Tracing the Legacy: China's Historical Aid and Contemporary Investment in Africa

2019 ◽  
Vol 63 (3) ◽  
pp. 558-573 ◽  
Author(s):  
Pippa Morgan ◽  
Yu Zheng
Keyword(s):  
Social Capital ◽  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Direct Investment ◽  
Home Country ◽  
Host Countries ◽  
Foreign Investments ◽  
Long Term Consequences ◽  
Fdi Determinants

Abstract In this article we depart from the classic model of foreign direct investment (FDI) determinants and examine the effect of sociohistorical factors on FDI. We argue that past foreign aid projects confer social capital that constitutes specific resources available to investors in the present, increasing their preferences for host countries in which their home country has accumulated more social capital. We use new data on China's historical aid in Africa to test these contentions, uncovering a positive, significant connection between China's historical aid program in Africa (1956–1999) and contemporary (2000–2015) investments by Chinese companies. While China's historical aid may have been politically driven, it has had important long-term consequences for its commercial investors. More broadly, these findings suggest a sociohistorical explanation of the puzzle of why Chinese foreign investments deviate from conventional FDI patterns.

scholarly journals Determinants of fdi inflows in india

2016 ◽  
Vol 6 (2) ◽  
pp. 186-198
Author(s):  
Siraj-ul-Hassan Reshi
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Domestic Investment ◽  
Host Countries ◽  
Fdi Inflows ◽  
Explanatory Variables ◽  
The Impact ◽  
Fdi Determinants ◽  
The Relationship

Foreign direct investment (FDI) is often seen as an important catalyst for economicgrowth in the developing countries. It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. The main purpose of this paper is to investigate the impact of FDI determinants on FDI inflows in India from the period 1991-2009.The relationship between FDI inflow and its determinants have been analyzed by using the regression analysis and other variables that affect FDI inflows in India such as Developmental expenditure ratio, fiscal deficit ratio, exchange rate and other economic determinant such as GDP as the possible explanatory variables of foreign direct investment inflows in India. The expected results of the study are positive and statistically significant. Regarding the impact of various determinants on FDI in flows empirically, it has beenfound that all the variables except exchange rate have positively and significantly affecting FDI inflows i.e. increase in GDP, Developmental expenditure, foreign exchange reserves, increased the FDI inflows.

scholarly journals SOME ASPECTS REGARDING THE IMPACT OF FOREIGN DIRECT INVESTMENT IN ECONOMIC DEVELOPMENT

2020 ◽  
Author(s):  
Florina Popa
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
New Technologies ◽  
Host Countries ◽  
Foreign Investments ◽  
Advanced Experience ◽  
Productivity Increase ◽  
Synthesis And Processing ◽  
The Impact

Foreign Direct Investment are among the mobilizing factors of the economic development of a country, alongside the domestic investments, being a basic support in the achievement of the development and modernization strategies. The study presents, briefly, the effects of intervening Foreign Direct Investment flows on the economy of a country, able, by the advanced experience brought, to generate a better capitalization of resources, a contribution to growth. The directions of manifesting the mechanisms of influence of Foreign Direct Investment, as well as the role that they hold for their impact, the economic environment of the host country and the policies practiced in relation to Foreign Direct Investment are taken into account. The purpose of the paper was to point out some aspects regarding the favourable impact that foreign investments could have on an economy, by the contribution to new technologies and the contribution to the productivity increase. The conclusions point to the potential of the impact of Foreign Direct Investment on development and the need for the host countries, to support some properly oriented policies, by maintaining a correlation between the volume of foreign investment flows and the development potential of a country. The research method used to carry out the study was the documentation from the foreign and domestic specialized literature, the synthesis and processing of the relevant ideas, by capturing the impact of Foreign Direct Investment in economic development.

scholarly journals Globalization and Foreign Direct Investment in the Textile, Garment, and Leather Industry

2011 ◽  
Vol 14 (1) ◽  
pp. 5-18
Author(s):  
Janina Witkowska
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Service Sector ◽  
Developed Countries ◽  
Leather Industry ◽  
Foreign Investments ◽  
World Economic ◽  
The Subject ◽  
Made In

