scholarly journals Effects of foreign direct investment and trade on the prevalence of tobacco consumption in Africa: a panel study

2021 ◽  
Vol 17 (1) ◽  
Author(s):  
Mustapha Immurana ◽  
Micheal Kofi Boachie ◽  
Kwame Godsway Kisseih
Keyword(s):  
Foreign Direct Investment ◽  
Method Of Moments ◽  
Direct Investment ◽  
Panel Study ◽  
Tobacco Consumption ◽  
Empirical Estimation ◽  
African Countries ◽  
Fdi Inflows ◽  
African Context ◽  
Generalised Method Of Moments

Abstract Background As African governments take measures to enhance international trade and Foreign Direct Investment (FDI) inflows, a major concern is that, these measures can make Africa more vulnerable to the strategies of the tobacco industry. This concern is based on the fact that, each year, tobacco use is estimated to be responsible for the deaths of over eight million people in the world. However, there is very little empirical evidence to refute or confirm the above concern, especially in the African context. This study therefore investigates the effects of FDI and trade on the prevalence of tobacco consumption in Africa. Methods Data on a sample of 31 African countries for the period, 2010–2018 are used. The system Generalised Method of Moments (GMM) regression model is employed as the empirical estimation technique. Results The findings show that, FDI and trade have negative and positive significant association with the prevalence of tobacco consumption respectively. These findings are robust even after using different specifications and indicators of FDI and trade. Conclusion Rising trade (and not FDI) should be of concern to African governments in the quest to reduce the prevalence of tobacco consumption on the continent.

scholarly journals Is Russia successful in attracting foreign direct investment? Evidence based on gravity model estimation

2016 ◽  
Vol 16 (3) ◽  
pp. 245-267 ◽  
Author(s):  
Oleg Mariev ◽  
Igor Drapkin ◽  
Kristina Chukavina
Keyword(s):  
Foreign Direct Investment ◽  
Gravity Model ◽  
Host Country ◽  
Direct Investment ◽  
Recipient Country ◽  
Developed Countries ◽  
Likelihood Method ◽  
Empirical Estimation ◽  
Fdi Inflows ◽  
Russian Economy

Abstract The aim of this paper is twofold. First, it is to answer the question of whether Russia is successful in attracting foreign direct investment (FDI). Second, it is to identify partner countries that “overinvest” and “underinvest” in the Russian economy. We do this by calculating potential FDI inflows to Russia and comparing them with actual values. This research is associated with the empirical estimation of factors explaining FDI flows between countries. The methodological foundation used for the research is the gravity model of foreign direct investment. In discussing the pros and cons of different econometric methods of the estimation gravity equation, we conclude that the Poisson pseudo maximum likelihood method with instrumental variables (IV PPML) is one of the best options in our case. Using a database covering about 70% of FDI flows for the period of 2001-2011, we discover the following factors that explain the variance of bilateral FDI flows in the world economy: GDP value of investing country, GDP value of recipient country, distance between countries, remoteness of investor country, remoteness of recipient country, level of institutions development in host country, wage level in host country, membership of two countries in a regional economic union, common official language, common border and colonial relationships between countries in the past. The potential values of FDI inflows are calculated using coefficients of regressors from the econometric model. We discover that the Russian economy performs very well in attracting FDI: the actual FDI inflows exceed potential values by 1.72 times. Large developed countries (France, Germany, UK, Italy) overinvest in the Russian economy, while smaller and less developed countries (Czech Republic, Belarus, Denmark, Ukraine) underinvest in Russia. Countries of Southeast Asia (China, South Korea, Japan) also underinvest in the Russian economy.

scholarly journals The Impact of Terrorism Activities As Threat To Unstable Economy on Foreign Direct Investments FDI: A Panel Study of 33 Sub-Saharan African Countries

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Yao HongXing ◽  
Winfred Okoe Addy ◽  
Samuel Kofi Otchere ◽  
Robert Yao Aaronson ◽  
Jean-Jacques Dominique Beraud
Keyword(s):  
Foreign Direct Investment ◽  
Linear Relationship ◽  
Direct Investment ◽  
Panel Study ◽  
Random Effect ◽  
Foreign Direct Investments ◽  
African Countries ◽  
Non Linear ◽  
Sub Saharan ◽  
The Impact

The study aims to assess the impact of terrorism activities on foreign direct investment in a panel study of 33 Sub-Saharan African countries. In order to achieve the objective of the study, it employed panel data methodologies such as GLS random-effect, ML random-effect, fixed effect regression, generalized linear model and multivariate regression methods to enable it make statistically and robust inference or conclusion. However, the study found that there is an inverse linear relationship or impact on foreign direct investment in Sub-Saharan Africa. Also, the study found out that economic growth and foreign direct investment are inversely related and corruption control has positive and direct linear relationship with foreign direct investment. As the study focused on the linear relationship of terrorism activities and foreign direct investments, it recommends further studies into the subject-matter by employing the non-linear approaches to ascertain the non-linear relationship between the two.

