Main Determinants of Foreign Direct Investments in Romania - A Quantitative View of the Regional Characteristics Involved in the Investment Strategies of Foreign Companies

Purpose The purpose of this paper is to elucidate the main determinants of foreign direct investment (FDI) in the case of the Arab Maghreb countries. Design/methodology/approach We employ a dynamic panel analysis using the General Method of Moments for a sample composed of 105 countries over the period 1985–2018. Findings We show that FDI stability, market size, higher education enrolment, quality of institutions, distance, sharing of common border, and bilateral investment and integration agreements are the main determinants of FDI location. These determinants are neither general. The potential for attracting FDI from AMU countries is poorly exploited. FDI to the AMU is lower than estimated stock. The observed FDI to potential FDI ratio does not exceed 87%. France and Spain are the main investors in the AMU region thanks to historical and cultural links. The FDI from the United States, Canada, Germany, Belgium, and Japan are below what is expected. Originality/value The contribution of this paper is observed on the examining oh the determinants of the FDI in the Arab Maghreb countries. Our study demonstrate that the political stability can decrease investment risk in these countries. The administrations correspondingly require expanding their rules and strategies with union demonstrations which were at the beginning of the departure and closing of several foreign companies.

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Business Climate Versus the Attraction of Direct Foreign Investments in Albania

European Journal of Multidisciplinary Studies ◽

10.26417/ejms.v4i2.p35-44 ◽

2017 ◽

Vol 4 (2) ◽

pp. 35

Author(s):

Dritan Shoraj ◽

Perparim Dervishi

Keyword(s):

Foreign Market ◽

Business Environment ◽

Foreign Direct Investments ◽

Measuring Instrument ◽

Business Climate ◽

Foreign Investments ◽

Chi Square ◽

Foreign Investors ◽

Foreign Companies

There are statistics that foreign direct investments (FDI) in Albania have significantly declined. Business climate and skill of policies to attract FDI in Albania has apparently not impacted the promotion of investments from foreign businesses. This study assesses the business environment disadvantages and the readiness and availability of foreign investors to take risks with their investments in a foreign market facing the business climate of the host country, as well as the skill or failure of the latter for long term cooperation. Some basic components of the business climate in Albania, impact and their attractiveness to foreign investors will be analyzed and assessed. The research methodology selected for this study is the quantitative one, where a number of about 100 CEO and administrators of medium and big foreign companies in Albania have been planned to be interviewed. The measuring instrument will be standardized and after data collection, a series of analyses will be built such as correlation, means, standard deviations, frequencies, Chi-square (χ2) where the value p00.5. Analysis of variables will be realized through SPSS program. The study will be closed with relevant conclusions and recommendations.

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The Main Determinants of Capital Inflows in Emerging Market Economies: Does the Exchange Rate Regime Matter?

World Journal of Applied Economics ◽

10.22440/wjae.6.2.4 ◽

2020 ◽

Vol 6 (2) ◽

pp. 163-167

Author(s):

Fatma Taşdemir

Keyword(s):

Exchange Rate ◽

Exchange Rate Regime ◽

Emerging Market ◽

Capital Inflows ◽

Emerging Market Economies ◽

Foreign Direct Investments ◽

Market Economies ◽

Real Gdp ◽

Long Run ◽

Main Determinants

There is a bulk of literature in analyzing the impacts of exchange rate regimes (ERRs) on capital flows into emerging market economies. However, these studies mainly do not take into account integration and cointegration properties of variables. This paper aims to tackle this important issue by investigating whether ERRs matter for the impacts of the main push (global financial conditions, GFC) and pull (real GDP) factors on capital inflows into emerging market economies. We find that worsening GFC decreases all types of capital inflow except foreign direct investments in case of floating ERR. This impact is statistically significant only for portfolio inflows in case of managed ERR. The pull factor is often positive and statistically significant in determining capital inflows in the long-run only under floating ERRs. These results suggest that the long-run impacts of the main pull and push factors on capital inflows are often magnified under more flexible ERRs.

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Establishment of a Company and Share Acquisitions in Turkey by Foreigner Investors

International Conference on Eurasian Economies 2019 ◽

10.36880/c11.02230 ◽

2019 ◽

Author(s):

Mustafa Topaloğlu

Keyword(s):

