The impact of deviation from relative purchasing power parity equilibrium on U.S. foreign direct investment

2009 ◽  
Vol 49 (2) ◽  
pp. 521-550 ◽  
Author(s):  
Axel Grossmann ◽  
Marc W. Simpson ◽  
Cynthia J. Brown
Keyword(s):  
Foreign Direct Investment ◽  
Purchasing Power Parity ◽  
Direct Investment ◽  
Purchasing Power ◽  
Power Parity ◽  
The Impact

scholarly journals Reconnoitering the Impact of Economic Variables on Fruit Pulp Export from Tamil Nadu

2020 ◽  
Vol 8 (4S5) ◽  
pp. 58-65
Keyword(s):  
Purchasing Power Parity ◽  
Tamil Nadu ◽  
Time Frame ◽  
Purchasing Power ◽  
Fruit Pulp ◽  
Power Parity ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
The Impact

The objective of the was to determine the impact of the Price of the commodity, Purchasing Power Parity of the host country, Population of the importing country and Distance between the trading countries with respect to the quantity of fruit pulp export from Tamil Nadu. The researchers adopted analytical research data, wherein data during the time frame of 2017 was used. The analysis conducted on data indicates that there is a long run relationship between the Price, Purchasing Power Parity, Population and Distance with respect to the quantity of fruit pulp export. Furthermore, the VECM [Vector Error Correction Model] indicates error estimates can be estimated effectively for the model framed using study variables considered.

scholarly journals Estimation of Belarus Trade Policy Liberalization Process Following Customs Union

2019 ◽  
Vol 14 (3) ◽  
pp. 110-131
Keyword(s):  
Trade Policy ◽  
Purchasing Power Parity ◽  
Relative Price ◽  
Purchasing Power ◽  
Customs Union ◽  
Power Parity ◽  
Dummy Variable ◽  
The Creation ◽  
Global Classification ◽  
The Impact

The research assesses the process of liberalization of trade policy of Belarus after the creation of the Customs Union (CU) due to the liberalization of non-tariff barriers. Evaluation is carried out using an error correction model with relative price changes based on the theory of purchasing power parity (PPP). In the first part of the article, a global classification of non-tariff measures developed on the basis of UNCTAD is given, and so are examples of non-tariff restrictions applied by Russia, Belarus, and Kazakhstan. It also describes the research aiming to assess the impact of trade liberalization on wealth and economic growth. The second part contains a theoretical rationale for the model, construction of which is based on purchasing power parity in violation of the “law of one price”. The third part of the work contains a direct econometric estimation of the model. Before estimation the model is applied to prove model assumptions: in particular, the significance of the dummy variable implies liberalization of non-tariff measures, rather than a reduction of the customs tariff; non-tradable sectors are the same in the partner countries, and therefore the change of their prices is not evaluated. The result of the empirical analysis is the revealed inertness of the liberalization of non-tariff barriers in Belarus, as evidenced by the liberalization not since the creation of the Customs Union, but after several quarters. It also revealed the stimulation of consumption of imported products as a result of a decrease in their price due to liberalization.

scholarly journals The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016

ECONOMICS ◽  
2017 ◽  
Vol 5 (2) ◽  
pp. 69-81 ◽  
Author(s):  
Aliya Zhkanova Isiks ◽  
Huseyin Isiksal ◽  
Hala Jalali
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Purchasing Power Parity ◽  
Direct Investment ◽  
Global Financial Crisis ◽  
Tourism Industry ◽  
Real Effective Exchange Rate ◽  
Military Coup ◽  
Turkish Economy ◽  
The Impact

