scholarly journals Labor Productivity and Foreign Direct Investment in the Indonesian Manufacturing Sector

2019 ◽  
Vol 8 (1) ◽  
pp. 9-22 ◽  
Author(s):  
Luhur Selo Baskoro ◽  
Yonsuke Hara ◽  
Yoshihiro Otsuji
Keyword(s):  
Foreign Direct Investment ◽  
Labor Productivity ◽  
Direct Investment ◽  
Social Protection ◽  
Manufacturing Sector ◽  
Random Effect ◽  
Effect Analysis ◽  
Positive Externalities ◽  
Random Effect Analysis

This paper investigates the determinants of foreign direct investment (FDI) inflow, focusing on the effect of labor productivity in the Indonesian manufacturing sector. Indonesia has the advantage of abundant labor supply in attracting FDI to bring positive externalities to its economy. Based on this background, this paper is aimed to study and to improve FDI inflow through a random effect analysis of 19 manufacturing industries from 2001 to 2014. The empirical result shows that labor productivity, wages, and export have become significant factors that attract FDI. FDI inflow in this sector tends to target non-labor industries. For the labor-intensive industries, the primary strategy is to increase labor quality through improvement in education, training, internship program, and worker certification. Improving research and development climate, and maintaining the quality of labor through health and social protection regulation can attain improvement in non-labor intensive industries.

FACTORS AFFECTING FOREIGN DIRECT INVESTMENT IN MALAYSIA'S MANUFACTURING SECTOR: AN ANALYSIS ACROSS STATES

2012 ◽  
Vol 57 (04) ◽  
pp. 1250015 ◽  
Author(s):  
NOOR AL-HUDA ABDUL KARIM ◽  
EUAN FLEMING
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Labor Productivity ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Market Demand ◽  
Fdi Inflows ◽  
Factors Affecting ◽  
Industrial Estates ◽  
Socio Economic Development

This paper examines the effects of market demand, labor productivity, socio-economic development and provision of industrial estates on foreign direct investment (FDI) across 13 states and 1 federal territory in Malaysia. The analysis uses FDI data of the manufacturing sector and data on independent variables for the years 1990, 1995, 2000 and 2005. Results indicate positive relationships between these factors and FDI inflows in the manufacturing sector. FDI inflows are found to be most sensitive to labor productivity and GDP. The significance of socio-economic development for FDI is viewed in a long-term perspective.

Service Quality Of Industrial Parks In The View Of Foreign Direct Investment Firms

2019 ◽  
Vol 118 (11) ◽  
pp. 552-562
Author(s):  
Nguyen Thi Ngan ◽  
Bui Huy Khoi
Keyword(s):  
Foreign Direct Investment ◽  
Service Quality ◽  
Direct Investment ◽  
Reliability And Validity ◽  
Quantitative Model ◽  
Industrial Park ◽  
Industrial Parks ◽  
Average Variance ◽  
Composite Reliability

This research aims to assess the service quality of industrial parks (IP) in the view of FDI (foreign direct investment) firms in Vietnam. Data was collected from 270 FDI firms in Vietnam - Singapore Industrial Parks (VSIP) in Vietnam. The proposed research model was based on researches on service quality. Cronbach's Alpha Average Variance Extracted (Pvc),rho (ρA), and Composite Reliability (Pc) tested the reliability and validity of the scale. The analysis results showed that four factors were affecting the servicequality of industrial park in Vietnam being tangibleof VSIP, reliability of VSIP, the empathyof FDI investors, and their assurance. The responsivenessof VSIP did not affect the servicequality of the industrial park. Contents of the article focus on two main issues: the analysis framework of the quantitative model and implicating results todevelop the industrial park services. The limitation of the research was only in VSIP in Vietnam.

FOREIGN DIRECT INVESMENT OUTFLOWS AND ENVIRONMENTAL POLLUTION: HIDDEN COINTEGRATION ANALYSIS FOR TURKEY

2021 ◽  
Vol 6 (11) ◽  
pp. 165-182
Author(s):  
Ahmet Emrah TAYYAR
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Environmental Quality ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Causality Relationship ◽  
Cointegration Relationship

