Japanese Foreign Direct investment in Indian Automobile Sector Evolution and Practices

Author(s):  
Anil Kumar Kanungo ◽  
Kreeti Mahajan

The paper aimed to examine whether the Japanese automakers find India an ‘Investment Friendly Nation’ based upon their experience in India so far. It analyses the ‘Japanese Management Style’ and observed the advantages and disadvantages it offers through a comparative analysis with the management style prevalent in the Indian auto companies especially in two major auto companies in India such as Maruti Suzuki and Honda. It sought to identify the major challenges faced by the Japanese car makers while investing in India and the steps taken in form of policies and practices to tackle such challenges. The findings included that Japanese companies would emphasise on long term vision and planning. Quality and customer satisfaction are key to their growth and market penetration. Japanese auto majors values ‘trust’ especially in joint ventures like Maruti Suzuki. Skilling workers especially at lower end is important for success in auto sectors.

Author(s):  
Linas Bielickas ◽  
Izolda Ona Bražukienė

The aim of this paper is to analyse and evaluate a territorial dispersion of foreign direct investment in Vilnius and Kaunas counties in 2000–2013 year and to identify the main reasons, which had an impact for changes. Foreign direct investment (FDI) makes a long-term economical and monetary interests and connection between foreign direct investor and investing company. It is one of the sources of finances and inovations which improves competitiveness in global market and supports the growth of economy. There are established the causes (social and economical) of foreign direct investment in Vilnius and Kaunas counties in 2000-2013 year territorial dispersion, factors of their attraction, indicated economical sectors and investing countries in this paper. There are used the analysis of statistical data, scientific literature, counting of quantitative and qualitative indicators, comparative analysis by qualitative indicators, composition of sketches by quantitative and qualitative indicators and identification of territorial structures from sketches.


2021 ◽  
Vol 6 (11) ◽  
pp. 165-182
Author(s):  
Ahmet Emrah TAYYAR

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.


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.


2021 ◽  
Vol 2 (4) ◽  
pp. 376-393
Author(s):  
Ubong Edem Effiong ◽  
Nora Francis Inyang

This study was an inquiry into the nexus of the foreign-direct investment (FDI) led growth hypothesis, and how it translates into the development of the Nigerian economy as of 1970 – 2018. The study utilized secondary data from the ‘World Development Indicators’ which were analysed using the Bounds test for cointegration and the ‘autoregressive distributed lag (ARDL) approach to divulge both the short-term cum the long-term influence of foreign direct investment net inflow on ‘economic development’ of Nigeria. The Bounds test was conducted after the unit root test revealed that the variables were stationary at mixed order of level and first difference. The outcome of the ARDL Bounds test supported confirmation of long-term association among the variables. The ARDL short-run error correction showed that 14.62% of the instability in the model was corrected yearly. In the short-term, it was discovered that FDI wielded a deleterious and substantial weight on ‘economic development of Nigeria. Meanwhile, the long-term estimates indicated that FDI influenced economic development positively, though not in a significant manner. The Granger causality test supported the fact that FDI causes ‘economic development’ in Nigeria. Given this potential of FDI exerting a positive effect on ‘economic development’, the paper recommended that bottlenecks inherent in FDI influxes in the country should be removed so as to reap the fullest benefits of such inflows in Nigeria.


2017 ◽  
Vol 2 (4) ◽  
Author(s):  
Monica Blanco Jimenez ◽  
J Valdez ◽  
Martha Fasci

Key words: Enterprises, Foreign Direct Investment, management style, Mexico, United StatesAbstract: The United States and Mexico are two countries with vast cultural and economic differences, but their bilateral relations oftrade and Foreign Direct Investment (FDl) are very close. Their geographic proximity and their membership to NAFTA have increased the US-Mexican goods trade and have multiplied the Foreign Direct Investment (FDl) inflows into Mexico by seven folds during 1988-2000. Onthe other hand, the Mexican FDI inflows into the United States even though enjoyed a steady growth during last years, but without asubstantial ncrease. Although, there are some outside oolitical nd economical fctors that have influenced this evolution ofFDI in both countries, there are some managerial fctors that have made it difficult to integrate he Mexican enterprises with the US ones. Some researches confirm that in Mexico, cultural aspects influence in all possible ways to make business. These are different from the American management style, so the Mexican enterprises that want o invest in the American market must adopt the American management system, in order to have a successful investment. This research aims to: 1) Demonstrate thgrowing mutual economic trade interdependence between Mexico and the United States, 2) ldentify in which sectors and what areas are most of the Mexican enterprises located in the United States and 3) Compare the Mexican management style with the American system.Palabras Clave: Empresas, estilo de administración, Estados Unidos, Inversión Directa Extranjera, MéxicoResumen: Los Estados Unidos y México son dos países con importantes diferencias culturales y económicas, sinembargo su relación bilateral en el comercio y la inversión es muy estrecha. La proximidad geográfica y la firma del Tratado de Libre Comercio de Norte América han incrementado el comercio USA-México y han permitido que la inversión directa extranjera Americana enMéxico se multiplique por siete veces de 1988 a|2000. Por otro lado, la Inversión Directa Extranjera de México en los Estados Unidos, aunque presenta un incremento enestos últimos años, no ha tenido un crecimiento sustancial. Existen factores políticos y económicos que han influenciado esta evolución deIDE en ambos países, sin embargo, hay otros factores como la cultura empresarial que ha sido un elemento de dificultad para integrar las empresas Mexicanas en los Estados Unidos. Algunos investigadores confirman que la cultura empresarial infuye en la manera como las empresas Mexicanas hacen negocios, la cual es diferente a la cultura empresarial Americana, entonces, las empresas Mexicanas que quieran invertir y hacer negocio en el mercado Americano, tienen que adoptar elestilo empresarial Americano para tener éxito en sus inversiones. Por lo tanto, esta investigación trata de: 1) Demostrar el crecimiento de Ia dependencia económica comercial que existe entre México y los Estados Unidos, 2)ldentificar en que sectores y donde están establecidas la mayor parte de las empresas mexicanas en los Estados Unidos y 3) Comparar el estilo empresarial mexicanos con el sistema Americano. 


2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Saliha Meftah ◽  
Abdelkader Nassour

Foreign direct investment (FDI) is an essential factor in the development of a country. This study aims to examine what factors influence foreign direct investment. By using the vector error correction model, the research shows that there is a long-term causality relationship between exchange rates and inflation with FDI. However, in the short term, there are no variables that affect FDI. Besides, the Granger causality test shows causality in the direction of GDP and FDI, while other variables do not have causality. This research has implications for policymakers to pay attention to macroeconomic variables in increasing the flow of foreign direct investment.


2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari

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.


Media Trend ◽  
2016 ◽  
Vol 11 (2) ◽  
pp. 141
Author(s):  
Claudia TeziaJanuarita Putri ◽  
Regina Niken Wilantari

<p><em>Traffic capital across countries is one of  investment opportunities from domestic and abroad to stimulate the economic growth  of developing countries</em><em>. Compared to other forms of capital, Foreign Direct Investment is the flow of capital is long-term and relatively not as vulnerable to economic shocks. The aim of this study is to see the performance of FDI movement as a capital inflow in Indonesia and to explores whether factors that affect FDI using Dunning’s ecletic model. </em><em>This study focused on two basic analysis, descriptive analysis and quantitative analysis using the Error Correction Model (ECM). </em><em>The results of short-term ECM estimate shows that FDI is influenced by inflation and the degree of economic openness. Furthermore, the result in the long term ECM estimate show that only variable that infrastructure does not significantly affect the movement of FDI in Indonesia. </em></p>


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