A Panel Data Analysis of Foreign Direct Investment Inflows into India Since 1991 to 2015

2017 ◽  
Vol 65 (1-4) ◽  
pp. 27-36
Author(s):  
Roohi Javed ◽  
Farheen Javed
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Economic Reforms ◽  
Fdi Inflows ◽  
Tax Haven ◽  
The Government ◽  
The One ◽  
Definition Of ◽  
The Impact

At the outset, this study dwells on the ambiguities surrounding the definition of foreign direct investment (FDI) and the non-adherence to international norms in measuring the FDI inflows by India. The study finds that portfolio investors and round-tripping investments have been important contributors to India’s reported FDI inflows, thus, blurring the distinction between direct and portfolio investors on the one hand and foreign and domestic investors on the other. These investors were also the ones who have exploited the tax haven route the most. These observations acquire added significance in the context of the substantial fall in the inflows seen during 1991–1992 to April 2015–December 2015. FDI as a strategic component of investment is needed by India for achieving the economic reforms and maintaining the pace of growth and development of the economy. The government should design the FDI policy in such a way where FDI inflow can be utilised as a means of enhancing domestic production, savings and exports through the equitable distribution among states by providing much freedom to states, so that they can attract FDI inflows at their own level. The impact of FDI inflows into India in recent years is highly significant. JEL: C40, C82, E44, F210, G15

scholarly journals Impact of Foreign Direct Investment on Industrial Growth of India

2019 ◽  
Vol 8 (2S10) ◽  
pp. 165-169
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Industrial Growth ◽  
Coefficient Corrélation ◽  
The Government ◽  
The One ◽  
The Impact ◽  
The Relationship

In India the Foreign direct investment (FDI) has received a staged improvement from instigate of the Make in India scheme, according to recent survey. There was a incredible increase in FDI inflows (40%) particularly in manufacturing sector from October, 2014 to June, 2019 . The industrial sector is considered to be the one of the dominant sectors that contribute the major Indian GDP. India has been ranked fourteenth in the factory output in the world. This was because of the launch of initiative, which sought for promoting manufacturing segments and be a magnet for foreign investments. More than 56 manufacturing units are benefitted in the entire globe. In the recent times during the year 2014 to 2019 the Industrial production inclined to 3.1 per cent, mainly on account of improvement and to encourage talent augmentation towards the various sectors of the economy. This article brings out the recent efforts taken by the government for encouraging the FDI into various sectors and how it has made a pathway. In the last ten years India has shown a tremendous increase in Foreign Direct Investment into the various sectors in economy. Even though Government of India has make a pathway for attracting FDI on various sectors, this papers focuses on explaining the impact of make in India scheme on FDI. In this paper period of five years has been considered for the analysis. The Statistical Tools like Karl Pearson's Coefficient Correlation and One - Way ANOVA has been used for the analysis of data. To study the relationship between the FDI and IIP correlation is used for the analysis of data

scholarly journals The Performance of the Tourism Sector Toward FDI Attraction Among Other Sectors of the Ghanaian Economy

2018 ◽  
Vol 14 (16) ◽  
pp. 287
Author(s):  
Yu Jing ◽  
Yeboah Evans ◽  
Ohene Gyan Christian
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Fdi Inflows ◽  
Economic Growth And Development ◽  
Investment Promotion ◽  
Tourism Sector ◽  
Sector Performance ◽  
The Government ◽  
The Impact ◽  
Service Building

This paper provides a literature review on the impact of foreign direct investment on economic growth and development of the Ghanaian economy; by considering foreign direct investment contributions on employments creation and the allocation of registered projects to the various sectors based on the data collected from the Ghana Investment Promotion Centre, it was discovered that there was a decline in the number of projects registered by investors in 2015 and an increase in 2017. However, it was also revealed that the tourism sector performance toward the attraction of foreign direct investment and employment generating has been reducing indirectly between 2013 and 2017 of which the tourism sector did not create any employment in 2017. Conversely, there is much focus on manufacturing, service, building & construction and general trading sectors as majority of FDI inflows has been directed into these sectors. It is recommended that investors should enter the neglected sectors since there will be much benefit in these overlooked sectors, whereas the government of Ghana should provide incentives in these undermined sectors.

