THE IMPACT OF FOREIGN DIRECT INVESTMENT ON INDONESIA'S MANUFACTURING SECTOR

2002 ◽  
Vol 7 (1) ◽  
pp. 61-94 ◽  
Author(s):  
Shafiq Dhanani ◽  
Syed Asif Hasnain
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
The Impact

The Impact of Foreign Direct Investment on Sectoral Adjustment in the Irish Economy

1997 ◽  
Vol 160 ◽  
pp. 76-86 ◽  
Author(s):  
Frances Ruane ◽  
Holger Görg
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Foreign Firms ◽  
Export Markets ◽  
Manufacturing Plants ◽  
Foreign Companies ◽  
Fiscal Incentives ◽  
The Republic ◽  
The Impact

Foreign direct investment (FDI) has played a crucial role in the overall development of the Irish economy over the past three decades, as the Republic of Ireland, hereafter referred to as Ireland, has pursued an industrial strategy characterised by (i) promoting export-led-growth in Irish manufacturing through various financial supports and fiscal incentives, and (ii) encouraging foreign companies to establish manufacturing plants in Ireland, producing specifically for export markets. The significance of FDI for the Irish economy is now reflected in, inter alia, the significant gap between GNP and GDP; in 1994, GNP was roughly 88 per cent of GDP in Ireland. As regards the manufacturing sector, the high shares of output and employment in foreign-owned companies in Ireland also indicate the importance of foreign firms. As we discuss in some detail in Section 3, foreign companies produced roughly 69 per cent of total net output and accounted for 45 per cent of employment in Irish manufacturing industries in 1993.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals articles/v6n12/bed/ijaar-sms-v6n12-dec20-p13.pdf

2021 ◽  
pp. 17-27
Author(s):  
Victor Obasse ◽  
Chima Onuoha
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Direct Foreign Investment ◽  
Working Environment ◽  
Social Infrastructure ◽  
Foreign Investors ◽  
Advantages And Disadvantages ◽  
The Impact

This study is an empirical inquiry into the impact of Direct Foreign Investment (DFI) of other countries into the manufacturing sector in River State, Nigeria. It would lead to a better understanding of the economic mechanism and the behavior of economic agents, both at micro and macro cadre allowing the opening of new areas of study in economic growths. This study would also look through the advantages and disadvantages which foreign direct investment has on Nigeria economy, thereby, reveal if there is a correlation between the direct foreign investment and the Nigerian economy. As a cross section survey, data for this study was generated using well and articulately structured survey from 50 respondents across 10 manufacturing firms in Rivers State. A total of three hypotheses were proposed with analysis revealing the relationship between direct foreign investments and manufacturing sector, it was revealed that direct foreign investment had a positive and significant relationship with manufacturing sector. The researcher believes that if appropriate actions are taken and necessary structures erected, the Nigerian manufacturing sector will be a healthier place to access the benefits that foreign direct investment conveys. This will lead to growth in Nigeria manufacturing sector. It was revealed that in spite of the acknowledged remuneration foreign direct investment conveys. It is nonetheless, criticized on grounds, of the defective activities that foreign investors indulge in. In conclusion, the study showed that the expansion of the manufacturing sector and direct foreign investment in Nigeria is based on a number of problems which may be reason for the positive but insignificant impact on DFI when the variables was regressed against manufacturing sector. It was at that point recommended that, Government needs to do a few needful in order to motivate foreign investors, this is by providing good and right social infrastructure and also a pool of relevant workforce, a safe working environment against militancy and a potentially strong market for their product and services can be sold.

scholarly journals Impact of Foreign Direct Investment on Industrial Growth of India

2019 ◽  
Vol 8 (2S10) ◽  
pp. 165-169
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Industrial Growth ◽  
Coefficient Corrélation ◽  
The Government ◽  
The One ◽  
The Impact ◽  
The Relationship

