scholarly journals The Impact of Institutional Environment on Inflows of Foreign Direct Investment in European Transition Economies and Latin American Countries

2015 ◽  
Vol 23 (1) ◽  
pp. 45-60
Author(s):  
Michal Mádr ◽  
Luděk Kouba
Keyword(s):  
Foreign Direct Investment ◽  
Transition Economies ◽  
Latin American ◽  
Direct Investment ◽  
Institutional Environment ◽  
The Impact ◽  
Latin American Countries

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.

Inward and Outward Foreign Direct Investment and Inequality: Evidence from a Group of Middle-Income Countries

2016 ◽  
Vol 16 (3) ◽  
pp. 511-538 ◽  
Author(s):  
Chao-Hsi Huang ◽  
Kai-Fang Teng ◽  
Pan-Long Tsai
Keyword(s):  
Income Distribution ◽  
Transition Economies ◽  
Latin American ◽  
Direct Investment ◽  
Reference Group ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Middle Income ◽  
Middle Income Countries ◽  
Latin American Countries

Using panel data of a group of 39 middle-income countries over 1981–2006, this paper examines how globalization in general and inward and outward FDI in particular affects inequality. Depending on geographical region and economic system, each component of globalization affects inequality in three groups of countries in different ways: open to inward FDI tends to affect income distribution adversely in transition economies and Latin American countries, but marginally improves income distribution in countries of the reference group. In contrast, open to outward FDI is positively associated with inequality in the reference group whereas negatively associated with that of the other two groups of countries. Crucially, improvement in human capital appears to be the single most reliable way to reduce inequality.

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.

A Different Kind of Investor?

2014 ◽  
pp. 417-433
Author(s):  
Gayle Allard
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Latin American ◽  
21St Century ◽  
Direct Investment ◽  
Regional Economies ◽  
Resource Intensity ◽  
Chinese Foreign Direct Investment ◽  
Latin American Countries

After decades of limited contact, China's influence in Latin America has soared in the early part of the 21st century. China's presence in Latin America holds potential for transforming regional economies in positive and negative ways. This chapter describes Chinese Foreign Direct Investment (FDI) in Latin America, explores its implications, and tests whether Chinese FDI differs from global FDI in Latin America regarding corruption and resource intensity. It finds that Chinese FDI is more closely associated with countries that are more resource-abundant and are ranked as more corrupt. This could have negative implications for Latin American countries and their development as China expands.

Do Remittances Attract Foreign Direct Investment? An Empirical Investigation

2014 ◽  
Vol 14 (1) ◽  
pp. 1-9 ◽  
Author(s):  
Hem C. Basnet ◽  
Kamal P. Upadhyaya
Keyword(s):  
Foreign Direct Investment ◽  
Latin American ◽  
Direct Investment ◽  
Asia Pacific ◽  
African Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Negative Effect ◽  
Using Data ◽  
Latin American Countries

Remittances are a major source of household income in many Asian, African, and Latin American countries. Households spend a significant portion of remittances on health and education. Given that human capital is one of the primary determinants of foreign direct investment (FDI) inflow, this study develops a model in which remittances are one of several determinants of the observed variation in FDI. The model is estimated using data from a group of 35 middle-income countries from Latin America, Asia–Pacific, and Africa. The estimated results ascribe no significance to remittances in explaining cross-country variation in FDI. However, geographically-disaggregated estimated results do establish a positive effect for African countries, no significant effect for Latin American countries, and a negative effect for the Asia–Pacific region.

scholarly journals International trade and foreign direct investment as growth stimulators in transition economies: does the impact of institutional factors matter?

2017 ◽  
Vol 14 (4) ◽  
pp. 148-170 ◽  
Author(s):  
Antonis Tsitouras ◽  
Athanasios Koulakiotis ◽  
Georgios Makris ◽  
Harry Papapanagos
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Transition Economies ◽  
Direct Investment ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Physical Capital ◽  
Positive Contribution ◽  
Institutional Variables ◽  
The Impact

The present paper develops a general production function framework, augmented with two institutional variables namely bureaucracy and corruption on 28 transition economies over the period 2000-2015. The authors use various econometric specifications and apply both the Fixed Effects, as well as the advanced system Generalized Method of Moments (GMM) panel data techniques. Empirical findings suggest that the impact of openness in terms of foreign direct investment and international trade is advantageous to all the economies of the panel. Furthermore, the findings indicate that classical growth determinants, such as labor and physical capital, have the expected positive contribution, while macroeconomic instability has a negative effect on real economic activity. Regarding the impact of the two institutional variables, corruption, and bureaucracy, the authors retrieve more influential results, as their impact appears to be diametrically opposite between the former Soviet Union states and the rest of European transition economics.

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