MNEs, FDI, inequality and growth

2019 ◽  
Vol 27 (3) ◽  
pp. 217-220 ◽  
Author(s):  
Jonathan P. Doh
Keyword(s):  
Foreign Direct Investment ◽  
International Business ◽  
Direct Investment ◽  
Design Methodology ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship

Purpose The relationship among foreign direct investment, multinationals, inequality and growth is a vexing one that has occupied considerable scholarly and practical attention for many decades. To date, international business scholars have not fully concerned themselves with this issue (Buckley, Doh and Benischke, 2017, for an exception). This paper aims to briefly review this literature and report some of the insights of this work. The author draws from and integrates this literature, concluding that multinationals and the foreign investment that emanate from them have a generally positive impact on growth and a generally negative impact on income and wealth equality. The author then details some of the potential contributions MNEs can make to attenuate the negative relationship of foreign direct investment (FDI) on equality, concluding that governments and their policies are the primary vehicle for addressing wealth and income inequality. Design/methodology/approach This paper is an essay. Findings The relationship between inequality, growth and FDI is complex. On balance, FDI contributes to growth but may exacerbate inequality under some conditions. More research needs to be conducted, and policymakers need to carefully consider these nuanced relationships. Originality/value The paper provides review of the relationship of FDI, growth and inequality.

scholarly journals IMPACT OF ENVIRONMENT, ENERGY AND FOREIGN DIRECT INVESTMENT ON EXPORTS OF SELECTIVE SAARC COUNTRIES

2020 ◽  
pp. 106-113
Author(s):  
Wajiha Manzoor ◽  
Nabeel Safdar
Keyword(s):  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Positive Impact ◽  
Negative Relationship ◽  
Domestic Credit ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Foreign Direct Investment Inflows

This study focused on the relationship of environment, energy used and foreign direct investment inflows on exports of selective SAARC countries including Pakistan , Bangladesh , India , Sri Lanka and Nepal from 1980-2018. The results revealed that environment has significant positive impact on exports. Energy has also positive impact on exports except Pakistan and Nepal where results showed negative relationship. The FDI inflow in India and Sri Lanka has not significant impact on exports while other three countries has significant impact on exports of those countries. Overall environment, energy used and foreign direct investment inflows have positive impact on export while controlling the impact of inflation, GDP growth, reserves and domestic credit to private sector in SAARC countries.

scholarly journals Global oligopolistic competition and foreign direct investment

2016 ◽  
Vol 12 (4) ◽  
pp. 369-387 ◽  
Author(s):  
Michael W. Hansen ◽  
Anne Hoenen
Keyword(s):  
Foreign Direct Investment ◽  
Conceptual Framework ◽  
Multinational Corporations ◽  
International Business ◽  
Direct Investment ◽  
Design Methodology ◽  
Oligopolistic Competition ◽  
Review Of The Literature ◽  
Content Type ◽  
Modern Context

Purpose The purpose of this paper is to re-visit and re-invigorate the oligopolistic industry perspective on multinational corporations (MNC) strategy. Design/methodology/approach Based on insights from the industrial organization tradition and strategic management, the paper brings the original insights of the oligopolistic industry perspective into a modern context by outlining a conceptual framework that may guide future international business (IB) research on MNC strategy in oligopolistic industries. Findings This paper demonstrates how contemporary IB literature pays little attention to a key insight of the early IB literature, namely, that foreign direct investment (FDI) often is driven by strategic interaction among MNCs in oligopolistic industries. Instead, the contemporary IB literature focuses on the FDI as a way to reduce transaction costs and/or as a way to leverage and build capabilities across borders. The paper argues that progressing global concentration in many industries warrants a rediscovery of the oligopolistic perspective on FDI. Originality/value The paper provides a comprehensive and unique literature review of the literature on MNC strategy in oligopolistic industries. Based on this review, the paper develops a novel conceptual framework that may inspire future IB research on MNC strategy in oligopolistic industries.