The relationship between foreign direct investment, which is a type of cross-border and long-term investment, and environmental quality is a current issue that is heavily debated. Foreign direct invesments can ensure economic growth and development of countries, while also causing a change in environmental quality. In the research conducted, it is seen that changes in carbon dioxide emissions with foreign direct capital inflows are mainly investigated from the point of view of the host countries. However, foreign direct invesment outflows may have an impact on the environmental quality of the home country. Because foreign direct invesment outflows can enable the transfer of more environmentally friendly techonogies to the country and strengthen management skills. The impact of foreign direct investment outflows on the home country's environmental pollution is shaped by many factors (scale, technique, and composition effects). In addition to these effects, it is necessary to pay attention to the regional and sectoral distribution of capital outflows. The main aim of this study is to examine the links between Turkey's foreign direct invesment outflows and carbon dioxide emissions for the period 1990-2018. For this reason, a unit root test was applied to variables whose natural logarithm was taken. Tests showed that all series are stable of the same degree. Engle&Granger(1987) and Granger&Yoon(2002) tests were used to determine the cointegration relationship between variables. The crouching error correction model(CECM) was applied to determine the causality relationship. According to the results of the analysis; i) In terms of the Engle&Granger(1987) test, there was no long-term relationship between variables. ii) According to the Granger&Yoon(2002) test, it was determined that there is a bidirectional hidden cointegration relationship between the positive shocks of carbon dioxide emissions and negative shocks of foreign direct invesment outflows. iii) There is a bidirectional asymmetric causality relationship between the positive shocks of carbon dioxide emissions and the negative shocks of foreign direct invesment outflows. iv) It is observed that 1% negative shocks in foreign direct invesment outflows reduce positive shocks in carbon dioxide emissions by 0,26%. As a result, since negative situations in foreign direct invesment outflows have an effect on improving the quality of the environment, the environmental dimension should be taken into account in the policies to be made.

India’s vaccine diplomacy brings money and influence

2021 ◽  
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
The United States ◽  
Active Pharmaceutical Ingredients ◽  
Content Type ◽  
Pharmaceutical Ingredients ◽  
The World

Significance Last week, its partners in the ‘Quad’ grouping -- the United States, Japan and Australia -- agreed to help increase its vaccine manufacturing and exporting capacity. Each of the Quad members is wary of China, which like India is gifting and selling coronavirus jabs around the world. Impacts India’s manufacturing sector will attract more foreign direct investment. Greater cooperation over supply chains will help strengthen India-Australia ties. Indian pharma will in the long term aim to ease dependence on imports of active pharmaceutical ingredients from China.

Pengaruh Pertumbuhan Ekonomi, Foreign Direct Investment dan Tax Rate Terhadap Penerimaan PPh Badan Negara ASEAN

2020 ◽  
Vol 5 (4) ◽  
pp. 325-342
Author(s):  
Merry Inriama ◽  
Milla Sepliana Setyowati
Keyword(s):  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Random Effect ◽  
Random Effect Model ◽  
Least Square ◽  
Domestic Product ◽  
Tax Rate ◽  
Effect Model

Keterbukaan perekonomian menjadi penentu yang penting dalam pertumbuhan ekonomi. Kondisi perekonomian suatu negara dapat memberi dampak terhadap penerimaan sektor perpajakan. Hal ini dapat dilihat dari salah satu penerimaan pajak suatu negara yaitu melalui penerimaan PPh Badan. Tujuan dalam penelitian ini adalah untuk menganalisis pengaruh pertumbuhan ekonomi yang diukur dengan Gross Domestic Product (GDP), Foreign Direct Investment (FDI), dan Tax Rate terhadap besarnya penerimaan PPh Badan (CIT) dalam kasus lima negara ASEAN selama periode 1999-2018. Metode penelitian ini dilakukan dengan menggunakan regresi data panel dengan estimasi Random Effect Model atau Generalized Least Square (GLS) dengan program Eviews. Hasil penelitian ini secara simultan menunjukkan bahwa variabel independen yaitu GDP, FDI, dan tax rate memiliki pengaruh yang signifikan terhadap variabel dependen yaitu penerimaan PPh Badan (CIT). Secara parsial PDB dan tax rate memiliki pengaruh positif dan signifikan yang artinya kenaikan atau penurunan GDP dan tax rate akan mempengaruhi kenaikan atau penurunan penerimaan PPh Badan (CIT), sedangkan FDI tidak memiliki pengaruh terhadap penerimaan PPh Badan (CIT). Melalui penelitian ini diharapkan dapat mengukur variabel-variabel yang memiliki pengaruh terhadap penerimaan PPh Badan, sehingga penerimaan PPh Badan dapat ditingkatkan.

