The New Theory of Foreign Direct Investment: Merging Trade and Capital Flows

2009 ◽  
Vol 12 (1) ◽  
pp. 107-119 ◽  
Author(s):  
Katheryn N. Russ
Keyword(s):  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment

scholarly journals An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

2020 ◽  
pp. 63-76
Author(s):  
G. Tunde, Monogbe ◽  
J. Emeka, Okereke ◽  
P. Ebele, Ifionu
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign  portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively  related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

scholarly journals New Dependency?: Economic Links between China and Latin America

2017 ◽  
Vol 53 (01) ◽  
pp. 1740001 ◽  
Author(s):  
NÉSTOR CASTAÑEDA
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Latin America ◽  
United Nations ◽  
Capital Flows ◽  
Soft Power ◽  
Direct Investment ◽  
Institutional Factors ◽  
Policy Goals ◽  
Recent Trends

This paper focuses on the most recent trends of Chinese finance (foreign direct investment (FDI) and development loans) in Latin America and their impact on economic development. In particular, this paper explores the economic and institutional factors that attract loans and FDI from China to Latin America. Based on data from the Chinese Ministry of Commerce and the United Nations on Chinese FDI and development loans to Latin America, this article argues that Chinese capital flows to the region, rather than politically motivated, are mainly motivated by trade interests, the evolution of the market of commodities, and natural resources-related policy goals. These capital flows are functional to the Chinese government’s use of soft power in the region, but these goals are secondary to market-based interests.

scholarly journals FOREING DIRECT INVESTMENTS OF GERMAN TNCs: MAIN TRENDS AND FEATURES

2015 ◽  
Vol 21 (03) ◽  
pp. 22-28
Author(s):  
Vasyl Namoniuk Vasyl Namoniuk ◽  
Nataliya Shavrina Nataliya Shavrina
Keyword(s):  
Foreign Direct Investment ◽  
Eastern Europe ◽  
Host Country ◽  
Capital Flows ◽  
Direct Investment ◽  
Central And Eastern Europe ◽  
Transnational Corporations ◽  
International Capital ◽  
Investment Activity ◽  
Economic And Financial Crisis

The paper deals with the features of German transnational corporations’ investment activity within the last decade. The period of active foreign direct investing during 2004–2007 and the period of FDI decline due to the global economic and financial crisis are distinguished. The sectoral and regional structures of German TNCs’ investments are analyzed as well. The special accent is made on the issue of investment attractiveness of Central and Eastern Europe, especially Ukraine, for the German TNCs. It was revealed that stability and predictability of the situation in the country and main features of its market are more important for German corporations when choosing the host country, than regulatory restrictions on foreign direct investment. This is a very important issue for the FDI attraction into Ukrainian economy. Keywords: TNCs, FDI, international capital flows, regulatory restrictions, Central and Eastern Europe, Ukraine.

scholarly journals Capital flows and political conflicts: Evidence from Thailand

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Pongsak Luangaram ◽  
Yuthana Sethapramote
Keyword(s):  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Military Coup ◽  
Portfolio Investment ◽  
Martial Law ◽  
Foreign Portfolio Investment ◽  
Political Conflicts ◽  
Different Types ◽  
Negative Effect

How do domestic political conflicts affect capital flows into Thailand? This article advances the current understanding in two ways. First, it adopts a new method for measuring political uncertainty using Thai-language newspapers over the past 20 years. Given that the nature of political conflicts is multi-faceted, these measures cover the various key components of Thai political tensions—both within and outside of parliament. Second, how different types of tensions affect capital flows are examined using a quantile regression framework—allowing an examination of effects upon the overall distribution of capital flows. The empirical results indicate that Thai political conflicts significantly and adversely affect both foreign direct investment and foreign portfolio investment at the left tails of their distribution. The results also highlight how different types of political conflicts affect capital flows in different ways. For example, uncertainty about a military coup and government measures regarding martial law or emergency decrees have a strong negative effect upon foreign direct investment flows; whereas heightened political protest and news about constitutional reform play a significant role in explaining the risk reversal of foreign portfolio investment flows. 

scholarly journals What Has Happened with C-B M&A Acceptance? A Follow Up Based on 2005 – 2015 Study

2021 ◽  
Author(s):  
Rasto Ovin ◽  
Anita Macek
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Market Economy ◽  
Capital Flows ◽  
Direct Investment ◽  
The Other ◽  
The Common ◽  
Foreign Divestment ◽  
Intensive Course

Especially since 1990s when capital flows liberalization took their intensive course, also the literature on foreign direct investment and respectfully cross-border mergers and acquisitions grew. On the other hand, although it was accompanying these processes, foreign divestment attracted much less attention. Speculating about the reasons for such situation, one could stress that following the nature of the balance of payments logic foreign direct divestment was not expected. Nevertheless, these processes were present. This chapter addresses some of the most important impacts of foreign direct investment that had been a subject to inverse processes later. The authors try to confront the drivers of these processes and search for different patterns obviously often deriving outside economic rationale from the position of a developed market economy. Using their expertize the authors connected concrete findings of their study with possible drivers of divestment. According to the finding the common nominator was mixed success with the transition in transition countries.

scholarly journals Capital Flows and Money Supply: The Degree of Sterilization in Pakistan

2017 ◽  
Vol 4 (1) ◽  
pp. 18
Author(s):  
Hina Ali ◽  
Sadia Sajjad
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Money Supply ◽  
Capital Flows ◽  
Direct Investment ◽  
Price Index ◽  
Descriptive Analysis ◽  
Consumer Price Index ◽  
Series Data

The present study proposes to analyze the impact of the capital flows on the economic growth. The change in the capital flows affects the money supply in the economy which in return influences the economic growth. The augmented dickey fuller test (ADF), descriptive Analysis, correlation method, and the auto regressive distribution lag are employed in this work. The ADF test is delved to examine the Stationarity of the variables and the correlation between them. The descriptive analysis is used to check the normality of the variable whether the variables is normally distributed or not. The survey bases on time series data ranging from the year 1974 to 2014. The variables as the gross domestic product (GDP), exchange rate (ER), inflation (INF), consumer price index (CPI), money supply (M2), total reserves (TR) and the foreign direct investment (FDI), price indices (PI). The research findings are Foreign direct investment, Exchange rate, Inflation rate, Consumer Price Index has the positive impact on the GDP while the Private Investment, Total reserves, and Money supply have the negative impact on the GDP. The value of the R square is 0.99874 which is very good. It means that the 99 percent variations exist in dependent variable due to independent variables. 

Socialist Protoglobalization and Patterns of Uneven Transnational Integration After 1989

2018 ◽  
pp. 108-141
Author(s):  
Besnik Pula
Keyword(s):  
Foreign Direct Investment ◽  
Institutional Change ◽  
Capital Flows ◽  
Joint Ventures ◽  
Direct Investment ◽  
Economic Liberalization ◽  
Organizational Processes ◽  
Firm Level ◽  
Policy Orientation ◽  
The Impact

This chapter looks at the rise of foreign direct investment (FDI), both as a new policy orientation, and as a process of capital flows with institutionally transformative consequences in postsocialist economies. While the previous chapters focused largely on political elites and macro-institutional change during the late socialist era, this chapter shifts attention to the impact of organizational processes at the firm level during the immediate postsocialist period in driving the transition towards globally integrated postsocialist industries. The chapter systematically examines patterns of institutional change from joint ventures to foreign direct investment across the region, and demonstrates the capacities of economies with the most diffuse experience with socialist proto-globalization in making the most rapid gains from globalization after economic liberalization post-1989.

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