovers are using either a small sample size of firms or based upon traditional techniques of measuring spillover effects.

scholarly journals The Trend of Reduced Chinese Investments in the Belt and Road Initiative: Spending Contentions and Preparations for an Upcoming Financial Crisis

Desafíos ◽  
2020 ◽  
Vol 32 (1) ◽  
Author(s):  
Samuel Spellmann ◽  
Alexandre César Cunha Leite
Keyword(s):  
Foreign Direct Investment ◽  
Financial Crisis ◽  
Direct Investment ◽  
Outward Foreign Direct Investment ◽  
Belt And Road Initiative ◽  
Belt And Road ◽  
The Belt And Road

Este artículo busca establecer explicaciones para el cambio en el patrón de inversiones presentado en el flujo de inversión directa no financiera (IED) de China en la Nueva Ruta de la Seda (NRS). En primer lugar, la reducción de las inversiones en nrs se verifica a través del análisis del Statistical Bulletin of China’s Outward Foreign Direct Investment entre los años 2013 y 2016. Después, al tratar de explicar la reducción del flujo de ied no financiera de China a nrs, este artículo analiza dos hipótesis. Primero, retrata las medidas actuales de control del gasto público de China, que abordan el crecimiento del exceso de capacidad del país, mientras discute las similitudes entre la economía china y la crisis japonesa de principios de la década de 1990. Posteriormente, contempla la posibilidad de que los preparativos realizados por las autoridades chinas se contrarresten por la inestabilidad anticipada de los mercados mundiales. La confluencia de estos factores ayuda a explicar la reducción del flujo no financiero de ied a nrs, que contrasta con la tendencia contemporánea hacia la inversión china en el mundo durante el mismo período.

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