scholarly journals The Impact of Foreign Direct Investment on Productivity of Domestic Firms: The Case of Sudanese Banking Industry

2021 ◽  
Vol 9 (02) ◽  
pp. 2081-2188
Author(s):  
Nasreldin Tomsah ◽  
Khloud Ali
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Banking Industry ◽  
Firm Level ◽  
Productivity Spillovers ◽  
Level Data ◽  
Show Evidence ◽  
Foreign Affiliates ◽  
Domestic Banks ◽  
The Impact

The research expands existing international business literature by exploring the impact of Foreign Direct Investment (FDI) on domestic banks. It investigates how FDI affects the productivity of domestic banks in Sudan. Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by FDI will spillover to domestic industries and increase their productivity. In contrast with earlier literature that tried to find positive interindustry spillovers from multinationals, this study focuses on effects operating in banking industry. The analysis, based on firm-level data from Sudan , the results show evidence consistent with positive productivity spillovers from FDI taking place through contacts between foreign affiliates and their local counterparts . The data indicate that productivity spillovers are associated with foreign owned banks.

scholarly journals Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages

2004 ◽  
Vol 94 (3) ◽  
pp. 605-627 ◽  
Author(s):  
Beata Smarzynska Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Ownership ◽  
Foreign Investments ◽  
Firm Level ◽  
Productivity Spillovers ◽  
Level Data ◽  
Firm Level Data ◽  
Foreign Affiliates ◽  
Backward Linkages

Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by multinationals will spill over to domestic industries and increase their productivity. In contrast with earlier literature that failed to find positive intraindustry spillovers from FDI, this study focuses on effects operating across industries. The analysis, based on firm-level data from Lithuania, produces evidence consistent with positive productivity spillovers from FDI taking place through contacts between foreign affiliates and their local suppliers in upstream sectors. The data indicate that spillovers are associated with projects with shared domestic and foreign ownership but not with fully owned foreign investments.

scholarly journals Foreign Direct Investment and the Survival of Domestic Private Firms in Viet Nam

2014 ◽  
Vol 31 (1) ◽  
pp. 53-91 ◽  
Author(s):  
Ari Kokko ◽  
Tran Toan Thang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Private Firms ◽  
Viet Nam ◽  
Firm Level ◽  
Level Data ◽  
Vertical Fdi ◽  
Negative Effect ◽  
The Impact ◽  
Local Firms

Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect of FDI on the survival of domestic private firms in Viet Nam. We estimate the impact of both horizontal and vertical FDI and explore how the presence of state-owned enterprises (SOEs) influences the exit hazard for private firms. The results suggest that horizontal and upstream FDI raise the exit hazard significantly, while downstream FDI may reduce the hazard. The presence of SOEs has a direct negative effect on the survival odds of local private firms in the same industry, but there is also an indirect impact on the exit hazard from FDI. Local firms are more vulnerable to foreign entry in sectors with high SOE shares. Looking at the net effects of FDI during the period 2001–2008, we find that results vary between sectors and over time but that the overall impact has been surprising small. The paper also discusses policy conclusions and implications for empirical analyses of spillovers from FDI.

scholarly journals Impact of Extensive and Intensive Margins of Foreign Direct Investment on Domestic Corporate Performance: Evidence from Japanese Automobile Parts Suppliers

2017 ◽  
Vol 16 (2) ◽  
pp. 187-209
Author(s):  
Toshiyuki Matsuura
Keyword(s):  
Foreign Direct Investment ◽  
Instrumental Variable ◽  
Direct Investment ◽  
Corporate Performance ◽  
Firm Level ◽  
Extensive And Intensive Margins ◽  
Level Data ◽  
Automobile Parts ◽  
The Impact ◽  
Parts Suppliers

This study uses firm-level data on Japanese automobile parts suppliers to investigate the impact of foreign direct investment (FDI) on domestic corporate performance. We use the automobile makers’ FDI as an instrumental variable for suppliers’ FDI and estimate the impact of both the extensive and intensive margins of FDI. We find that whereas the intensive margin of FDI does not significantly impact corporate performance, the extensive margin positively influences sales and total factor productivity. Furthermore, the impact of the initial FDI entry brings stronger effects than that of subsequent FDI flows.