Does state fragility matter for foreign direct investment? Evidence from Southern and Eastern Mediterranean countries

2018 ◽  
Vol 56 (8) ◽  
pp. 1787-1803 ◽  
Author(s):  
Anna Dimitrova ◽  
Dora Triki
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Eastern Mediterranean ◽  
Panel Data Analysis ◽  
Mena Region ◽  
Fdi Inflows ◽  
Content Type ◽  
Mena Countries ◽  
State Fragility ◽  
The Impact

Purpose Following the Arab Spring turmoil, Middle East and North African (MENA) countries’ overall instability has significantly increased which resulted in the decrease of foreign direct investment (FDI) flows. The purpose of this paper is to contribute to the research on determinants of FDI inflows to the MENA region by examining the relationship between state fragility and FDI. Design/methodology/approach A panel data analysis was conducted to study the impact of Fragile States Index (FSI) and its components, namely economic, social and political/military state fragility, on FDI inflows to seven MENA countries situated in the Southern and Eastern Mediterranean (SEMED) region over the period 2006-2016. Findings The results show that the increase of political state fragility deters FDI inflows to SEMED countries. By contrast, their economic and social state fragilities are insignificant for FDI. This could be explained by the fact that investors are usually attracted by government stability and a strong investment profile. Research limitations/implications Given the fact that previous research has not yet validated FSI as a new FDI determinant, the results should be interpreted with some caution. It may also be worth examining the impact of FSI on FDI by industry sector in future studies. Practical implications The results reveal that FSI could help MNEs investing in the MENA region assess and better manage the economic, social and political/military risks they face. Originality/value This study introduces a new FDI determinant and stresses the importance of state fragility in attracting FDI.

A Study on the Impact of Foreign Direct Investment (FDI) on Indian Economy

2017 ◽  
Vol 3 (3) ◽  
Author(s):  
G. Suresh Babu ◽  
C. Sreeramulu
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Framework ◽  
Fdi Inflows ◽  
Internal Resources ◽  
Fund Flow ◽  
The Government ◽  
The Impact

Foreign Direct Investment (FDI) is fund flow between the countries in the form of inflow or outflow by which one can able to gain some benefit from their investment whereas another can exploit the opportunity to enhance the productivity and find out better position through performance. The effectiveness and efficiency depends upon the investors perception, if investment with the purpose of long term then it is contributes positively towards economy on the other hand if it is for short term for the purpose of making profit then it may be less significant. Depending on the industry sector and type of business, a foreign direct investment may be an attractive and viable option. Any decision on investing is thus a combination of an assessment of internal resources, competitiveness, and market analysis and market expectations. The FDI may also affect due to the Government trade barriers and policies for the foreign investments and leads to less or more effective towards contribution in economy as well as GDP of the economy Foreign direct investment (FDI) as a strategic component of investment is needed by India for achieving the economic reforms and maintains the pace of growth and development of the economy. The paces of FDI inflows in India initially were low due to regulatory policy framework but there is a sharp rise in investment flows from 2005 towards because of the new policy has broadened. Foreign direct investment (FDI) has been viewed as a power affecting economic growth (EG) directly and indirectly. The main purpose of the study is to analyse the impact of FDI on economic growth in India.

scholarly journals THE IMPACT OF TRADE LIBERALIZATION BETWEEN UKRAINE AND EU ON TRADE AND INVESTMENT

2021 ◽  
Author(s):  
Volodymyr Olefir ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Trade Liberalization ◽  
Direct Investment ◽  
Free Trade Area ◽  
Comparison Method ◽  
Trade Area ◽  
European Standards ◽  
The Government ◽  
The Impact ◽  
The Eu

The benefits and costs of the implementation of the Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU have been studied. The study aimed to find out to what extent the implementation of DCFTA has helped increase exports and attract foreign direct investment into Ukraine’s economy. A comparison method was used to conduct the study. The period of implementation of the DCFTA (2016-2020) was compared with the period before the implementation of the DCFTA (2010- 2014). Due to trade liberalization, exports of Ukrainian goods to the EU and imports of goods from the EU to Ukraine have increased. Trade liberalization has not contributed to further attracting foreign direct investment from the EU to Ukraine’s economy. The urgent task of the Government of Ukraine is to create a business regulatory environment according to European standards and protect foreign investment.

