The Evolution of Foreign Direct Investment in Brazil

2018 ◽  
Author(s):  
Breno Augusto da Silva e Silva
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
International Division ◽  
Commodity Production ◽  
Technological Level ◽  
Key Drivers ◽  
The Government ◽  
Statistical Summary

This chapter analyzes the evolution of inward foreign direct investment (FDI) over the long term in Brazil. It identifies the key drivers of flows and provides a statistical summary of key trends. Importantly, the chapter highlights the role of inward flows in reinforcing the trend toward Brazil’s increased relative reliance on primary commodity production in the international division of labor. Much of the FDI arriving in Brazil has cleaved to the country’s natural comparative advantage in the primary sector, since the government has not directed investment to sectors with a higher technological level, and has been unable to provide more qualified labor, or an environment apt to attract investment to more dynamic sectors.

Economic Actors' Lobbying Influence on the Prospects for War and Peace

2013 ◽  
Vol 67 (4) ◽  
pp. 863-888 ◽  
Author(s):  
Stephen G. Brooks
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
Economic Globalization ◽  
Economic Incentives ◽  
Special Interests ◽  
War And Peace ◽  
The Past ◽  
The Government

AbstractPolitical scientists and economists have long been interested in the role of special interests in the policymaking process. In the past few years, a series of important new books have argued forcefully that the lobbying activities of economic actors have an important influence on the prospects for war and peace. All of these analyses claim that whether economic actors enhance or decrease the likelihood of conflict ultimately depends on the domestic political balance between economic actors who have a strong vested interest in pushing for peace versus those that do not. I advance two contrary arguments. At least among the advanced states, I posit there are no longer any economic actors who will be favorable toward war and who will lobby the government with this preference. All of the identified mechanisms that previously contributed to such lobbying in these states have been swept away with the end of colonialism and the rise of economic globalization. In particular, I show that the current structure of the global economy now makes it feasible for foreign direct investment to serve as an effective substitute for conquest in a way that was not possible in previous eras. My second argument concerns those economic actors in advanced states with a preference for peace. I posit that it has become unnecessary for them to directly lobby the government to avoid war on economic grounds because economic globalization—the accumulation of decisions by economic actors throughout the globe—now has sufficiently clear economic incentives for leaders.

scholarly journals A time series analysis of determinants of FDI in Afghanistan: Which one matters the most, security or economic growth?

2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Economic Factors ◽  
Market Economic ◽  
The Government ◽  
The Relationship

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.

scholarly journals Optimization of the Activities of Institutions Promoting Investment in the sustainable Economic Growth of Russia

2021 ◽  
Vol 25 (4) ◽  
pp. 110-120
Author(s):  
E. A. Zvonova ◽  
V. Ya. Pishchik ◽  
P. V. Alekseevc
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
The State ◽  
Russian Economy ◽  
Socio Economic Development ◽  
Development Institutions ◽  
Investment Process

The article examines and assesses the problem of the investment deficit in the Russian economy, which has acquired particular relevance due to the coronavirus crisis caused by the pandemic. The study aims to develop practical recommendations for Russian state bodies to stimulate the investment process in the Russian economy and improve the efficiency of measures taken by the state to ensure the country’s socio-economic development. The objectives of this paper are to analyze the directions of optimization and prioritization of investment of resources during the economic recession caused by the coronavirus crisis using investment lending and project financing instruments, as well as to analyze and assess the ongoing reform of development institutions based on the state corporation “VEB.RF”. The research methodology includes an analysis of the regulatory legal framework, statistical information, official reports of state bodies, development institutions, scientific monographs and publications of Russian scientists, periodicals. The authors analyzed the trends and problems of the investment process in the Russian economy, including in the field of attracting foreign direct investment. Attention is paid to the ongoing reform of development institutions aimed at enhancing the role of the state development corporation “VEB.RF” in stimulating investment. The authors conclude that it is necessary to take a set of functional, instrumental, and institutional measures aimed at stimulating investment and ensuring sustainable socio-economic development of Russia. In particular, in the context of a shortage of domestic sources of financing for long-term investments, it is important to provide regulatory macroeconomic support for the inflow of foreign direct investment into the Russian economy. In this regard, the authors propose to change the monetary policy strategy to increase the stimulating role of refinancing of credit institutions and the projected exchange rate in attracting domestic and foreign long-term investments and ensuring sustainable development of the Russian economy. The authors also propose to increase the role of foreign exchange regulation and foreign exchange control in stimulating investment and ensuring sustainable socio-economic development of Russia.

