scholarly journals The Impact of Foreign Direct Investment, Domestic Investment, Balance Funds, and Number of Population to Economic Growth in Indonesia

2020 ◽  
Vol 7 (4) ◽  
pp. 182-190
Author(s):  
Fitri yah ◽  
Khintan Wulandari ◽  
Imam Mukhlis
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Domestic Investment ◽  
The Impact

scholarly journals Investment and Economic Growth: An Empirical Analysis for Tanzania

2016 ◽  
Author(s):  
Manamba Epaphra ◽  
John Massawe
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Life Expectancy ◽  
Direct Investment ◽  
Public Investment ◽  
Private Investment ◽  
Domestic Investment ◽  
Control Variables ◽  
Lm Test ◽  
The Impact

This paper analyzes the causal effect between domestic private investment, public investment, foreign direct investment and economic growth in Tanzania during the 1970-2014 period. The modified neo-classical growth model that includes control variables such as trade liberalization, life expectancy and macroeconomic stability proxied by inflation is used to estimate the impact of investment on economic growth. Also, the economic growth models based on Phetsavong and Ichihashi (2012), and Le and Suruga (2005) are used to estimate the crowding out effect of public investment on private domestic investment on one hand and foreign direct investment on the other hand. A correlation test is applied to check the correlation among independent variables, and the results show that there is very low correlation suggesting that multicollinearity is not a serious problem. Moreover, the diagnostic tests including RESET regression errors specification test, Breusch-Godfrey serial correlation LM test, Jacque-Bera-normality test and white heteroskedasticity test reveal that the model has no signs of misspecification and that, the residuals are serially uncorrelated, normally distributed and homoskedastic. Generally, the empirical results show that the domestic private investment plays an important role in economic growth in Tanzania. FDI also tends to affect growth positively, while control variables such as high population growth and inflation appear to harm economic growth. Results also reveal that control variables such as trade openness and life expectancy improvement tend to increase real GDP growth. Moreover, a revealed negative, albeit weak, association between public and private investment suggests that the positive effect of domestic private investment on economic growth reduces when public investment-to-GDP ratio exceeds 8-10 percent. Thus, there is a great need for promoting domestic saving so as to encourage domestic investment for economic growth.

scholarly journals The impact of ODA in constructing road traffic infrastructure on Vietnam’s economic growth

2021 ◽  
pp. 99-106
Author(s):  
Thanh Cuong Dang ◽  
Dang Bang Nguyen ◽  
Thi Hang Trinh ◽  
Thi Thao Banh ◽  
Thi Thu Cuc Nguyen
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Road Traffic ◽  
Positive Impact ◽  
Road Transport ◽  
Assessment Model ◽  
Transport Infrastructure ◽  
Domestic Investment ◽  
The Impact

The study examines the impact of official development assistance (ODA) in constructing road transport infrastructure on Vietnam’s economic growth. The authors select gross domestic product (GDP) to represent economic growth and test the influence of ODA in constructing road traffic infrastructure on Vietnam's GDP. Based on the references and analysis of previous studies, the authors propose an impact assessment model of ODA in constructing road transport infrastructure, Foreign direct investment (FDI), Domestic Investment (VDT) and Labor Force (Labor) to economic growth through GDP as a dependent variable. The regression results show that the ODA had a positive impact on GDP. Moreover, ODA plays an important role in constructing road transport infrastructure on Vietnam’s economic growth.

The relationships between foreign direct investment, domestic savings, domestic investment, and economic growth: The case of Sub-Saharan Africa

2016 ◽  
Vol 38 (2) ◽  
pp. 193-217
Author(s):  
Nurudeen Abu ◽  
Mohd Zaini Abd Karim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Sub Saharan Africa ◽  
Domestic Investment ◽  
Long Run ◽  
Domestic Savings ◽  
Sub Saharan ◽  
The Impact

Despite the large body of research on foreign direct investment, domestic savings, domestic investment and economic growth, little has been done to investigate the relationships among them. This paper examines the relationships among foreign direct investment, domestic savings, domestic investment, and economic growth in 16 Sub-Saharan African (SSA) countries from 1981 to 2011, using various techniques. The results of VAR estimation and Granger causality tests demonstrate that there is a unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a bidirectional causality between growth and domestic investment as well as savings and domestic investment. The results of the variance decomposition analysis reveal that foreign investment exerts more influence on growth. Savings are more important in explaining domestic investment, growth is more important in explaining foreign investment, and domestic investment is more important in explaining savings. Based on the results of the impulse response analysis, there is a positive unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a positive bidirectional causality between savings and domestic investment, both in the short and long-run. Although there is feedback causality between domestic investment and growth, the impact from investment is negative in the short-run and positive in the long-run. Thus, policies that encourage foreign investment and savings are required to boost domestic investment and promote growth, and policies that raise domestic investment will lead to higher savings and growth in SSA.

scholarly journals The Effect of Foreign Direct Investment on Indonesia’s Economic Growth

2016 ◽  
Vol 1 (2) ◽  
pp. 18-24
Author(s):  
Abdul Hadi Ilman
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Linear Regression Method ◽  
Domestic Investment ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

The relationship of Foreign Direct Investment (FDI) on economic growth is one of the most debatable topic in economic. This study is aiming to investigate the impact of FDI on economic growth in Indonesia. This research using linear regression method which base on time series data from 1981 to 2012. A Major finding is there is no special relationship between FDI and economic growth, both directly and indirectly. Moreover, FDI does crowd-in the domestic investment and is no significance evidence to prove that FDI is more efficient on economic growth than domestic investment.

