China’s Economic Expansion in Latin America and the Caribbean

2018 ◽  
pp. 223-253
Author(s):  
Rhys Jenkins
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Latin American ◽  
Direct Investment ◽  
Economic Relations ◽  
Local Actors ◽  
The Caribbean ◽  
The Impact ◽  
Engineering Projects

The chapter documents the growth of economic relations between China and Latin America and the Caribbean (LAC), focussing on trade, foreign direct investment, Chinese construction and engineering projects, loans, and aid. It shows the variety of different actors involved in these relationships, including state and non-state actors on both the Chinese and Latin American sides. The chapter then discusses the role of strategic diplomatic, strategic economic, and commercial objectives in the growing Chinese involvement in LAC. It also addresses questions of Latin American agency and the interests of local actors in economic relations with China. The impact of political, strategic economic, and commercial factors on different types of economic relations are then analyzed econometrically.

China’s Economic Expansion in Sub-Saharan Africa

2018 ◽  
pp. 113-148
Author(s):  
Rhys Jenkins
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Sub Saharan Africa ◽  
Economic Expansion ◽  
Economic Relations ◽  
Different Types ◽  
Sub Saharan ◽  
The Impact ◽  
Engineering Projects

The chapter documents the growth of economic relations between China and Sub-Saharan Africa (SSA), focussing on trade, foreign direct investment, Chinese construction and engineering projects, loans, and aid. The chapter highlights the way in which these are sometimes combined in resources-for-infrastructure deals. It shows the variety of different actors involved in these relationships, including state and non-state actors, on both the Chinese and African sides. It then discusses the role of strategic diplomatic, strategic economic, and commercial objectives in the growing Chinese involvement in SSA. It also addresses questions of African agency and the interests of African actors in economic relations with China. The impact of political, strategic economic and commercial factors on different types of economic relations is then analyzed econometrically.

Using Latin America as a research laboratory

2019 ◽  
Vol 27 (2) ◽  
pp. 122-140 ◽  
Author(s):  
Armando Borda Reyes ◽  
William Newburry ◽  
Jorge Carneiro ◽  
Carlos Cordova
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Latin American ◽  
Direct Investment ◽  
Trade Openness ◽  
Recipient Country ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to use Latin America as a laboratory to better understand the relationship between inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) (both in total as well as in regional flows) and also examine the moderating effect of trade openness on that relationship. Latin America is an ideal study context for this purpose because of the relative homogeneity of its countries, which reduces confounding effects and increases comparability. Design/methodology/approach This paper uses longitudinal panel regression models with moderation effects. Secondary data were gathered on IFDI (per country and per country-sector), OFDI (total per country and region-targeted per country) and on trade openness from 11 Latin American countries. Findings IFDI in natural resources is positively associated with OFDI in both overall total flows and regional flows. The effect of IFDI in manufacturing has a consistent negative effect on total OFDI. IFDI in services has positive effects on total OFDI. Additionally, trade openness moderates positively the relationship between total IFDI and both total OFDI and regional OFDI. As a consequence, the authors found evidence suggesting that the relation between IFDI and OFDI in Latin America is positively moderated by trade openness. Originality/value The authors explored the nature of the impact of IFDI on the capacity of the recipient country to compete abroad as expressed by its OFDI flows. Specifically, they elucidated whether trade openness can be considered a suitable mechanism for home country firms to leverage potential spillovers provided by foreign entrants.

THE EFFECT OF GOVERNANCE ON FOREIGN DIRECT INVESTMENT IN LATIN AMERICA — ISSUES OF MODEL SELECTION

2019 ◽  
Vol 19 (01) ◽  
pp. 1950006
Author(s):  
FLORA PANNA BIRO ◽  
LASZLO ERDEY ◽  
JOZSEF GALL ◽  
ADAM MARKUS
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Latin American ◽  
Direct Investment ◽  
Good Governance ◽  
Ordinary Least Squares ◽  
Efficient Estimation ◽  
Gravity Models ◽  
Parameter Estimates ◽  
The Impact

This paper examines the impact of good governance on foreign direct investment (FDI) in the Latin American countries. Even though the FDI inflows in the region are relatively high, which can be explained by the level of development of the target countries, their connections with developed countries and the available natural resources, only a few papers have examined what kind of other factors make these countries more attractive for foreign investments. This study has two main goals. First, the gravity model is used to show whether the quality of governance measured by any of the World Governance Indicators (WGI) affects the inward FDI in Latin America. Second, following the recent trend in the gravity literature, the performance of different ordinary least squares (OLS) specifications are tested and compared to the Poisson pseudo-maximum likelihood (PPML) estimator which is a natural alternative approach. Results according to the most efficient estimation show that good governance is mostly a factor of attractiveness but its significance depends on which indicator is used to proxy it. Our analysis also demonstrates that using a truncation on the sample or manipulating the data by adding a small number to the dependent variable makes the OLS parameter estimates extremely sensitive and yields biased, inconsistent, and inefficient results together with bad estimation of total FDI. Furthermore, the PPML method provides far better value for several indicators of goodness of fit. Thus, we argue that the PPML method should be preferred not just in trade but also in FDI gravity models.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

