Kazakhstan's China Silk Road will open up Central Asia

2015 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Road Construction ◽  
Transport Infrastructure ◽  
Xi Jinping ◽  
Regional Trade ◽  
Content Type ◽  
Central Asian ◽  
Political Economic

Significance The network of new land routes to link East Asia and Europe was first raised by President Xi Jinping on a 2013 visit to Kazakhstan, through which the more critical central corridor passes, with connections to the northern one. Kazakhstan's government strongly supports the endeavour, as it helps it achieve a number of goals: improving domestic infrastructure, attracting foreign direct investment (FDI), boosting employment in road construction and related industries and, in the long term, diminishing dollarisation of the economy. Impacts Greater political, economic and cultural ties are expected to be forged between Kazakhstan and China. Improved transport infrastructure is to increase Kazakhstan's competitiveness and improve its attractiveness for FDI. Central Asian inter-regional trade is likely to increase.

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.

Modi-Xi summit will foster goodwill but little more

2019 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Indian Ocean ◽  
Direct Investment ◽  
Prime Minister ◽  
Xi Jinping ◽  
Jammu And Kashmir ◽  
Content Type ◽  
The Indian Ocean ◽  
Chinese Foreign Direct Investment ◽  
Constitutional Changes

Subject Upcoming informal summit between Indian and Chinese leaders. Significance Chinese President Xi Jinping is expected to be in India on October 11-13 for a second ‘informal’ summit with Indian Prime Minister Narendra Modi. The first such summit in Wuhan, China, in April 2018 prompted the two countries to tone down their differences following a border standoff the previous year. Since August this year, that rapprochement has come under pressure due to India’s constitutional changes in Jammu and Kashmir state, part of which is claimed by Beijing. Impacts Rivalry in the Indian Ocean could become a greater source of bilateral tension, depending on government transitions in the region. Since Indian majors are reportedly wary of using Huawei and ZTE core equipment in 5G trials, market barriers may expand in the tech sector. Chinese foreign direct investment in India will be constrained compared to China’s global outbound investment.

An empirical analysis among foreign direct investment, trade openness and economic growth: evidence from the Indian economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reenu Kumari ◽  
Malik Shahzad Shabbir ◽  
Sharjeel Saleem ◽  
Ghulam Yahya Khan ◽  
Bilal Ahmed Abbasi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Fdi Inflows ◽  
Content Type ◽  
Study Results

PurposeThis study examines the long-term and causal relationship among foreign direct investment (FDI) inflows, trade openness and economic growth from India.Design/methodology/approachThis study has used annual time series data from the period 1985–2018 and applied the Johansen cointegration and vector autoregression (VAR) model.FindingsThe results of Johansen's cointegration confirm no long-term relationship among all the above three variables. Further, the results of VAR Granger causality indicate that FDI causes economic growth and economic growth causes FDI, which confirms the bi-directional causality. In contrast, this study found that there is no bi-directional causality between trade openness and economic growth.Social implicationsThrough this study, the government could take the decisions related to foreign investment after adopting more trade openness because the study results revealed that if India follows more trade openness, then how FDI will flow (upward and downward). With impulse analysis, researchers, government and policymakers take the decision-related FDI inflows for the forthcoming ten years after 2018.Originality/valueThis study has found the most exciting results from the impulse functions of FDI inflows, trade openness and economic growth, which showed the situation of these three variables as increase and decrease in the forthcoming ten years.

scholarly journals Investment Climate and Foreign Direct Investment Trends in the South Caucasus and Central Asia

2007 ◽  
Vol 2 (1) ◽  
pp. 31-40
Author(s):  
Slavica Penev
Keyword(s):  
Foreign Direct Investment ◽  
Central Asia ◽  
Direct Investment ◽  
Transition Process ◽  
Investment Climate ◽  
Long Term Effects ◽  
The South ◽  
South Caucasus ◽  
Central Asian

Investment Climate and Foreign Direct Investment Trends in the South Caucasus and Central AsiaThis paper analyzes and compares investment climates and trends in the South Caucasus and Central Asia. The analyses and comparisons were conducted in view of the impacts of transitional progress, economic development, and the energy reserves from these regions on the inflow of foreign direct investment. Improvement of the investment climate by accelerating the transition process and reducing investment risks can be seen as the most important determinants of FDI inflows into the countries of these two regions. Structural diversification of South Caucasian and Central Asian natural resource-based economies would be essential in ending dependence on the energy and mining sectors and would have positive long-term effects on economic growth and the investment climate, and attract other, additional types of FDI.

Commodity prices will weigh on Latin America's FDI

2015 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Direct Investment ◽  
Commodity Prices ◽  
Content Type ◽  
Economic Commission ◽  
The Caribbean

Subject The outlook for inward FDI. Significance A drop in foreign direct investment (FDI) in Latin America and the Caribbean in 2014 marked a change of trend, according to a report released on May 27 by the UN Economic Commission for Latin America and the Caribbean (ECLAC). The decline, attributed principally to lower commodity prices, was the first since 2009 and is likely to persist this year. Impacts At 2.6% of GDP, inbound FDI in 2014 was its lowest since 2009 and will remain slightly below its long-term average this year. Lower commodity prices reduced average returns on FDI to around 5% in 2014, down from over 9% in 2006-08; no rapid upturn is likely. Most investment abroad by LAC companies is within the region and, in 2015, will continue to be constrained by its sluggish growth.