Analysing the impact of tourism foreign direct investment on economic growth

2016 ◽  
Vol 23 (5) ◽  
pp. 1042-1055 ◽  
Author(s):  
Sheereen Fauzel ◽  
Boopen Seetanah ◽  
R.V. Sannassee
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Vector Error Correction Model ◽  
Domestic Investment ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Tourism Sector ◽  
The Impact

The present study attempts to address the important question of whether foreign direct investment (FDI) flowing into the tourism sector has served to enhance economic growth in Mauritius for the period 1984–2014. Using a dynamic vector error correction model, and catering for dynamism, the results show that tourism FDI has indeed contributed to fostering economic growth; albeit the magnitude of the coefficient being relatively smaller than FDI in the non-tourism sector. A plausible explanation for such a finding may reside in the fact that the bulk of FDI flows in the non-tourism sectors while domestic investment predominates in the tourism sector in Mauritius. The findings also demonstrate a positive relationship between tourism development and economic growth, thus supporting the tourism-led growth hypothesis.

scholarly journals The Impact of FDI Inflows, Exports and Domestic Investment on Economic Growth in Africa

2018 ◽  
Vol 10 (4(J)) ◽  
pp. 152-164
Author(s):  
Alexander Maune
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Mean Squared Error ◽  
Domestic Investment ◽  
African Countries ◽  
Socioeconomic Changes ◽  
Research Findings ◽  
The Impact ◽  
The Relationship

The topic regarding the impact of foreign direct investment net inflows, exports and domestic investment on economic growth has resulted in mixed research findings across the globe. Literature related to the above variables in five selected African countries drawn from the five sub-regions is critically reviewed in this article. Furthermore, an econometric analysis of these variables is done to ascertain their impact on economic growth. The findings are compared to previous findings in other studies. The researcher found similar results in some variables when compared to previous researches in other countries. The study found that the independent statistical variables significantly predicted gross domestic product, with F (3, 63) = 5.84, P > F 0.0014, R2 = 0.2176, adjusted R2 = 0.1804 and root mean squared error (RMSE) = 0.54976. The independent variables added significantly to the prediction of p < 0.05. The researcher challenges the notion that the impact of foreign direct investment net inflows, exports and domestic investment on economic growth should always be positive and significant. This study provides a refreshed appreciation of the relationship between foreign direct investment net inflows, exports, domestic investment and economic growth in light of rapid socioeconomic changes in the sampled countries. The article also proposes some critical considerations regarding this relationship.

scholarly journals Determinants of Fixed Foreign Direct Investment in Botswana

2012 ◽  
Vol 4 (7) ◽  
pp. 414-422 ◽  
Author(s):  
Seloinyana Elizabeth Selelo
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Growth Rates ◽  
Direct Investment ◽  
Annual Data ◽  
Investment Incentives ◽  
Domestic Investment ◽  
Economic Growth Rates ◽  
The Impact

In this article, we explain the determinants of foreign direct investment in Botswana for the period 1980–2007. The government of Botswana has over the years provided investment incentives to attract foreign direct investment (FDI) into the country but, despite these efforts, FDI has continued to be relatively low and skewed towards mining, especially diamond mining. Recent literature on investment is silent on the impact of economic growth rates on FDI inflows in developing countries such as this one. We examined economic variables that determined FDI in Botswana, and our study used the accelerator theory of investment to uncover the effects of FDI on the nation’s economy. The dependent variable, FDI is expressed as a function of GDP growth rates, human capital, terms of trade, domestic investment, and government expenditure. We used time series annual data from Botswana Central Statistics Office (CSO) and employed both the co-integration and vector error correction model to find the short-term and long-term effects of FDI. The econometric results showed that economic growth rates better explains FDI flows in Botswana. The significance of economic growth is consistent with the acceleration theory of investment. This finding confirms that the accelerator theory is useful as a policy tool for planning investment outlay in developing countries. The findings are also useful for policy-makers in shading light on investment determinants that could be employed to achieve more FDI in Botswana.

Foreign Direct Investment and Economic Growth: A Cross-Country Analysis

2005 ◽  
Vol 5 (1) ◽  
pp. 1850034 ◽  
Author(s):  
Mariam Khawar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Relationship ◽  
Threshold Level ◽  
Real Income ◽  
Capital Requirements ◽  
Domestic Investment ◽  
Cross Country ◽  
The Impact

It is generally acknowledged that domestic investment boosts economic growth, yet the impact of foreign direct investment (FDI) is not as clear, with some studies suggesting the need for a miniumum threshold level of development in order for FDI to be beneficial. In this paper we conduct an empirical cross-country growth analysis to investigate the impact over two decades, of foreign direct investment at the ‘aggregate’ level, and find that it has a significant and positive relationship with real income per capita, irrespective of any human capital requirements. An interesting observation is that the coefficient on the foreign investment variable is considerably larger than that of the domestic investment variable, suggesting a potentially large role for FDI. However, the problem of establishing the direction of causality, compounded by the unavailability of suitable instrumental variables, remains. Thus, at this point, we go no further than concluding that there is indeed, a large and positive relationship between foreign direct investment and economic growth.

Sign in / Sign up

Export Citation Format

Share Document