DO INTERNATIONAL FLOWS INCREASE ENROLLMENT RATES?

2015 ◽  
Vol 20 (4) ◽  
pp. 1051-1072
Author(s):  
Arusha Cooray
Keyword(s):  
Foreign Direct Investment ◽  
Government Policy ◽  
Direct Investment ◽  
Time Lag ◽  
Financial Sector ◽  
Development Aid ◽  
Enrollment Rates ◽  
The Impact ◽  
Positive Effect ◽  
Overseas Development

This study examines the influence of foreign direct investment (FDI), overseas development aid (ODA), and remittances on the enrollment of girls and boys in 103 countries over the years 1970–2011. The results suggest that remittances have a contemporaneous robust significant influence on enrollment, with the positive effect being slightly higher for girls than for boys. FDI and ODA have an influence on the enrollment of girls and boys only after a significant time lag. The results also suggest that the impact of remittances on enrollment is increased through income and a well-developed financial sector; FDI through better institutions and a well-developed financial sector; and ODA through better government policy.

scholarly journals The impact of financial sector reforms on foreign direct investment in an emerging economy: empirical evidence from Ghana

2020 ◽  
Vol 2 (4) ◽  
pp. 271-284
Author(s):  
Kofi Kamasa ◽  
Isaac Mochiah ◽  
Andrews Kingsley Doku ◽  
Priscilla Forson
Keyword(s):  
Foreign Direct Investment ◽  
Empirical Evidence ◽  
Direct Investment ◽  
Least Squares Method ◽  
Financial Sector ◽  
Ordinary Least Squares ◽  
Sector Reform ◽  
Content Type ◽  
Financial Sector Reform ◽  
The Impact

Purpose This paper aims to empirically investigate the impact that financial sector reforms have on foreign direct investment (FDI) in Ghana. Design/methodology/approach Composite financial sector reform index was constructed, which was made up of various forms of reform policies that were implemented from 1987 to 2016. The auto regressive distributed lag bounds test was used to establish cointegration between variables. Having controlled for other covariates that affect FDI such as trade openness, exchange rate, gross domestic product per capita, inflation and by using the fully modified ordinary least squares method, the estimations are robust as it uses a semi-parametric correction to avoid for any possible issues of endogeneity and serial correlation. Findings Results from the paper reveal that financial sector reform deepening boost FDI with a 2.167% increase in FDI following from a unit percentage improvement of the financial sector reforms. Considering the various categories of reforms, the results reveal that competitive reforms have the highest impact on FDI followed by privatization reforms with positive and significant elasticity coefficients of 2.174% and 0.726%, respectively. Behavioral reforms revealed a positive effect on FDI, albeit insignificant. Originality/value The paper contributes to policy by providing empirical evidence on the effect of financial sector reform on FDI inflows in Ghana. As far as the review of literature is concerned, this paper provides the foremost empirical evidence on the subject with sole emphasis on Ghana. Thus, this paper suggests the deepening of the financial sector reforms, improving competition and maintaining macroeconomic stability.

scholarly journals Econometric Study of the Dynamics of Foreign Direct Investment in Russia

2020 ◽  
Vol 9 (27) ◽  
pp. 92-103
Author(s):  
Valentina E. Guseva ◽  
Sofya V. Mechik
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Direct Relationship ◽  
Time Lag ◽  
Consumer Price Index ◽  
Business Environment ◽  
Investment Activity ◽  
The Exchange Rate ◽  
The Impact

Foreign investment is of high importance for economic growth in Russia. The problem of enhancing investment flows makes it increasingly relevant to search for effective tools for stimulating investment activity. We attempt to identify the factors affecting the dynamics of foreign direct investment (FDI). The paper analyses the current state of foreign direct investment in the Russian economy. Using empirical data for 2001–2018, we construct an econometric model for Russia which considers such factors as inflation (the Consumer Price Index), the exchange rate and imports. The results of the model’s testing do not confirm the initial assumptions that inflation exerts a more profound effect on FDI than the exchange rate and that there is a correlation between these indicators. For Russia, the dependence of FDI on the exchange rate remains insignificant; in addition, we find a direct relationship between the indicators. According to the model, the impact of inflation (direct relationship) and the volume of imports (inverse relationship) are of greater significance. It is noteworthy that the dynamics of foreign direct investment is partially due to its fluctuations with a time lag. The model forecasts that from 2019 to 2024 Russia is expected to experience a rise in FDI net outflows. The findings indicate that in order to attract foreign direct investment, it is necessary to implement economic transformations that will improve the business environment and lead to the development of healthy competition.

scholarly journals Modeling the Impact of Foreign Investment Flows Taking into Account Time Lags in the Context of their Impact on the Regional Production

