scholarly journals The impact of institutional quality on foreign direct investment inflows: evidence for developed and developing countries

2018 ◽  
Vol 31 (1) ◽  
pp. 626-644 ◽  
Author(s):  
Mihaela Peres ◽  
Waqar Ameer ◽  
Helian Xu
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Quality ◽  
The Impact ◽  
Foreign Direct Investment Inflows

scholarly journals Impact of Intellectual Property Rights Institutional Quality and Financial Development on Foreign Direct Investment - Evidence from Developing Countries

2019 ◽  
Vol 7 (2) ◽  
pp. 11-22
Author(s):  
Palwasha Farooq Farooq ◽  
◽  
Arshad Hassan ◽  
Junaid Ahmed ◽  
◽  
...  
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Financial Development ◽  
Direct Investment ◽  
Institutional Quality ◽  
Property Right ◽  
Intellectual Property Right ◽  
The Impact ◽  
Patent Right

The current study explores the impact of intellectual property right, financial development and institutional quality on foreign direct investment. Data of patent index were used as a proxy of intellectual property right. Financial development index and institutional quality variables were taken from ICRG for the period of 1980- 2016, by applying pooled OLS, fixed test. Sample of 123 developing countries data set were used. The results are consistent with theory of OLI presented by Dunning 1979. The results explain more than 70 percent of FDI significance level is explained by these proxies. The only paper that identifies Patent right index is by Park (2008) that took patent index from 1960-2005. Furthermore, work is under taken where the patent right variables are taken as independent variables. On the contrary previous studies have empirically examined the effect of patent proxy effect on the creativity, innovations and the dissemination of the technology transfer. This study differs because patent index is included with institutional quality variables. Beside this the high level financial development is a catalyst in attracting FDI. Moreover, the FDI is higher in military regime, which is due to higher level of dis stability regime in the country. However, results shows that developing countries can improve regulatory quality by maintaining bureaucracy and accountability to enable them to take advantage from the external finance which further boosts the growth of economy

scholarly journals Institutional Efficiency and Attraction of Foreign Direct Investment to Developing Countries

2019 ◽  
Vol 11 (7) ◽  
pp. 54
Author(s):  
Karima Sayari
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Quality ◽  
Efficiency Index ◽  
Panel Data Regression ◽  
Quality Of Institutions ◽  
Institutional Efficiency ◽  
The Impact

The paper estimates the impact of institutions’ quality on the attraction of foreign direct investment (FDI) to developing countries. Data Envelopment Analysis (DEA) was used to develop a new measure of quality of institutions: Institutional Efficiency Index (IEI). In order to appraise quantitatively the effect of institutional quality on FDI entry, we used a panel data regression analysis on a dataset covering 40 countries from different developing regions for which the necessary data were accessible during the period 2011-2015. The paper argues that the institutional efficiency, as a measure of institutional quality, enhances the attractiveness of developing countries to FDI. The results of this paper suggest that FDI is mainly determined by institutional quality. A host country endowed with a high quality of institutions will be more attractive to foreign investors. In order to improve their competitiveness in term of attraction of foreign investment, developing countries should work more on providing a stable environment as well as on the transparency of policy implementation regarding the entry of multinational companies. 

scholarly journals THE IMPACT OF INSTITUTIONAL EFFICIENCY ON THE FOREIGN DIRECT INVESTMENT INFLOWS IN DEVELOPING COUNTRIES

2018 ◽  
Vol 6 ◽  
pp. 141-145
Author(s):  
Alena D. Galenkova ◽  
Igor M. Drapkin ◽  
Oleg S. Mariev
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Fixed Effects ◽  
Positive Impact ◽  
Main Tool ◽  
Institutional Factors ◽  
Econometric Modeling ◽  
The Impact ◽  
Foreign Direct Investment Inflows

The aim of this paper is assessing the impact of the effectiveness of the country's institutions on the foreign direct investment inflows in developing countries with the use of econometric modeling. We put forward a hypothesis about the positive impact of institutional factors on the foreign direct investment inflow. The overall influence of institutions is evaluated using the multiplication of the index of economic freedom and the state fragility index, as two indices, most fully characterizing the disjoint groups of the institutions. To achieve the main goal of the study, we accomplish the econometric modeling based on data from the World Bank, the Heritage Foundation and the Fund for Peace from 1995 to 2015. As the main tool of econometric analysis, a panel regression with fixed effects is used and the technique of a two-step least-squares regression analysis method with instrumental variables is used to solve a possible endogeneity problem in the model. As a result of the study, an assessment of the overall impact of institutional factors through the composition of indices was carried out and a hypothesis about the positive impact of institutional factors on the inflow of foreign direct investment in developing countries was confirmed.

