scholarly journals A PANEL ANALYSIS FOR DETERMINING THE VARIABLES AFFECT FDI INFLOWS TOWARDS FRAGILE FIVE COUNTRIES

2020 ◽  
Vol 8 (1) ◽  
pp. 519-540
Author(s):  
Fatih AYHAN ◽  
Feyza BALAN ◽  
Yüksel Akay UNVAN
Keyword(s):  
Developing Countries ◽  
Panel Data Analysis ◽  
Least Square ◽  
Political Freedom ◽  
Panel Analysis ◽  
Fdi Inflows ◽  
Complex Product ◽  
Ordinary Least Square ◽  
Export Shares ◽  
Political Conditions

Globalization is increasing since the mid-1990s. Along with the globalization, increased international trade caused the foreign direct investment (FDI) inflows for economies. Economists often emphasize that FDI contributes developing countries to confront the international competition by boosting their economy, increasing productivity and export capacity. This paper aims to investigate the factors that affect the FDI flows towards the Fragile Five countries (Turkey, Brazil, India, Indonesia, South Africa) for 1994-2017 through panel data analysis. The results from the panel ordinary least square indicate that political freedom as a proxy variable of institutional quality, real exchange rate, and the degree of productive knowledge and capability of the Fragile Five countries are statistically significant determinants of FDI attraction. Thus, developing countries, aiming to increase FDI inflows have to strengthen their political conditions and stabilization of their exchange rates. As well as, it is important to increase these countries’ export shares of the more complex product in order to be able to attract more FDI.

FDI Inflow, ICT Expansion and Economic Growth: An Empirical Study on Asia-Pacific Developing Countries

2019 ◽  
pp. 097215091987383 ◽  
Author(s):  
Madhabendra Sinha ◽  
Partha Pratim Sengupta
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Economic Effects ◽  
Least Square ◽  
Asia Pacific ◽  
Fdi Inflows ◽  
Ordinary Least Square ◽  
Pooled Mean Group ◽  
Information And Communication

This article attempts to examine the dynamic interrelationships among foreign direct investment (FDI) inflows, information and communication technology (ICT) expansion and economic growth empirically in the Asia-Pacific developing countries over the period of 2001–2017. Besides the significant economic effects of FDI inflows, several existing evidence also documents that progress of ICT plays a crucial role in promoting the productivity and efficiency particularly in developing economies during the present period, implying that ICT should be incorporated in a wide discussed FDI and economic growth relationship as per current necessitate. Moreover, different theories and empirics refer that FDI and ICT are also interrelated in various ways. In this context, 30 developing countries are chosen from the Asia-Pacific region to conduct some advanced panel data econometric exercises using the World Bank (2018) and World Telecommunication Indicators (2018) databases. Empirical estimations applying the panel fully modified ordinary least square, dynamic ordinary least square, pooled mean group estimator, mean group estimator and dynamic fixed effect methods reveal that both FDI and ICT have positive and significant effects on economic growth, and ICT expansion also positively influences FDI inflows in those countries. So, the ICT should be improved more as an infrastructure to receive more FDI inflows and also to experience better economic growth.

scholarly journals Renewable Energy Development as a Driver of Economic Growth: Evidence from Multivariate Panel Data Analysis

2019 ◽  
Vol 11 (8) ◽  
pp. 2418 ◽  
Author(s):  
Nadia Singh ◽  
Richard Nyuur ◽  
Ben Richmond
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Renewable Energy ◽  
Energy Production ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Least Square ◽  
Renewable Energy Production ◽  
The Future ◽  
The Impact

Renewable energy is being increasingly touted as the “fuel of the future,” which will help to reconcile the prerogatives of high economic growth and an economically friendly development trajectory. This paper seeks to examine relationships between renewable energy production and economic growth and the differential impact on both developed and developing economies. We employed the Fully Modified Ordinary Least Square (FMOLS) regression model to a sample of 20 developed and developing countries for the period 1995–2016. Our key empirical findings reveal that renewable energy production is associated with a positive and statistically significant impact on economic growth in both developed and developing countries for the period 1995–2016. Our results also show that the impact of renewable energy production on economic growth is higher in developing economies, as compared to developed economies. In developed countries, an increase in renewable energy production leads to a 0.07 per cent rise in output, compared to only 0.05 per cent rise in output for developing countries. These findings have important implications for policymakers and reveal that renewable energy production can offer an environmentally sustainable means of economic growth in the future.

