Nexus Between FDI, Agriculture, and Rural Development: Evidence from Asian Countries

2021 ◽  
Vol 11 (4) ◽  
pp. 311-319
Author(s):  
Sujan Chandra Paul ◽  
Nusrat Jahan ◽  
Ashim Kumar Nandi ◽  
Md Asiqur Rahman
Keyword(s):  
Foreign Direct Investment ◽  
Rural Development ◽  
Direct Investment ◽  
Agricultural Land ◽  
Negative Relationship ◽  
Value Added ◽  
Time Frame ◽  
Negative Association ◽  
Female Employment ◽  
Asian Countries

The aim of this study is explore the effect of foreign direct investment on agriculture and rural development. For this, panel data of 46 countries from Asia were accumulated for the time frame 1991–2018. The models OLS, POLS, 2SLS, and GMM are employed in this study. The study reveals that there is a favorable association between foreign direct investment and agricultural land as percentage of total land using the models OLS, POLS, 2SLS. In stark contrast, value added for agriculture, forestry, and fishing has an unfavorable association with foreign direct investment in all models employed in the study. Furthermore, female employment in agriculture has a negative association with foreign direct investment in OLS, 2SLS and GMM models, whereas male employment in agriculture has a negative association with foreign direct investment in the POLS model only. Land under cereal production has a favorable association with foreign direct investment in all models except POLS, and permanent cropland has a favorable association with foreign direct investment in all models except GMM. In addition, rural population has a positive relationship with foreign direct investment in OLS, POLS and 2SLS and a negative relationship with foreign direct investment in GMM.

Corporate Taxes and Foreign Direct Investment: An Impact Analysis

2020 ◽  
Vol 5 (2) ◽  
pp. 28-43
Author(s):  
Onome Christopher Edo ◽  
Anthony Okafor ◽  
Akhigbodemhe Emmanuel Justice
Keyword(s):  
Foreign Direct Investment ◽  
Error Correction ◽  
Direct Investment ◽  
Impact Analysis ◽  
Negative Relationship ◽  
Value Added ◽  
Positive Association ◽  
Error Correction Model ◽  
Corporate Taxes ◽  
Correction Model

Objective – The purpose of this study is to investigate the effect of corporate taxes on the flow of Foreign Direct Investment (FDI) in Nigeria between 1983 and 2017. Methodology/Technique – This study adopts an ex-post facto research design. Secondary data was sourced from the World Bank Development Indicator, the Central Bank of Nigeria database, and the Federal Inland Revenue database. The research data was analyzed using the Error Correction Model (ECM). Findings – The coefficient of determination (R2) shows that approximately 77% of systematic changes in FDI are attributed to the combined effect of all of the explanatory variables used in this study. Specifically, the study concludes that Company Income Tax, Value Added Tax, and Custom and Excise Duties have a significant but negative relationship with FDI. In contrast, Tertiary Education Tax has a positive association with FDI. Further, Exchange Rate has a negative but significant relationship with FDI, Inflation had an insignificant but positive association with FDI, and GDP growth Rate and Trade Openness demonstrate a positive and significant association with FDI. Novelty – The findings of this study are distinguishable from previous studies, as it uncovers new evidence that higher Education Tax Rates influences FDI and emerging evidence on the effect of non-tax variables on FDI inflow. Type of Paper: Empirical. JEL Classification: E22, F21, H2, P33. Keywords: Corporate Taxes; Foreign Direct Investment; Error Correction Model; Nigeria; Non-Tax Variables. Reference to this paper should be made as follows: Edo, O.C; Okafor, A; Justice, A.E. 2020. Corporate Taxes and Foreign Direct Investment: An Impact Analysis, Acc. Fin. Review 5 (2): 28 – 43. https://doi.org/10.35609/afr.2020.5.2(1)

How Intra-Industry Trade Is Related to Income Difference and Foreign Direct Investment in East Asia

2005 ◽  
Vol 4 (3) ◽  
pp. 143-156 ◽  
Author(s):  
Chan-Hyun Sohn ◽  
Zhaoyong Zhang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Relationship ◽  
East Asian ◽  
Negative Relationship ◽  
Asian Countries ◽  
Income Difference ◽  
Industry Trade ◽  
Cross Country ◽  
Bilateral Exports

This paper investigates how intra-industry trade (IIT) is linked to cross-country income difference and foreign direct investment (FDI). We distinguish IIT as either horizontally or vertically differentiated, using bilateral exports and imports data for Japan and the remaining East Asian countries at the SITC five-digit level over 1990–2000. Our results show that the income difference has a negative relationship with the share of horizontal IIT, but a positive relationship with vertical IIT, and that cross-country FDI has a positive relationship with share of horizontal IIT and a negative relationship with share of vertical IIT.