Does regionalism matter? Local politics and foreign direct investment in South Korea

2019 ◽  
Vol 8 (3) ◽  
pp. 295-306
Author(s):  
Dong-Hun Kim ◽  
Sunwoo Paek
Keyword(s):  
Foreign Direct Investment ◽  
South Korea ◽  
Foreign Investment ◽  
Direct Investment ◽  
Design Methodology ◽  
Local Politics ◽  
Political Stability ◽  
Foreign Investments ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine how political/authoritarian regionalism affects foreign direct investment (FDI) in sub-national states in South Korea. Design/methodology/approach This paper employs statistical analysis to examine the relationship between regionalism and FDI, along with historical description of regionalism in South Korea. Findings The analyses suggest that not only authoritarian regionalism influence foreign investment to the region but also political regionalism matters. Sub-national states with higher authoritarian regionalism receive less foreign investment while sub-national states with high political regionalism, which imply political stability, receive more FDI than others. Originality/value The paper examined how local politics influence foreign investments in South Korea, and suggests stronger decentralization will positively influence FDI in the future.

Stock dividends policy and liquidity of ex ante announcement

2015 ◽  
Vol 5 (3) ◽  
pp. 258-276 ◽  
Author(s):  
Zhiqiang Ye ◽  
Zhi Zhang ◽  
Songlian Tang
Keyword(s):  
Design Methodology ◽  
Negative Relationship ◽  
Paper Study ◽  
Content Type ◽  
Listed Firms ◽  
Ex Ante ◽  
Stock Dividends ◽  
Relationship Of ◽  
The Relationship

Purpose – The purpose of this paper is to test the relationship between stock dividends policy and liquidity of ex ante announcement to improve the traditional stock dividends liquidity hypothesis. Design/methodology/approach – The authors examine a sample of 2,088 which matching stocks between having stock dividends policy and having no dividends policy during 1999-2012 in Chinese listed firms. Using the multiple liner regression, the authors empirically tests the relationship between the possibility, payout ratio and timing choice of stock dividends and the liquidity of ex ante announcement. Findings – The authors find that the possibility of stock dividends policy has negative relationship with liquidity, and the relationship of stock dividends and liquidity of ex ante announcement is influenced by the time choice of stock dividends. Originality/value – This paper study the reason of stock dividends policy from the perspective of liquidity and improve the traditional stock dividends liquidity hypothesis.

Country-level corporate governance and foreign direct investment in Africa

2019 ◽  
Vol 19 (5) ◽  
pp. 1133-1152 ◽  
Author(s):  
Otuo Serebour Agyemang ◽  
Christopher Gbettey ◽  
John Gartchie Gatsi ◽  
Innocent Senyo Kwasi Acquah
Keyword(s):  
Corporate Governance ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Governance Structures ◽  
Corporate Boards ◽  
Content Type ◽  
Country Level ◽  
The Relationship

Purpose The purpose of this study is to examine the link between country-level corporate governance and foreign direct investment in African economies for the period 2009-2015. Design/methodology/approach The authors use annual panel data of 40 African economies over the period of the study and use the system generalized method of moments (GMM) to establish the relationship between country-level corporate governance and foreign direct investment. Findings The authors find that African economies characterized by firms with high ethical values tend to attract a great deal of foreign direct investment. In addition, they highlight that when an economy is associated with effective corporate boards, it tends to attract much foreign direct investment. Further, this study reveals that the level of minority shareholders’ interests’ protection in an economy has a significant positive relationship with foreign direct investment. Finally, they document a negative relationship between effectiveness of regulation of securities and exchanges and foreign direct investment. Practical implications It is advised that sound and implementable corporate governance structures devoid of political interferences should be put in place in African economies, if the aim of using foreign direct investment to mitigate poverty by 2015 as part of the Millennium Development Goals is to be attained. Originality/value Empiricists have devoted considerable effort to estimate the factors that influence the level of foreign direct investment into African economies without taking into consideration the corporate governance structures in these economies. However, this paper seeks to examine the relationship between country-level corporate governance structures and foreign direct investment in African economies.

scholarly journals Relationship in Between FDI Inflow and Economic Growth in Kosovo

