scholarly journals Determinant of FDI Inflows in OIC Countries

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Tania Megasari ◽  
Samsubar Saleh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Direct Investment ◽  
Trade Openness ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Fdi Inflows ◽  
Macroeconomic Variables ◽  
Effect Model

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).

Does Foreign Direct Investment Enhance Economic Growth? Evidence from 30 Leading Global Economies

2020 ◽  
Vol 12 (2) ◽  
pp. 217-230
Author(s):  
Andy Titus Okwu ◽  
Isiaq Olasunkanmi Oseni ◽  
Rowland Tochukwu Obiakor
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Youth Unemployment ◽  
Jel Classification ◽  
Fdi Inflows ◽  
Consumer Prices ◽  
Fixed Capital Formation ◽  
Domestic Credit

Investment expenditure is a major component of aggregate macroeconomic variables in any economy, irrespective of the development status. This article employed relevant econometric methodology on panel data environment to analyze the effects of foreign direct investment (FDI) inflows on economic growth of 30 leading global economies during the period between 1998 and 2017. Other variables considered in the analysis were domestic credit to private sector (DCPS), gross fixed capital formation (GFCF), inflation–consumer prices index (INFPC), trade openness (TOPNESS), and youth unemployment (UEMPYT). The results showed mixed growth effects of the variables in general. Specifically, FDI exerted positive and significant effect on economic growth of the countries during the period. Therefore, this article concluded that FDI inflows enhanced economic growth and emphasized the need to foster more FDI-attracting policies as well as adequate GFCF to complement FDIs for sustainable economic growth potentials. JEL Classification: C23, C33, C51, F21, F43, O47.

scholarly journals The Nexus of Selected Macroeconomic Variables toward Foreign Direct Investment: Evidence from Indonesia

2021 ◽  
pp. 110-115
Author(s):  
Noris Fatilla Ismail ◽  
Suraya Ismail
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Domestic Investment ◽  
Fdi Inflows ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Long Run ◽  
Macroeconomic Stability

Foreign direct investment (FDI) inflows are a major instrument of economic growth in developing countries. Indonesia is one of the developing countries that has received more FDI with macroeconomic stability. The macroeconomic stability indicator is seen as an important factor in driving economic growth and attracting FDI inflows in Indonesia. Therefore, this study examines the relationship of selected macroeconomic variables toward the FDI in Indonesia over the period 1980-2019. Using Autoregressive Distributed Lag (ARDL), the empirical results showed that market size, domestic investment, government spending and foreign exchange rate are key factors influencing long-run FDI inflows. However, financial development revealed no relationship with FDI inflows in Indonesia. Overall findings indicated that macroeconomic variables influence FDI inflows. These findings guided policymakers in formulating new policies to ensure macroeconomic indicators' stability in driving economic growth.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI “CAPITAL FLIGHT” DI INDONESIA (Period Kuartal I 1990 s.d. Kuartal IV 2000)

2004 ◽  
Vol 6 (2) ◽  
pp. 12-31
Author(s):  
Navik Istikomah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Exchange Rates ◽  
Stability Condition ◽  
Direct Investment ◽  
External Debt ◽  
Political Stability ◽  
Capital Flight ◽  
Series Data

The purpose of this research is to identify the problems of the effect of economic variables, that is,  changes of exchange rates Rp/US$, external debt, economic growth, inflation, differences of interest rate of Indonesian- America, Foreign Direct Investment, political stability condition, on capital flight in Indonesia, for period 1st quarter, 1990 – 4th quarter, 2000. The determinants of capital flight in Indonesia use cointegration equation model of Likelihood Johansen’s. The estimation completed by time series data validity, that is, unit-roots-test and co-integration-test.The result of research indicate that independent variable on model, that is, changes of exchange rates Rp/US$, external debt, economic growth, inflation, differences of interest rate of Indonesian-America, Foreign Direct Investment, and political stability condition, on the long run could explain changes of capital flight about 58,85 percent and altogether significant (computed-F = 7,1520 > value-F = 3,192). Partially, knowed that all variable on model, exceptly inflation and differences of interest rate of Indonesia-America, to have significant influence on capital flight in Indonesia. All variable sufficient stationery-condition at first different and the model could cointegrated at first different.Keywords: Capital Flight and determinant factors, and Cointegration of Johansen’s Likelihood

