scholarly journals Foreign direct investment in the storm of the COVID-19 pandemic and the example of Visegrad countries

2021 ◽  
Vol 71 (S1) ◽  
pp. 73-92
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Framework ◽  
Host Countries ◽  
Geographical Patterns ◽  
Investment Promotion ◽  
International Production ◽  
The Impact ◽  
Perfect Storm ◽  
Visegrád Countries

Abstract The immediate effects of COVID-19 on the global flows of foreign direct investment (FDI) were devastating, resulting in a large drop. Flows to the Visegrad countries were also affected but less than the world average. The fall in FDI was the result of underlying trends that started before the pandemic but accentuated by the latter, creating a “perfect storm”. These secular trends include the digitalisation of production and the birth of Industry 4.0, resulting in more asset-light international production and reorganisations of company networks, the sustainability imperative, making the impact of FDI more relevant than its quantity, and a slowdown in the liberalisation of the policy framework for FDI both in individual countries and at the multilateral level. The recovery of FDI from the shock of 2020 is expected to be long and it will be impossible to return to the pre-pandemic structural and geographical patterns. Building resilience and diversification of production at the expense of the search for the lowest-cost locations will be the top priorities of investors, forcing the host countries to revise their investment promotion strategies focused on cost reduction. In the Visegrad countries, the model based on low labour costs will sooner or later reach its limits.

scholarly journals Impact of Foreign Direct Investment Inflows on Economic Growth; the Case of the Republic of Seychelles

2019 ◽  
Author(s):  
Yusheng Kong ◽  
Sampson Agyapong Atuahene ◽  
Geoffrey Bentum-Mican ◽  
Abigail Konadu Aboagye
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Square ◽  
Small Island ◽  
Host Countries ◽  
Fdi Inflows ◽  
Economic Trends ◽  
The Republic ◽  
The Impact

This paper aims to research whether there is link between FDI inflows and Economic growth in the Republic of Seychelles Island. The ordinary least square results obtained shows that in the impact of FDI inflows on economic growth is low. Small Island Developing States attracts less FDI inflow because they are limited to few resources that attracts overseas firms which results in retarded development. The research lighted that impact of foreign direct investment on host countries does not only depend on the quality and quantity of the FDI inflows but some other variables such as the internal policies and the management skills, market structures, economic trends among others.

Foreign Direct Investment and the Flying Geese Model: Japanese Electronics Firms in Asia-Pacific

2000 ◽  
Vol 32 (2) ◽  
pp. 281-304 ◽  
Author(s):  
David W Edgington ◽  
Roger Hayter
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Asia Pacific ◽  
Critical Examination ◽  
Host Countries ◽  
Billiard Ball ◽  
Firm Level ◽  
Geographical Patterns ◽  
Japanese Fdi

This paper is a critical examination of the ‘flying geese’ and ‘billiard ball’ models of foreign direct investment (FDI) and their ability to explain the spatial expansion of Japanese electronics multinationals (MNCs) in Asia-Pacific countries from 1985 to 1996. Data on Japanese FDI are analyzed in this region at the aggregate, sectoral, and firm level. The paper commences with a review of the flying geese model, especially that version which interprets Japanese FDI as a catalyst for Asian development, and the billiard ball metaphor which suggests a mechanism for host countries to ‘catch up’ with Japan. The authors then turn to an analysis of Japanese FDI in Asia-Pacific together with employment data for fourteen major firms. This allows an evaluation of the two models in terms of recent geographical patterns of investment and employment growth by electronics MNCs. A special case study of Matsushita Electric Industrial Co. Ltd (MEI) helps flesh out the evolving geography of Japanese electronics firms in Asia-Pacific. Although the results support the overall patterns suggested by the two models, the authors argue that metaphors and analogies such as flying geese and billiard balls should not be used casually and as a substitute for analysis.

scholarly journals The Impact and Contribution of FDI to Saudi Economy During King Abdullah Regime

2020 ◽  
Vol 11 (6) ◽  
pp. 37
Author(s):  
Khaled Jadeaf Alanazi ◽  
Salawati Mat Basir
Keyword(s):  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Regulatory Environment ◽  
Investment Promotion ◽  
Incentive Policies ◽  
The Government ◽  
The Impact ◽  
Opening Up

Foreign Direct Investment resulted in the disclosure of different investment chances and opportunities through active investment promotion agencies. A country must execute various reforms capable of improving the fundamental determinants of FDI for achieving a high percentage of Foreign Direct Investment. These reforms among others include improving investment laws, reducing political risk and level of corruption, establishing a consistent legitimate and regulatory environment, freeing repatriation of funds and capital, as well as opening up to international trade. Saudi Arabia adopted generous incentive policies for attracting foreign capital and invite Foreign Direct Investment during king Abdullah regime. These policies present positive incentives while eliminating negative disincentives. Positive incentives consist free custom duties, reductions of tax and export zones, by the government of Saudi Arabia. Disincentives elimination to investments indicates the removal of overlong and rigid systems as they can delay visas issuance, restraint travel and complicate the licensing and registration of a project. This paper discusses the impact of FDI on Saudi economy during King Abdullah regime and finally, ascertains the contribution of FDI to Saudi Economy during King Abdullah regime.