scholarly journals Foreign Direct Investment and Technological Capabilities: The Relevance of the East Asian Experience for Pakistan

2014 ◽  
Vol 19 (Special Edition) ◽  
pp. 267-281
Author(s):  
Khalil Hamdani
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Formation ◽  
Productive Capacity ◽  
Technological Capabilities ◽  
Technological Learning ◽  
Current Growth ◽  
Investment Rates ◽  
The Government

This paper makes the case for a vigorous policy thrust to support investment-led growth. Pakistan’s economy has not maintained a sufficient level of capital formation to sustain growth over the long term. Two thirds of current growth is driven by consumption and not investment: this needs to be turned around. The government needs to put in place an investment regime that motivates and induces industry to invest, innovate, and reinvest. Foreign direct investment can play an important role in strengthening the country’s investment rates. There is also need for deliberate polices to boost technological capabilities in the enterprise sector. In this context, East Asia – which successfully created a dynamic process of capital formation and technological learning that upgraded its productive capacity and underpinned export success – holds important lessons for Pakistan.

scholarly journals Determinants of Foreign Direct Investment in Saudi Arabia: A Review

2017 ◽  
Vol 9 (7) ◽  
pp. 222
Author(s):  
Haga Elimam
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Maximum Flow ◽  
International Capital ◽  
Host Government ◽  
The Government

Foreign direct investment is identified as the major tool for the movement of international capital. Thus, the study has employed a review research to examine the determinants of foreign direct investment in Saudi Arabia. The results are significant as they have contributed towards determinants of foreign direct investment by comparing with previous studies. The results showed that trade openness, infrastructure availability, and market size play significant role in attracting foreign direct investment within a country. The inflow of foreign direct investment has a potential to benefit the investing entity as well as the host government. It also renders economic growth and socioeconomic transformation of the country. The flow of foreign direct investment in Saudi Arabia is affected by several factors including growth rate, GDP, exports and imports. It is the duty of the government to ensure the attractiveness of their country to maintain maximum flow of foreign direct investment, as it promotes sustained long-term economic growth by increased investment in the human capital.

British Public Policy and Multinationals during the “Dollar Gap” Era, 1945–1960

2002 ◽  
Vol 3 (1) ◽  
pp. 124-161
Author(s):  
Tim Rooth ◽  
Peter Scott
Keyword(s):  
Public Policy ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Second World War ◽  
Capacity Constraints ◽  
World War ◽  
The Government ◽  
Second World ◽  
Important Stimulus

This article examines the role of British exchange and import controls in stimulating the dramatic increase in overseas (particularly American) multinationals in Britain from the end of the Second World War to the late 1950s, together with the ways in which the government used controls to regulate the foreign direct investment (FDI) inflow. Exchange controls were both an important stimulus to inward investment and a powerful and flexible means of regulating its volume and character. Government was relatively successful in using these powers to maximize the dollar balance and industrial benefits of FDI to Britain, given initially severe dollar and capacity constraints, and in liberalizing policy once these constraints receded and competition from other FDI hosts intensified.

scholarly journals Investment Opportunities and Challenges in Tamil Nadu for Industrial Development- An Assessment

2019 ◽  
Vol 8 (2S10) ◽  
pp. 170-172
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Tamil Nadu ◽  
Industrial Development ◽  
Capital Formation ◽  
Transfer Of Technology ◽  
Domestic Savings ◽  
The Government

In recent years, significant of Foreign Direct Investment has been increasing especially in the developing countries. These countries are trying their level best to attract more and more FDI. Foreign Direct Investment takes place when a company invests directly in the production or marketing of a product in a foreign country.FDI is defined as an investment involving a long term relationship that reflects the long term interest and control of a resident entity in the host country. Industrial investment plays a significant role in the development of a country. Broadly there are two types of foreign investment viz., foreign direct investment and portfolio investment. The developments are easily possible through Foreign Direct Investment (FDI) because it helps to bring close the different economies of the world by investing capital in a country. Capital formation is an important determinant of economic growth. While domestic investments add to the capital stock in an economy, FDI plays a complementary role in overall capital formation and filling up the gap between domestic savings and investment. Foreign investment plays an important role in the long term economic development by augmenting availability of capital, enhancing competitiveness domestic economy through transfer of technology, strengthening infrastructure, raising productivity, generating new employment opportunities and boosting exports. The Government has implemented several reforms in recent years to attract more FDIs. These include improving infrastructure, revising the law on the land acquisition, reforming labour law and rationalizing the process of obtaining environmental clearances. In this article researcher focused on industrial opportunities and challenges in Tamil Nadu for industrial development of the state.

scholarly journals FOREIGN DIRECT INVESTMENT AND GROWTH OF INDIA: DOES FINANCIAL SECTOR DEVELOPMENT HELP IN IMPROVING ABSORPTIVE CAPACITY?

