scholarly journals Current account determinants in ASEAN 6

2018 ◽  
Vol 21 (2) ◽  
Author(s):  
Novi Ariyani ◽  
Fajar Wahyu Priyanto ◽  
Lilis Yuliati
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Current Account ◽  
Direct Investment ◽  
Domestic Product ◽  
Annual Data ◽  
The Current Account

This study aims to analyze the factors that influence the export activity in the ASEAN region countries such as Indonesia, Singapore, Thailand, Malaysia, Philippines and Vietnam during 2001 - 2016 by using annual data. The factors that influence gross domestic product (GDP), interest rate, foreign direct investment (FDI) and exchange rate. The method used in the research is panel Vector Error Correlation Model (PVECM). The results show that Gross Domestic Product (GDP) negatively affects the current account in the short term. The interest rate variable negatively affects the current account in the long term. The Foreign Direct Investment (FDI) variable negatively affects the current account in the long term. Furthermore, the exchange rate variable negatively affects the current account in the long term.

scholarly journals Foreign Direct Investment: A Feature Key Drive’s for India’s Growth in it Sector

2019 ◽  
Vol 8 (2S10) ◽  
pp. 126-131
Keyword(s):  
Foreign Direct Investment ◽  
Current Account ◽  
Open Economy ◽  
Direct Investment ◽  
Capital Investment ◽  
Current Account Deficit ◽  
Trade Deficit ◽  
Main Driver ◽  
Innovative Solution ◽  
Growth Prospects

The IT sector continues the main drivers of development in India, contributing nearly 72 percentage of its added gross value in 2017-18. However, this sector's growth in 2017-18 was moderate to 8.2 percent compared to 9.7 percent in the past year, although it remains greater than the IT sector, a main driver in FDI is frequently found in the open economy, a growth in investment assumes significant against the backdrop of widening current account deficit and trade deficit the country’s current account deficit is likely touch 2.8 percent of GDP 2018-19 on the IT sector, has increased its contribution to India has been rapidly moving upwards on the technology adoptions curve to improve and deliver leading it has excelled in business developing innovative solution and collaborating larger firms to meet the current needs of the IT sector. which offers a qualified workforce and excellent growth prospects for investors compared to tightly regulated in Foreign Direct Investment, perhaps it needs not only capital investment, but as well as technology. It could be included that the analyzed trend values are preferred to FDI inflows in IT Sector

scholarly journals Economic-legal analysis of international investments

2020 ◽  
Vol 6 (3) ◽  
pp. 89-122
Author(s):  
Vladan Stanković ◽  
Gordana Mrdak ◽  
Miloš Miljković
Keyword(s):  
Foreign Direct Investment ◽  
Current Account ◽  
Direct Investment ◽  
Current Account Deficit ◽  
Business Environment ◽  
Foreign Direct Investments ◽  
Legal Analysis ◽  
International Investments ◽  
Advantages And Disadvantages ◽  
Countries In Transition

The subject of this paper is an analysis of advantages and disadvantages of international investments - foreign direct investment (FDI) with a brief overview of the Republic of Serbia and its level and structure of FDI. Foreign direct investment is an important factor in development, especially in developing countries and countries in transition. Countries in transition, which includes Serbia and all Western Balkan countries feel a lack of capital, so it is important for them to fill the gap with foreign direct investment. For countries with current account deficits, FDI is used to increase exports and alleviate current account deficit problems. Based on experience and theoretical consideration, the paper points out the necessity of changes in our business environment, in order for Serbia to use foreign direct investments (with all its negative characteristics) which can and must give a special contribution and impetus to its economic growth.

scholarly journals Testing for causality between the foreign direct investment, current account deficit, GDP and total credit: Evidence from G7

2013 ◽  
Vol 60 (6) ◽  
pp. 791-812 ◽  
Author(s):  
Yusuf Akbas ◽  
Mehmet Senturk ◽  
Canan Sancar
Keyword(s):  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Current Account ◽  
Unit Root ◽  
Direct Investment ◽  
Current Account Deficit ◽  
Unit Root Tests ◽  
Panel Unit Root Tests ◽  
Panel Unit Root ◽  
Integration Test