2016 ◽  
Vol 4 (1) ◽  
pp. 50 ◽  
Author(s):  
Xhavit Islami ◽  
Enis Mulolli ◽  
Nagip Skenderi
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Pearson Correlation ◽  
Negative Relationship ◽  
Correlation Technique ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

This study treats the relationship of foreign direct investment (FDI) and economic development in Kosovo. FDI is considered as an important factor of economic growth of places in development, so rightly the question is asked: “Which is the impact of FDI inflow on economic growth of Kosovo?” This study shows the relationship in between FDI inflow and five macroeconomic indicators that have an important role in economic development of Kosovo such as: GDP, GDP per capita, GNI, Exports, and Balance Trade. The data were taken from World Bank and the statistic agency of Kosovo for 2005 to 2014 period. Pearson Correlation technique was used for empirical analysis that is realized with SPSS v. 21.0 statistical program, the results showed that there is a positive relationship in between FDI inflow and GDP growth, whereas there is a negative relationship of FDI inflow and trade balance of Kosovo. This study arguments what is necessary to be done in leading policies to attract foreign direct investment in Kosovo.

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.

How far are we from understanding corruption? The effect of cultural distance on corruption perception

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mike Szymanski ◽  
Ivan Valdovinos ◽  
Evodio Kaltenecker
Keyword(s):  
Cultural Differences ◽  
International Business ◽  
Design Methodology ◽  
Cultural Distance ◽  
State Level ◽  
Generalized Least Squares ◽  
Content Type ◽  
The Usa ◽  
Corruption Perception ◽  
The Relationship

Purpose This study aims to examine the relationship between cultural distances between countries and their scores in the Corruption Perception Index (CPI), which is the most commonly used measure of corruption in international business (IB) research. Design/methodology/approach The authors applied fixed-effect (generalized least squares) statistical modeling technique to analyze 1,580 year-country observations. Findings The authors found that the CPI score is determined to a large extent by cultural distances between countries, specifically the distance to the USA and to Denmark. Research limitations/implications CPI is often used as a sole measure of state-level corruption in IB research. The results show that the measure is significantly influenced by cultural differences and hence it should be applied with great caution, preferably augmented with other measures. Originality/value To the best of the authors’ knowledge, this is the first study to look at cultural distances as determinants of CPI score. The authors empirically test whether the CPI is culturally biased.

scholarly journals INVESTASI ASING LANGSUNG DAN PERTUMBUHAN EKONOMI DI WILAYAH ASEAN PERIODE 2004-2016

2019 ◽  
Vol 23 (2) ◽  
pp. 57-66
Author(s):  
Aditya Febriananta Putra ◽  
Suyanto . ◽  
Irzameingindra Putri Radjamin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Significant Role ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Accelerate Development ◽  
Fixed Capital Formation

Exertions to accelerate development carried out by developing countries in general are oriented towards improving or improving people’s lives. Developing countries are characterized as countries that lack capital, savings and investment. The role of Labor has a significant effect but has a negative impact on economic growth. Agriculture and Service also performance a significant role, despite having a positive impact on economic growth. While other variables, namely Fixed Capital Formation, Foreign Direct Investment, Export, Manufacture, and Fertility showed insignificant results on economic growth.

scholarly journals An Evaluation of Relationship between Foreign Direct Investment and Economic Growth in Vietnam

2014 ◽  
Vol 220 ◽  
pp. 79-96
Author(s):  
Anh Phạm Thị Hoàng ◽  
Thu Lê Hà
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Significant Contribution ◽  
Foreign Capital ◽  
Positive Impact ◽  
National Economic ◽  
Investment Law ◽  
The Relationship

Foreign direct investment (FDI) is an essential source of capital in the gross investment conducive to national economic growth, including the case of Vietnam. Since the 1987 Foreign Investment Law, the country has attracted a large amount of foreign capital, which makes a significant contribution to economic development. This research employs a VAR model to analyze the relationship between FDI and Vietnam’s economic growth. The results suggest that FDI has a positive impact on the latter and vice versa. The research also finds that FDI stimulates export and improves the quality of human resources and technology - important prerequisites for the economic growth.

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