In India the Foreign direct investment (FDI) has received a staged improvement from instigate of the Make in India scheme, according to recent survey. There was a incredible increase in FDI inflows (40%) particularly in manufacturing sector from October, 2014 to June, 2019 . The industrial sector is considered to be the one of the dominant sectors that contribute the major Indian GDP. India has been ranked fourteenth in the factory output in the world. This was because of the launch of initiative, which sought for promoting manufacturing segments and be a magnet for foreign investments. More than 56 manufacturing units are benefitted in the entire globe. In the recent times during the year 2014 to 2019 the Industrial production inclined to 3.1 per cent, mainly on account of improvement and to encourage talent augmentation towards the various sectors of the economy. This article brings out the recent efforts taken by the government for encouraging the FDI into various sectors and how it has made a pathway. In the last ten years India has shown a tremendous increase in Foreign Direct Investment into the various sectors in economy. Even though Government of India has make a pathway for attracting FDI on various sectors, this papers focuses on explaining the impact of make in India scheme on FDI. In this paper period of five years has been considered for the analysis. The Statistical Tools like Karl Pearson's Coefficient Correlation and One - Way ANOVA has been used for the analysis of data. To study the relationship between the FDI and IIP correlation is used for the analysis of data

scholarly journals FOREIGN DIRECT INVESTMENT IMPACT ON MARKET CONCENTRATION IN THE MANUFACTURING SECTOR OF BOSNIA AND HERZEGOVINA

2018 ◽  
pp. 135 ◽  
Author(s):  
Radovan Kastratović
Keyword(s):  
Foreign Direct Investment ◽  
Bosnia And Herzegovina ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Least Square Method ◽  
Market Concentration ◽  
Least Square ◽  
Cross Sectional ◽  
Financial Reports ◽  
The Impact

There is no consensus regarding the effect of foreign direct investment on market concentration in the literature of foreign direct investment and the theory of industrial organization. The aim of the research is to empirically investigate this impact in the context of the manufacturing sector of Bosnia and Herzegovina. To achieve this aim we estimate the econometric model by applying ordinary least square method. The sample of 21 industries comprising manufacturing sector of Bosnia and Herzegovina was used for model estimation. Cross-sectional sample data was obtained from the Central Bank of Bosnia and Herzegovina and the financial reports of 4924 companies registered in the aforementioned industries for the year 2016. The results suggest that the impact of foreign direct investment on market concentration can best be described with a convex function.

scholarly journals Foreign Direct Investment and Extractive Institutions

2019 ◽  
Vol 10 ◽  
pp. 36-49
Author(s):  
Jack Bowness
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Poor Quality ◽  
Middle Income ◽  
Middle Income Countries ◽  
The People ◽  
Resource Sector ◽  
The Impact

There is a significant debate underway regarding the risks and rewards of foreign direct investment (FDI) for countries in the Global South. These discussions are particularly relevant to the people of Latin America, where the use of inward FDI as a mechanism to support economic development has had dramatic results, both positive and negative. One of the key works in the study of FDI is Robert I. Rotberg’s argument that FDI is critical to support the development of weak states; however, the applicability of this theory faces difficulty in the context of Latin America, where middle-income countries have extractive institutions (Rotberg, 2002). I use the cases of Mexico and Peru to demonstrate that for middle-income countries, extractive institutions can hamper the rewards of FDI and even exacerbate development problems or create new ones. In this regard, the sector of FDI will determine the nature of the impact. In states with extractive institutions, FDI in the natural resource sector is prone to stimulating social conflict. In states with extractive institutions, FDI in the manufacturing sector begets a situation of stagnated development, as the jobs that are introduced are of poor quality and low wages.

scholarly journals Neo-liberalization: the impact of Chinese exports on South Africa’s sociopolitical economy

2017 ◽  
Vol 15 (1) ◽  
pp. 124-131
Author(s):  
Samuel Augustine Umezurike ◽  
Chux Gervase Iwu ◽  
Lawrence Ogechukwu Obokoh ◽  
Chinelo Augustine Umezurike
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Quota System ◽  
Realist Theory ◽  
Standards Of Living ◽  
Liberal Approach ◽  
The Impact