Foreign Capital ◽

Stock Exchange ◽

Foreign Investor ◽

Foreign Direct Investments ◽

Government Bonds ◽

Foreign Investors ◽

Foreign Companies ◽

The Republic ◽

Economic Assets ◽

A Company

Relating to the establishment and acquisition of a company in Turkey by foreign investors, Foreign Direct Investments Law No.4875, FDI has entered into force on 17.06.2003. FDI formed a notification-based system rather than an approval-based system for foreigners to establish a new company and to take over company shares. Accordingly, company information regarding foreign investors will be notified to the General Directorate of Incentive Implementation and Foreign Capital via “Electronic Incentive Implementation and Foreign Capital Information System”. Foreign investment means establishment of a new company by a foreign investor or share acquisitions of an existing company, any percentage of shares acquired outside the stock exchange or 10 percentage or more of the shares/voting power of a company acquired through the stock exchange, by means of the following economic assets: assets acquired from abroad by the foreign investor which are capital in cash in the form of convertible currency bought and sold by the Central Bank of the Republic of Turkey, stocks and bonds of foreign companies excluding government bonds, machinery and equipment, industrial and intellectual property rights; or assets acquired from Turkey by foreign investor which are reinvested earnings, revenues, financial claims, or any other investment-related rights of financial value, rights for the exploration and extraction of natural resources. According to Article 4 of the Regulation for Implementation of Foreign Direct Investment Law, the Ministry of Economy shall provide information on the companies within the scope of foreign direct investments from Trade Registry Offices and related public institutions and organizations.

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The impact of the sanctions regime on foreign direct investments in Russia

RUDN Journal of Economics ◽

10.22363/2313-2329-2018-26-4-760-772 ◽

2018 ◽

Vol 26 (4) ◽

pp. 760-772

Author(s):

Yury K Zaytsev

Keyword(s):

Foreign Direct Investment ◽

Central Bank ◽

Direct Investment ◽

Foreign Direct Investments ◽

Investment Strategies ◽

Investment Activity ◽

Foreign Investors ◽

Qualitative Level ◽

European Economies ◽

The Impact

The economic and political sanctions had a significant impact on the behavior of foreign investors in the real sector of the Russian economy in the period 2014-2017. Despite a significant outflow of foreign direct investment (FDI) in 2015, in 2016-2017, there was an increase in investment activity associated with a steady inflow of FDI, which could be explained by the change in investment strategies of foreign business in Russia. The purpose of the study. The article assesses the impact of Western sanctions and Russian countersanctions on the influx of foreign direct investment into Russia. Methods. The work is based on methods of statistical analysis of the behavior of foreign investors in Russia on the basis of macroeconomic data of the Central Bank of Russia and microeconomic data of the “Ruslana” database. Results. The author gives various assessments of sanctions and counter-sanctions impact on the Russian and European economies, and compares the effects of sanctions policies in Russia and Iran. The stylized facts, identified by the author at the micro level, allow to interpret the macro statistics provided by the Central Bank of Russia at a qualitative level. The conclusion . In conclusion, the author gives recommendations on the possibilities of using new mechanisms of interaction with international institutions to overcome the investment crisis as a consequence of the sanctions regime.

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INTERNATIONAL INVESTMENT RESOURCES MARKET: STRUCTURE AND CURRENT TRENDS

Scientific Notes of Taurida National V.I. Vernadsky University. Series: Economy and Management ◽

10.32838/2523-4803/71-4-4 ◽

2021 ◽

Vol 71 (4) ◽

Author(s):

Ihor Shmorhun ◽

Oksana Bulkot

Keyword(s):

Foreign Direct Investment ◽

Stock Market ◽

Direct Investment ◽

Industrial Revolution ◽

International Investment ◽

Bond Market ◽

Foreign Direct Investments ◽

Investment Strategies ◽

Current Trends ◽

The Impact

The article is devoted to the study of the dynamics of the market of international investment resources. A comprehensive analysis of current trends in the market of international investment resources in terms of its structural division into the market of foreign direct investment, the market of basic investment instruments - stocks and bonds, and the market of financial derivatives. Based on the analyzed statistical information, the authors draw conclusions about current trends in the international market of investment resources. The analysis of the foreign direct investment market revealed a tendency to decrease the volume of direct investment capital in all regions of the world. It is shown that foreign direct investment market is suffering severely from the crisis caused by the COVID-19 pandemic, as well as from the impact of other factors such as the new industrial revolution, the transition of many world policies to greater economic nationalism, and the trend of sustainable development. In particular, countries with transition economies, developed and developing countries are suffered from decline of about 40% of foreign direct investments most of all. The market of basic investment instruments demonstrates a tendency to recover: the global stock market and the bond market also suffered significantly at the beginning of the pandemic in March 2020, but by the end of 2020 these markets had almost fully recovered and the bond market in general began to show record volumes and values. The derivatives and hybrid financial instruments market is showing a steady positive upward trend in 2020: trading in instruments such as currency futures, stock market futures, ETF options, etc. is showing significant growth. Such trends indicate that investors have become more active in portfolio investment strategies.

