scholarly journals Foreign Direct Investment And Poverty Reduction

2017 ◽  
Vol 20 (2) ◽  
pp. 73-89 ◽  
Author(s):  
Mercy T. Magombeyi ◽  
Nicholas M. Odhiambo
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Empirical Relationship ◽  
Direct Impact ◽  
Detailed Review ◽  
Positive Effects ◽  
Insignificant Effect ◽  
Indirect Impact ◽  
The Impact

This paper provides a detailed survey of the literature on the impact of foreign direct investment (FDI) on poverty reduction, outlining the theoretical and empirical relationship between these variables. Although a number of studies have been done on the impact of FDI on poverty reduction, the majority of these studies have focused on the indirect impact of FDI on poverty reduction. The bulk of the literature reviewed supports the positive effects of foreign direct investment on poverty reduction, although a few studies have also found foreign direct investment to have an adverse or insignificant effect on poverty reduction. This study differs fundamentally from previous studies in that it focuses on the direct impact of FDI on poverty reduction, giving a detailed review of the nature of this relationship.

scholarly journals Impact of Foreign Direct Investment on Human Development Index in South Africa

2020 ◽  
Vol 7 (1) ◽  
pp. 58
Author(s):  
Marius KOUNOU
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Time Series Data ◽  
Empirical Studies ◽  
Sub Saharan Africa ◽  
Series Data ◽  
Long Run ◽  
The Impact

Many studies have been done on the impact of Foreign Direct Investment on economic growth and poverty reduction in developing countries, however there is a lack of empirical studies of FDI impact on poverty reduction in South Africa which is the second largest FDI recipients of one of the poorest regions in the world (sub Saharan Africa). We used time series data from 1990 to 2017 with the ARDL method to evaluate the impact of FDI Inflow on HDI in the country. The results show that FDI inflow has no significant impact on HDI both in the short run and long run on the country. This result is consistent with findings reported in the literature.

scholarly journals Impact of Foreign Direct Investment (FDI) on Entrepreneurship Development in Jiangsu Province - China

2021 ◽  
pp. 202-212
Author(s):  
Michael Verner Menyah ◽  
Jincai Zhuang ◽  
Evelyn Sappor ◽  
Rejoice Akrashei
Keyword(s):  
Adverse Effect ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Social Scientist ◽  
Chinese Economy ◽  
Foreign Firms ◽  
Income Source ◽  
Entrepreneurship Development ◽  
Positive Effects ◽  
The Impact

Foreign Direct Investment (FDI) has served as a huge promoter of growth for many economies over the years, playing the role of supplementary income source for economies. The trend being identified now, however is that FDIs do come with adverse effect for host economies with one of the sector feeling the impact of the adverse impact being the local entrepreneurship. This study therefore measured the severity of the adverse effect of FDIs on the economy of China whiles also evaluating the contribution of FDIs to the overall economy using Sequential Explanatory Design (SED). Using Statistical Package for Social Scientist (SPSS), the researchers conducted statistical analysis like t-test, Correlation, Multiple Regression Analysis, R-Square, F-statistics and Variance Inflator Factors (VIF). The findings of the study revealed that FDIs indeed have both positive and negative implications for the Chinese economy. The positive effects come in the form of inspiring innovation and infrastructural development, influx of investment capital and the liberalization of the economy form monopolies and unfair trading The negative effect came in the form of stifling domestic entrepreneurship development as the foreign firms compete with local entrepreneurs for market, expertise, labor, capital and space for operation

scholarly journals Environmental Regulation, Two-Way Foreign Direct Investment, and Green Innovation Efficiency in China’s Manufacturing Industry

2018 ◽  
Vol 15 (10) ◽  
pp. 2292 ◽  
Author(s):  
Zhijun Feng ◽  
Bo Zeng ◽  
Qian Ming
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Environmental Regulation ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Green Innovation ◽  
Negative Effects ◽  
Positive Effects ◽  
The Impact ◽  
Positive Effect

This paper adopts 2009 to 2015 panel data from 27 manufacturing industries in China. A Super-SBM model is used to measure the green innovation efficiency (GIE) of China’s manufacturing industry. A panel data model is then built to systematically examine the impact of environmental regulation (ER) and two-way foreign direct investment (FDI) on the GIE of China’s manufacturing industry under a unified analysis framework. The results are as follows: (1) the overall level of the green innovation efficiency in China’s manufacturing is low, and there is still great potential for improvement. Considering industry heterogeneity, the green innovation efficiency of patent-intensive manufacturing is significantly higher than that of non-patent-intensive manufacturing; (2) in terms of the whole manufacturing industry, ER and the interaction between ER and outward foreign direct investment (OFDI) have significantly negative effects on GIE, OFDI has significantly positive effects on GIE. (3) when considering industry heterogeneity, for patent-intensive manufacturing, ER and the interaction between ER and inward foreign direct investment (IFDI) have significantly negative effects on GIE, while IFDI has significantly positive effect on GIE. For non-patent-intensive manufacturing, ER and the interaction between ER and OFDI have significantly negative effects on GIE, while IFDI and the interaction between ER and IFDI have significantly positive effects on GIE.

