scholarly journals Determinants Of Foreign Direct Investment In The Manufacturing Industry: A VectorAutoregression Model Approach

2021 ◽  
Vol 12 (3) ◽  
pp. 4067-4076
Author(s):  
Symon Elli R. Blas Et.al
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Price Index ◽  
Negative Impact ◽  
Positive Impact ◽  
Consumer Price Index ◽  
Government Expenditure ◽  
Economic Indicators ◽  
The Future

This paper aimed to identify the factors that affect Foreign Direct Investment (FDI) in the manufacturing industry using a Vector Autoregression (VAR) model. The researcher selected possible economic indicators (Agriculture, Consumer Price Index, Government Expenditure and Unit Labour Cost) through theories and empirical evidences from various researches, covering quarterly period of 2004-2018. The result showed that there is a significant relationship between FDI and the selected economic indicators. It also revealed that shocks agriculture produces a positive impact, as well as government expenditure. However, consumer price index when introduced to shocks showed an immediate negative impact. On the other hand, unit labor cost did not have a significant impact on the foreign investments. The future variability of FDI primarily depends on itself, while the selected indicators affect roughly one-tenth of the future values of FDI

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

scholarly journals INVESTASI ASING LANGSUNG DAN PERTUMBUHAN EKONOMI DI WILAYAH ASEAN PERIODE 2004-2016

2019 ◽  
Vol 23 (2) ◽  
pp. 57-66
Author(s):  
Aditya Febriananta Putra ◽  
Suyanto . ◽  
Irzameingindra Putri Radjamin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Significant Role ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Accelerate Development ◽  
Fixed Capital Formation

Exertions to accelerate development carried out by developing countries in general are oriented towards improving or improving people’s lives. Developing countries are characterized as countries that lack capital, savings and investment. The role of Labor has a significant effect but has a negative impact on economic growth. Agriculture and Service also performance a significant role, despite having a positive impact on economic growth. While other variables, namely Fixed Capital Formation, Foreign Direct Investment, Export, Manufacture, and Fertility showed insignificant results on economic growth.

Trade Liberalization, Foreign Direct Investment Inflows, Environmental Quality and Economic Growth Nexus: A Comparative Analysis of Pakistan and China

2019 ◽  
Vol 2 (1) ◽  
pp. 17-26
Author(s):  
Sumaira Alvi ◽  
Imran Sharif Chaudhry ◽  
Fatima Farooq ◽  
Noreen Safdar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Trade Liberalization ◽  
Environmental Quality ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
Bounds Testing ◽  
Foreign Direct Investment Inflows

The present research endeavors to evaluate whether trade liberalization, foreign direct investment inflows and environmental quality affect the economic growth in Pakistan and China. These have crucial role in the economies and pragmatic for formulating economic growth policies. The secondary data is used for all the variables. The ARDL bounds testing approach to cointegration is applied to evaluate the determinants included in the model for both countries. The results of the research conclude that trade liberalization and foreign direct investment both have positive impact on economic growth while environmental pollution has negative impact on economic growth in long-run.

scholarly journals China’s One Belt and One Road Initiative and Outward Chinese Foreign Direct Investment in Europe

2019 ◽  
Vol 11 (24) ◽  
pp. 7055 ◽  
Author(s):  
Degong Ma ◽  
Chun Lei ◽  
Farid Ullah ◽  
Raza Ullah ◽  
Qadar Bakhsh Baloch
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
European Countries ◽  
Belt And Road Initiative ◽  
Upward Trend ◽  
Belt And Road ◽  
Chinese Foreign Direct Investment ◽  
The Belt And Road

For the last few years, the execution of the Belt and Road Initiative (hereinafter referred to as the BRI) and China’s outward foreign direct investment (hereinafter referred to as OFDI) in Europe have seen a significant upward trend. For our current paper, we collected empirical data pertaining to China’s OFDI and foreign trade (gathered from 21 European countries in the trade gravity market for the period 2003 to 2016) that yielded the following results: (a) China’s OFDI to Europe has significantly promoted international trade between China and European countries. On the other hand, OFDI has equally promoted China’s exports to European counties, while it has not encouraged China’s imports from European counties. (b) The Belt and Road Initiative has had a positive impact on China’s exports to European counties and has had a negative impact on China’s imports from European counties. (c) There have been both complementary trade impacts and substitution trade impacts when China has directly invested in European countries, but the complementary impact was much stronger than its substitution impact in the chosen sample period.