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A Comparative Study of Foreign Investment Laws in Ghana and South Africa: –A Review

International Journal of Technology and Management Research ◽

10.47127/ijtmr.v2i3.63 ◽

2020 ◽

Vol 2 (3) ◽

pp. 17-27

Author(s):

Dorothy Mamphey - Otibo

Keyword(s):

South Africa ◽

Foreign Direct Investment ◽

Foreign Investment ◽

Direct Investment ◽

Foreign Direct Investments ◽

Investment Strategies ◽

African Countries ◽

Regulatory Policies ◽

Legislative Framework ◽

Regulatory Bodies

Over the last decade, Ghana and South Africa have been among some African countries that have become more entrenched in foreign direct investment (FDI). The past quarter of the century has witnessed a remarkable growth in world foreign direct investment flows, coupled with the evolving investment strategies of national policies globally. This paper examines and compares the legislative frameworks and regulatory policies governing FDIs in South Africa and Ghana and the hurdles that need to be overcome to ensure smooth implementation of these policies. This has become evident in their current enactment of their regulations with the object of promoting investments in these economies. However, these jurisdictions have restrictions placed on their regulations; hence, putting frustrations on foreign direct investments. It appears that although in terms of overall statutory FDI regulations, African countries are on the average not more restrictive than other developing nations, some of these countries have obstacles that are both severe and restrictive such as land ownership, whether discriminatory or general in nature, act as an important deterrent to foreign investment. This discussion would focus on comparing restrictions imposed by legislation or policies affecting Soith Africa anf Ghana with regards to foreign direct investment. And disputes that emerge due to the restrictions among the jurisdictions.Keywords: Foreign Direct Investment, Economic Growth, International Law, Legislative Framework, Regulatory Bodies, Bilateral Investment Treaties.

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An Emperical Study on the Strategies to Attract Foreign Direct Investments in Tanzania

Journal on Innovation and Sustainability RISUS ISSN 2179-3565 ◽

10.24212/2179-3565.2012v3i1p43-52 ◽

2012 ◽

Vol 3 (1) ◽

pp. 43

Author(s):

Abdulla R. Abdulla ◽

Maryam M. Othman ◽

Zhao Hongzhong

Keyword(s):

Political System ◽

Foreign Direct Investments ◽

Investment Strategies ◽

Economic Management ◽

Institutional Reforms ◽

Fdi Inflows ◽

Regulatory Frameworks ◽

Physical Infrastructure ◽

Political Conditions ◽

Fdi Determinants

This paper dwells on the investment strategies in attracting FDI into Tanzania, the investment reforms have been expected to become a major factor responsible for the increased FDI inflow in to the country, these reforms including political system, economic management and government administration. Despite of the several efforts such as the far reaching reform in the economy done by Tanzania to increase FDI inflows in the country, the results are far from satisfactory. It has been revealed that the unsatisfactory FDI inflow into Tanzania is primarily caused by the improper strategies resulted from the inadequacy of FDI determinants in the country. The study found that Tanzania lacks the adequate strategies due to poor FDI determinants that would attract a substantial FDI inflow into the country. This makes it necessary for the country to make sure that the determinants like better infrastructure, adequacy of government agencies; favorable macro economic, political conditions are available in adequate amount and quality. It is concluded that proper strategies in influencing investment regulatory frameworks, policies that promote macroeconomic stability, improved physical infrastructure and institutional reforms are important in attracting more FDIs into a country and therefore are highly recommended.

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Government Regulation, Technology and Development of SME-s

European Journal of Multidisciplinary Studies ◽

10.26417/ejms.v1i3.p28-38 ◽

2016 ◽

Vol 1 (3) ◽

pp. 28

Author(s):

Sorina Koti ◽

Klaudeta Merollari

Keyword(s):

Government Regulation ◽

Transition Period ◽

Foreign Direct Investments ◽

Business Climate ◽

Monetary Policies ◽

East Europe ◽

Foreign Companies ◽

South East Europe ◽

The Government ◽

The Impact

The aim of the paper is to analyze the factors that determine business growth and the impact on the GDP of the country. The paper analyses Albania, as one of the countries in the South East Europe. Albania is still passing through a transition period at all levels, economic and political. Albania has made serious steps in the development of the state of law, of the financial system and it is working on the achievements of goals, such as: becoming an EU member, stabilization of the fiscal and monetary policies, stability of prices, fighting against corruption, incentives for private investments, reduction of business’s taxes etc. The achievement of these goals will bring more motivation and incentives for growth, an increase in domestic and foreign direct investments. The government of Albania is still working on the future strategies that will bring Albania near to the European countries. The partial achievement of the above goals has created a positive environment, but still there is enough room for change and stabilization. The Albanian governments have improved the business climate, in order to create easier methods in the way of doing business, by attracting more foreign investors and creating a positive climate. Albania has experienced an increase of interest from foreign companies, which have invested in the main fields of economic such as: banking, energy, telecommunication, gas-oil, supermarkets, construction etc. However, some fiscal policies have changed during the last three years, which has caused a tightening of credit, investment, growth and income. Nowadays, Albania is not in a good position compare to neighborhood countries and it is facing recession problems that need immediate solution to overcome the crisis.

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