2020 ◽  
Vol 8 (6) ◽  
pp. 1835-1839
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Lag ◽  
Time Lags ◽  
Distributed Lag ◽  
Distributed Lag Models ◽  
Comparison Time ◽  
Western Ukraine ◽  
Regional Product ◽  
The Impact

Peculiarities of regional processes of foreign direct investment impact on the gross domestic product of Western Ukraine and Chernivtsi region, taking into account a time lag, are reviewed in this article. Considering the fact that investment processes are enough complicated phenomenon to understand in the course of which different kinds of changes occur, the relevance and importance of establishing a pattern of their behavior is increasing. Economical and mathematical tools, in particular Almon distributed lag models which allow to estimate the discrete lag influence of determinants can be used to achieve this. In the course of the study, the Almon distributed lag models were constructed separately for the comparison, time lag interval boundaries were set, the main features of the discrete time lag distribution during the lag period were determined, and the economic and mathematical models of the distributed lag for the effects of foreign direct investment on the gross regional product of Chernivtsi region Western Ukraine were built. On the basis of the obtained results, conclusions about economic multiplier processes of the investment were made in the context of individual territories and the main trends of the investment flow return were defined.

scholarly journals Environmental Regulation, Two-Way Foreign Direct Investment, and Green Innovation Efficiency in China’s Manufacturing Industry

2018 ◽  
Vol 15 (10) ◽  
pp. 2292 ◽  
Author(s):  
Zhijun Feng ◽  
Bo Zeng ◽  
Qian Ming
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Environmental Regulation ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Green Innovation ◽  
Negative Effects ◽  
Positive Effects ◽  
The Impact ◽  
Positive Effect

This paper adopts 2009 to 2015 panel data from 27 manufacturing industries in China. A Super-SBM model is used to measure the green innovation efficiency (GIE) of China’s manufacturing industry. A panel data model is then built to systematically examine the impact of environmental regulation (ER) and two-way foreign direct investment (FDI) on the GIE of China’s manufacturing industry under a unified analysis framework. The results are as follows: (1) the overall level of the green innovation efficiency in China’s manufacturing is low, and there is still great potential for improvement. Considering industry heterogeneity, the green innovation efficiency of patent-intensive manufacturing is significantly higher than that of non-patent-intensive manufacturing; (2) in terms of the whole manufacturing industry, ER and the interaction between ER and outward foreign direct investment (OFDI) have significantly negative effects on GIE, OFDI has significantly positive effects on GIE. (3) when considering industry heterogeneity, for patent-intensive manufacturing, ER and the interaction between ER and inward foreign direct investment (IFDI) have significantly negative effects on GIE, while IFDI has significantly positive effect on GIE. For non-patent-intensive manufacturing, ER and the interaction between ER and OFDI have significantly negative effects on GIE, while IFDI and the interaction between ER and IFDI have significantly positive effects on GIE.

scholarly journals Macroeconomic Impact of Foreign Direct Investment in Sri Lanka

2019 ◽  
Vol 8 (2S10) ◽  
pp. 252-259
Keyword(s):  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Time Lag ◽  
Estimation Method ◽  
Ordinary Least Squares ◽  
Annual Data ◽  
Domestic Investment ◽  
Macroeconomic Variables ◽  
The Impact

This research is aimed at tracing the impact of Foreign Direct Investment (FDI) in promoting macroeconomic variables such as gross domestic production, industrial production, total domestic investment, exports, imports, Board of Investment approved exports, Board of Investment approved imports and Board of Investment approved employments by using the time series annual data for 1978 - 2018 in Sri Lanka. Multiple Regression Analysis was used to estimate the impact of FDI on selected macroeconomic variables. Estimation method was Ordinary Least Squares. EViews 10 software were used for data analysis. The empirical evidence shows that there is a statistically significant positive impact of FDI on selected macroeconomic variables except in the case of imports. However, this study further reveals that the actual impact on macroeconomic variables can be felt after certain time lag. But the impact on total domestic investment was realized immediately. Further, this research has identified various problems faced in attracting FDI including ideal sector identification and the appropriate recommendations have been presented in order to realize the major benefits from FDI inflow into the country.

scholarly journals Impact of Foreign Direct Investment on Environmental Performance

2019 ◽  
Vol 11 (13) ◽  
pp. 3538 ◽  
Author(s):  
Zhenghui Li ◽  
Hao Dong ◽  
Zimei Huang ◽  
Pierre Failler
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Performance ◽  
Direct Investment ◽  
Developed Countries ◽  
Quantile Regression Model ◽  
Panel Quantile Regression ◽  
High Quantile ◽  
The Developed Countries ◽  
The Impact ◽  
Positive Effect