2017 ◽  
Vol 18 (1) ◽  
Author(s):  
T. K. Jayaraman ◽  
Chee -Keong Choong ◽  
Cheong -Fatt Ng
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Studies ◽  
Financial Sector ◽  
Threshold Level ◽  
Financial Sector Development ◽  
Gradual Introduction ◽  
Contingent Factor

This paper investigates whether there exists a long term relationship between foreign direct investment (FDI) and economic growth in India with special reference to the role of financial sector development (FSD), which is now considered as a critical contingent factor as borne out by recent empirical studies elsewhere. A 35 -year period (1979-2013), which is covered by this paper, witnessed gradual introduction of economic reforms picking up speed from early 1990s. The doors were opened to FDI. Undertaking an empirical study on FDI’s contribution to growth of Indian economy by taking into account the role of financial sector development (FSD) as a contingent factor, this paper concludes that FDI and FSD have contributed to growth. It is also confirmed that the interaction term between FDI and financial development indicates a complementary relationship between the two. Keywords: India; FDI; FSD; Growth; Threshold Level; Interaction Effect.

scholarly journals The Analysis of Factors Affecting Foreign Investment in Indonesia

2016 ◽  
Vol 3 (1) ◽  
pp. 059
Author(s):  
Nur Cahyaningsih
Keyword(s):  
Foreign Direct Investment ◽  
Significant Influence ◽  
Direct Investment ◽  
Time Series Data ◽  
Negative Influence ◽  
Series Data ◽  
Factors Affecting ◽  
Foreign Companies ◽  
The Government

Foreign Direct Investment (FDI) has important role in Indonesian economic development and becomes the engine of growth for the economy. For all this reason, the government starts doing promotions attracting foreign investors to invest in Indonesia by issuing a number of policies. In fact, some foreign companies have left from Indonesia. This research aims at determining the effect of GDP, inflation, and infrastructure toward Foreign Direct Investment in Indonesia from 1981 until 2014. It uses time series data and Error Correction Model (ECM) as the method. Based on analysis findings, all variables used by stationary in first difference, dependent and independent variables in the equation of co-integrating regression has long-term relationship. In the short term, GDP and Infrastructure do not have a significant influence, while inflation has a negative influence and significant in α 5% toward Foreign Direct Investment. In the long term, GDP and Infrastructure have a positive effect and significant at α 5%, while inflation does not have a significant influence to Foreign Direct Investment in Indonesia.

A Study on the Impact of Foreign Direct Investment (FDI) on Indian Economy

2017 ◽  
Vol 3 (3) ◽  
Author(s):  
G. Suresh Babu ◽  
C. Sreeramulu
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Framework ◽  
Fdi Inflows ◽  
Internal Resources ◽  
Fund Flow ◽  
The Government ◽  
The Impact

Foreign Direct Investment (FDI) is fund flow between the countries in the form of inflow or outflow by which one can able to gain some benefit from their investment whereas another can exploit the opportunity to enhance the productivity and find out better position through performance. The effectiveness and efficiency depends upon the investors perception, if investment with the purpose of long term then it is contributes positively towards economy on the other hand if it is for short term for the purpose of making profit then it may be less significant. Depending on the industry sector and type of business, a foreign direct investment may be an attractive and viable option. Any decision on investing is thus a combination of an assessment of internal resources, competitiveness, and market analysis and market expectations. The FDI may also affect due to the Government trade barriers and policies for the foreign investments and leads to less or more effective towards contribution in economy as well as GDP of the economy Foreign direct investment (FDI) as a strategic component of investment is needed by India for achieving the economic reforms and maintains the pace of growth and development of the economy. The paces of FDI inflows in India initially were low due to regulatory policy framework but there is a sharp rise in investment flows from 2005 towards because of the new policy has broadened. Foreign direct investment (FDI) has been viewed as a power affecting economic growth (EG) directly and indirectly. The main purpose of the study is to analyse the impact of FDI on economic growth in India.

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