3. Does Foreign Direct Investment Provide More Balance-of-Payments Financing?

1993 ◽  
pp. 10-14
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Balance Of Payments

Foreign Direct Investment

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Financial Markets ◽  
Foreign Exchange ◽  
Direct Investment ◽  
Balance Of Payments ◽  
Productive Capacity ◽  
Cross Border ◽  
Direct Contribution ◽  
High Profit

Recent years have also seen increased openness of EDEs to foreign direct investment (FDI) in search for faster growth and greater stability. However, FDI is one of the most ambiguous and least understood concepts in international economics. Common debate is confounded by several myths regarding its nature and impact. It is often portrayed as a stable, cross-border flow of capital that adds to productive capacity and meets foreign exchange shortfalls. However, the reality is far more complex. FDI does not always involve inflows of financial or real capital. Greenfield investment, unlike mergers and acquisitions, makes a direct contribution to productive capacity, but can crowd out domestic investors. FDI can induce significant instability in currency and financial markets. Its immediate contribution to balance-of-payments may be positive, but its longer-term impact is often negative because of high-profit remittances and import contents.

scholarly journals The Federal Democratic Republic of Ethiopia

2020 ◽  
Vol 20 (150) ◽  
Author(s):  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Democratic Republic ◽  
Balance Of Payments ◽  
Vulnerable Groups ◽  
Fiscal Year ◽  
Fiscal Deficit ◽  
Economic Slowdown

Ethiopia is facing a pronounced economic slowdown and an urgent balance of payments need owing to the COVID-19 pandemic. The economy was growing robustly prior to the pandemic, and progress under the ECF-EFF arrangements was encouraging. The shock is expected to significantly reduce growth this fiscal year and next. It has already materially weakened external accounts as services exports, remittances, and foreign direct investment declined. The authorities are taking measures to combat the spread of the virus, mitigate its fallout, and support vulnerable groups. The fiscal deficit will have to expand temporarily to accommodate the additional spending.

scholarly journals Just Look behind the Data! Czech and Hungarian Outward Foreign Direct Investment and Multinationals

2019 ◽  
Vol 69 (S2) ◽  
pp. 73-105 ◽  
Author(s):  
Magdolna Sass ◽  
Jana Vlčková
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Transition Process ◽  
Balance Of Payments ◽  
Foreign Direct Investments ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Foreign Investors ◽  
The Czech Republic ◽  
Main Factors

There has been an increase in outward foreign direct investment (FDI) and in the number of locally-owned or controlled multinationals in the Czech Republic and Hungary. However, data problems hinder to determine accurately the underlying trends and the main factors behind the changes. Data on outward FDI contain investment realised by all locally operational firms, regardless of their ownership. We rely on newly available balance of payments manual 6 (BPM) data and on company case studies. We show that outward investment by Czech firms must be much higher than what balance of payments data show. Hungary's case is the opposite. The leading Czech and Hungarian foreign investor firms can be categorised as “virtual indirect” foreign investors: they are in majority foreign ownership, but under domestic control. The reason for this special type of firms dominating in outward foreign direct investments can be found in the privatisation technique applied in these countries during the transition process.

Economic Crisis and Its Effects on International Trade

2021 ◽  
pp. 66-84
Author(s):  
Miloš Parežanin ◽  
Dragana Kragulj ◽  
Sandra Jednak
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Economic Crisis ◽  
Direct Investment ◽  
Trade Flows ◽  
Balance Of Payments ◽  
Current Crisis ◽  
Eu Countries ◽  
The Impact ◽  
The Eu

The aim of this chapter is to analyse the effects of the economic crisis on the trade among the Southeastern European (SEE) countries. The countries were divided into two groups: the EU countries and non-EU countries. Macroeconomic performances and international trade indicators of the 11 observed countries were analysed for the period 2007-2019, and the effects of the economic crisis were present in all the observed countries, particularly the effects on the export performances. The crisis also affected the entire import of the non-EU countries. The EU countries recovered from the crisis faster than the non-EU countries. However, the non-EU countries achieved a more significant inflow of foreign direct investment in the post-crisis period, which significantly improved the position of the balance of payments in these countries. The observed countries had managed to stabilise their trade flows all until the beginning of the COVID-19 crisis. The impact of the current crisis on these countries remains to be estimated in the future.

