scholarly journals Equity Investments vs. Debt Investments – What Drives OFDI in Polish Industry

2015 ◽  
Vol 16 (1) ◽  
pp. 65-81
Author(s):  
Agnieszka Kłysik-Uryszek
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Theoretical Background ◽  
Significant Rise ◽  
Empirical Literature ◽  
International Expansion ◽  
Outward Fdi ◽  
Industrial Companies ◽  
Equity Investments ◽  
Polish Economy

AbstractPolish economy witnessed enormous changes over the past 25 years. Systematic economic growth, increasing market openness, legal stabilization and integration with EU have substantially improved Poland’s global competitive position. That is reflected, among others, in intensified flows of long-term capital in the form of foreign direct investment (FDI). What is worth stressing, the last decade (regardless the economic crisis) brought a significant rise of investments made by Polish companies abroad (Outward FDI). It should be mentioned however, that the FDI flows are usually analyzed (in both theoretical and empirical literature) as if they consist only of equity investments, when in fact they consist also of intracompany loans. As the latter may not be driven by the same factors as equity flows, the real structure of FDI flows should be taken into consideration while evaluating the investment potential of companies. The paper examines selected issues concerning international expansion of Polish companies in the form of foreign direct investment. It provides theoretical background of the problem, explores the reasons for expansion and presents the structure of foreign direct investment by Polish industrial companies in the period 2003-2012 with regard to the equity and debt components of the flows. The study is based on the data provided by the National Bank of Poland (NBP).

INVESTMENT ABROAD AND IMPACT AT HOME: A LITERATURE REVIEW

2019 ◽  
Vol 19 (04) ◽  
pp. 1930001
Author(s):  
VISHAL SARIN ◽  
SURESH KUMAR
Keyword(s):  
Economic Growth ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Empirical Studies ◽  
Significant Rise ◽  
Empirical Literature ◽  
Domestic Investment ◽  
Outward Fdi ◽  
Economic Activities ◽  
The Impact

Recently, there has been a significant rise in the volume and significance of FDI flows. The foreign direct investment (FDI), which is undertaken by multinational corporations, affects not only the host economy but also the home economy in many ways. The impact of FDI on host economy has been very well explained by several researchers. But there is lack of literature that has investigated the impact of FDI on the economy of the investing country. The purpose of this paper is to revisit the empirical studies which are related with exploring the impact of outward FDI on various economic activities such as exports, domestic investment, productivity and economic growth in the investing country. In this pursuit, a through survey of empirical literature in this area, published since 1980 across different journals has been made and presented.

Foreign Direct Investment, Intellectual Property Rights, and Productivity Growth

2014 ◽  
Vol 05 (03) ◽  
pp. 1440009
Author(s):  
Sasatra Sudsawasd ◽  
Santi Chaisrisawatsuk
Keyword(s):  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Productivity Growth ◽  
Direct Investment ◽  
Developed Countries ◽  
Outward Fdi ◽  
The Impact ◽  
Ipr Protection

Using panel data for 57 countries over the period of 1995–2012, this paper investigates the impact of intellectual property rights (IPR) processes on productivity growth. The IPR processes are decomposed into three stages — innovation process, commercialization process, and protection process. The paper finds that better IPR protection is directly associated with productivity improvements only in developed economies. In addition, the contribution of IPR processes on growth through foreign direct investment (FDI) appears to be quite limited. Only inward FDI in developed countries which creates better innovative capability leads to higher growth. In connection with outward FDI, only the increase in IPR protection and commercialization are proven to improve productivity in the case of developing countries, particularly when the country acts as the investing country.

scholarly journals Foreign Direct Investment in the West African Region: Analyses on the Values of Inflow and Outflow

2020 ◽  
Vol 2 (1) ◽  
pp. p15
Author(s):  
Yeboah Evans ◽  
Yu Jing
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developed Countries ◽  
West African ◽  
Least Developed Countries ◽  
Outward Fdi ◽  
African Region ◽  
The West ◽  
Investment Policies ◽  
West African Region

With regards to the ongoing development in investment activities in the Economic Community of West African States(ECOWAS) and the entire African continent is because of institutional reforms and initiation of sound investment policies. Foreign direct investment(FDI) inflow and outflow severs as a source of capital formation for most developing and least developed countries. This paper provides an overview and analyses of the flow of FDI to the ECOWAS region by considering 16 nations under this region in determining their performance towards FDI attraction and their contribution to outward FDI across the globe by the use of the quantitative method. The outcome shows that there is a continuous decline in FDI inflow to the ECOWAS region over the past 10 years. The result also proves that Ghana and Nigeria are the major recipients of foreign direct investment inflows in the West African region. The result further indicates that Nigeria is the major contributor of outward FDI from the ECOWAS region. It is recommended that the region should increase its outward FDI.

scholarly journals Does Monetary Policy and Foreign Direct Investment Have an Influence on the Performance of Stock Market: Further Empirical Evidence from Ghana

2020 ◽  
Vol 2 (2) ◽  
pp. 161-176
Author(s):  
Opoku Adabor ◽  
Emmanuel Buabeng
Keyword(s):  
Monetary Policy ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Market Performance ◽  
Empirical Literature ◽  
Long Run ◽  
Stock Market Performance ◽  
Short Run ◽  
Positive Effect