Socialist Protoglobalization and Patterns of Uneven Transnational Integration After 1989

2018 ◽  
pp. 108-141
Author(s):  
Besnik Pula
Keyword(s):  
Foreign Direct Investment ◽  
Institutional Change ◽  
Capital Flows ◽  
Joint Ventures ◽  
Direct Investment ◽  
Economic Liberalization ◽  
Organizational Processes ◽  
Firm Level ◽  
Policy Orientation ◽  
The Impact

This chapter looks at the rise of foreign direct investment (FDI), both as a new policy orientation, and as a process of capital flows with institutionally transformative consequences in postsocialist economies. While the previous chapters focused largely on political elites and macro-institutional change during the late socialist era, this chapter shifts attention to the impact of organizational processes at the firm level during the immediate postsocialist period in driving the transition towards globally integrated postsocialist industries. The chapter systematically examines patterns of institutional change from joint ventures to foreign direct investment across the region, and demonstrates the capacities of economies with the most diffuse experience with socialist proto-globalization in making the most rapid gains from globalization after economic liberalization post-1989.

scholarly journals Foreign direct investment in the G-20: to what extent do institutions matter?

2018 ◽  
Vol 53 (3) ◽  
pp. 404-421
Author(s):  
Jurema Tomelin ◽  
Mohamed Amal ◽  
Nelson Hein ◽  
Andreia Carpes Dani
Keyword(s):  
Decision Making ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Financial Crisis ◽  
Economic Factor ◽  
Topsis Method ◽  
Firm Level ◽  
Content Type ◽  
Governance Indicators ◽  
The Impact

Purpose This study aims to identify to what extent the economic factor effect is more salient in shaping inward foreign direct investment (IFDI) than are institutional factors in G-20 inflow patterns. Design/methodology/approach Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method was applied using the World Bank Governance and Development Indicators, followed by a panel data technique over the period 2005-2015 to estimate the connections between the different dimensions of economics, institutions and IFDI in the G-20. Findings Results showed that countries with better economic performance contrasting with the governance indicators are more effective at attracting IFDI. However, the correlation between FDI intensity and governance indicators has been found relatively weak, which may suggest a more controversial role of institutions as determinants of IFDI. Research limitations/implications This quantitative approach uses a country-level set of variables; therefore, the authors suggest the development of more firm-level analysis of the impact of institutions. Also, the limitation of the TOPSIS method itself is based on heuristic assumptions. Practical implications The main findings point to a relatively low impact of institutions on IFDI. The authors suggest that the global financial crisis has changed the rationale of decision-making by multinational companies. Originality/value The originality of the present study was to apply a multi criteria decision-making technique on FDI’s analysis combined with institutional data.

scholarly journals Foreign Direct Investment, Firm Heterogeneity, and Exports: An Analysis of Indian Manufacturing

2018 ◽  
Vol 35 (1) ◽  
pp. 27-51 ◽  
Author(s):  
Maitri Ghosh ◽  
Saikat Sinha Roy
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Firm Heterogeneity ◽  
Export Performance ◽  
Sunk Costs ◽  
Performance Estimation ◽  
Firm Level ◽  
Specific Factors ◽  
The Impact

Using firm-level data, this paper investigates whether foreign direct investment and the presence of multinational enterprises explains India's improved export performance during the postreform period. The recent literature stresses that firm heterogeneity gives some firms an edge over others to self-select into export markets. Apart from ownership, this paper considers firm heterogeneity and other firm-specific factors of export performance. Estimation results show that the impact of foreign ownership on export performance does not significantly differ from that of domestic firms across sectors in Indian manufacturing. Rather, firms build their international competitiveness by importing raw materials and foreign technical know-how, and by investing in research and development. Further, firm heterogeneity, measured in terms of sunk costs, significantly impacts firm-level export intensity. The study also reveals that there are ownership-specific factors that determine firm-level exports.

Does FDI Mode of Entry Matter for Economic Developments of a Host Country? The Case of Korea

2006 ◽  
Vol 5 (3) ◽  
pp. 171-185
Author(s):  
Seong-Bong Lee ◽  
Mikyung Yun
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Classification Scheme ◽  
Ongoing Debate ◽  
Firm Level ◽  
Mode Of Entry ◽  
Level Data ◽  
Firm Level Data ◽  
Economic Developments ◽  
Level Performance

There is an ongoing debate on whether benefits of foreign direct investment (FDI) differ depending on the modes of FDI entry. This paper examines this debate using firm-level data on FDI in Korea. The paper adopts a new, more accurate classification scheme than the current official classification system and finds that there is little difference in firm-level performance according to FDI mode of entry. The paper thus argues against any provision of preferential incentives based on modes of entry.

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