In this study, countries were analyzed between 1990 and 2011 in order to determine whether a causal relationship exists among current account deficit, GDP, foreign direct investment, and total credits of G7. Analysis took into account the cross-sectional dependence and was applied to test the causality among the variables form the panel. Firstly, panel unit root tests were used for determining stationary of variables. As a result of the panel unit root tests, it was found that GDP and foreign direct investment have a stationary structure and that total credits and current account deficit contain unit root. In order to see whether there is a long-term relationship among the variables or not, the panel co-integration test was used. As a result of the test, it was concluded that there is a co-integration relationship among the series. The possibility of a causal relationship was analyzed among the variables using the causality test developed by Elena Ivona Dumitrescu and Christophe Hurlin (2012). Results of the analysis showed a unidirectional causal relationship from current account deficit and foreign direct investment to GDP. Bidirectional causality was found between current account deficit and total credits. Finally, a unidirectional relationship was found from foreign direct investment to current account deficit and total credits.

scholarly journals The effect of Foreign Direct Investment in Western Balkan economies for the period 2005 - 2015

2017 ◽  
Vol 7 (1) ◽  
Author(s):  
Dr.Sc. Vesna Georgieva Svrtinov ◽  
Dr.Sc. Olivera Gjorgieva-Trajkovska ◽  
Dr.Sc. Blagica Koleva
Keyword(s):  
Foreign Direct Investment ◽  
Current Account ◽  
Direct Investment ◽  
Positive Impact ◽  
Current Account Deficit ◽  
Economic Restructuring ◽  
Employment Rate ◽  
Government Officials ◽  
Positive Effects ◽  
The One

One of the most important conditions for the successful process of economic restructuring of transition countries including Balkans region is the opening of these economies towards foreign investors.This paper surveys the effects of outward foreign direct investment in the countries of Western Balkan (Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia) in the period between 2005 until 2015.  In all these countries FDI is often highly welcomed by government officials because they expect these capital flows to have a positive impact on home country exports, GDP, employment rate, as well as positive effects on the balance of payments i.e. on narrowing current account deficit.The main hypotheses in the paper are tested econometrically and we identify weak correlation between foreign direct investment on the one side and export, GDP and employment rate on the other side.  While in the most countries we found statistically significant correlation between FDI and current account deficit.

Philippine bid to boost foreign investment will stall

2019 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Current Account ◽  
Foreign Investment ◽  
Direct Investment ◽  
Current Account Deficit ◽  
The Philippines ◽  
Gdp Growth ◽  
Content Type ◽  
Iron And Steel ◽  
Rice Farmers

Subject The Philippines's current account deficit and foreign investment problems. Significance The Philippines has just said July was the fourth consecutive month in which exports increased, but the current account deficit is nonetheless widening. Meanwhile, foreign direct investment (FDI) pledges are down. President Rodrigo Duterte’s government has identified four items of legislation to boost FDI, but they are struggling to make their way through Congress. Impacts GDP growth for 2019 will likely be close to 6%, but below the government’s targeted 6-7%. Recent declines in iron and steel imports suggest there will be bottlenecks in developing infrastructure. The hardship experienced by rice farmers following the introduction of a rice tariff could be a major issue in the 2022 elections.

scholarly journals The Investment of Upstream Oil and Gas in Indonesia

JEJAK ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 203-217
Author(s):  
Siti Muarofah ◽  
Telisa Aulia Falianty
Keyword(s):  
Current Account ◽  
Direct Investment ◽  
Oil And Gas ◽  
Current Account Deficit ◽  
Analysis Model ◽  
Panel Data Regression ◽  
The Government ◽  
Oil And Gas Companies ◽  
The Impact ◽  
The Current Account

Direct investment is expected to be a source of financing for the current account deficit in Indonesia's Balance of Payments. One of the contributors to the current account deficit is the oil and gas trade balance. Therefore, this study will focus on direct investment in the upstream oil and gas sector. This study will examine the impact of implementing regulations related to restrictions on costs that can be claimed to the government and economic factors that include prices and costs per unit of oil and gas on the upstream oil and gas investment. The study was conducted using micro data from 33 oil and gas companies in Indonesia, with a data period 2005-2018. The analysis model used is panel data regression. Empirical results show that the implementation of regulation as well as price per unit (lag-2) have a significant and positive correlation to the upstream oil and gas investment. While operational cost per unit (lag-2) have a significant effect with a negative correlation after the implementation of the regulation.

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