Foreign Direct Investment as a Development Strategy

2013 ◽  
pp. 13-29 ◽  
Author(s):  
E. Nur Ozkan-Gunay ◽  
Yusuf Cukurcayir
Keyword(s):  
Foreign Direct Investment ◽  
Development Strategy ◽  
Direct Investment ◽  
New Technologies ◽  
Knowledge Spillovers ◽  
Spillover Effects ◽  
Innovation Capability ◽  
Host Countries ◽  
Innovative Capability ◽  
The Impact

This chapter investigates the spillover effects of Foreign Direct Investment (FDI) on innovation capability in four competing emerging economies in the district of Eastern Europe, the Czech Republic, Hungary, Poland, and Turkey, for the period 1995-2008. Panel data models are employed to test two competing hypotheses regarding the impact of FDI on innovation capability: it may improve the innovation capability of host countries via spillover channels, or may lead to the crowding-out effect through the importation of technologies via joint ventures. The empirical evidence corroborates that FDI inflows generate spillover effects on domestic innovation capability in competing emerging countries, supporting the hypothesis that inward FDI brings knowledge spillovers, new technologies, and products into the host country and promotes the innovation capability of domestic firms. In addition, the level of human capital stock and qualified researchers play a crucial role in stimulating innovative capability and technological progress.

COMPLEMENTARITY OF FDI AND EMPLOYMENT GENERATION IN THE AGRICULTURE SECTOR OF GHANA: ANALYSIS OF RECENT DEVELOPMENTS

2020 ◽  
Vol 11 (1) ◽  
pp. 47-60
Author(s):  
Evans Yeboah
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
High Rate ◽  
Agriculture Sector ◽  
Investment Promotion ◽  
Recent Developments ◽  
Employment Generation ◽  
Using Data ◽  
Agriculture Products ◽  
The Impact

Foreign direct investment inflows into Ghana have been a major source of economic growth transformation. Many investing countries aspire to provide Ghana’s economy with new models and direction for development alternatives to foreign aid which will in effect benefit both nations. Given the government’s intention of transforming most agriculture products into finished commodities other than exporting these commodi-ties in their raw states, a new set of incentives and policies to attract investors into the agriculture sector have been initiated. This consists of farming for food provision and employment generation in a bid to moderating the high rate of unemployment aside depending on the normal farming methods. This study sets to investigate the impact of foreign direct investment in the agriculture sector on employment generation. The paper argues that employment created in the agriculture sector was attained through the number of registered projects allocated to various sectors within the Ghanaian economy categorized by the Ghana Investment Promotion Centre. Methodologically, this study utilizes a statistical descriptive approach that backs a summary of the com-plementary analysis of foreign direct investment inflow quantitatively using data on FDI inflows from 2013 to 2018. The result shows that the percentage share of the total number of registered projects allocated and employment created in the agriculture sector through FDI is very low compared to sectors like the manufacturing and service. It was also discovered that the agriculture sector contribution to the Gross Domestic Product (GDP) in the late 90s weighed much higher than the other sectors and contin-uous decline in the 2000s. It is recommended that investors should enter into the agri-culture sector since there are many benefits.

scholarly journals Determinants of fdi inflows in india

2016 ◽  
Vol 6 (2) ◽  
pp. 186-198
Author(s):  
Siraj-ul-Hassan Reshi
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Domestic Investment ◽  
Host Countries ◽  
Fdi Inflows ◽  
Explanatory Variables ◽  
The Impact ◽  
Fdi Determinants ◽  
The Relationship

Foreign direct investment (FDI) is often seen as an important catalyst for economicgrowth in the developing countries. It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. The main purpose of this paper is to investigate the impact of FDI determinants on FDI inflows in India from the period 1991-2009.The relationship between FDI inflow and its determinants have been analyzed by using the regression analysis and other variables that affect FDI inflows in India such as Developmental expenditure ratio, fiscal deficit ratio, exchange rate and other economic determinant such as GDP as the possible explanatory variables of foreign direct investment inflows in India. The expected results of the study are positive and statistically significant. Regarding the impact of various determinants on FDI in flows empirically, it has beenfound that all the variables except exchange rate have positively and significantly affecting FDI inflows i.e. increase in GDP, Developmental expenditure, foreign exchange reserves, increased the FDI inflows.