scholarly journals Trade openness and foreign direct investment in Africa

2014 ◽  
Vol 9 (3) ◽  
pp. 355-370 ◽  
Author(s):  
T Kandiero ◽  
M Chitiga
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Empirical Work ◽  
African Countries ◽  
Fdi Inflows ◽  
Services Sector ◽  
Openness To Trade ◽  
The Impact ◽  
Poor Infrastructure

Africa’s share of foreign direct investment (FDI) has lagged behind other regions in the world, despite a sharp increase in FDI inflows to the region in 2001. Factors contributing to this circumstance include perceptions of high corruption, weak governance and poor infrastructure. The motivation of this paper is to investigate the impact of openness to trade on the FDI inflow to Africa. In addition to economy-wide trade openness, we also analyse the impact on FDI of openness in manufactured goods, primary commodities and services. The empirical work uses cross-country data from selected African countries observed over four periods: 1980-1985, 1985-1990, 1990- 1995 and 1995-2001. We find that the FDI to GDP ratio responds well to increased openness in the whole economy and in the services sector in particular.

scholarly journals Foreign direct investment and pollution havens: evidence from African countries

2020 ◽  
Vol 7 (12) ◽  
pp. 244-252
Author(s):  
SAID GHARNIT ◽  
Mohamed Bouzahzah ◽  
Jihad Ait Soussane
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Least Square ◽  
Pollution Haven Hypothesis ◽  
African Countries ◽  
Fdi Inflows ◽  
Ordinary Least Square ◽  
Long Run

This study examines the relationship between foreign direct investment (FDI) inflows and carbon dioxide emissions (CE) in order to investigate the validity of the pollution haven hypothesis for 54 African countries, using cointegration approach with dynamic panel data over the period 1960-2018. Based on the panel cointegration analysis, it was concluded that the variables are cointegrated. Moreover, the Dynamic Ordinary Least Square (DOLS) and Fully Modified Ordinary Least Square (FMOLS) results showed that foreign direct investment inflows have a long-run positive relationship with carbon dioxide emissions. Furthermore, according to Granger-Engle causality test results, FDI inflows and carbon dioxide emissions have a positive causal relationship, for both short-run and long-run. Thus, the results of this study validate the pollution haven hypothesis in the African countries. Nevertheless, it is recommended to keep attracting foreign direct investment inflows alongside of implementing mechanisms and instruments for reducing the CO2 emissions under strong environmental policies.

scholarly journals Foreign Direct Investment and World Pandemic Uncertainty Index: Do Health Pandemics Matter?

2021 ◽  
Vol 14 (3) ◽  
pp. 107
Author(s):  
Linh Tu Ho ◽  
Christopher Gan
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Method Of Moments ◽  
Direct Investment ◽  
Dynamic Panel Data ◽  
Asia Pacific ◽  
Uncertainty Index ◽  
Method Of Moments Estimation ◽  
Generalised Method Of Moments ◽  
Stage Estimation

This paper explores the impacts of health pandemics on foreign direct investment (FDI) using the new world pandemic uncertainty index (WPUI). We investigate the effects of pandemics, including COVID-19, on FDI based on a sample of 142 economies and sub-samples (incomes and regions) from 1996 to 2019. The two-step system Generalised Method of Moments estimation of linear dynamic panel-data model (DPDGMM) is used in this study. The estimation results are robust with the results of the two-step sequential (two-stage) estimation of linear panel-data models (SELPDM) and the two-step system Generalised Method of Moments estimation (BBGMM). The results show that health pandemics have negative impacts on FDI. Significantly, the uncertainty caused by pandemics creates adverse shocks on FDI net inflows in Asia-Pacific countries and emerging economies.

scholarly journals Profiling sectoral risks of foreign direct investment (FDI) in Africa for the first decade of the 21st century

2017 ◽  
Vol 9 (1) ◽  
pp. 153-173 ◽  
Author(s):  
Zahné Coetzee ◽  
Henri Bezuidenhout ◽  
Carike Claassen ◽  
Ewert Kleynhans
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Structural Equation ◽  
Equation Model ◽  
Vital Role ◽  
African Countries ◽  
Fdi Inflows ◽  
Government Effectiveness ◽  
The Relationship ◽  
Risk Pattern