scholarly journals THE EFFECT OF FOREIGN DIRECT INVESTMENT SPILLOVER ON THE LEVEL OF TECHNICAL EFFICIENCY IN LARGE AND MEDIUM MANUFACTURING INDUSTRY IN EAST JAVA

2020 ◽  
Vol 5 (1) ◽  
pp. 6
Author(s):  
Ahmad Oktabri Widyananda ◽  
Dyah Wulan Sari
Keyword(s):  
Foreign Direct Investment ◽  
Technical Efficiency ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Positive Influence ◽  
Foreign Firms ◽  
Stochastic Frontier Approach ◽  
Firm Level

Foreign Direct Investment (FDI) takes an important role in the development process, especially in developing countries. The purpose of this study is to examine and analyze FDI spillover on the level of technical efficiency in the large and medium manufacturing industry in East Java. This study uses a time-varying stochastic frontier approach for firm-level panel data of the East Java manufacturing industry. The results show that all factors in this study affect the level of technical efficiency of large and medium industries in East Java. Variable foreign share, FDI horizontal spillover, and firm size have a positive influence on the technical efficiency of the industry. Whereas the variable FDI backward spillover, FDI forward spillover and the level of market concentration negatively affect the level of technical efficiency of the industry. Finally, it’s needed to build synergies and sustainable relationships between products produced by domestic and foreign firms. Thus, the presence of foreign firms in East Java could have a positive impact on improving the technical efficiency of the domestic industry both at the upstream and downstream levels. Keywords: Foreign Direct Investment Spillover, Technical Efficiency, East Java IndustryJEL Classification: F21, L60, D24

scholarly journals Capital Flows and Money Supply: The Degree of Sterilization in Pakistan

2017 ◽  
Vol 4 (1) ◽  
pp. 18
Author(s):  
Hina Ali ◽  
Sadia Sajjad
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Money Supply ◽  
Capital Flows ◽  
Direct Investment ◽  
Price Index ◽  
Descriptive Analysis ◽  
Consumer Price Index ◽  
Series Data

The present study proposes to analyze the impact of the capital flows on the economic growth. The change in the capital flows affects the money supply in the economy which in return influences the economic growth. The augmented dickey fuller test (ADF), descriptive Analysis, correlation method, and the auto regressive distribution lag are employed in this work. The ADF test is delved to examine the Stationarity of the variables and the correlation between them. The descriptive analysis is used to check the normality of the variable whether the variables is normally distributed or not. The survey bases on time series data ranging from the year 1974 to 2014. The variables as the gross domestic product (GDP), exchange rate (ER), inflation (INF), consumer price index (CPI), money supply (M2), total reserves (TR) and the foreign direct investment (FDI), price indices (PI). The research findings are Foreign direct investment, Exchange rate, Inflation rate, Consumer Price Index has the positive impact on the GDP while the Private Investment, Total reserves, and Money supply have the negative impact on the GDP. The value of the R square is 0.99874 which is very good. It means that the 99 percent variations exist in dependent variable due to independent variables. 

scholarly journals The Influence of Foreign Direct Investment on the GDP Progression of Pakistan

2020 ◽  
Vol 4 (2) ◽  
pp. 22-33
Author(s):  
Muhammad Aslam Javed
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Price Index ◽  
Trade Openness ◽  
Consumer Price Index ◽  
Annual Data ◽  
Monthly Basis ◽  
Beneficiary Country ◽  
The Impact

The Foreign Direct Investment (FDI) inflows play a very important role in the economic development of the beneficiary country. The objective of this study is to check the impact of the exchange rate (and other variables like Foreign Exchange Rate, Consumer price index, Trade Openness, and Energy Imports) on foreign direct investment in Pakistan by taking annual data from the period 1999-2013 (Monthly Basis).By using Descriptive,Correlation and regression , the effect of Consumer Price Index, exchange rate, trade openness, energy imports on Foreign Direct Investment (FDI) of Pakistan.  The study guide the foreign investor and to categorize the factors, that can affect the Foreign Direct Investment (FDI), while investing in Pakistan.