Using Latin America as a research laboratory

2019 ◽  
Vol 27 (2) ◽  
pp. 122-140 ◽  
Author(s):  
Armando Borda Reyes ◽  
William Newburry ◽  
Jorge Carneiro ◽  
Carlos Cordova
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Latin American ◽  
Direct Investment ◽  
Trade Openness ◽  
Recipient Country ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to use Latin America as a laboratory to better understand the relationship between inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) (both in total as well as in regional flows) and also examine the moderating effect of trade openness on that relationship. Latin America is an ideal study context for this purpose because of the relative homogeneity of its countries, which reduces confounding effects and increases comparability. Design/methodology/approach This paper uses longitudinal panel regression models with moderation effects. Secondary data were gathered on IFDI (per country and per country-sector), OFDI (total per country and region-targeted per country) and on trade openness from 11 Latin American countries. Findings IFDI in natural resources is positively associated with OFDI in both overall total flows and regional flows. The effect of IFDI in manufacturing has a consistent negative effect on total OFDI. IFDI in services has positive effects on total OFDI. Additionally, trade openness moderates positively the relationship between total IFDI and both total OFDI and regional OFDI. As a consequence, the authors found evidence suggesting that the relation between IFDI and OFDI in Latin America is positively moderated by trade openness. Originality/value The authors explored the nature of the impact of IFDI on the capacity of the recipient country to compete abroad as expressed by its OFDI flows. Specifically, they elucidated whether trade openness can be considered a suitable mechanism for home country firms to leverage potential spillovers provided by foreign entrants.

scholarly journals THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH (A CAUSAL STUDY IN THE UNITED STATES)

2018 ◽  
Vol 4 (1) ◽  
Author(s):  
Donny Susilo
Keyword(s):  
United States ◽  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multiple Linear Regression Model ◽  
The United States ◽  
Ordinary Least Squares ◽  
Development Effort ◽  
Positive Effects ◽  
The Impact

<p>International investment is strategic step for country due to lack of capital and technology transfer and it is generally well known as Foreign Direct Investment (FDI). Many policy makers and academics contend that FDI can have important positive effects on a host country’s development effort. This research examines the impact of Foreign Direct Investment on Economic Growth in the United States by multiple linear regression model and its estimation using ordinary least squares (OLS). This research classifies all the sectors to be 10 sectors. This research uses data for the period 2000 –2017 and suggests that not all forms of foreign investment seem to be beneficial to host economies. Some sectors provide positive correlation to economic growth and some provides negative effect. Nevertheless, it is significant yet, this is because there is different characteristic between developed and developing countries. Economic growth in the U.S is mostly driven by personal consumption.</p>

scholarly journals The Impact of Foreign Direct Investment on Poverty Reduction in Turkey: A Time Series Analysis

2021 ◽  
Author(s):  
Neşe Algan ◽  
Harun Bal ◽  
Murat Bayraktar
Keyword(s):  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Poverty Alleviation ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Global Supply Chain ◽  
Foreign Direct Investments ◽  
Series Analysis ◽  
The Impact

Foreign direct investment can be outlined as the net inflows of investment to take possession of permanent management. Foreign direct investments can support poverty alleviation especially for developing countries which needs capital. Global foreign direct investment sums $1.5 trillion in 2019 decreased to a calculated $859 billion in 2020 as the UNCTAD report indicates. Foreign direct investment flows are expected to remain weak with uncertainty due to Covid-19. For almost 25 years, extreme poverty, was steadily declining, on the contrary, expected to rise in 2020 between 88 million and 115 million added as the disruption of the Covid-19 on the global supply chain due to lockdowns. Time series analysis of foreign direct investments and poverty reduction relationship for Turkey between the 1996-2019 period confirms that foreign direct investment net infows reduce poverty: %1 increase of FDI inflow to Turkey increases % 0.011 of household final consumption which used as proxy for poverty. Turkish policymakers should develop an appropriate economic environment to appeal as much as foreign direct investment to Turkey.

scholarly journals Political Globalization and Foreign Direct Investment Inflows in Turkey

2016 ◽  
Vol 6 (5) ◽  
pp. 43 ◽  
Author(s):  
Cem Doğan ◽  
Ünal Arslan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Relationship ◽  
Cointegration Analysis ◽  
International Treaties ◽  
Long Run ◽  
Short Run ◽  
Political Globalization ◽  
The Impact ◽  
Foreign Direct Investment Inflows

<p>This article examines the impact of political globalization on foreign direct investment inflows to Turkey. Existence of foreign missions in a country, membership in international organizations, participation in U.N. Security Council Missions, and International Treaties are all seen as indicators political globalization. Using different econometric techniques, this study aims to find out whether any empirical relationship between political globalization and FDI exists. The analysis in this article covers the period in Turkey between 1970-2012. The results of cointegration analysis provide no an evidence of a long-run or short run any relationship political globalization and FDI.</p>

scholarly journals Foreign Direct Investment and Economic Growth of the Central and Southeast European Countries

2018 ◽  
Vol 15 (27) ◽  
Author(s):  
Vasilj Žarković ◽  
Dragan Gligorić ◽  
Nikola Žarković
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
European Integration ◽  
Direct Investment ◽  
The European Union ◽  
Economic Problems ◽  
Positive Effects ◽  
See Region ◽  
The Impact ◽  
Competitive Economy

Economic theory suggests that free capital flows increase the efficiency of the resource allocation and stimulate economic growth. Foreign direct investment (FDI) is seen as a remedy for all economic problems in countries that do not have a sufficient level of accumulation to start economic growth. According to economic criteria of Copenhagen, countries that are in the process of European integration should have a functioning market economy able to cope with competition and market forces within the European Union. The greatest expectations regarding the development of a competitive economy in the Southeast European (SEE) countries are precisely related to attraction and exploitation of the positive effects of FDI. This paper explores the impact of FDI on economic growth of the Central European (CE) countries and the SEE countries. The experience of the CE countries can be beneficial for the SEE countries following them in the process of European integration. The results show that FDI flows to the SEE region are significantly lower than to the CE region. Panel analysis has shown a statistically significant impact of FDI on economic growth inboth regions. However, in absolute terms the impact of FDI on economic growth inthe SEE region is almost negligible.

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