Despite Africa’s strong foreign direct investment (FDI) performance since 2000, the majority of FDI inflows have been directed to a few selected countries. As investors face many risks when investing in developing countries, it is argued that risk perception plays a vital role in the FDI inflows into Africa. This article focuses on the relationship between risk and FDI. A structural equation model is used to analyse this relationship with a dataset of ten risk categories and FDI data from 42 African countries. The study focuses on four sectors, namely metals, automotive, communications and real estate. Overall, results indicate that government effectiveness and legal and regulatory risks produce the biggest concern for investors. The conclusion is that each sector’s risk pattern regarding FDI differs. The most important empirical results indicated that African countries should focus more on government effectiveness, stability and transparency to attract the levels of FDI required to stimulate economic growth.

scholarly journals An assessment on how China Foreign Direct Investment Policy (FDI) Stimulate Development in African Countries: the case of Tanzania

2016 ◽  
Vol 11 (3) ◽  
pp. 2763-2768
Author(s):  
AMRAN SAID SULEIMAN ◽  
Sahim Abdalla Juma
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Education Technology ◽  
Investment Strategy ◽  
Investment Policy ◽  
East African ◽  
African Countries ◽  
Fdi Inflows ◽  
Technology Market

In this paper we have reviewed a case study which assess how China Foreign Direct Investment Policy (FDI) Stimulate Development in African Countries: The Case of Tanzania. FDI significantly increase the domestic in Africa both in monetary terms and also increase the gross of domestic product (GDP). Furthermore, FDI is an approach of changes the experiences and skills in different sectors like technology, market, infrastructures, education etc. African countries remain as recipient of the FDI inflows but still the out flows are very low especially in East African countries (Tanzania is one among the East African Countries). Also suggest that it is the time now African leaders to rethink again about their investment strategy to ensure other sectors like education, technology and infrastructures. Thus, provides more room for investors in those particular areas. In addition to that, the leaders must change their economic policy to attract more investors to invest in different sectors.

scholarly journals Essays on international irade, foreign direct investment, and economic growth

2017 ◽  
Author(s):  
Αντώνης Τσίτουρας
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Method Of Moments ◽  
Direct Investment ◽  
Fixed Effects ◽  
Generalised Method Of Moments

Η δομή της διπλωματικής εργασίας αποτελείται από τρεις αυτόνομες, αλλά και ταυτόχρονα διασυνδεμένες μελέτες με τη μορφή των εμπειρικών εργασιών. Στο Κεφάλαιο 1, παρουσιάζονται οι βασικοί στόχοι της παρούσας διατριβής. Η μελέτη αυτή έχει ως στόχο να αυξήσει την κατανόηση σημαντικών παραγόντων οικονομικής ανάπτυξης, όπως το διεθνές εμπόριο και οι Ξένες Άμεσες Επενδύσεις (ΞΑΕ), χρησιμοποιώντας τόσο την οικονομετρική ανάλυση των χρονολογικών σειρών (time-series) όσο και την οικονομετρική ανάλυση των διαστρωματικων στοιχείων με συνδυασμό χρονολογικών σειρών (panel data). Στο Κεφάλαιο 2, ερευνούμε την επίδραση των εξαγωγών και των Ξένων Αμέσων Επενδύσεων (ΞΑΕ) στην οικονομική ανάπτυξη στην Ελλάδα, σε μακροπρόθεσμο και βραχυπρόθεσμο χρονικό ορίζοντα, κατά τη διάρκεια της περιόδου 1980-2013. Σε αυτή τη μελέτη, εφαρμόζουμε τη μέθοδο του Διευρυμένου Αυτοπαλίνδρομου Υποδείγματος (ARDL) για τον προσδιορισμό της μακροχρόνιας σχέσης των μεταβλητών του υποδείγματος μας. Τα αποτελέσματά μας υποδηλώνουν ότι οποιαδήποτε πολιτική της Ελληνικής κυβέρνησης που αποσκοπεί στην ενίσχυση της οικονομικής ανάπτυξης μέσω των εξαγωγών θα πρέπει να εξεταστεί μακροπρόθεσμα, δεδομένου ότι οι Ελληνικές αρχές δεν μπορούν να στηριχθούν στις εξαγωγές βραχυπρόθεσμα. Ωστόσο, οι εισροές ΞΑΕ εμφανίζονται πιο αποτελεσματικές από τις εξαγωγές όσον αφορά την ενίσχυση της οικονομικής προόδου βραχυπρόθεσμα. Στο Κεφάλαιο 3, εξετάζουμε τις σχέσεις μεταξύ των εξαγωγών, των ΞΑΕ και του ΑΕΠ στην περίπτωση 15 ευρωπαϊκών οικονομίων υπό μετάβαση κατά την περίοδο 1995-2014. Τα εμπειρικά ευρήματα υποδεικνύουν ότι παρόλο που η επίδραση του ανοίγματος της οικονομίας είναι επωφελής για όλες τις οικονομίες της περιοχής, η επιβεβαίωση της αιτιώδους επίδρασης τόσο των ΞΑΕ όσο και των εξαγωγών προς το εθνικό εισόδημα επικυρώνεται κυρίως για την ομάδα των οικονομιών που εισήλθαν στην Ευρωπαϊκή Ένωση το 2004. Αντίθετα, στις υπόλοιπες οικονομίες, τα αποτελέσματά μας επιβεβαιώνουν την επικράτηση μιας κουλτούρας αποταμίευσης έναντι κατανάλωσης, η οποία τελικά προκαλεί την επωφελή επέκταση τόσο των εγχώριων επενδύσεων όσο και των εξαγωγών. Στο Κεφάλαιο 4 εξετάζουμε ένα μοντέλο ανάπτυξης, ενισχυμένο με δύο θεσμικές μεταβλητές, τη γραφειοκρατία και τη διαφθορά. Αυτή η εμπειρική μελέτη καλύπτει 28 οικονομίες υπό μετάβαση. Σε αυτή τη μελέτη, εφαρμόζουμε ετήσια δεδομένα για την περίοδο 2000-2015. Χρησιμοποιούμε διάφορες οικονομετρικές εξειδικεύσεις και εφαρμόζουμε τόσο τη μέθοδο των Σταθερών Επιδράσεων (Fixed Effects) όσο και τη Γενικευμένη Μέθοδο των Οριακών Ροπών (Generalised-Method-of-Moments). Τα εμπειρικά ευρήματα δείχνουν ότι ο αντίκτυπος του ανοίγματος της οικονομίας όσον αφορά τις Ξένες Άμεσες Επενδύσεις (ΞΑΕ) και του διεθνούς εμπορίου είναι θετικός για όλες τις οικονομίες της εμπειρικής μελέτης. Όσον αφορά τον αντίκτυπο των δύο θεσμικών μεταβλητών, της διαφθοράς και της γραφειοκρατίας, αντλούμε πιο σημαντικά αποτελέσματα, καθώς ο αντίκτυπός τους φαίνεται να είναι διαμετρικά αντίθετος μεταξύ των κρατών της πρώην Σοβιετικής Ένωσης και των υπόλοιπων Ευρωπαϊκών κρατών υπό μετάβαση. Τέλος, στο Κεφάλαιο 5 παρουσιάζονται τα βασικά ευρήματα αυτής της διατριβής.

