Taking Stock of Flow

2018 ◽  
Vol 4 (4) ◽  
pp. 346-373 ◽  
Author(s):  
Rob Clark ◽  
Roy Kwon
Keyword(s):  
Human Rights ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Influential Observations ◽  
Panel Estimation ◽  
Democratic Regimes ◽  
Rate Information ◽  
Negative Effect

Research suggests a positive link between foreign direct investment (FDI) and human rights. In this study, we revisit this relationship and find that FDI does not produce significant improvements in human rights conditions. Both flow and stock measures of FDI are negatively associated with human rights ratings, with the negative effect of stock being notably larger. We discuss complications associated with the use of flow measures in panel estimation and argue that stock measures represent what scholars more likely have in mind when estimating the longitudinal effect of foreign capital. We then show that stock's negative effect is robust to several methodological concerns, including denominator effects in the foreign investment rate, information effects in the dependent variable, endogeneity in the FDI–human rights relationship, and the removal of wealthy countries and influential observations from our models. Finally, we find that stock's negative effect is significantly smaller in democratic regimes. Overall, the results suggest that foreign capital does not improve human rights conditions, and it may prove detrimental, especially in authoritarian states.

scholarly journals China’s Foreign Investment and Assistance: Implications for Cambodia’s Development and Democratization

2009 ◽  
Author(s):  
Kheang Un
Keyword(s):  
Economic Development ◽  
Human Rights ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Developing World ◽  
Development Assistance ◽  
Economic Prosperity ◽  
Positive Effects ◽  
The Past

With a strong economy and newly acquired confidence following three decades of rapid economic expansion, China has pursued an outward looking policy based upon foreign direct investment, development assistance and trade targeting particularly the developing world. Such expansion has drawn concerns over its impact on human rights, democratization and the environment. This paper assesses these concerns by examining Sino-Cambodia relations over the past sixteen years. It concludes that while trade, development assistance, and investment have had positive effects on Cambodia’s economic development, concerns that these engagements have derailed deeper democratization in Cambodia are not deterministic. Cambodia’s authoritarian trajectory is less a product of China’s engagement and more of the Cambodian elites’ defiance of Western efforts at democratic promotion and belief in state developmentalism—economic prosperity with tight political control.

scholarly journals Importance and Impact of Foreign Investment on the Economic Development of Bosnia and Herzegovina

ECONOMICS ◽  
2018 ◽  
Vol 6 (1) ◽  
pp. 63-80
Author(s):  
Milan Šušićv
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Bosnia And Herzegovina ◽  
Foreign Investment ◽  
Direct Investment ◽  
Global Economy ◽  
Foreign Capital ◽  
Essential Element ◽  
Global Market ◽  
The Impact

SUMMARY From the perspective of macroeconomic indicators, investment is a significant determinant of economic development as a whole, as well as the development of economic entities in the micro segment. Investments present an essential element of any economic policy, as their presence provides a platform, not only for economic development, but also create a basic condition for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and the most common presenting the most important tool in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large and therefore the states are directing significant activities in order to create a more favorable environment to attract investors. The paper pays special attention to direct investmens in financing the economy on a global scale, their importance for the development of the global economy and particulary screens the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The emphasis is placed on activities that have to be carried out in order to realize more investments. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is fundamental prerequisite for generating and accelarating of economic development in general. The inflow of foreign capital has an exstraodinary positive impact on the economic development and increase of business activities in visably undeveloped and slow economic in Bosnia and Herzegovina.

scholarly journals Structure of foreign investment in the industry of Poland at the beginning of the second decade of the 21st century

2013 ◽  
Vol 22 (22) ◽  
pp. 111-125 ◽  
Author(s):  
Anna Tobolska
Keyword(s):  
Foreign Direct Investment ◽  
Spatial Structure ◽  
Foreign Investment ◽  
Direct Investment ◽  
Quantitative Methods ◽  
Foreign Capital ◽  
Central Statistical ◽  
Research Procedure ◽  
National Bank ◽  
Central Statistical Office

AbstractThis paper seeks to analyse the sectional and spatial structure of the inflow of foreign direct investment (FDI) to industry in Poland and to determine the extent of internationalisation of this sphere of the economy. Those issues are significant not only in cognitive terms, but can also have implications for the country’s economy, in particular for its economic policy. In the first step of the research procedure an analysis was characterised the structure of foreign investment in the various sectors of industry was on the basis of selected variables: the capital invested, the number of companies with foreign capital, and the employment generated. To assess differences in the divisional structure, use was made of two quantitative methods: Rodgers’ relativised index of structure diversification and Creamer’s diversification index. Then the spatial structure of the foreign capital inflow to Polish industry was identified in two aspects: by region where investment was located and by the investors’ country of origin. On the basis of the observed tendencies and regularities, an assessment was made of foreign direct investment in Polish industry, and the performed analysis was summed up by constructing an FDI internationalisation profile. In the paper use was made of statistical data obtained from the following sources: reports published by the National Bank of Poland; information and materials published by the Central Statistical Office (GUS); and information and materials published by the Polish Information and Foreign Investment Agency (PAIiIZ).