Relative institutional quality and FDI inflows in ASEAN countries

2017 ◽  
Vol 44 (1) ◽  
pp. 115-137 ◽  
Author(s):  
Tajul Ariffin Masron
Keyword(s):  
Multinational Corporations ◽  
Relative Effectiveness ◽  
Institutional Quality ◽  
Least Square ◽  
Limited Information ◽  
Fdi Inflows ◽  
Content Type ◽  
Ordinary Least Square ◽  
Asean Countries

Purpose Foreign direct investment (FDI) inflows into any country, especially ASEAN countries, is affected by any improvement in the institutional quality (IQ) of competitors such as China. As generally investors make decisions by comparing two countries’ IQ, the ratio of two countries’ IQ matters more than a single country’s IQ. The purpose of this paper is to re-examine the role of IQ on FDI inflows in ASEAN countries for the period 1996-2013. Design/methodology/approach With limited information on IQ, this study pools eight ASEAN countries as the sample for analysis from 1996 until 2013. A panel dynamic approach – namely, dynamic ordinary least square and fully modified ordinary least square – is utilized. Findings This study confirmed that relative IQ significantly affects FDI inflows into ASEAN countries. The low effect is more reflective of the small portion of world FDI inflows into the ASEAN region. Research limitations/implications This study observes the crucial relationship between IQ and FDI – that the relative effectiveness of IQ in attracting FDI inflows depends heavily on the changes in both countries’ IQ. Hence, the effort of ASEAN countries to improve IQ and use it as a means to lure FDI inflows should go beyond a mere improvement. Focus should be on significant improvement of IQ so that multinational corporations will comfortably remain or inject new FDI into the country. Practical implications Every ASEAN country should double their efforts toward improving their IQ in order to attract future FDI. Originality/value Several studies have confirmed the role of IQ on FDI inflows. However, the majority of these studies have investigated the effect of IQ exclusively for a specific country even though some of them have used a panel of several countries’ data. On the other hand, investors normally evaluate their decision on whether or not to invest based on the relative terms, comparing several potential locations of investment at once. This study can be considered the first to explore the potential effect of IQ after taking into account the possibility of each ASEAN country’s IQ being easily offset by changes in the IQ of China.

scholarly journals The Role of Foreign Direct Investment Inflows in Economic Growth in Malaysia

2021 ◽  
Vol 4 (2) ◽  
pp. g11-17
Author(s):  
Tien Siew
Keyword(s):  
Economic Growth ◽  
Unit Root ◽  
Direct Investment ◽  
Unit Root Test ◽  
Granger Causality Test ◽  
Least Square ◽  
Causality Test ◽  
Fdi Inflows ◽  
Ordinary Least Square ◽  
The Relationship

The purpose of this study is to investigate the relationship between the inflows of Foreign Direct Investment (FDI) and economic growth in Malaysia. The sample collected for this empirical study covered 30 years of data from 1991 to 2020. The secondary data was collected annually and a total of 30 observations were taken for each variable. Ordinary Least Square (OLS) regression, unit root test, several diagnostic tests and Granger causality test were used in this research to investigate the relationship between FDI inflows and economic growth. Eviews 11 was used to analyze the time series data throughout all the tests. The result showed that the inflows of FDI has a significant negative relationship with economic growth and there is no causal relationship between FDI and Gross Domestic Product (GDP). Keywords: Economic growth, FDI inflows, Granger Causality Test, Ordinary Least Square regression, Unit Root Test

scholarly journals Does Credit Rating Matter on Risk Disclosure?