The paper presents the results of a study that attempts to investigate the impact of foreign direct investment (FDI) on environmental performance (EP) by constructing a panel quantile regression model. Based on panel data from 1990 to 2014, this study contributes to evaluate the EP of each of the 40 countries using a directional slack-based model considering undesirable output. Our findings reveal several key conclusions: first, FDI has an insignificant influence on EP for the full sample. Second, the impact of FDI on EP between developed and developing countries exists heterogeneity. Furthermore, there is heterogeneity regarding the effect of FDI on EP at different quantiles of EP in developed countries. Specifically, in the developed countries, the effect is statistically insignificant at the lower quantile of EP, then it turns significantly positive at the middle and high quantile, and the positive effect rises with the increase of quantiles of EP. Finally, based on the conclusions of quantitative analysis, some important policy recommendations are proposed: different governments ought to enact different strategies for the introduction of FDI, according to different development situations of different countries.

scholarly journals Foreign Direct Investment in Retail Industry in India

2019 ◽  
Vol 8 (3S) ◽  
pp. 388-391
Keyword(s):  
Foreign Direct Investment ◽  
Government Policy ◽  
Direct Investment ◽  
Tax Incentives ◽  
Retail Industry ◽  
Retail Sector ◽  
Retail Market ◽  
Foreign Companies ◽  
The Government ◽  
The Impact

The Government of India was initially very apprehensive of the introduction of the Foreign Direct Investment in the Retail Sector in India. The unorganized retail sector as has been mentioned earlier occupies 98% of the retail sector and the rest 2% is contributed by the organized sector. The unorganized retail sector contributes about 14% to the GDP and absorbs about 7% of our labor force. Retail is the sale of goods to end users, not for resale, but for use and consumption by the purchaser. The retail transaction is at the end of the supply chain. Manufacturers sell large quantities of products to retailers, and retailers sell small quantities of those products to consumers. This study has been undertaken foreign direct investment has affected the Indian retail industry. The inflow of foreign direct investment has boosted growth in the retail industry and increased the gross domestic product of India. Government policy and other determinants have been discussed to study and analyze the impact. The Indian retail market is a developing market and has potential for investments. There had been a restriction in the inflow of foreign direct investment till 2006. But since 2006, there has been a positive change in the government policy thereby allowing foreign companies to invest in India and become an owner. The paper elucidates the growth between different sectors of Indian retail industry, the tax incentives and determinants for inflow of foreign direct investment. This study focuses on foreign direct investment inflows in selected retail sectors

scholarly journals Does Greenfield Foreign Direct Investment Inflow contribute in Socioeconomic Development? Empirical Evidence from Developing Countries

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Shahid Akbar ◽  
Ali Raza ◽  
Zahid Raza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Dependent Variables ◽  
Socio Economic Development ◽  
The Impact ◽  
Positive Effect

This study aims to assess the impact of Greenfield-Foreign Direct Investment (FDI) inflows on the socio-economic development of ten developing countries. Developing economies rely on investment from developed countries, especially Greenfield investment. Greenfield investment is the new capital inflow to the host country's economy that helps to improve economic activities, boosts economic growth, and improves socio-economic welfare. This study has used Greenfield investment as the target-independent variable and other controlled variables remittances, aid, inflation, population, and trade openness. At the same time, socio-economic development, health, economic growth, and education are dependent variables. For this purpose, Pooled Mean Group (PMG) technique/Panel Autoregressive-Distributed Lag (ARDL) has applied for estimation purposes from 1990 to 2017. The empirical findings have shown that Greenfield-FDI has a long-term statistically significant and positive effect on economic growth, health, education, and socio-economic development. In comparison, remittances and official development assistance have positive and negative impacts on the study's dependent variables. The population also has a positive effect, whereas inflation and trade have mixed results. Outcomes of this study advise that policymakers should adopt attractive investment policies to enhance more foreign investment and utilize it efficiently, thereby promoting sustainable development. The government should announce firms to invest in human capital, which will impact productivity.   

scholarly journals Does the “Belt & Road” Initiative Promote Total Factor Productivity in Provinces along the Route?

2021 ◽  
Vol 251 ◽  
pp. 03051
Author(s):  
Fan Jiang ◽  
Yiqian Tan
Keyword(s):  
Foreign Direct Investment ◽  
Experimental Design ◽  
Total Factor Productivity ◽  
Technological Innovation ◽  
Direct Investment ◽  
Significant Positive Effect ◽  
Factor Productivity ◽  
Influencing Mechanism ◽  
The Impact ◽  
Positive Effect

This paper empirically investigates the impact of the impact of “Belt & Road” initiative on total factor productivity (TFP) in provinces along the route. The DEA-Malmquist method is used to calculate TFP. Utilizing a quasi-natural experimental design, this paper finds that the “Belt & Road” Initiative has a significant positive effect on TFP in provinces along the route. The influencing mechanism is found to be increased foreign direct investment (FDI). Based on this, the paper suggests that China should further open up. Meanwhile, provinces along the route should improve infrastructure and attract more FDI. The governments should constantly enhance technological innovation.

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