scholarly journals Foreign Direct Investments in the Regions of Ukraine in the Conditions of Globalization

2021 ◽  
pp. 99-110
Author(s):  
Yuriy Prysiazhniuk ◽  
Juliia Poliakova ◽  
Larysa Yaremko
Keyword(s):  
Foreign Direct Investment ◽  
Comparative Analysis ◽  
Host Country ◽  
Foreign Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Foreign Direct Investments ◽  
Investment Activity ◽  
Low Level ◽  
Geographical Structure

The importance of foreign direct investment (FDI) for the economy of the host country is demonstrated, and the advantages and risks of attracting foreign capital for the economy of Ukraine are emphasized. An analysis of the dynamics of foreign direct investment in Ukraine is carried out, with a focus on sectoral and geographical structure. Differences between the productivity of enterprises with foreign investment and that of domestic enterprises are noted. The assessment of investment potential was carried out using a multifactor comparative analysis, and a calculation of investment attractiveness is made on the basis of the standardization of indicators for the regions of Ukraine. The correspondence between the investment potential and investment attractiveness of the regions is indicated, as well as the low level of investment attractiveness of certain regions in Ukraine. Priority measures for the intensification of foreign investment activity in Ukraine in the conditions of globalization are discussed.

scholarly journals FORMATION OF AN EFFECTIVE STRATEGY FOR ATTRACTING FOREIGN DIRECT INVESTMENT IN THE ECONOMY OF UKRAINE: CURRENT REALITIES

2021 ◽  
Author(s):  
Olena Kolyada ◽  
Iryna Morozova ◽  
Mariia Nizelska
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Production Control ◽  
Special Role ◽  
Effective Strategy ◽  
Investment Climate ◽  
Positive Effects ◽  
Main Factors

The article considers foreign direct investment as an economic phenomenon. It is noted that the investment climate of the country plays a special role in attracting foreign capital. The main factors of formation of investment attractiveness of Ukraine, which contribute to the expansion of its investment ties, are named. The East Invest - 2 project and the main recommendations for improving the efficiency of attracting foreign investment into the economy of Ukraine are considered. Particular attention is paid to identifying the threats that foreign investment can pose to the host country, such as: the relocation of hazardous environmental production, control over raw materials, capital flight and others. The main tendencies of foreign investment in Ukraine are considered. Also, the study found that increasing productivity is one of the positive effects of foreign investment, as it is associated with a high level of innovation in such investments. In Ukraine, labor productivity in enterprises with foreign investment is on average 3.5 times higher than in enterprises without them. This is, in particular, due to a larger amount of investment in fixed capital per employee, which in firms with foreign capital is more - 5 - 7 times. In modern economic conditions, the investment environment has a significant impact on attracting foreign investment, which in Ukraine remains not the most favorable. The main factors of the need to further increase foreign investment in the economy of Ukraine are indicated. The main problems that hinder the processes of attracting foreign investment to Ukraine have been identified. At the same time, the main aspects of Ukraine's attractiveness as an investment recipient have been identified. Outlining the main directions of formation of a favorable investment climate in Ukraine. The directions of further activity of Ukraine concerning formation of effective strategy of increase of investment attractiveness are named. The ways to stimulate investment are identified and the objects of investment that can bring more profit to the investor at the present stage are identified.

Attracting foreign capital as a factor in ensuring the country's economic growth

2020 ◽  
pp. 34-41
Author(s):  
Taras Malyshivskyi ◽  
Volodymyr Stefinin
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Low Income ◽  
Direct Investment ◽  
Foreign Capital ◽  
Local Level ◽  
Current Trend ◽  
Raw Material ◽  
Foreign Capital Inflows

The article examines the relationship between attracting foreign capital in the form of foreign direct investment and ensuring economic development. In particular, the analysis of the current structure of the economy is indicated, its raw material character is pointed out and, based on other researches, the necessity of its reform is substantiated, as Ukraine will remain a low-income country if the current trend continues. This is due to the fact that countries with a raw material structure of the economy are characterized by a low level of economic complexity, and therefore are not able to generate high levels of income in society. As a result, the expediency of stimulating the attraction of investment resources into the country’s economy, in particular in the form of foreign direct investment, is substantiated. The dynamics of attracting foreign direct investment to Ukraine and a number of other countries for the period from 1991 to 2019 is analyzed and the key negative factors that deter foreign investors from investing in the economy of Ukraine are indicated. As a result of the analysis, divergent trends in the economic development of Ukraine and other analyzed countries (Poland, Czech Republic, Slovakia, Turkey, Romania, Hungary) were identified, which contributed to economic stagnation and restrained economic growth and development. Taking into account the analysis, as well as based on the concept of investment and innovation growth, it is proposed to use the experience of Israel to improve the country’s investment attractiveness and stimulate foreign capital inflows by adapting the Yozma program to Ukrainian realities. According to our estimates, the adaptation of this program to the Ukrainian economy will attract about $ 350 million over a five-year period of venture capital alone. In addition, programs such as YOSMA can also be implemented at the regional or even local level. We believe that the use of this tool will improve the investment attractiveness of the country, as well as provide sufficient financial resources to modernize the domestic economy and ensure rapid economic growth.