Korea’s Foreign Direct Investment in the Automotive Industry in China

China Report ◽  
2018 ◽  
Vol 54 (2) ◽  
pp. 175-193 ◽  
Author(s):  
Jungmin Lee ◽  
Jai S. Mah
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Automotive Industry ◽  
Direct Investment ◽  
Policy Implications ◽  
Foreign Firms ◽  
Job Opportunities ◽  
Korean Firm ◽  
The Impact

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

Impact of foreign direct investment inflows on environmental pollution in Turkey

2016 ◽  
Author(s):  
Yilmaz Bayar
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Global Economy ◽  
Developed Countries ◽  
Foreign Direct Investments ◽  
Causality Analysis ◽  
Causality Test ◽  
The Impact ◽  
Foreign Direct Investment Inflows

The globalization accelerated especially as of 1980s and the countries began to integrate global economy and remove the constraints on the flows of goods, services and capital. In this context, the developed countries partly shifted their environmentally hazardous production activities to the developing countries especially by means of foreign direct investments. This study investigates the impact of foreign direct investment inflows on the environmental pollution in Turkey during the period 1974-2010 by using Toda and Yamamoto (1995) causality test. We found that there was a bidirectional causality between foreign direct investment inflows and  emissions.Keywords: Foreign direct investment inflows,  emissions, causality analysis

scholarly journals Impact of Foreign Direct Investment on Domestic Investment in Developing Countries

2020 ◽  
Vol 6 (9) ◽  
pp. 256-266
Author(s):  
A. Mamatkulov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Negative Impact ◽  
Domestic Investment ◽  
Short Term ◽  
Total Investment ◽  
The Impact

Author analyzes the impact of foreign direct investment on domestic investment in host developing countries and checks whether a foreign direct investment has a “positive” or “negative” impact on domestic investment, as well as evaluating the impact of selected variables on this relationship. Using a full sample, the main conclusion of this study is that FDI does have a positive (crowding out) effect on domestic investment in this sample of developing economies. In the short term, an increase in FDI by one percentage point as a percentage of GDP leads to an increase in total investment as a percentage of the host country’s GDP of about 10.7%, while in the long term this effect is about 31% dollar terms, one US dollar represents us 1.7$ of total investment in the short term and us 3.1$ in the long term. Based on the results of this study, it was once again proved that inflation hinders domestic investment in host countries by 0.04% and 0.12% in the short and long term, respectively.

scholarly journals FOREIGN INFRASTRUCTURE INVESTMENT IN DEVELOPING COUNTRIES: A DYNAMIC PANEL DATA MODEL OF POLITICAL RISK IMPACTS

2019 ◽  
Vol 25 (2) ◽  
pp. 134-167 ◽  
Author(s):  
Weiling Jiang ◽  
Igor Martek ◽  
M. Reza Hosseini ◽  
Jolanta Tamošaitienė ◽  
Chuan Chen
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Investment ◽  
Risk Mitigation ◽  
Political Risk ◽  
Dynamic Panel Data ◽  
Mitigation Strategies ◽  
Risk Indicators ◽  
The Impact

Foreign direct investment (FDI) is inhibited by political risk. Developing countries tend to experience higher levels of such risk, yet need foreign capital to generate growth. Moreover, foreign direct investment in infrastructure (FDII) – fundamental to economic growth – is particularly sensitive to political risk; characterized by high capital investment, longer investment periods, while especially exposed to mercurial shifts in government policy. Yet, no comprehensive study has been undertaken that measures the impact of political risk on FDII in developing countries. This paper addresses this lack. Twelve political risk indicators, drawn from the International Country Risk Guide Index, are used to quantify the political risk inherent to 90 developing countries, over the period 2006 to 2015. An Arellano-Bond GMM estimator is developed which measures the dollar value impact of risk on both FDI and FDII. A comparison of results confirms that FDII is generally more sensitive to risk than is FDI, however the influence of risk categories is found to vary significantly. The findings can be expected to inform infrastructure policy-makers and foreign investors alike on the dollar-impact of determinable risk levels on foreign-funded projects, and in so doing better facilitate corrective risk mitigation strategies.

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