An empirical analysis among foreign direct investment, trade openness and economic growth: evidence from the Indian economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reenu Kumari ◽  
Malik Shahzad Shabbir ◽  
Sharjeel Saleem ◽  
Ghulam Yahya Khan ◽  
Bilal Ahmed Abbasi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Fdi Inflows ◽  
Content Type ◽  
Study Results

PurposeThis study examines the long-term and causal relationship among foreign direct investment (FDI) inflows, trade openness and economic growth from India.Design/methodology/approachThis study has used annual time series data from the period 1985–2018 and applied the Johansen cointegration and vector autoregression (VAR) model.FindingsThe results of Johansen's cointegration confirm no long-term relationship among all the above three variables. Further, the results of VAR Granger causality indicate that FDI causes economic growth and economic growth causes FDI, which confirms the bi-directional causality. In contrast, this study found that there is no bi-directional causality between trade openness and economic growth.Social implicationsThrough this study, the government could take the decisions related to foreign investment after adopting more trade openness because the study results revealed that if India follows more trade openness, then how FDI will flow (upward and downward). With impulse analysis, researchers, government and policymakers take the decision-related FDI inflows for the forthcoming ten years after 2018.Originality/valueThis study has found the most exciting results from the impulse functions of FDI inflows, trade openness and economic growth, which showed the situation of these three variables as increase and decrease in the forthcoming ten years.

scholarly journals Quest for Sustainable Growth, Does Foreign Direct Investment Still Matter? Evidence in Africa

2019 ◽  
Vol 7 (4) ◽  
pp. 397-409
Author(s):  
Adewosi, O. Adegoke ◽  
Manu Donga ◽  
Adamu Idi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Negative Impact ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Sustainable Growth ◽  
Domestic Investment ◽  
African Countries

The debate on the role of Foreign Direct Investment in promoting rapid growth and development of the developing economies remain inconclusive. This paper examined whether FDI still matters in African Countries over the period of 1990 to 2017, with the proper utilization of panel data estimation technique on the annual country data that were sourced from world Governance and Development Indicators. Using random and fixed effect model, the results reveal that some important variables such as coefficient of trade openness, rule of law, political stability, capital formation and population positively determined economic growth in Africa countries, account for about 2, 1, 65, 170, and 396.7 percent increase in economic growth. While, FDI and inflation were found to have negative impact on economic growth accounting for 21.4 and 2 percent fall in economic growth over the study period. The study then recommends amongst others formulation and implementation of policies that encourage domestic investment in the continents.

Foreign Direct Investment in the Make in India Era

2021 ◽  
pp. 474-479
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Trade Openness ◽  
Fdi Inflows ◽  
Dummy Variable ◽  
The Government ◽  
Long Term Impact

The present study attempted to examine the recent effects of FDI on India's economic growth in the Make in India initiative (MII) launched by the government. The trends of FDI inflows in India showed that when the CAGR of FDI inflows was -2.78 percent from 2008 to 2014 (pre-Make in India), the CAGR of FDI inflows was 8.54 percent between 2014 to 2020 (Post-Make in India). Further, the OLS results showed that the variables such as FDI inflows, trade openness, and exchange rate significantly impact India's economic growth. The dummy variable that stood for the Make in India initiative had a statistically significant impact on growth. The predictions about FDI inflows showed an upward trajectory since 2021-2022, which suggested that India may have further scope to attract more FDI into the country if they continue to do reforms like before and enhance competitiveness, and FDI may have a long-term impact on GDP.

scholarly journals Daya Saing dan Pertumbuhan Ekonomi Negara Berkembang ASEAN

2020 ◽  
Vol 9 (1) ◽  
pp. 37-44
Author(s):  
Fadeli Yusuf Afif ◽  
Ukhti Ciptawaty
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Series Data ◽  
Labor Participation ◽  
Effect Model ◽  
Asean Countries

The purpose of this study is to look at the condition of the country's competitiveness and its influence on ASEAN economic growth. The data used consists of panel data consisting of time series data for 2009 - 2019 and a cross section of five ASEAN countries with the highest level of competitiveness. The variables used are economic growth, competitiveness, labor participation, and foreign direct investment. The analysis tool used is panel data regression, the Fixed Effect Model (FEM). The results show that competitiveness, labor participation, and foreign direct investment have a positive and significant effect on economic growth in the five developing ASEAN countries.   Keywords: ASEAN, Competitiveness, Economic Growth, and Fixed Effect Model (FEM).