Monetary policy, foreign direct investment, and the stock market continue to dominate in discussions in developing countries. However, the linkage between the three variables in empirical literature remains unclear. This study aims to test two separate hypotheses: Firstly, the study examines the effects of monetary policy on stock market performance in Ghana. Secondly, the study also empirically investigates the effect of foreign direct investment on stock market performance in Ghana. Autoregressive Distributed Lag (ARDL) model was employed as an estimation strategy to examine the short and long-run effects using annual time series data from 1990 to 2019. The study revealed that monetary policy rate and money supply exerts a statistically significant negative and a positive effect on stock market performance in both the long and short-run in Ghana, respectively. It was also found that foreign direct investment has significant and a positive effect on stock market performance in Ghana in both the long and short run. Total capital stock and volume traded were also found to exert significant positive and negative impacts on stock market performance both in the short and long run respectively. Based on our findings, we recommend that expansionary monetary policy will be a better option to be carried out to improve the stock market performance in Ghana. Furthermore, government and private partnership may ensure the effective management of the macroeconomic variables to attract foreign direct investment into Ghana to boost stock market performance.

scholarly journals Vertical spillovers from multinational enterprises: Does technological gap matter?

2016 ◽  
Vol 63 (3) ◽  
pp. 313-323 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Empirical Literature ◽  
Foreign Investors ◽  
Technological Gap ◽  
Local Companies ◽  
The Relationship

Foreign direct investment (FDI) from Multinational enterprises (MNEs) can augment the productivity of domestic firms insofar as knowledge ?spills over? from foreign investors to local producers. The capacity of local companies to exploit knowledge from MNEs can be affected by the technology gap between foreign and local enterprises at both horizontal (in the same industry) and vertical (in different industries) level. Whereas most of the empirical literature has focused exclusively on the analysis of horizontal and backward spillovers (i.e. between MNEs and local suppliers), the present paper also examines the relationship between FDI-related spillovers and technological gap in the Italian manufacturing sector at forward level (i.e. between MNEs and local buyers). Results suggest that at both intra-industry and forward level, the technological gap is of considerable importance for the spillover effect, particularly in the case of low-medium gap.

The Determinants of Foreign Direct Investment Outflows from Turkey

2017 ◽  
pp. 227-243 ◽  
Author(s):  
Raif Cergibozan ◽  
Caner Demir
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Negative Relationship ◽  
Outward Fdi ◽  
Foreign Markets ◽  
Country Factors ◽  
Bounds Test ◽  
Potential Factors ◽  
The Empirical Analysis

The aim of this study is to specify the determinants of the outward Foreign Direct Investment (FDI) flows from Turkey. For this purpose, the ARDL Bounds Test is used in order to observe the possible relation between these flows and define potential factors that might have an effect on them. The evidences of the empirical analysis reveal that the destination countries' market size, the home country's development level, trade openness and wage rate are positively related to outward FDI while the home country's interest rate shows a negative relationship. Turkey's outward FDI is significantly determined by the opportunities of the foreign markets as well as the outstanding home country factors.

The Determinants of Foreign Direct Investment Outflows from Turkey

2020 ◽  
pp. 659-675
Author(s):  
Raif Cergibozan ◽  
Caner Demir
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Negative Relationship ◽  
Outward Fdi ◽  
Foreign Markets ◽  
Country Factors ◽  
Bounds Test ◽  
Potential Factors ◽  
The Empirical Analysis

The aim of this study is to specify the determinants of the outward Foreign Direct Investment (FDI) flows from Turkey. For this purpose, the ARDL Bounds Test is used in order to observe the possible relation between these flows and define potential factors that might have an effect on them. The evidences of the empirical analysis reveal that the destination countries' market size, the home country's development level, trade openness and wage rate are positively related to outward FDI while the home country's interest rate shows a negative relationship. Turkey's outward FDI is significantly determined by the opportunities of the foreign markets as well as the outstanding home country factors.

scholarly journals Foreign direct investment and institutional stability: who drives whom?

2019 ◽  
Vol 24 (47) ◽  
pp. 145-156 ◽  
Author(s):  
Nihal Mahmood ◽  
Mohammad Hassan Shakil ◽  
Ishaq Mustapha Akinlaso ◽  
Mashiyat Tasnia
Keyword(s):  
Foreign Direct Investment ◽  
Financial Stability ◽  
Direct Investment ◽  
Global Financial Crisis ◽  
Institutional Development ◽  
Optimal Level ◽  
Empirical Literature ◽  
Content Type ◽  
Institutional Stability ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between foreign direct investment (FDI) flows and institutional stability. The focus country is Canada. It is one of the few countries where the economy remained relatively stable compared to other economies during the Global Financial Crisis. It is crucial for Canada to determine the optimal level of institutional development to attract more FDI and sustain the sound financial stability in future. Design/methodology/approach This study uses the auto-regressive distributive lag (ARDL) approach to understand the relationship between FDI and institutional stability along with other controlled variables, for instance, gross national product, inflation and exports. Findings The key finding of this work is that FDI and institutional stability are cointegrated in the long run. The error correction model of ARDL shed light on institutional stability being an exogenous variable, and FDI is an endogenous variable. Institutional stability affects FDI, as it is exogenous. The findings will help policymakers to implement policies to strengthen the institution’s settings, and this, in turn, will attract more investment. Originality/value Based on previous theoretical and empirical literature, most of the research points to FDI positively affect institutional stability. In some cases, the relationship does not always hold true. This study will fix the gap in the literature by investigating the relationship between FDI and institutional stability of Canada.

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