The subject of this paper is analysis and assessment of foreign direct investment (FDI) as made by transnational corporations in the textile, garment, and leather industry on a world economic scale under conditions of globalization. Significant changes are occurring in the sector and industry structure of global FDI. In terms of the three sectors of the economy, a long-term shift of FDI to the service sector at a cost to investments in manufacturing may be seen. Foreign investments are being made in the textile, garment, and leather industry. They are growing in the long term. However, the dynamics of the FDI streams flowing to this industry is one of the lowest in manufacturing. Over the long term (1990-2007), the share of the textile, garment, and leather industry in global FDI stock decreased from 1.5% to 0.6% in 2007. In spite of the labour-intensive character of this industry, in their bulk, the FDI are destined to the highly developed countries.

scholarly journals Inward FDI: Characterizations and Evaluation

Encyclopedia ◽  
2021 ◽  
Vol 1 (4) ◽  
pp. 1026-1037
Author(s):  
Aneta Bobenič Hintošová
Keyword(s):  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Home Country ◽  
Business Interests ◽  
Business Operations ◽  
New Business ◽  
Material Information ◽  
A Company

Definition: Foreign direct investment can be defined as an investment made by an entity (usually a company) incorporated in a home country in the business interests of a host country, in the form of either establishing new business operations or acquiring controlling interest in existing business assets. Foreign direct investment is expected to meet the following characteristics: (1) the capital movement is typically accompanied by further technological, material, information, financial or personnel flows; (2) the foreign direct investor effectively controls facilities abroad; and (3) the investor has a long-term interest in the host country.

scholarly journals Debunking the Myth of Foreign Direct Investment Toward Long-Term Sustainability of a Developing Country: A Transaction Cost Analysis Approach

2019 ◽  
Vol 11 (17) ◽  
pp. 4569 ◽  
Author(s):  
Nguyen ◽  
Phan ◽  
Lobo
Keyword(s):  
Foreign Direct Investment ◽  
Transaction Cost ◽  
Direct Investment ◽  
Fixed Effects ◽  
Policy Changes ◽  
Host Countries ◽  
Fixed Assets ◽  
Fixed Effects Regression ◽  
The Relationship

This study focuses on the relationship between foreign direct investment (FDI) and sustainability in a developing host country, i.e., Vietnam, using the transaction cost approach. Secondary panel data were obtained from 62 provinces in Vietnam for the period between the years of 2010 and 2016. The analysis of the data was performed using the fixed effects regression model, which yielded interesting and controversial findings. Essentially, it was demonstrated that the FDI made by enterprises and the subsequent employment that it generated had several positive and significant influences on the long-term sustainability of provinces in Vietnam. However, the downside was that the value of fixed assets and long-term investment of FDI projects in conjunction with the size of the provinces negatively influenced their long-term sustainability. The findings of this study have important academic and practical implications. We propose some policy changes that would considerably improve the efficacy and effectiveness of FDI. This, in turn, will certainly enhance the long-term sustainability of host countries, especially developing ones.

scholarly journals Hunger for Peace: Egypt's Economic Reasons to Seek Peace with Israel

Elements ◽  
2007 ◽  
Vol 3 (1) ◽  
Author(s):  
David F. Bradley, Jr.
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Direct Investment ◽  
Economic Status ◽  
Economic Incentives ◽  
Peace Agreement ◽  
The West

In 1978, Egypt's Anwar Al-Sadat launched a historic peace initiative with Israel, ultimately culminating in a peace agreement that, nearly 30 years later, still stands. This paper traces Egypt's economic status under Anwar Al-Sadat and concludes that Sadat, rather than just being an innately peace-loving man, had real economic incentives in seeking peace with Israel. Egypt diverted resources from its infrastructure and its people in order to pay for a heavily armed border with Israel. Hostilities toward Israel also cost the country foreign direct investment and foreign aid from the West. Sadat's desire for peace was literally hunger because his citizens were starving.