scholarly journals The Effect of IFRS Adoption on Foreign Direct Investment in Africa

2020 ◽  
Vol 5 (2) ◽  
pp. 117-126
Author(s):  
Alhassan Musah ◽  
Eunice Adjei ◽  
Ibrahim Anyass Ahmed
Keyword(s):  
Foreign Direct Investment ◽  
Population Growth ◽  
Financial Reporting ◽  
Open Economy ◽  
Direct Investment ◽  
Government Debt ◽  
African Countries ◽  
Fdi Inflows ◽  
Ifrs Adoption

Adoption of International Financial Reporting Standards (IFRS) is supposed to help enhance comparability of financial statement, improve the quality of financial reporting and accounting information of businesses in a country. This is expected to help improve Foreign Direct Investment (FDI) in the adopting countries. This study examined the effect of IFRS adoption on FDI inflows in Africa. Unlike previous studies that sample both adopting and non-adopting countries, this study sampled only Africa countries that have adopted IFRS to determine whether the adoption has improved FDI inflows. To achieve this objective, 20 African countries that have adopted IFRS were sampled covering a period 1980 to 2015. Data was sourced from The World Bank financial and Economic Data. Control variables such as GDP growth, openness of the economy, government debt and population growth were included in the model. The correlation and regression analysis showed that IFRS adoption has a positive and significant influence on FDI inflows in Africa. On the other hand, open economy, government debt and population growth had a positive and significant association with FDI. Overall, the results show that African countries that want to improve FDI inflows must improve the quality of their reporting environment by adopting IFRS.

scholarly journals Foreign Direct Investment and Tourism Development in Africa

2020 ◽  
Vol 25 (4) ◽  
pp. 395-408
Author(s):  
Ogechi Adeola ◽  
Nathaniel Boso ◽  
Ellis L. C. Osabutey ◽  
Olaniyi Evans
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Tourism Development ◽  
Political Stability ◽  
Annual Data ◽  
African Countries ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study examines the nexus between foreign direct investment (FDI) inflow and tourism development. Using annual data for 44 countries in Africa from 1995 to 2014, and three different specifications of panel autoregressive distributed lag model, the study investigates short-run and long-run dynamics between FDI and tourism development. The study finds a significant positive relationship and a bidirectional long-run causality between FDI inflows and tourism development. In addition, the results show a negative short-run relationship between exchange rate and tourism development. Furthermore, there is evidence that economic growth and political stability are important determinants of tourism development. A major policy implication for African countries is that creating a politically stable environment and sustaining a growing economy help attract FDI inflows to boost tourism development.

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