scholarly journals Balance of Payments Effects of Investment in Manufacturing: The Case of Nigeria

1979 ◽  
Vol 4 (3) ◽  
pp. 225-234
Author(s):  
Olukunle Iyanda
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Exchange ◽  
Foreign Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
Balance Of Payments ◽  
Less Developed Countries

In recent years, many less developed countries have thrown open their doors to foreign investment in manufacturing. It is believed that, by producing goods locally which otherwise would have been imported, foreign exchange would be conserved. This paper analyses the balance of payments impact of foreign direct investment in the manufacturing sector of Nigeria's economy to determine whether it is cheaper to produce locally through foreign-owned firms or to use any other alternate means of supplying local demand.

scholarly journals Djibouti

2020 ◽  
Vol 20 (159) ◽  
Author(s):  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Balance Of Payments ◽  
Government Revenue ◽  
Demand Shock ◽  
Demand And Supply ◽  
Global Recession ◽  
External Demand ◽  
Containment Measures

The COVID-19 pandemic has considerably weakened macroeconomic prospects for Djibouti. The country is facing a large negative external demand shock due to the global recession. Domestically, virus prevention and containment measures are affecting both demand and supply. Output is contracting, while lower exports of services and foreign direct investment have opened an urgent balance of payments need of the order of US$164 million (4.8 percent of GDP). The pandemic has also created urgent spending needs and is set to reduce government revenue.

scholarly journals The Impact of Foreign Direct Investment Inflowson Balance of Payment

2019 ◽  
Vol 8 (4) ◽  
pp. 12760-12762
Keyword(s):  
Foreign Direct Investment ◽  
Current Account ◽  
Direct Investment ◽  
World Economy ◽  
Development Rate ◽  
Balance Of Payments ◽  
Research Articles ◽  
Capital Account ◽  
The Impact ◽  
The Needy

India with a powerful development rate is currently triumph more acclimatized with world economy. The cross outskirts are vague in a monetary market and have made influence on the Indian economy too. India after globalization has now supported the crosswise over outskirts trade and consequently has progressed with the monetary development. Moreover, we have tried to relationship exists between a portion of the factors like current account and merchandise and ventures, Foreign Direct Investment and between Capital account inflows. The examination explores the effect of Foreign Direct Investment on India's Balance of Payment for a time of 2012-2016 quarter savvy. Optional information will be made through RBI site, Journals, Research articles and papers. The investigation utilizes Regression to organize connection between dependent and free factors. Here foreign direct investment, the current and capital account as logical factors, while the balance of payments is the needy variable. The investigation is drawn for the balance of payments and a logical end is drawn for the connection of balance of payments with the free factors.

scholarly journals Preview of BPM6 Methodology and Analysis of Foreign Direct Investment in 2015 in Croatia

2017 ◽  
Vol 3 (1) ◽  
pp. 67-77
Author(s):  
Helena Šlogar ◽  
Krešimir Jerin ◽  
Milan Papić
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Debt ◽  
Relevant Information ◽  
International Investment ◽  
Equity Capital ◽  
Balance Of Payments ◽  
Foreign Direct Investments ◽  
Sixth Edition ◽  
The Republic

Abstract Foreign direct investments include equity capital, reinvested earnings and debt relations between ownership-related residents and non-residents. Since 31 October 2014, the Croatian National Bank has started to publish information in the field of statistics Relations (balance of payments, foreign debt and the IIP) in accordance with the methodology prescribed by the sixth edition of the Manual on Balance of Payments (Eng. Balance of Payments and International Investment Position Manual, BPM6), thus changing the presentational form of direct investment. Direct investments are not classified according to the so-called direction of investments (Eng. directional principle) on direct investment in Croatia and direct investment abroad anymore, but according to BPM6 apply the socalled principle of assets and liabilities (Eng. Assets / Liabilities principle). The aim is to point out the differences between the standards BPM5 and BPM6 and determine which activities and which countries are the most represented in the structure of direct investments in Croatia. By identifying relevant activities and countries in the structure of foreign direct investment, relevant information is obtained about the macroeconomic state of the Republic of Croatia and about the opportunities and potential dangers that certain activities and countries provide.

Sign in / Sign up

Export Citation Format

Share Document