FEATURES AND PRINCIPLES OF INVESTING IN MODERN CONDITIONS. INTERNATIONAL AND RUSSIAN EXPERIENCE IN INVESTMENT PROJECTS

2020 ◽  
Vol 3 (12) ◽  
pp. 17-23
Author(s):  
I. A. GUSAROVA ◽  
◽  
K. D. KOVALEVA ◽  
A. A. SAGDEEVA ◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Future Trends ◽  
Economic Potential ◽  
Investment Projects ◽  
French Experience ◽  
The Impact ◽  
Further Development ◽  
Epidemiological Situation

The article considers the role of foreign direct investment in various industry projects and their implementation. The statistics of the number of investment projects in Europe and Russia are analyzed. The best French experience of attracting foreign direct investment is considered. The main future trends of economic development that will affect the investment attractiveness of a country, taking into account the epidemiological situation in the world, are presented. The impact of the COVID-19 pandemic on changes in the implementation of investment projects in European countries was studied. The article describes the industries that have real economic potential for further development, as well as those that are most affected by the current global economic and epidemiological situation.

scholarly journals Do Trade and Investment Agreements Promote Foreign Direct Investment within Latin America? Evidence from a Structural Gravity Model

Mathematics ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1882
Author(s):  
Marta Bengoa ◽  
Blanca Sanchez-Robles ◽  
Yochanan Shachmurove
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Gravity Model ◽  
Latin American ◽  
Low Income ◽  
Direct Investment ◽  
Trade Agreement ◽  
Low Income Countries ◽  
Regional Trade ◽  
Investment Protection

Latin America has experienced a surge in foreign direct investment (FDI) in the last two decades, in parallel with the ratification of major regional trade agreements (RTAs) and bilateral investment treaties (BITs). This paper uses the latest developments in the structural gravity model theory to study if the co-existence of BITs and two major regional agreements, Mercosur and the Latin American Integration Association (ALADI), exerts enhancing or overlapping effects on FDI for eleven countries in Latin America over the period 1995–2018. The study is novel as it accounts for variations in the degree of investment protection across BITs within Latin America by computing a quality index of BITs. It also explores the nature of interactions (enhancing/overlapping effects) between RTAs and BITs. The findings reveal that belonging to a well-established regional trade agreement, such as Mercosur, is significantly more effective than BITs in fostering intra-regional FDI. Phasing-in effects are large and significant and there is evidence of enhancing effects. Results within the bloc are heterogeneous: BITs exert a positive, but small effect, for middle income countries. However, BITs are not effective in attracting FDI in the case of middle to low income countries, unless these countries ratify BITs with a high degree of investment protection.

The impact of foreign direct investment on trade in Pakistan: the moderating role of terrorism

2020 ◽  
Vol 47 (5) ◽  
pp. 1137-1154
Author(s):  
Syed Hasanat Shah ◽  
Hafsa Hasnat ◽  
Delpachitra Sarath
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Deficit ◽  
Method Of Moment ◽  
Content Type ◽  
The Face ◽  
External Sector ◽  
Generalized Method Of Moment ◽  
The Impact

PurposePakistan suffered with the menace of terrorism for long and become a front line state in the “War on Terror”. Terrorism shattered Pakistan economy and rendered her external sector vulnerable to instability and uncertainties.Design/methodology/approachTherefore, using system generalized method of moment (GMM), this paper investigates the impact of foreign direct investment (FDI) on exports, imports and trade deficit in the face of unabated terrorism in Pakistan.FindingsThe findings of the paper suggest that as terrorism in Pakistan increased, FDI contribution to Pakistan exports decreased while FDI contribution to Pakistan imports significantly increased. Terrorism also disrupted the chain of local production and increased Pakistan reliance on imports. Thus terrorism widened Pakistan trade deficit of Pakistan and expose Pakistan to external imbalances.Originality/valueDespite rise in organized acts of terrorism and its adverse impact on various departments of economy, hardly any study bothers to check its impact on trade and investment nexus. This is the first study of its nature that looks deep down to understand how terrorism affects the relation of major economic variables.

Sign in / Sign up

Export Citation Format

Share Document