scholarly journals SOME ASPECTS REGARDING THE IMPACT OF FOREIGN DIRECT INVESTMENT IN ECONOMIC DEVELOPMENT

2020 ◽  
Author(s):  
Florina Popa
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
New Technologies ◽  
Host Countries ◽  
Foreign Investments ◽  
Advanced Experience ◽  
Productivity Increase ◽  
Synthesis And Processing ◽  
The Impact

Foreign Direct Investment are among the mobilizing factors of the economic development of a country, alongside the domestic investments, being a basic support in the achievement of the development and modernization strategies. The study presents, briefly, the effects of intervening Foreign Direct Investment flows on the economy of a country, able, by the advanced experience brought, to generate a better capitalization of resources, a contribution to growth. The directions of manifesting the mechanisms of influence of Foreign Direct Investment, as well as the role that they hold for their impact, the economic environment of the host country and the policies practiced in relation to Foreign Direct Investment are taken into account. The purpose of the paper was to point out some aspects regarding the favourable impact that foreign investments could have on an economy, by the contribution to new technologies and the contribution to the productivity increase. The conclusions point to the potential of the impact of Foreign Direct Investment on development and the need for the host countries, to support some properly oriented policies, by maintaining a correlation between the volume of foreign investment flows and the development potential of a country. The research method used to carry out the study was the documentation from the foreign and domestic specialized literature, the synthesis and processing of the relevant ideas, by capturing the impact of Foreign Direct Investment in economic development.

scholarly journals Exploration of the Impact of China’s Outward Foreign Direct Investment (FDI) on Economic Growth in Asia and North Africa along the Belt and Road (B&R) Initiative

2021 ◽  
Vol 13 (4) ◽  
pp. 1623
Author(s):  
Alnoah Abdulsalam ◽  
Helian Xu ◽  
Waqar Ameer ◽  
AL-Barakani Abdo ◽  
Jiejin Xia
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Host Countries ◽  
African Countries ◽  
Belt And Road ◽  
The Impact ◽  
The Belt And Road

This empirical study has examined the impact of Chinese investments, namely infrastructure, energy, services, other investment sectors, and trade openness on the economies of the 25 Asian and North African countries along with the Belt and Road (B&R) Initiative for a period of 2007 to 2016 using the Johansen Fisher Panel Cointegration Test, Panel Dynamic Ordinary Least Squares (PDOLS) model, and the Toda and Yamamoto technique for testing causality. The findings revealed cointegration among the variables and that the impact of Chinese investments on economic growth in the host countries is positive, but it has a weaker effect, to a certain extent, in all sectors of the host countries while trade openness positively impacts the countries. Furthermore, there is evidence of a unidirectional causality between some FDI (foreign direct investment) economies while the investment in services and other sectors does not cause economic growth in the host countries. Based on the results, the paper proposes that the host countries increase the FDI in the sector of infrastructure, energy, and technology to enhance their economies.

scholarly journals Foreign direct investment flows and the global economic crisis

2016 ◽  
Vol 13 (4) ◽  
pp. 266-274
Author(s):  
Giuseppina Talamo
Keyword(s):  
Foreign Direct Investment ◽  
Economic Crisis ◽  
Direct Investment ◽  
Developed Countries ◽  
Host Countries ◽  
Foreign Investors ◽  
Globalized Economy ◽  
Recent Financial Crisis ◽  
The Impact

In recent years, Foreign Direct Investment has become an increasingly important feature of the globalized economy. The importance of FDI flows raises several of important questions. First of all is the question of the impact of FDI on host and home countries. Second crucial question is about FDI flows during the recent financial crisis and the role of FDI flows in promoting growth in less developed countries. Then,what can host countries do to become more attractive to foreign investors, and benefit from their activities?

scholarly journals The Influence of Outward Foreign Direct Investment on Enterprise Technological Innovation

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Chenggang Wang ◽  
Tiansen Liu ◽  
Jinliang Wang
Keyword(s):  
Foreign Direct Investment ◽  
Technological Innovation ◽  
Low Income ◽  
Direct Investment ◽  
Vital Role ◽  
Outward Foreign Direct Investment ◽  
Host Countries ◽  
Chinese Enterprises ◽  
Lag Effect ◽  
The Impact

As the scale of China’s outward foreign direct investment (OFDI) continues to expand, more and more scholars have begun to discuss the influence of OFDI on enterprise technological innovation. In order to be able to deeply explore the impact of enterprises’ OFDI activities on enterprise technological innovation, this paper combines relevant enterprise data from 2015 to 2017 and uses the new method to test the “technological innovation effect” produced by the OFDI of Chinese enterprises. Finally, this paper concluded that the development of OFDI activities of enterprises can promote the improvement of the level of technological innovation of enterprises, and this promotion has a lag effect. R&D-type OFDI activities play a vital role in promoting the ability of technological innovation of enterprises. Compared with low-income host countries, investment in high-income host countries has a greater effect on promoting the ability of technological innovation of enterprises.

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