scholarly journals The Giant Sucking Sound: Is China Diverting Foreign Direct Investment from Other Asian Economies?

2004 ◽  
Vol 3 (3) ◽  
pp. 122-140 ◽  
Author(s):  
Busakorn Chantasasawat ◽  
K. C. Fung ◽  
Hitomi Iizaka ◽  
Alan Siu
Keyword(s):  
Foreign Direct Investment ◽  
Random Effects ◽  
Direct Investment ◽  
Simultaneous Equation ◽  
Southeast Asian ◽  
Equation Model ◽  
Tax Rates ◽  
Simultaneous Equation Model ◽  
Corporate Tax ◽  
Asian Economies

This paper attempts to determine empirically whether China is taking foreign direct investment (FDI) away from other Asian economies (the “China effect”). A random-effects simultaneous equation model, controlling for the determinants of inward FDI of eight East and Southeast Asian economies over 1985–2001 and using China's inward FDI as an indicator of the China effect, indicates that China's FDI level is positively related to these economies' FDI levels and negatively related to their shares in FDI in Asia. Moreover, openness, corporate tax rates, and corruption can exert a greater influence on these countries' FDI than China's FDI.

Does foreign direct investment deepen the financial system in Southeast Asian economies?

2021 ◽  
pp. 100682
Author(s):  
Mollah Aminul Islam ◽  
Haiyun Liu ◽  
Muhammad Asif Khan ◽  
Md Tariqul Islam ◽  
Md Reza Sultanuzzaman
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Financial System ◽  
Southeast Asian ◽  
Asian Economies

Does infrastructure promote exports and foreign direct investment in selected Southeast Asian economies? An application of global infrastructure index

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faheem Ur Rehman ◽  
Abul Ala Noman
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Southeast Asian ◽  
Local Economy ◽  
Least Square ◽  
Infrastructure Development ◽  
Content Type ◽  
Long Run ◽  
Asian Economies ◽  
Short Run

PurposeInfrastructure deficiency in Southeast Asian countries is ever growing and touched to a level where it harms the local economy as well as the international sector of the country. The gap between demand and supply for infrastructure is constantly on the upswing. The purpose of this study to investigate the effect of infrastructure on exports and foreign direct investment (FDI) inflow in selected Southeast Asian economies.Design/methodology/approachThis study employs the pooled mean group (PMG) technique to velaborate that how the infrastructure affects export and FDI in the short run and long run during 1990–2018. For cointegration, Pedroni and Kao tests are used. Dynamic ordinary least square (DOLS) and the fully modified least squares (FMOLSs) estimators are employed for robustness check.FindingsThe findings support that aggregate and sub-indices of infrastructure significantly promote the export and FDI inflow in the long run. Also infrastructure, export and FDI inflow are cointegrated in the long run. FMOLS and DOLS found the most robust results.Originality/valueInfrastructure development in determining trade and FDI has established a significant deal of attention in the modern era where a plethora of research studies encourage the opinion that better infrastructure attracts FDI and enhances export. However, this study uses a global infrastructure index, which comprises the sub-indices like transport, telecommunication, energy and financial sector, which gives us a clear picture regarding how Southeast Asia can catch up FDI and export benefits through infrastructure.

scholarly journals The Effect of Corporate Profit Tax on Attracting Foreign Direct Investment in Albania

2017 ◽  
Vol 8 (2) ◽  
pp. 186
Author(s):  
Shpresa Cela
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Tax Rates ◽  
Corporate Tax ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Tax Rate ◽  
Corporate Profit ◽  
Legal Infrastructure

The aim of this study is to analyze the major cause of the instability of foreign direct investments in Albania these last years, their lowest level of FDI when compared with other countries in the region, and the importance of these investments in developing countries like Albania. The size of FDI has a significant effect on the financial and macroeconomic factors, government and infrastructure factors, and the factors by fiscal nature. In this study, we disengage fiscal factors and in particular, the corporate profit tax rate. The aim of this study was to prove that in countries with weak legal infrastructure, this factor is statistically significant in attracting Foreign Direct Investment. Thus, should Albania be considered as a country with weak legal infrastructure? Due to this question, we took into consideration specific indicators measured in recent years by various world organizations by comparing them with various countries of the region. Also, we built an econometric model through multiple regression by collecting data on the tax rate applied in Albania from 1992- 2016, and the level of FDI for this period. This is in a bid to ascertain the effect or impact that profit taxes has on FDI inflows in Albania. In conclusion, Corporate Tax Rates is a factor that has a very significant impact on the size of FDI in Albania.

Remittances, Economic Growth and Poverty: A Case of African OIC Member Countries

2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Annual Data ◽  
Simultaneous Equation Model ◽  
African Countries ◽  
Alternative Source ◽  
The Impact

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model

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