The determinants of foreign direct investment: what about the potential of the Arab Maghreb countries?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hamdi Khalfaoui ◽  
Abdelkader Derbali
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Stability ◽  
The United States ◽  
Investment Risk ◽  
Content Type ◽  
Foreign Companies ◽  
Main Determinants ◽  
General Method Of Moments

Purpose The purpose of this paper is to elucidate the main determinants of foreign direct investment (FDI) in the case of the Arab Maghreb countries. Design/methodology/approach We employ a dynamic panel analysis using the General Method of Moments for a sample composed of 105 countries over the period 1985–2018. Findings We show that FDI stability, market size, higher education enrolment, quality of institutions, distance, sharing of common border, and bilateral investment and integration agreements are the main determinants of FDI location. These determinants are neither general. The potential for attracting FDI from AMU countries is poorly exploited. FDI to the AMU is lower than estimated stock. The observed FDI to potential FDI ratio does not exceed 87%. France and Spain are the main investors in the AMU region thanks to historical and cultural links. The FDI from the United States, Canada, Germany, Belgium, and Japan are below what is expected. Originality/value The contribution of this paper is observed on the examining oh the determinants of the FDI in the Arab Maghreb countries. Our study demonstrate that the political stability can decrease investment risk in these countries. The administrations correspondingly require expanding their rules and strategies with union demonstrations which were at the beginning of the departure and closing of several foreign companies.

scholarly journals Foreign Direct Investment, Economic Freedom and Economic Growth: Evidence from Developing Countries

2016 ◽  
Vol 8 (11) ◽  
pp. 200 ◽  
Author(s):  
Md. Shakib Hossain
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Standard Deviation ◽  
Poisson Regression ◽  
Direct Investment ◽  
Economic Freedom ◽  
Random Effect ◽  
Estimating Equation ◽  
Generalized Estimating Equation

<p class="Default">This paper has explores the interplay between economic freedom, foreign direct investment and economic growth using panel data analysis for a sample of 79 developing countries from 1998 to 2014 by considering the level of economic freedom, as provided by the “Heritage Foundation”. Panel unit root, pedroni residual co-integration test, generalized least square (GLS), feasible GLS (FGLS), pooled OLS, random effect, fixed effect, poisson regression, prais-winsten, generalized method of movement (GMM) and generalized estimating equation (GEE) methods have used to estimates the relationship. According to the OLS and generalized method of movement the coefficient implies that a one standard deviation improvement in business freedom, trade freedom, size, investment freedom, property rights, freedom from corruption, labor freedom, financial freedom, fiscal freedom, monetary freedom increases FDI by 21.4%, 15.6%, 21.6%, 17.5%, 11.55, 9.1%, 6.9%, 8.5%, 7.4%, 10.3% and 56.1%, 45.3%, 58.3%, 51.6%, 33.7%, 39.2%, 47.4%, 41.6%, 32.5%, 38.5% points respectively and  for the economic variable ,the coefficient implies that a one standard deviation improvement in GDPG and GDPPC increases FDI by 24.1%, 17.4% and 30.2%, 33.4% points respectively. By using the other method like random effect, fixed effect, poisson regression, prais-winsten and generalized estimating equation (GEE) method explores that economic freedom in the host country is a positive determinants of FDI inflows in developing countries and also the result suggests that foreign direct investment is positively correlated with the economic growth in the host countries.</p>

scholarly journals Towards the attainment of sustainable development goal 7: what determines clean energy accessibility in sub-Saharan Africa?

Green Finance ◽  
2021 ◽  
Vol 3 (3) ◽  
pp. 268-286
Author(s):  
Paul Adjei Kwakwa ◽  
◽  
Frank Adusah-Poku ◽  
Kwame Adjei-Mantey ◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Random Effect ◽  
Clean Energy ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Political Regime ◽  
Sub Saharan

<abstract> <p>Access to clean energy is necessary for environmental cleanliness and poverty reduction. That notwithstanding, many in developing countries especially those in sub-Saharan Africa region lack clean energy for their routine domestic activities. This study sought to unravel the factors that influence clean energy accessibility in sub-Saharan Africa region. Clean energy accessibility, specifically access to electricity, and access to clean cooking fuels and technologies, were modeled as a function of income, foreign direct investment, inflation, employment and political regime for a panel of 31 sub-Saharan countries for the period 2000–2015. Regression analysis from fixed effect, random effect and Fully Modified Ordinary Least Squares show that access to clean energy is influenced positively by income, foreign direct investment, political regime and employment while inflation has some negative effect on its accessibility. The policy implications from the findings among other things include that expansion in GDP per capita in the sub-region shall be helpful in increasing accessibility to clean energy. Moreover, strengthening the democratic institutions of countries in the region shall enhance the citizens' accessibility to clean energy. Ensuring sustainable jobs for the citizens is necessary for access clean energy.</p> </abstract>

Sign in / Sign up

Export Citation Format

Share Document