On gaining independence, one of the first steps it took was to open its doors to various socio-economic dynamics. It is fair to say, therefore, that South Africa’s neo-liberal approach was necessitated by the nation’s desire to diversify its economy in multiple sectors and, therefore, permit foreign direct investment into the country. To most researchers, this has resulted in near deindustrialization leading to gross job losses and reduced standards of living. Essentially, this paper, relying on realist theory, delves into one of the issues, i.e., the demise of the manufacturing sector in South Africa to deliver the poignant explanation pertaining to South Africa’s sociopolitical economy. The authors find that the presence of China’s finished products in South Africa’s market has emboldened and continues to debilitate its manufacturing industry. A major concern is that South Africa’s attempts to soften this effect on its manufacturing sector through its protectionist policy – precisely the application of the quota system on imported goods – will not go too far considering the limitations placed on South Africa by virtue of its membership in organizations such as WTO and BRICS.

scholarly journals FOREIGN DIRECT INVESTMENT AND WAGES:A BARGAINING POWER APPROACH

2007 ◽  
pp. 83-95 ◽  
Author(s):  
Ramya M. Vijaya ◽  
Linda Kaltani
Keyword(s):  
Foreign Direct Investment ◽  
Bargaining Power ◽  
Direct Investment ◽  
Global Economy ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Female Workers ◽  
Female Wages ◽  
Favorable Conditions ◽  
The Impact

This paper presents a cross-country empirical investigation of the impact of Foreign Direct Investment (FDI) on manufacturing wages. Our results indicate that FDI-Flows have a negative impact on overall wages in the manufacturing sector and this impact is stronger for female wages. We argue that one possible explanation for such an impact may be a decrease in the bargaining power of labor due to new labor market arrangements in a global economy where capital is free to move across countries in search of more favorable conditions. This decline in labor power also tends to have a greater impact on the more vulnerable workers female workers whose bargainingpositions have been traditionally lower than male workers.

scholarly journals Essays on Foreign Direct Investment, International Trade, and Inequality

2021 ◽  
Author(s):  
Minh Nam Ngo
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Vocational Education ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Tertiary Education ◽  
Value Added ◽  
The United States ◽  
High Tech ◽  
The Impact

<p>This thesis consists of three empirical essays on the impact on inequality of Foreign Direct Investment (FDI), international trade, and technological progress that comes with them. The first essay examines whether FDI contributes towards income convergence of the host country, drawing evidence from provincial data in Vietnam. Using the spatial econometrics approach and an exogenous set of distance-based weights to characterize spatial dependences, we identify the substantial role of both spatial interactions and FDI spillovers in bringing provinces closer together in terms of income level. We show that high-tech FDI and industry FDI agglomerations contribute significantly more towards the convergence process than low-tech FDI and agglomerations formed by FDI firms coming from the same country. A similar pattern also emerges when we consider consumption convergence. The second essay studies the impact of local labour demand shocks from FDI firms on wage distribution, using microdata from the Vietnam Household Labour Force Survey. We use Bartik shift-share instrument based on the interaction between predetermined local employment structure and time-varying nationwide employment to deal with the endogeneity between local wage level and multinational firms’ locational decisions. Overall, we find that surges in foreign hiring increase average local wage, but the benefits are considerably higher for workers who work in lower-skilled occupations or have lower educational attainments. Given the prevailing skill and education wage premium, this heterogeneous effect provides evidence that the presence of FDI firms can reduce wage inequality. The third essay analyzes the association between income inequality, dependence on the manufacturing sector, and the availability of vocational education as an alternative track to general tertiary education. We find that in countries where tertiary and vocational are the two main available pathways for students to pursue, as economic recovery, trade, and automation increases the value-added of the manufacturing sector but decreases the number of manufacturing jobs, improving access to vocational education is associated with a larger decline in inequality compared to tertiary education. Therefore, in the long run, limited public resources should be directed towards vocational education in order to smooth out adjustment to trade and skilled-biased technological change. A case study comparing the United States and Germany in terms of their recovery paths from the Global Financial Crisis provide further evidence for our claims.</p>

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