Botswana's diversification challenges will mount

2018 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Operating Conditions ◽  
Content Type ◽  
High Unemployment ◽  
Elite Level ◽  
The Government

Subject Botswana's post-diamond economy. Significance Botswana’s economy will soon face falling revenues from its principal resource, diamonds. The government is ostensibly committed to incentivising broad-based growth and diversification, yet dependence on its main export persists. Impacts Although proposed reforms have international backing, economic pressures will weigh on the ruling party’s long-term support. Poor operating conditions and elite-level corruption may partly undermine the foreign direct investment necessary for wider diversification. Diversification challenges will be exacerbated by already-high unemployment of approximately 18%.

Asian manufacturers will do best in Indian auto sector

2021 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Content Type ◽  
Car Industry

Significance Days earlier, Ford said it would stop making vehicles for sale in India. It blamed persistent overcapacity and a lack of growth in the country’s car industry. Impacts The auto sector will attract increasing foreign direct investment from Asian manufacturers. Sales of electric two-wheelers will rise. Imports of Chinese auto components will decline in the long term.

The influence of foreign direct investment on the urban–rural income gap: evidence from China

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Song ◽  
Yi Zhang ◽  
Yafei Wang ◽  
Bowen Zhang ◽  
Jiafu Su
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Mainland China ◽  
Short Term ◽  
Content Type ◽  
Income Gap ◽  
Rural Income ◽  
Urban Rural ◽  
The Impact

PurposeTaking 30 provincial samples from 2001 to 2017 in mainland China as the research objects, this paper aims to evaluate the impact and effects of foreign direct investment (FDI) on the urban–rural income gap and reveals heterogeneity across regions.Design/methodology/approachFirstly, the Theil index is used to measure the income gap between 30 provinces in mainland China from 2001 to 2017, then the spatial econometric model is used to empirically test the impact of foreign direct investment on China’s urban–rural income gap and its heterogeneity across regions. Finally, a robustness test is performed.FindingsThe results show that there is a significant inverted U-shaped relationship between FDI and the urban–rural income gap in China. That is, FDI expands the urban–rural income gap in the short term and helps to converge it in the long term. In the eastern region, FDI has a convergence effect on the urban–rural income gap in the short term, which increases the long term. However, in the central and western regions, the relationship between FDI and urban–rural income gap has a weak inverted U shape.Originality/valueBy assessing the impact of FDI on the urban–rural income gap, this work provides decision-making support for China and other developing countries to improve investment policies and income distribution policies.

scholarly journals Technology-sourcing investment abroad as an enhancer of Chinese MNEs’ innovative capabilities

2015 ◽  
Vol 10 (2) ◽  
pp. 243-271 ◽  
Author(s):  
Philippe Gugler ◽  
Laura Vanoli
Keyword(s):  
Foreign Direct Investment ◽  
Citation Analysis ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Knowledge Diffusion ◽  
Technological Capabilities ◽  
Content Type ◽  
Chinese Mnes ◽  
Firm Knowledge ◽  
Innovative Capabilities

Purpose – The purpose of this paper is to focus on Chinese firms’ innovation processes that are induced by foreign direct investment abroad. The study uses a patent and citation analysis to examine the extent to which investments abroad contribute to enhancing these firms’ innovative capabilities. More specifically, this study focusses on the role of foreign location competitiveness as an asset to provide technological capabilities to Chinese affiliates. Design/methodology/approach – Patents are good indicators of firms’ innovative capabilities. Moreover, patents allow to track the inter-firm knowledge transfer through the citations of patents on which they are based. The authors use an OECD patent database called “OECD REGPAT July 2013” that compiles patents registered with the European Patent Office (EPO) over the period from 1986 to 2013. The authors focus the analysis on patents registered by Chinese multinational enterprises’ (MNEs) based in Europe because the authors assume inter alia that innovations patented by Chinese affiliates in Europe are registered with the EPO. The sample comprises 3,010 patents involving 5,749 citations that the authors have individually examined. Findings – The findings suggest that Chinese MNEs ability to generate innovation based on their own knowledge is low, with a self-citation rate of approximately 4 percent. Patents by Chinese MNEs are largely based on foreign patents, especially from developed economies (at least 90 percent). The citation analysis also suggests that 39.2 percent of citations represent domestic firms in the local recipient country. This subgroup of citations is categorized as follows: 1.04 percent are M&A linkages, 13.8 percent are cluster linkages, and 24.36 percent are localization linkages. The remaining 60.8 percent of the total sample demonstrates that firms do not necessarily need to be collocated in foreign locations with domestic firms to exchange assets. Research limitations/implications – Patent and citation analysis considers only a part of the inter-firm knowledge diffusion. Some innovations are not patented and tacit knowledge diffusion is not observable. Moreover, the analysis focusses only on Chinese outward foreign direct investment to Europe, but a large part of knowledge is accumulated in China thanks to inward foreign direct investment. Originality/value – Many scholars have scrutinized emerging markets multinational enterprises’ strategic asset-seeking investments abroad that are designed to upgrade the companies’ technological capabilities (Cui and Jiang, 2009; Zhang and Filippov, 2009; Huang and Wang, 2013; Amighini et al., 2014; De Beule et al., 2014; Nicolas, 2014). However, few studies analyze the results of these strategies in terms of innovation output.

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.

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