scholarly journals Threshold effect of foreign direct investment on economic growth: new evidence from a panel regime switching models

2021 ◽  
Vol 25 (2) ◽  
pp. 177
Author(s):  
Kamel Helali ◽  
Maha Kalai
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Regime Switching ◽  
Direct Investment ◽  
Threshold Effect ◽  
Regime Switching Models ◽  
Switching Models ◽  
New Evidence

scholarly journals Threshold Effect of Foreign Direct Investment on Economic Growth: New Evidence From a Panel Regime Switching Models

2021 ◽  
Author(s):  
Maha Kalai ◽  
HELALI Kamel
Keyword(s):  
Foreign Direct Investment ◽  
Regime Switching ◽  
Direct Investment ◽  
Threshold Effect ◽  
Jel Classification ◽  
Policy Implications ◽  
Smooth Transition ◽  
Linear Effect ◽  
Positive Effects ◽  
Smooth Transition Regression

Abstract The article contributes to the existing literature by examining the non-linear effect of foreign direct investment (FDI) on the development of the Arab Maghreb Union (AMU) countries during the period 1980-2019. These countries multiply their FDI attraction policies in order to enrich the national externalities offered to local businesses and benefit from some positive effects on their economy in terms of growth, technology, know-how, etc. Using Panel Smooth Transition Regression Model (PSTR) and Panel Smooth Transition Autoregressive Model (PSTAR) models, our findings reveal that the FDI shows opposite effects below and over the estimated threshold. This highlights the asymmetrical effect of unforeseen shocks on its volatility. Policy implications are also discussed.JEL Classification: C51; C53; F21; F21; F34; O16; O23; R11.

scholarly journals Foreign Direct Investment as an Important Source of External Development Financing: New Evidence in Turkey

2019 ◽  
Author(s):  
Mohamed Isse Ibrahim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Labor Force ◽  
Significant Relationship ◽  
Direct Investment ◽  
Time Series Data ◽  
External Source ◽  
Series Data ◽  
New Evidence

Foreign direct investment is a critical source of external instruments for financing development for Turkey, FDI can contribute to technology diffusion, Economic growth, Employment generation and Sustainable development. However; the Objective of this research is to examine whether foreign direct investment as an external source of financing effects economic growth in Turkey, based on time series data from 2003 to 2016 during the Erdoğan administration. This study employed Harrod-domar growth model using under OLS method. The paper considerate main variables foreign direct investment, Exchange rate and labor force. Based on empirically investigated the study confirmed that foreign direct investment and Labor force has a positive significant relationship to economic growth in Turkey while exchange rate has a negative significant relationship to economic growth in Turkey. So this paper recommends that movement of Turkey should promote policies encourage and creation of a good microeconomic and macroeconomic a friendly environment and utilization of the careful of loose monetary policy to economic performance.

scholarly journals Impact of foreign direct investment on Small Island States’ economic growth: An analysis based on the threshold effect of tourism

资源科学 ◽  
2020 ◽  
Vol 42 (11) ◽  
pp. 2132-2144
Author(s):  
Yue GUO ◽  
Youxing HUANG ◽  
Yu YANG ◽  
Shuguang LIU ◽  
Chang WANG ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Threshold Effect ◽  
Small Island ◽  
Island States ◽  
Small Island States

The Contribution of Foreign Direct Investment for Economic Growth of Ethiopia: Time Series Analysis

2018 ◽  
Vol 9 (02) ◽  
Author(s):  
Addissie Melak
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Policy Framework ◽  
Annual Growth Rate ◽  
African Countries ◽  
Series Analysis ◽  
Integration Test

Economic growth of countries is one of the fundamental questions in economics. Most African countries are opening their economies for welcoming of foreign investors. As such Ethiopia, like many African countries took measures to attract and improve foreign direct investment. The purpose of this study is to examine the contribution of foreign direct investment (FDI) for economic growth of Ethiopia over the period of 1981-2013. The study shows an overview of Ethiopian economy and investment environment by the help of descriptive and econometric methods of analysis to establish empirical investigation for the contribution of FDI on Ethiopian economy. OLS method of time series analysis is employed to analyse the data. The stationary of the variables have been checked by using Augmented Dickey Fuller (ADF) Unit Root test and hence they are stationery at first difference. The co- integration test also shows that there is a long run relationship between the dependent and independent variables. Accordingly, the finding of the study shows that FDI, GDP per capita, exchange rate, total investment as percentage of GDP, inflow of FDI stock, trade as percentage of GDP, annual growth rate of GDP and liberalization of the economy have positive impact on Ethiopian GDP. Whereas Gross fixed domestic investment, inflows of FDI and Gross capital formation influence economic growth of Ethiopia negatively. This finding suggests that there should be better policy framework to attract and improve the volume of FDI through creating conducive environment for investment.

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