scholarly journals Corruption and Stock Market Development: Evidence from Asian Countries

2018 ◽  
pp. 357-362
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Money Supply ◽  
Direct Investment ◽  
Investment Decision ◽  
Negative Relationship ◽  
Income Level ◽  
Market Development ◽  
Asian Countries ◽  
Stock Market Development

Stock market plays a significant role in corporate financing. However, stock market movements were highly affected by certain external factors such as economic, psychological and political factors. By using the sample of 10 Asian countries, this study intends to investigate the impacts of macroeconomic and corruption factors on the stock market development. The sample period covered from the year 2003 to 2015. The dependent variable used in this study was stock market development. Whilst, the variables of interest used in this study were i) income level, ii) savings, iii) foreign direct investment, iv) value of stocks traded, v) money supply and vi) corruption perception index (CPI). A panel data approach had been applied in testing the relationship between the variables due to the nature of data. As expected, the gross domestic savings, foreign direct investment, and money supply were found to have a significant relationship with stock market development. On the other hand, the income level found to have a significant negative relationship with the stock market development. Noteworthy, the results also indicated that lower corruption level could lead to the growth of stock market development. Thus, a change in corruption level was the important matter to be considered before making any investment decision as corruption level had a significant impact on the stock market development.

scholarly journals Does Foreign Direct Investment Influence Renewable Energy Consumption? Empirical Evidence from South Asian Countries

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3470
Author(s):  
Xueqing Kang ◽  
Farman Ullah Khan ◽  
Raza Ullah ◽  
Muhammad Arif ◽  
Shams Ur Rehman ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Sri Lanka ◽  
South Asian ◽  
Environmental Sustainability ◽  
Direct Investment ◽  
Least Square ◽  
Asian Countries ◽  
Ordinary Least Square ◽  
The Relationship

In selected South Asian countries, the study intends to investigate the relationship between urban population (UP), carbon dioxide (CO2), trade openness (TO), gross domestic product (GDP), foreign direct investment (FDI), and renewable energy (RE). Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models for estimation were used in the study, which covered yearly data from 1990 to 2019. We used Levin–Lin–Chu, Im–Pesaran–Shin, and Fisher PP tests for the stationarity of the variables. The outcomes of the panel cointegration approach looked at whether there was a long-run equilibrium nexus between selected variables in Pakistan, Bangladesh, India, and Sri Lanka. The FMOLS approach was also used to assess the relationship, and the results suggest that there is a significant and negative nexus between FDI and renewable energy in south Asian nations. The study’s findings reveal a strong and favorable relationship between GDP and renewable energy use. In South Asian nations (Sri Lanka, Pakistan, India, and Bangladesh), the FMOLS and DOLS findings are nearly identical, but the authors used the DOLS model for robustification. According to the findings, policymakers in South Asian economies (Sri Lanka, Pakistan, India, and Bangladesh) should view GDP and FDI as fundamental policy instruments for environmental sustainability. To reduce reliance on hazardous energy sources, the government should also reassure financial sectors to participate in renewable energy.

scholarly journals The impact of the Turn to the East Policy on foreign direct investment in the Russian Far East

2019 ◽  
Vol 27 (2) ◽  
pp. 366-374
Author(s):  
Han-Sol Lee
Keyword(s):  
Foreign Direct Investment ◽  
South Korea ◽  
Direct Investment ◽  
Russian Far East ◽  
Far East ◽  
Asian Countries ◽  
Far Eastern ◽  
The Impact ◽  
Policy Mechanisms ◽  
The Russian Far East

This study aims to measure the effectiveness of Russia’s Turn to the East Policy, addressed by the federal government in 2012, on the economic development of the underdeveloped Far Eastern regions, in terms of foreign direct investment (FDI) inflows data. To do so, this paper analyzed the results of the representative policy mechanisms - designed to promote the Far Eastern investments - of the Turn to the East Policy, comprised of the Eastern Economic Forum (EEC), Advanced Special Economic Zones (ASEZs), and Vladivostok Free Ports (VFPs), based on the secondary data from the governmental organizations. From the study, in spite of the previous contentions on those policy mechanisms amongst policymakers, we elucidate the incremental growing FDI - majorly contributed by the East Asian countries: China, Japan, and South Korea - propensity in the Far East. The three Eastern Asian countries promote investments in the Russian Far East for different eco-political purposes. And it further analyzed that for Russia, despite the remarkable magnitude of Chinese and Japanese FDI compared to South Korea, South Korea is still the most attractive partner, in terms of lack of threats: The Chinese expansionism, and the Kuril Island dispute with Japan.

Tracing Value Added in the Presence of Foreign Direct Investment

2021 ◽  
Author(s):  
Zhi Wang ◽  
Shang-Jin Wei ◽  
Xinding Yu ◽  
Kunfu Zhu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Value Added
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