SummaryThis study focuses on Foreign Direct Investment (FDI) inflows and how they are linked with the economic indicators in Turkey including the Real Effective Exchange Rate (REER), and Gross Domestic Product per capita of Purchasing Power Parity - GDP (PPP) in Turkey. The GDP (PPP) variable is used because it shows significant causality on REER, along with the exchange rate volatility of the U.S Dollar in the Turkish stock market. Also, as an important sector of the Turkish economy, tourism revenue is elucidated according to the Organization for Economic Co-operation and Development (OECD) data from 2016. The main objective of this study is to evaluate the impact of the FDI investment on economic condition in Turkey for the period between January 2010 and July 2016. The selected period is important because it represents the crucial time for Turkish economy following the 2008 global financial crisis along with the ongoing Civil War in neighboring Syria that had initiated in 2012, Turkish-Russian crises of 2015, and the military coup attempt in Turkey in 2016. It is argued that despite all the negative international and regional developments, FDI and Tourism play key roles in attracting income to the country. This is presented in the level of REER and GDP for PPP. The results also support the findings of many economists, who have previously asserted that the Turkish economic interaction is growing at a globalized level, and is able to compete with the other large attractive areas for foreign investors around the world. Finally, the results demonstrate that the tourism industry was the least affected sector in Turkey.

ANALISIS DETERMINAN KUALITAS LINGKUNGAN PERIODE 1999-2013

2016 ◽  
Vol 21 (1) ◽  
pp. 9-20
Author(s):  
Ersalina Tang
Keyword(s):  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Gross Domestic Product ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Meat Consumption ◽  
Domestic Product ◽  
World Data ◽  
The World ◽  
The Impact

The purpose of this study is to analyze the impact of Foreign Direct Investment, Gross Domestic Product, Energy Consumption, Electric Consumption, and Meat Consumption on CO2 emissions of 41 countries in the world using panel data from 1999 to 2013. After analyzing 41 countries in the world data, furthermore 17 countries in Asia was analyzed with the same period. This study utilized quantitative approach with Ordinary Least Square (OLS) regression method. The results of 41 countries in the world data indicates that Foreign Direct Investment, Gross Domestic Product, Energy Consumption, and Meat Consumption significantlyaffect Environmental Qualities which measured by CO2 emissions. Whilst the results of 17 countries in Asia data implies that Foreign Direct Investment, Energy Consumption, and Electric Consumption significantlyaffect Environmental Qualities. However, Gross Domestic Product and Meat Consumption does not affect Environmental Qualities.

تأثير الاستثمار الاجنبي المباشر في القيمة السوقية للشركة (دراسة تطبيقية في شركة بترو جانيا الصينية في عقود التراخيص النفطية للجولة الاولى والثانية في الحقول النفطية في العراق للمدة من 2017-2010)

2020 ◽  
Vol 2020 (66) ◽  
pp. 65-85
Author(s):  
هيثم عبد النبي موسى ◽  
أ .د حيدر نعمة غالي الفريجي
Keyword(s):  
Foreign Direct Investment ◽  
Stock Prices ◽  
Return On Investment ◽  
Direct Investment ◽  
Inverse Correlation ◽  
Market Value ◽  
Political Stability ◽  
Coefficient Of Determination ◽  
Independent Variable ◽  
The Impact

This study dealt with the effect of foreign direct investment on the market value of the company during the period of time (2010-2017). This issue was studied through a sample of oil fields in southern Iraq in which the company operates within the first and second licensing contracts rounds and according to the circumstances and variables of the investment environment as it is. Although this investment often achieves high returns, it is also characterized by a high degree of risk and for the purpose of evaluating the impact of foreign direct investment on the market value of the company's stock prices for the period (2010-2017). The statistical scale (T-TEST) was used to indicate the significance of the correlation hypotheses. Between the return on investment as the independent variable and the market value as the dependent variable, and the use of the coefficient of determination (R2) that measures the effect of the independent variable (foreign direct investment) on the dependent variable (market value) and the F-Test to demonstrate acceptance or rejection of the hypothesis of the return on investing in the market value of the oil company, and if the company achieves a high return in foreign direct investment, the market value of it will be affected positively. The study was based on a set of goals, including determining the attractiveness of Iraq to foreign investments, especially the oil sector, and the study reached a number of conclusions, the most prominent of which is the existence of a strong inverse correlation between the return on investment and the market value of the company. And the existence of a slight impact of the return on investment on the market value of the company, and the study reached a number of recommendations, the most important of which is activating the investment climate through political stability and the clarity and stability of laws and legislation regulating investment, which is one of the most important factors affecting the investment decision.

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