Economic growth and welfare: How Foreign Direct Investment contributes to improving social order in less developed countries

2012 ◽  
Vol 9 (2) ◽  
pp. 185-205 ◽  
Author(s):  
Tumenta F. Kennedy ◽  
Roland Bardy ◽  
Arthur Rubens
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Social Order ◽  
Direct Investment ◽  
Developed Countries ◽  
Less Developed Countries

scholarly journals Contemporary trends in global foreign direct investment flows

2015 ◽  
Vol 67 (1) ◽  
pp. 79-105 ◽  
Author(s):  
Sandra Stojadinovic-Jovanovic
Keyword(s):  
Foreign Direct Investment ◽  
Detailed Analysis ◽  
Direct Investment ◽  
Continuous Monitoring ◽  
Developed Countries ◽  
Foreign Direct Investments ◽  
Less Developed Countries ◽  
Global Level ◽  
Investment Policies ◽  
Global Flows

It is not necessary to explain the importance of foreign direct investment, particularly in less developed countries, bearing in mind the numerous theoretical and empirical papers that confirm their importance and effects that the inflow of these investments in the country can make. The movement of these investments on the global level is characterized by significant changes, especially in recent years, in their volume, geographically distribution as well as in the conditions in which they take place - conditions of instability and crisis interruptions, growing regional and interregional integration and altered foreign direct investment policies. Trends in their movements are mirrored in individual countries, stressing on the need for their continuous monitoring and detailed analysis. Therefore the paper will identified the key trends that characterize the contemporary global flows of foreign direct investments.

Determinants of Foreign Direct Investment in Less Developed Countries: A Factor Analysis Approach

2005 ◽  
Vol 6 (1) ◽  
pp. 81-94
Author(s):  
Cranmer Rutihinda
Keyword(s):  
Factor Analysis ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Infrastructure Development ◽  
Economic Stability ◽  
Significant Relationships ◽  
Quality Infrastructure

Using factor analysis this study explores factors influencing the choice of foreign direct investment in less developed countries. Results show significant relationships between foreign direct investment and institutional quality, infrastructure development, market size, availability of natural resources, and quality of human capital. However, the study found no significant relationship between foreign direct investment inflows and economic stability.

scholarly journals Foreign direct investment as a stimulant in productivity convergence process between Visegrad Countries and UE-15

2017 ◽  
Vol 6 (326) ◽  
Author(s):  
Liwiusz Wojciechowski
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Value Added ◽  
Developed Countries ◽  
Real Convergence ◽  
Convergence Process ◽  
Savings Rate ◽  
Visegrád Countries

The explanation of reasons and degree of differentiation of wealth between countries remains an important issue in economics today. Theories of economic growth are focused principally on the identification of the long-term determinants of diversification of sources and economic growth, which in turn is associated with the notion of real convergence. Given the supply role of foreign capital that impacts on the economy, in the face of dynamic inflow of foreign direct investment (FDI) into developing countries’ economies, it seems reasonable to include it in convergence process modelling, especially in the modelling of the convergence of productivity. The productivity of the economy is in fact determined by the size of the capital accumulation (both domestic and foreign), savings rate and a number of other conditions. The author hypothesized that the presence of FDI contributes to the acceleration of pace of real convergence between Visegrad countries and EU-15. In this study we estimate interactions between FDI and productivity at both national and NACE level in the years 2000–2014. We concider, in panel data form, among others, productivity in terms of gross value added per employee, degree of penetration of FDI in the economy of the host country. Results suggest conditional β-convergence of productivity existence however they vary across countries, sectors and time. The analysis provides recommendations regarding the arguments for the sectoral policy aimed at encouraging foreign capital to increase its involvement, focusing on reducing productivity gap between the developing and developed countries belonging to European Union.

The Role of Foreign Direct Investment in Less-Developed Countries

2018 ◽  
pp. 46-65
Author(s):  
Chengchun Li ◽  
Sailesh K. Tanna
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Development ◽  
Civil Conflict ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Macroeconomic Factors ◽  
Developmental Issues ◽  
Recent Trends ◽  
Fdi Policies

This chapter analyses a number of economic and developmental issues in less-developed countries (LDCs), reviewing the related literature and outlining the challenges ahead for LDCs. The issues considered include foreign direct investment (FDI) policies, recent trends on growth, civil conflict, institutional development, financial sector development, external debt, and other macroeconomic factors. These are identified as pertinent areas where LDCs have faced major challenges in their endeavours to improve economic welfare since they are related to the absorptive capacities, which are important for accruing growth benefits from inward FDI in LDCs. It is anticipated that coverage of these issues will enlighten the issues that these countries face in order to attract and utilise inward FDI. Additionally, it is argued that LDCs can avoid the risk of civil conflict by adopting proactive policies to attract FDI.

The Impact of Foreign Direct Investment (FDI) on Economic Growth (EG) : Evidence from Djibouti

2021 ◽  
Vol 9 (10) ◽  
pp. 701-706
Author(s):  
Nashwa Maguid Hayel
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Development ◽  
Direct Investment ◽  
Time Series Data ◽  
Developed Countries ◽  
Least Square ◽  
Series Data ◽  
Study Results ◽  
The Impact

Abstract: The achievement of EG and development is considered the core objective for both Developing Countires (DCs) and Least Developed Countries (LDCs), so countries try to get adequate funding to achieve this goal through optimal macroeconomic policies and different strategies. Countries prefer other mechanisms with less burden and cost to achieve economic growth, such as FDI flows. International development-oriented institutions such as WB and IMF recommend and consider FDI flows are the most important factors of the modern technology transfer, management, and know-how, which is necessarily needed in the local investment projects in poor countries, so FDI represents optimal external sources of growth. The objective of this study is to explain the impact of FDI on the EG of Djibouti. To achieve this objective the study used a secondary annual time series data for the period 1985-2019 by the method of Ordinary Least Square (OLS). The study results showed that FDI in the case of Djibouti tends to be statistically insignificant effects and a limited impact on Djibouti‘s EG, Moreover,other factors such as the Human Development Index(HDI), and Gross Fixed Capital Formation(GFCF), Trade Openness(TOP) shows significant effects on the Gross Domestic Product (GDP). Finally, the Consumer Price Index (CPI) has no significance in the EG of Djibouti. The findings provide critical information to Djibouti policy decision-makers to make an informed decision with regard to attracting investment sectors and policies in encouraging foreign investors to invest in the country. KEYWORDS: Foreign Direct Investment, Economic Growth, Djibouti, Empirical Analysis.

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