scholarly journals IMPACT OF FOREIGN DIRECT INVESTMENT ON EXPORT SECTOR IN NIGERIA (1981-2018)

2020 ◽  
pp. 19-24
Author(s):  
Edeh, Chukwudi Emmanuel ◽  
Obi, Cyril Ogugua ◽  
Mbaeri, Clara Ndidiamaka ◽  
Ebite Ogochukwu Njideka
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Linear Equations ◽  
Series Data ◽  
Cent Increase ◽  
Oil Export ◽  
Oil Sector ◽  
The Government ◽  
The Impact

The objective of the study is to examine the impact of FDI on exports in Nigeria for the period 1981-2018. Specifically, two linear equations were formulated to trace the impact of FDI on oil sector and non-oil sector. The explanatory variables in the study were exchange rate, GDP, degree of openness, FDI, and inflation. The ADF technique was used to test for the stationarity of the time series data. The results of the Error Correction models reveal that there is a positive and significant (P(FDI) = 0.000) relationship between FDI and oil export in Nigeria. One per cent increase in FDI leads to 0.47 per cent increase in oil export over the period under study. There is a positive and significant (P(FDI) = 0.005) relationship between FDI and non-oil export in Nigeria. One per cent increase in FDI leads to 0.31 per cent increase in non-oil export over the period under study. The impact of FDI on the oil export is higher than the non-oil sector by 0.16 per cent. The study recommends for more aggressive policies to attract FDI in the oil sector to be pursued by the government. Obstacles to doing business in Nigeria should be removed. KEYWORDS: Foreign direct investment, oil export, non-oil export

scholarly journals Impact of Foreign Direct Investment Inflows on Economic Growth; the Case of the Republic of Seychelles

2019 ◽  
Author(s):  
Yusheng Kong ◽  
Sampson Agyapong Atuahene ◽  
Geoffrey Bentum-Mican ◽  
Abigail Konadu Aboagye
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Square ◽  
Small Island ◽  
Host Countries ◽  
Fdi Inflows ◽  
Economic Trends ◽  
The Republic ◽  
The Impact

This paper aims to research whether there is link between FDI inflows and Economic growth in the Republic of Seychelles Island. The ordinary least square results obtained shows that in the impact of FDI inflows on economic growth is low. Small Island Developing States attracts less FDI inflow because they are limited to few resources that attracts overseas firms which results in retarded development. The research lighted that impact of foreign direct investment on host countries does not only depend on the quality and quantity of the FDI inflows but some other variables such as the internal policies and the management skills, market structures, economic trends among others.

Understanding foreign direct investment in Indonesia

2016 ◽  
Vol 15 (1) ◽  
pp. 28-50 ◽  
Author(s):  
Sasidaran Gopalan ◽  
Rabin Hattari ◽  
Ramkishen S. Rajan
Keyword(s):  
Foreign Direct Investment ◽  
Data Analysis ◽  
Direct Investment ◽  
Policy Implications ◽  
Fdi Inflows ◽  
Content Type ◽  
Greenfield Investments ◽  
The Government ◽  
Data Investigation ◽  
Existing Data

