scholarly journals Political Parties and Foreign Direct Investment Inflows among Developing Countries

2018 ◽  
Vol 67 (3) ◽  
pp. 712-731
Author(s):  
Nisha M Bellinger ◽  
Byunghwan Son
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Strong Support ◽  
Economic Policies ◽  
Effective Number ◽  
Host Countries ◽  
Developing Democracies ◽  
Number Of Parties ◽  
The Relationship ◽  
Foreign Direct Investment Inflows

This article focuses on the nature of party systems to explain variations in foreign direct investment inflows within developing democracies. We hypothesize a positive relationship between the effective number of parliamentary parties and foreign direct investment inflows. Large effective number of parliamentary parties is indicative of the expropriation risks as well as stability of the political environment of host countries. We thus argue that expropriation risks are low when the presence of multiple parties makes drastic, impulsive changes in economic policies difficult. We also suggest that a larger number of parties represent diverse societal interests better, reducing the chances of underrepresented social groups driving political instability. The relationship between effective number of parliamentary party and foreign direct investment inflows is tested on a sample of 56 developing democracies from 1985 to 2011. The evidence presented lends strong support to the argument and is found robust to a number of alternative empirical scenarios.

Transparency and Inward Investment Incentives

2014 ◽  
pp. 303-322
Author(s):  
Frederick Lehmann ◽  
Ana Teresa Tavares-Lehmann
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Investment Incentives ◽  
Host Countries ◽  
Inward Foreign Direct Investment ◽  
The Relationship ◽  
Fdi Attraction

This chapter examines transparency in relation to inward foreign direct investment (FDI), particularly inward investment-focused policies and incentives. It begins by reviewing the literature on transparency and inward investment incentives before discussing some of the merits of transparency based on its effects on the quantity and quality as well as the process by which FDI is attracted. It then considers the distinction between transparency in norms versus transparency in processes and how these differences affect FDI attraction. It also explores multilevel transparency and its impact on inward investment, along with multiparty transparency and its effect on FDI. The chapter concludes by focusing on the relationship between multinational corporations and host countries.

scholarly journals Determinants of FDI in Sub-Saharan African Countries: A Review of the Evidence

2015 ◽  
Vol 5 (2) ◽  
pp. 24 ◽  
Author(s):  
Lateef Ademola Olatunji ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Instability ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
Economic Policies ◽  
Economic Management ◽  
Host Countries ◽  
African Countries ◽  
Sub Saharan

<p>Although it may seem natural to argue that foreign direct investment (FDI) can convey great advantages to host countries. This paper finds that FDI flows to Sub-Saharan Africa economies unaffected by conflict and political instability exceed those with crisis. For FDI to strive in these countries, it must introduce sound economic policies and make the country investor friendly. There must be political stability, sound economic management and well developed infrastructure.</p>

scholarly journals Foreign Direct Investment and Trade—Between Complementarity and Substitution. Evidence from European Union Countries

2021 ◽  
Vol 14 (11) ◽  
pp. 559
Author(s):  
Marian Catalin Voica ◽  
Mirela Panait ◽  
Eglantina Hysa ◽  
Arjona Cela ◽  
Otilia Manta
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Foreign Trade ◽  
Direct Investment ◽  
Trade Flow ◽  
The European Union ◽  
Host Countries ◽  
Positive Effects ◽  
The Relationship ◽  
Visegrad Group

This aim of this work is to study the relationship between foreign direct investment (FDI) and trade. FDI is a driving force for economic growth for host countries. The positive effects of FDI are seen in many aspects of the economy. However, the implications of FDI on foreign trade are questionable. Therefore, this study uses a Granger causality technique to test whether the relationship between FDI and foreign trade is complementary or substitutive. The findings of this study indicate that this relationship appears to be complementary, and FDI investment does cause an increase in trade flow in the countries that are taken into consideration. This research aims to make a comparison between the relations of FDI flows of three groups of countries from the European Union (EU)—Romania and Bulgaria, the Visegrád Group and the Euro area—for the period of 2005 to 2019. However, the results indicate that this link between the variables is not yet found for the three group of countries, and further research is required in this aspect. This leads to the conclusion that the FDI impact on foreign trade of the host country depends on the type of investment and absorptive capacity of the receiver, the economic development of host and home countries, and not every type of FDI leads to more trade.

scholarly journals Determinants of fdi inflows in india

2016 ◽  
Vol 6 (2) ◽  
pp. 186-198
Author(s):  
Siraj-ul-Hassan Reshi
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Domestic Investment ◽  
Host Countries ◽  
Fdi Inflows ◽  
Explanatory Variables ◽  
The Impact ◽  
Fdi Determinants ◽  
The Relationship