scholarly journals Disaggregated Analysis of Foreign Trade Impact on Economic Growth; Reflecting on the Nigeria Experience

2019 ◽  
pp. 1-15
Author(s):  
Dada, Matthew Abiodun
Keyword(s):  
Economic Growth ◽  
Foreign Trade ◽  
Negative Impact ◽  
Positive Impact ◽  
Consumer Price Index ◽  
Government Expenditure ◽  
Cointegration Analysis ◽  
Consumer Prices ◽  
Oil Export ◽  
Oil Sector

This study conducted a disaggregated analysis of foreign trade impact on economic growth using Nigeria historical data. The data used spans the period 1981-2017 on variables such as foreign trade decomposed into four components namely; oil import, oil export, non-oil import, and non-oil export. Others are GDP, aggregated government expenditure data and consumer price index. The variables were sourced from the Central Bank of Nigeria [CBN] Statistical Bulletin [latest edition] augmented with World Development Indicator [WDI], latest version and CBN Annual Report [various issues].  Models were formulated with and without recession dummy variable and estimated using (FMOLS) technique. Variables were tested and found to be non-stationary at level. They become stationary after first differencing, meaning that all variables exhibit a I[1] process. The group of I(1) variables were found to be cointegrated after testing for cointegration following a multivariate cointegration analysis proposed by Johansen and Juselius [20]. The result shows that non-oil trade has positive impact on growth while oil trade has negative impact on growth. The negative impact of oil trade declines marginally in recession period.  Both government expenditure and consumer prices have significant positive impact on economic growth. This study strongly recommends that government in her effort to diversifying and repositioning the Nigerian economy should give urgent attention to the non-oil sector in order to boost trade in this sector to enhance economic growth. The study therefore concluded that foreign trade impact on economic growth in Nigeria depends largely on the magnitude of foreign trade resulting from non-oil export.

scholarly journals Reforming the IMF to Increase FDI Led Economic Growth: The Case of Latin American and Caribbean Countries

2018 ◽  
Vol 04 (S1) ◽  
pp. 81
Author(s):  
Ashraf Mahate ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Latin American ◽  
Host Country ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
The Impact ◽  
Latin American And Caribbean ◽  
The Imf

There is a strong body of literature that finds a direct connection between inward foreign direct investment and economic growth in the host country. At the same time, economic growth in the host country attracts additional Foreign Direct Investment (FDI). This bidirectional relationship can be supported by the IMF through its lending program to countries to assist in dealing with short-term shocks as well as managing more long-term structural issues. In fact, the IMF programs in theory should provide an indicator to potential investors that the country is committed to making a change and opening its economy, which are typical requirements under IMF conditions. IMF intervention should lead to a positive impact on inward FDI. This study examines the impact of IMF-support programs on inward FDI for a sample of Latin American and Caribbean Countries. The results from this study reveal that being on an IMF borrowing program has a negative impact on inward FDI in the second and third year. We argue that being on an IMF borrowing program does not provide inward FDI with the seal of approval that it requires in making an investment.

scholarly journals ANALISIS DAMPAK HARGA EMAS DUNIA, HARGA MINYAK DUNIA, KURS, INDEKS HARGA KONSUMEN (IHK), DAN BI RATE TERHADAP JAKARTA ISLAMIC INDEX

2019 ◽  
Vol 1 (02) ◽  
pp. 7-20
Author(s):  
Muhammad Umar Azyka Alfuadi
Keyword(s):  
Exchange Rate ◽  
Price Index ◽  
Negative Impact ◽  
Positive Impact ◽  
Consumer Price Index ◽  
Gold Price ◽  
Oil Price ◽  
Economic Principle ◽  
Islamic Economic

The paper attempts to analyze the impacts of gold price, oil price, exchange rate, consumer price index, and BI rate to Jakarta Islamic Index using VAR- VECM analysis. The result shows that in long term all variables have a significant impact to JII. Gold price has negative impact to JII 4,1% and stable after 12 months, oil price has positive impact 1% and stable after 21 months, exchange rate has positive impact 3,8% and stable after 17 months, consumer price index has positive impact 0,5% and stable after 21 months, and BI rate has negative impact 6,2% and stable after 15 months. BI rate also gives the biggest impact‟s contribution into JII. This result is very contradictory with Islamic economic principle “No-Riba Oriented”.

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