2021 ◽  
Vol 39 (12) ◽  
Author(s):  
Bunyamin Bunyamin ◽  
Dwi Nita Aryani ◽  
Imama Zuchroh ◽  
Suko Raharjo
Keyword(s):  
Data Analysis ◽  
Annual Report ◽  
Credit Rating ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Least Square ◽  
Hypotheses Testing ◽  
Risk Disclosure ◽  
Ordinary Least Square ◽  
Public Banks

This research investigates the partial and simultaneous the influence of leverage, profitability, credit rating on risk disclosure. This research involved thirteen public banks on the Indonesia Stock Exchange in 2014-2019. Risk disclosure is measured by counting risk keywords in each annual report. The panel data analysis was employed to test the effect of Leverage (X1), Profitability (X2), and Credit Rating (X3) on Risk Disclosure (Y). Hypotheses testing used multiple linear regression or OLS (Ordinary Least Square). The finding indicates that Leverage and Credit Rating do not influence Risk Disclosure. Leverage, Profitability, and Credit Rating simultaneously influence Risk Disclosure. 

scholarly journals The Impact of CSR on Corporate Value of Restaurant Businesses Using Triple Bottom Line Theory

2021 ◽  
Vol 13 (4) ◽  
pp. 2131
Author(s):  
Jimin Shim ◽  
Joonho Moon ◽  
Won Seok Lee ◽  
Namho Chung
Keyword(s):  
Panel Data Analysis ◽  
Triple Bottom Line ◽  
Least Square ◽  
Bottom Line ◽  
Theoretical Contribution ◽  
Ordinary Least Square ◽  
Line Theory ◽  
Restaurant Firms ◽  
Corporate Social ◽  
The Impact

The main goal of this study was to investigate the association between corporate social responsibility (CSR) and the value of restaurant firms by employing triple bottom line theory, a framework for a business model of sustainable development focusing on profit, environment, and people rather than just maximizing profit. Even though triple bottom line has been a common theoretical foundation in the CSR area, there is sparse literature on the theory in the context of CSR in the restaurant domain. Data regarding CSR dimensions and market-to-book value from 32 publicly traded restaurant firms in the US stock market for the period 1999–2012 were gathered, and panel data analysis methods of ordinary least square, one-way fixed effect, and time series feasible generalized least square were employed. The results revealed that economic CSR enhanced restaurant value, whereas environmental CSR diminished the value. The theoretical contribution of this study is that it will broaden the scope of triple bottom line theory. The results of the study will help restaurant administrators determine CSR policy.

scholarly journals Foreign direct investment and pollution havens: evidence from African countries

2020 ◽  
Vol 7 (12) ◽  
pp. 244-252
Author(s):  
SAID GHARNIT ◽  
Mohamed Bouzahzah ◽  
Jihad Ait Soussane
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Least Square ◽  
Pollution Haven Hypothesis ◽  
African Countries ◽  
Fdi Inflows ◽  
Ordinary Least Square ◽  
Long Run

This study examines the relationship between foreign direct investment (FDI) inflows and carbon dioxide emissions (CE) in order to investigate the validity of the pollution haven hypothesis for 54 African countries, using cointegration approach with dynamic panel data over the period 1960-2018. Based on the panel cointegration analysis, it was concluded that the variables are cointegrated. Moreover, the Dynamic Ordinary Least Square (DOLS) and Fully Modified Ordinary Least Square (FMOLS) results showed that foreign direct investment inflows have a long-run positive relationship with carbon dioxide emissions. Furthermore, according to Granger-Engle causality test results, FDI inflows and carbon dioxide emissions have a positive causal relationship, for both short-run and long-run. Thus, the results of this study validate the pollution haven hypothesis in the African countries. Nevertheless, it is recommended to keep attracting foreign direct investment inflows alongside of implementing mechanisms and instruments for reducing the CO2 emissions under strong environmental policies.

scholarly journals An Impact Assessment of Expected Future Turmoil Risk on FDI: A Panel Data Analysis of Developing Countries