Foreign direct investment (FDI) is often seen as an important catalyst for economicgrowth in the developing countries. It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. The main purpose of this paper is to investigate the impact of FDI determinants on FDI inflows in India from the period 1991-2009.The relationship between FDI inflow and its determinants have been analyzed by using the regression analysis and other variables that affect FDI inflows in India such as Developmental expenditure ratio, fiscal deficit ratio, exchange rate and other economic determinant such as GDP as the possible explanatory variables of foreign direct investment inflows in India. The expected results of the study are positive and statistically significant. Regarding the impact of various determinants on FDI in flows empirically, it has beenfound that all the variables except exchange rate have positively and significantly affecting FDI inflows i.e. increase in GDP, Developmental expenditure, foreign exchange reserves, increased the FDI inflows.

scholarly journals IMPACT OF ENVIRONMENT, ENERGY AND FOREIGN DIRECT INVESTMENT ON EXPORTS OF SELECTIVE SAARC COUNTRIES

2020 ◽  
pp. 106-113
Author(s):  
Wajiha Manzoor ◽  
Nabeel Safdar
Keyword(s):  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Positive Impact ◽  
Negative Relationship ◽  
Domestic Credit ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Foreign Direct Investment Inflows

This study focused on the relationship of environment, energy used and foreign direct investment inflows on exports of selective SAARC countries including Pakistan , Bangladesh , India , Sri Lanka and Nepal from 1980-2018. The results revealed that environment has significant positive impact on exports. Energy has also positive impact on exports except Pakistan and Nepal where results showed negative relationship. The FDI inflow in India and Sri Lanka has not significant impact on exports while other three countries has significant impact on exports of those countries. Overall environment, energy used and foreign direct investment inflows have positive impact on export while controlling the impact of inflation, GDP growth, reserves and domestic credit to private sector in SAARC countries.

scholarly journals Debunking the Myth of Foreign Direct Investment Toward Long-Term Sustainability of a Developing Country: A Transaction Cost Analysis Approach

2019 ◽  
Vol 11 (17) ◽  
pp. 4569 ◽  
Author(s):  
Nguyen ◽  
Phan ◽  
Lobo
Keyword(s):  
Foreign Direct Investment ◽  
Transaction Cost ◽  
Direct Investment ◽  
Fixed Effects ◽  
Policy Changes ◽  
Host Countries ◽  
Fixed Assets ◽  
Fixed Effects Regression ◽  
The Relationship

This study focuses on the relationship between foreign direct investment (FDI) and sustainability in a developing host country, i.e., Vietnam, using the transaction cost approach. Secondary panel data were obtained from 62 provinces in Vietnam for the period between the years of 2010 and 2016. The analysis of the data was performed using the fixed effects regression model, which yielded interesting and controversial findings. Essentially, it was demonstrated that the FDI made by enterprises and the subsequent employment that it generated had several positive and significant influences on the long-term sustainability of provinces in Vietnam. However, the downside was that the value of fixed assets and long-term investment of FDI projects in conjunction with the size of the provinces negatively influenced their long-term sustainability. The findings of this study have important academic and practical implications. We propose some policy changes that would considerably improve the efficacy and effectiveness of FDI. This, in turn, will certainly enhance the long-term sustainability of host countries, especially developing ones.

scholarly journals Impact of Foreign Direct Investment (FDI) on GDP: A Case Study from Pakistan

2013 ◽  
Vol 16 ◽  
pp. 73-80 ◽  
Author(s):  
Nadeem Iqbal ◽  
Naveed Ahmad ◽  
Zeeshan Haider ◽  
Sonia Anwar
Keyword(s):  
Foreign Direct Investment ◽  
Regression Model ◽  
Production Function ◽  
Direct Investment ◽  
Research Study ◽  
Developed Countries ◽  
Economic Benefits ◽  
Host Countries ◽  
Skills Transfer ◽  
The Relationship

This research study is related to FDI and GDP and the main aim of this research study is to validate the relationship between them. Foreign direct investment (FDI) is considered as a growth accelerating component that has received a great attention in developed countries even in developing and less developed countries during recent years. Now FDI has greater importance in closed economy. FDI benefits any economy in terms of technology, skilled labor and skills transfer to the host countries. For data collection, 30 year data from 1983 to 2012 was collected and the cobb-Douglas Production function is used to test the relationship. Our research variables are Gross Capital Formation (K), Labor (L), Health Expenditure (H), FDI and openness to trade in export oriented economy (OP*FDI). We have followed the Bhagwati’s hypothesis that was: FDI has greater impact on GDP in the export oriented economy. For data analysis, we have examined the descriptive statistics, correlation and regression model. For this we incorporate the production function in regression model. In brief, our results show that there is a positive relationship between FDI and GDP in Pakistan. But, Pakistan has not sufficient flow of FDI during past decades. And main point to consider which is evident through statistics and results is that there is greater impact of FDI in the open trade policy regimes. It is also concluded that FDI impact may be situation and culture related. So, the extent of FDI economic benefits cannot be predicted.

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