Purpose This paper aims to examine the dynamics of foreign direct investment (FDI) inflows into Indonesia. It is interested specifically in analysing and deliberating on two important policy questions: First, are all kinds of FDI useful from a policy perspective and what does the existing data on FDI reveal about the type of FDI inflows into Indonesia? Second, does the existing data help understand the extent of de facto bilateral linkages between Indonesia and other countries? Design/methodology/approach The paper offers an in-depth case study of Indonesia using extensive exploratory data analysis on FDI inflows into Indonesia. As discussed in the paper, the data investigation uses and reconciles available FDI data both from national and international sources to understand the usefulness of such data for policy analysis. Findings A data investigation of the trends in different types of FDI flows reveals a discernible downward trend in the ratio of mergers and acquisitions (M&A)–FDI ratio over the years. The paper argues that from a sequencing perspective, while a medium-to-long-term framework encouraging both domestic and foreign Greenfield investments could help Indonesia regain its growth luster, in the near term much more attention needs to be paid to FDI inflows in the form of M&As. Further, reconciling FDI and M&A data might help identify the original sources of FDI flows because existing data are based on flow of funds rather than ultimate ownership. Practical implications Since the Asian financial crisis, Indonesia has successfully embarked on a phase of economic and political transition post-Suharto, with the cornerstones of such a strategy being a process of greater democratisation and decentralisation. However, there have been growing concerns of economic growth stagnation in recent years. One of the policies to revive the economy’s lustre adopted by the government has been to attract greater FDI inflows. In this light, this paper examines the dynamics of FDI into Indonesia and deliberates on what kinds of FDI policymakers should focus on attracting to restore the country’s growth lustre. Originality/value The question of whether a policy to attract FDI should be careful in distinguishing the kind of FDI it wants to attract has not been sufficiently addressed in the related literature. This paper provides a framework to understand the different macroeconomic policy implications of types of FDI and provides extensive data analysis to not only understand the types of FDI but also sources of bilateral FDI inflows to Indonesia by reconciling FDI and M&A data.

The Validity of Okun’s Law: An Empirical Evidence for Nigeria

2019 ◽  
Vol 4 (2) ◽  
pp. 136-144
Author(s):  
Divine Ndubuisi Obodoechi ◽  
Charles Uchenna Onuoha
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Population Growth ◽  
Direct Investment ◽  
Industrial Output ◽  
Okun’S Law ◽  
Net Foreign Assets ◽  
The Government ◽  
The Impact ◽  
Foreign Assets

This paper empirically investigates the relationship between economic growth and unemployment in Nigeria under the Okun’s Law framework. The Auto Regressive Distributed Lag model approach, the ARDL Bounds Test and Cointegration Test were employed in this paper. Economic Growth was also regressed on unemployment, log of industrial output, log of net foreign assets, log of foreign direct investment and population growth so as to know the impact of these variables on output. The research findings indicated that high the Okun’s specification does not hold in the Nigeria, the impact of economic growth on unemployment is negative and insignificant. We did however find that there is a positive impact of unemployment on economic growth, meaning that the phenomena of jobless growth may be in play in the economy. The Johansen Co-integration test failed to establish evidence of long run relationship between GDP, industrial output, unemployment, foreign direct investment net foreign assets and population growth. The ECM could not be employed because the variables were integrated of different orders. It was however found there exist a significant positive relationship between the aforementioned variables and GDP except for population growth. The government should consider the Industrial Sector as a priority sector in a bid for better economic growth and development. Population control measures should also be put in play to ensure that the population does not exceed the economic carrying capacity. The government should also play an important role in abating unemployment in the economy using direct and indirect schemes and strategies.

scholarly journals The Impact and Contribution of FDI to Saudi Economy During King Abdullah Regime

2020 ◽  
Vol 11 (6) ◽  
pp. 37
Author(s):  
Khaled Jadeaf Alanazi ◽  
Salawati Mat Basir
Keyword(s):  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Regulatory Environment ◽  
Investment Promotion ◽  
Incentive Policies ◽  
The Government ◽  
The Impact ◽  
Opening Up

Foreign Direct Investment resulted in the disclosure of different investment chances and opportunities through active investment promotion agencies. A country must execute various reforms capable of improving the fundamental determinants of FDI for achieving a high percentage of Foreign Direct Investment. These reforms among others include improving investment laws, reducing political risk and level of corruption, establishing a consistent legitimate and regulatory environment, freeing repatriation of funds and capital, as well as opening up to international trade. Saudi Arabia adopted generous incentive policies for attracting foreign capital and invite Foreign Direct Investment during king Abdullah regime. These policies present positive incentives while eliminating negative disincentives. Positive incentives consist free custom duties, reductions of tax and export zones, by the government of Saudi Arabia. Disincentives elimination to investments indicates the removal of overlong and rigid systems as they can delay visas issuance, restraint travel and complicate the licensing and registration of a project. This paper discusses the impact of FDI on Saudi economy during King Abdullah regime and finally, ascertains the contribution of FDI to Saudi Economy during King Abdullah regime.

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