IMPACT OF DIRECT FOREIGN INVESTMENTS ON THE ECONOMY OF THE RUSSIAN FEDERATION

2020 ◽  
Author(s):  
Victoria Igorevna Vlezkova ◽  
◽  
Roman Olegovich Soglaev ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Russian Federation ◽  
Direct Investment ◽  
Foreign Investments ◽  
The Russian Federation

The article is devoted to the analysis of foreign direct investment flows into the economy of the Russian Federation. The authors consider the dynamics, structure, features of activities and the main barriers to attracting foreign direct investment in the economy of the Russian Federation

FOREIGN DIRECT INVESMENT OUTFLOWS AND ENVIRONMENTAL POLLUTION: HIDDEN COINTEGRATION ANALYSIS FOR TURKEY

2021 ◽  
Vol 6 (11) ◽  
pp. 165-182
Author(s):  
Ahmet Emrah TAYYAR
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Environmental Quality ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Causality Relationship ◽  
Cointegration Relationship

The relationship between foreign direct investment, which is a type of cross-border and long-term investment, and environmental quality is a current issue that is heavily debated. Foreign direct invesments can ensure economic growth and development of countries, while also causing a change in environmental quality. In the research conducted, it is seen that changes in carbon dioxide emissions with foreign direct capital inflows are mainly investigated from the point of view of the host countries. However, foreign direct invesment outflows may have an impact on the environmental quality of the home country. Because foreign direct invesment outflows can enable the transfer of more environmentally friendly techonogies to the country and strengthen management skills. The impact of foreign direct investment outflows on the home country's environmental pollution is shaped by many factors (scale, technique, and composition effects). In addition to these effects, it is necessary to pay attention to the regional and sectoral distribution of capital outflows. The main aim of this study is to examine the links between Turkey's foreign direct invesment outflows and carbon dioxide emissions for the period 1990-2018. For this reason, a unit root test was applied to variables whose natural logarithm was taken. Tests showed that all series are stable of the same degree. Engle&Granger(1987) and Granger&Yoon(2002) tests were used to determine the cointegration relationship between variables. The crouching error correction model(CECM) was applied to determine the causality relationship. According to the results of the analysis; i) In terms of the Engle&Granger(1987) test, there was no long-term relationship between variables. ii) According to the Granger&Yoon(2002) test, it was determined that there is a bidirectional hidden cointegration relationship between the positive shocks of carbon dioxide emissions and negative shocks of foreign direct invesment outflows. iii) There is a bidirectional asymmetric causality relationship between the positive shocks of carbon dioxide emissions and the negative shocks of foreign direct invesment outflows. iv) It is observed that 1% negative shocks in foreign direct invesment outflows reduce positive shocks in carbon dioxide emissions by 0,26%. As a result, since negative situations in foreign direct invesment outflows have an effect on improving the quality of the environment, the environmental dimension should be taken into account in the policies to be made.

FOREIGN DIRECT INVESTMENT IN SERBIA

2021 ◽  
pp. 253-265
Author(s):  
MILOŠ PJANIĆ ◽  
MIRELA MITRAŠEVIĆ
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Financial Markets ◽  
Direct Investment ◽  
Employment Growth ◽  
Home Country ◽  
New Technology ◽  
Foreign Direct Investments ◽  
Education Innovation ◽  
National Economies

In the process of globalization, the importance of foreign direct investment has changed significantly, because today they represent one of the most important factors of competitiveness, development and application of new technology, education, innovation and economic development. As a significant form of financing national economies, foreign direct investment is a form of investment that is realized outside the home country, where one of the most important goals of both developed and especially developing countries is to attract as much foreign direct investment. A large number of developing countries, including Serbia, have liberalized restrictions on foreign investment and free trade in the last two decades, liberalized national financial markets and begun privatization processes. Due to numerous problems and consequences of economic crises they have faced, many developing countries, as well as Serbia, view foreign direct investment as one of the most important factors for stimulating trade, employment growth, openness of national economies, and establishing overall macroeconomic stability. The aim of this paper is to point out the importance and dynamics of foreign direct investments in Serbia, as well as the key incentives for their attraction. Also, in addition to the theoretical review of foreign direct investments, the effects of foreign direct investments are presented in the paper.

India’s vaccine diplomacy brings money and influence

2021 ◽  
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
The United States ◽  
Active Pharmaceutical Ingredients ◽  
Content Type ◽  
Pharmaceutical Ingredients ◽  
The World

Significance Last week, its partners in the ‘Quad’ grouping -- the United States, Japan and Australia -- agreed to help increase its vaccine manufacturing and exporting capacity. Each of the Quad members is wary of China, which like India is gifting and selling coronavirus jabs around the world. Impacts India’s manufacturing sector will attract more foreign direct investment. Greater cooperation over supply chains will help strengthen India-Australia ties. Indian pharma will in the long term aim to ease dependence on imports of active pharmaceutical ingredients from China.

Sign in / Sign up

Export Citation Format

Share Document