2014 ◽  
Vol 19 (2) ◽  
pp. 101-128 ◽  
Author(s):  
Mahvish Faran
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Data Analysis ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Gdp Per Capita ◽  
Democratic Accountability ◽  
Fdi Inflows ◽  
Per Capita ◽  
Very High

This paper uses foreign direct investment (FDI) data from 39 developing countries for the period 2002–11 to explore whether the expected future turmoil risk of a country plays a significant role in determining FDI. It concludes that countries for which the expected future turmoil risk is very high are likely to have lower FDI inflows than countries for which the expected future turmoil risk is low, keeping all other factors constant. The results also illustrate that GDP per capita, democratic accountability, religious tension, and FDI inflows in the previous period are important determinants of FDI in developing countries.

scholarly journals THE EFFECT OF FOREIGN DIRECT INVESTMENT ON TAX REVENUE IN DEVELOPING COUNTRIES

2020 ◽  
Vol 13 (1) ◽  
pp. 83-95
Author(s):  
Arif Widya Pratomo
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Political Stability ◽  
Least Square ◽  
Tax Revenue ◽  
Positive Correlation ◽  
Independent Variable ◽  
Direction Effect

The objective of this research paper is to study the effect of Foreign Direct Investment (FDI) on tax revenue in developing countries. FDI net inflow, greenfield, and brownfield FDI are selected as the independent variable, and tax revenue and its types are chosen as the dependent variable. Using panel data analysis, this research finds that FDI net inflow has a positive correlation on total tax revenue, corporate tax revenue, individual tax revenue, and VAT revenue. However, the effect of FDI net inflow on property tax revenue is not statistically significant. This research also finds that in the developing countries, the greenfield FDI has a beneficial effect on tax revenue while brownfield FDI tend to erode tax revenue. To deal with the possibility of endogeneity problems, this research uses “political stability and absence of violence” index as an instrumental variable and conducts a two-stage least square (2SLS) regression to estimate the parameter. The result shows that FDI has a positive correlation on total tax revenue, but not significant. However, the endogeneity test shows that the endogeneity problem is less likely to exist. To conclude, FDI and tax revenue tend to have only one direction effect from FDI to tax revenue.

scholarly journals The Determinants of Tax Buoyancy: An Experience from the Developing Countries

1994 ◽  
Vol 33 (4II) ◽  
pp. 1089-1098 ◽  
Author(s):  
Qazi Masood Ahmed
Keyword(s):  
Developing Countries ◽  
Industrial Sector ◽  
Least Square ◽  
Exogenous Variables ◽  
Ordinary Least Square ◽  
Agriculture Sector ◽  
Model Section ◽  
1960S And 1970S ◽  
Predicted Values ◽  
The 1960S

International comparison of fiscal efforts of developing countries was a fascinating area of public finance in the 1960s and 1970s. The famous studies in this area were Harley (1965); Lotz and Morss (1967); Raja (1971); Raja et al. (1975) and Roy (1979). Most of these studies used ordinary least square (OLS) technique to estimate the determinants of the total tax to GDP ratio and the most common exogenous variables used by these studies were share of agriculture sector, share of industrial sector, share of foreign trade and per capita income. Some studies used the level of monetisation, somes used the. level of education and other used the level of urbanisation as exogenous variables in the estimation of tax potential of different developing countries. The present study instead of exploring the determinants of tax to GDP ratio attempts to explore the determinants of buoyancy of the taxes i.e. the total taxes, direct taxes and indirect taxes. The buoyancy of a tax measures the total response of tax revenue to change in income. The scope of the study also includes the ranking of developing countries on the basis of actual to predicted values of these buoyancies. The study would have been more useful if the study could fmd the determinants of the elasticity of these taxes, but due to nonavailability of data on the discretionary measures for each tax this was not feasible. The paper is organised as follows, Section I describes the theoretical basis of the model, Section II gives methodology and data collection, Section III gives results of the model and Section IV summarises the main conclusions.

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