Does foreign direct investment influence R&D activity in the host country? Evidence from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Van Ha ◽  
Mark J. Holmes ◽  
Gazi Hassan
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Probit Model ◽  
Innovation Activity ◽  
Heckman Selection Model ◽  
Content Type ◽  
Domestic Firms ◽  
The Impact ◽  
Local Firms

PurposeThis study focuses on the linkages between foreign direct investment and the research and development (R&D) and innovation activity of domestic enterprises in Vietnam.Design/methodology/approachThe Heckman selection model approach is applied to a panel dataset of nearly 7,000 Vietnamese firms for the 2011–2015 study period to investigate the impact of foreign presence on the R&D of local firms through horizontal and vertical linkages. Probit model estimation is employed to examine how foreign investment influences the innovation activity of local companies.FindingsWhile there are a small number of firms carrying out R&D activities in Vietnam, foreign or joint domestic–foreign venture firms are less inclined than domestic firms to undertake R&D. Domestic factors that include capital, labor quality, location and export status of firm have a significant effect on the decision of domestic firms to participate in R&D activity. Only forward linkages and the gross firm output are found to have an impact on the R&D intensity of domestic enterprises, while other factors appear to have no significant influence on how much firms spend on R&D activities.Practical implicationsIn order to promote the R&D activity of domestic firms, policy should focus on (1) the backward linkages between local firms in downstream sectors with their foreign suppliers in upstream sectors, and (2) the internal factors such as labor, capital or location that affect the decisions made by domestic firms.Originality/valueGiven that foreign investment may affect R&D and innovation activity of local firms in host countries, the impact is relatively unexplored for many emerging economies and not so in the case of Vietnam. The availability of a unique survey on Vietnamese firm technology and competitiveness provides the opportunity to address this gap in the literature.

scholarly journals A History of FDI in Hydropower Development in Nepal

2016 ◽  
Vol 18 ◽  
pp. 22-24 ◽  
Author(s):  
Kamal Raj Dhungel
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Foreign Investment ◽  
Direct Investment ◽  
Hydropower Project ◽  
Hydropower Development ◽  
History Of

In Nepal, hydropower is an obvious target for foreign aid and foreign investment. To date, a number of notable hydropower projects were constructed through foreign aid and that history dates back to 1911, when the Britain supported the Pharping hydropower project near Kathmandu. Today, India, China, USA and Norway are investigating the prospects for Nepali hydropower development. This paper traces this history of Foreign Direct Investment (FDI) in Nepal. HYDRO Nepal Journal of Water Energy and EnvironmentVolume- 18, 2016, JanuaryPage -22 to 24

scholarly journals Foreign Capital Inflows and Growth of Employment In India: An Empirical Evidence from Public and Private Sector

2016 ◽  
Vol 8 (2) ◽  
pp. 189
Author(s):  
Narender Khatodia ◽  
Raj S. Dhankar
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Direct Investment ◽  
Foreign Capital ◽  
Positive Impact ◽  
Capital Inflows ◽  
Public And Private ◽  
Indian Economy ◽  
Foreign Capital Inflows ◽  
Public And Private Sector

The role of foreign capital in economic growth has been a burning topic of debate in countries world over including India. It is not possible for a developing country like India to grow without sufficient foreign capital inflow, technology and employment generation. The Indian government has taken many initiatives to attract foreign investment to boost the Indian economy since the liberalization process started in 1991. As a result, India has received Foreign Direct Investment (FDI) to the tune of US $ 380215 million by the end of June 2015. This study has assessed the growth of employment in public and private sector by the flow of foreign capital, comprising of Foreign Direct Investment, Foreign Portfolio Investment (FPI), External Commercial Borrowings (ECBs), and NRI Deposits in India during the period 1991 to 2012. The study has also analyzed the trends of employment in public and private sectors of Indian economy. We find that overall foreign capital inflows, except for the FPI and NRI deposits, have a significant positive impact on the growth of private sector employment.

scholarly journals Allocation of foreign direct investment across brazilian states

2013 ◽  
Vol 43 (2) ◽  
pp. 241-269 ◽  
Author(s):  
Maurício Mesquita Bortoluzzo ◽  
Sergio Naruhiko Sakurai ◽  
Adriana Bruscato Bortoluzzo
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Foreign Investment ◽  
Direct Investment ◽  
Transport Infrastructure ◽  
Market Size ◽  
Consumer Market ◽  
Determining Factors ◽  
Econometric Study

Foreign direct investment (FDI) has become increasingly important for the Brazilian economy: the ratio of FDI inflow to the country's gross domestic product (GDP) increased from a 0.6% average in the 1980's to 2.5% from 2001 to 2010, according to data from UNCTAD. However, there is great inequality in the distribution of this investment among Brazilian federation units. This study aims at investigating the determining factors for the location of foreign direct investment across Brazilian states, based on an econometric study with panel data for the years 1995, 2000 and 2005. The results showed that foreign investment responded positively to consumer market size, quality of labor and transport infrastructure, but negatively to cost of labor and tax burden.

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