scholarly journals Impact of Political Instability on Foreign Direct Investment in Lebanon

2019 ◽  
Vol 16 (1) ◽  
pp. 41
Author(s):  
Nicholas Bitar ◽  
Mohamad Hamadeh ◽  
Roy Khoueiri
Keyword(s):  
Risk Factors ◽  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Important Determinant ◽  
Trade Openness ◽  
Political Risk ◽  
Risk Indicators ◽  
Fdi Inflows ◽  
Wage Rates

Foreign direct investment (FDI) is an important determinant of economic growth. A wealth of literature has tackled its determinants; however few investigated the effect of political risk on FDI. Consequently, this study examines 12 ICRG political risk indicators, after removing multicollinearity and grouping them into three categories, to test the nature of this relation in the case of Lebanon over the period 2008-2018. The findings provide evidence of significant causality between all political risk factors and FDI inflows. Other determinants like “Infrastructure”, “Inflation”, “Trade Openness” and “Wage Rates” have insignificant effects.

scholarly journals THE EFFECT OF POPULATION GROWTH AND TRADE OPENNESS ON ECONOMIC GROWTH OF THE OIC COUNTRIES

2021 ◽  
Vol 8 (5) ◽  
pp. 537
Author(s):  
Noor Syahro El Muharromy ◽  
Ilmiawan Auwalin
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Exchange Rates ◽  
Trade Openness ◽  
Negative Relationship ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Effect Model ◽  
Analysis Technique ◽  
The Government

ABSTRAKPertumbuhan ekonomi memegang peranan penting dalam menentukan keberhasilan pembangunan sebuah negara, oleh karena itu setiap negara selalu menetapkan target pertumbuhan ekonomi yang stabil dalam tujuan pembangunan. Dalam prosesnya pertumbuhan ekonomi dipengaruhi oleh berbagai factor yang dapat mendorong atau bahkan menghambat laju pertumbuhan. Penelitian ini bertujuan untuk menganalisis pertumbuhan penduduk, keterbukaan perdagangan, inflasi, nilai tukar dan investasi terhadap pertumbuhan ekonomi 40 negara anggota Organisasi Kerjasama Islam (OKI) pada tahun 2005-2019 menggunakan pendekatan kuantitatif dengan teknik analisis regresi data panel fixed effect model dan menggunakan aplikasi Eviews 11dalam mengelola data penelitian. Hasil penelitian ini menunjukkan bahwa variabel pertumbuhan penduduk dan nilai tukar memiliki hubungan signifikan dan negatif terhadap pertumbuhan ekonomi, sedangkan keterbukaan perdagangan dan investasi berpengaruh signifikan dan positif. Sedangkan investasi tidak berpengaruh signifikan pada pertumbuhan ekonomi di Negara OKI. Berdasarkan hasil penelitian ini pemerintah dan pihak terkait diharapkan dapat mengendalikan tingkat pertumbuhan penduduknya serta mendorong sektor perdagangan internasional untuk meningkatkan pertumbuhan ekonomi mengingat tingkat keterbukaan perdagangan di Negara OKI masih dibawah potensinya.Kata Kunci: Pertumbuhan Ekonomi, Pertumbuhan Penduduk, Keterbukaan Perdagangan, Organisasi Kerjasama Islam. ABSTRACTEconomic growth plays an important role in determining the success of a country's development; therefore, each country always sets a target for stable economic growth in its development goals. In the process, economic growth is influenced by various factors that can encourage or even hinder the growth rate. The purpose of this study is to analyze the effect of population growth, trade openness, inflation, exchange rates and investment on the economic growth of 40 member countries of the Organization of Islamic Cooperation (OIC) in 2005-2019 using a quantitative approach with a fixed effect model panel data regression analysis technique and using the Eviews application. 11 in managing research data. The results of this study indicate that the variables of population growth and exchange rates have a significant and negative relationship to economic growth, while trade openness and investment have a significant and positive effect. Meanwhile, investment has no significant effect on economic growth in the OIC Country. Based on the results of this study, the government and related parties are expected to control the rate of population growth and encourage the international trade sector to increase economic growth considering that the level of trade openness in the OIC is still below its potential.Keywords: Economic Growth, Population Growth, Trade Openness, Organization of Islamic Cooperation

scholarly journals Causal Links between Trade Openness and Foreign Direct Investment in Romania

2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Test Procedure ◽  
Real Effective Exchange Rate ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

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