scholarly journals Foreign direct investment and the Covid-19 pandemic: The real economy perspective and theoretical implications

2021 ◽  
pp. 90-99
Author(s):  
Marian Gorynia ◽  
Piotr Trąpczyński
Keyword(s):  
International Economic ◽  
Foreign Direct Investment ◽  
Economic Activity ◽  
Direct Investment ◽  
Business Models ◽  
Theoretical Perspective ◽  
Primary Data ◽  
Real Economy ◽  
Theoretical Concepts ◽  
The Real

Purpose: The objective of this chapter is to discuss the effects of the Covid-19 pandemic on the international operations of firms, with a particular focus on foreign direct investment. Design/methodology/approach: The real economy perspective was adopted, whereby basic relationships in terms of the development of FDI flows and transactions worldwide were analyzed. In addition, primary data from a survey of internationally operating Polish firms were analyzed in order to shed additional light on the influence of the pandemic on international economic activity. In addition to formulating observations with regard to general patterns emerging from the data, an attempt has been made to outline the likely theoretical implications of the pandemic for FDI research. Findings: In the short term, there was a significant limitation of FDI, caused mainly by the introduction of lockdowns. In the middle and long run, the current crisis will likely translate into acontinued slowdown in FDI flows. On the other hand, as we may see from the early evidence analyzed in the chapter, the impacts on the international economic activity vary across locations at different levels of economic development, but also between different industries and business models. Research implications: From a theoretical perspective, we must note that in the short run the existing theoretical concepts can be helpful in explaining the present phenomena. However, in the long-term perspective a number of fundamental assumptions may require several revisions outlined in the chapter. Originality and value: The chapter includes an analysis of recent macro- and micro-level data on the effects of the pandemic on international business, along with forecasts for the post-pandemic period. Apart from the practical dimension of the analyzed primary and secondary data, the chapter also offers a number of theoretical implications.

scholarly journals Permanent establishment as a foreign direct investment in Poland: identification of tax barriers in the context of new tax development

2021 ◽  
Vol 57 (2) ◽  
pp. 177-193
Author(s):  
Marcin Jamroży ◽  
Magdalena Janiszewska
Keyword(s):  
Foreign Direct Investment ◽  
Economic Activity ◽  
Direct Investment ◽  
Business Models ◽  
Tax Avoidance ◽  
Tax Law ◽  
Profit Shifting ◽  
New Developments ◽  
Permanent Establishment ◽  
International Tax

Abstract The paper aims to identify the significant tax barriers to foreign direct investment (FDI) in Poland, in particular in the form of a permanent establishment (PE), in the context of new developments in international tax law. Due to the recommendations of the Base Erosion and Profit Shifting (BEPS) project, launched by Organisation for Economic Co-operation and Development (OECD) to prevent international tax avoidance, the understanding of PE has changed, which could lead to changes in business models. The purpose of the research is also to identify the significant tax barriers to economic activity in Poland, in particular in the form of PE, against the international tax law context. The study conducted by the authors relies on the most current tax rulings and judgments of administrative courts issued between 2017 and 2020. It is concluded that not so much the effective tax burdens but the regulatory ambiguity surrounding the tax obligations may contribute to the reduction of Poland's attractiveness as a location for FDI.

scholarly journals FOREIGN DIRECT INVESTMENT IN INDIA: A TREND ANALYSIS

10.36713/3205 ◽  
2020 ◽  
pp. 57-64
Author(s):  
Rudresha C. E
Keyword(s):  
International Economic ◽  
Foreign Direct Investment ◽  
Economic Integration ◽  
Growth And Development ◽  
Direct Investment ◽  
Policy Reforms ◽  
New Economic Policy ◽  
Fdi Inflows ◽  
Indian Economy ◽  
Made In

International economic integration plays a significant role in the growth and development of any country, whether rich or poor. And foreign direct investment (FDI) is one of the major components in the process of achieving international economic integration in any economy. As is known, FDI serves as a link between investment and savings. This is true even in the case of India which is facing the deficit of savings and which can be addressed with the help of FDI. It (i.e., FDI) also helps in raising the growth and development of the economy. India is one of the leading markets at the global level. It has emerged as one of the attractive destinations in the world with a significant change in the inflow of FDI. The journey of FDI is very interesting with the introduction of liberalized policy through new economic policy 1991 and also other policy reforms of Government of India. It has witnessed a drastic change in the inflow and direction of foreign investment in Indian economy. In this backdrop, an attempt is made in this paper to examine country-wise, sector-wise and region-wise FDI inflows in Indian economy during last 19 years, 2000-01 to 2018-19. KEY WORDS: Economic Integration, Foreign Direct Investment, Developing Nations, Savings, Policy Reforms

Foreign Direct Investment and Local firm’s Performance

2021 ◽  
pp. 57-73
Author(s):  
M. D Wanjere ◽  
M. Ogutu ◽  
M. Kinoti ◽  
X.N. Iraki
Keyword(s):  
Foreign Direct Investment ◽  
Firm Performance ◽  
Production Technology ◽  
Direct Investment ◽  
Pearson Correlation ◽  
Capital Flow ◽  
Manufacturing Firms ◽  
Primary Data ◽  
Advanced Production ◽  
Technology Marketing

This paper investigates the effect of FDI on performance of manufacturing firms in Kenya. Little is documented about the link between FDI variables of capital flow, advanced production technology, marketing expertise and management know-how and performance of firms. The study’s sought to establish the effect of each individual FDI variables on firm’s performance. It also sought to established the overall effect of the performance manufacturing firms in Kenya. The population of study comprised 100 companies registered with Kenya Association Manufacturing as at the time of data collection in 2019 and that had over 10 percent foreign ownership. The respondents were the CEOs of organization. The study used a structured questionnaire to collect primary data. Descriptive and inferential statistics were both used to analyze the data. Data was pretested for normality, linearity, multicollinearity, autocorrelation and homoscedasticity and the data found to meet most of these preconditions. The Pearson correlation analysis was employed to discern not only the strength but also the direction of the interrelationships involving the variables. The researcher tested the effect of the components of FDI on performance of manufacturing firms. The study developed one hypothesis and four sub hypothesis. The results revealed that there was a statistically significant relationship between FDI and firm performance. This imply that to achieve better firm performance, the government need to come up with policies geared to attracting more FDI into the key sectors of the economy. Keywords: Foreign Direct Investment, Firm Performance, Capital Flow, Advanced Production Technology, Marketing Expertise, Management Knowhow.

STRATEGY OF ATTRACTING INVESTMENTS IN THE REAL SECTOR OF THE RUSSIAN ECONOMY

2020 ◽  
Vol 2 (12) ◽  
pp. 32-37
Author(s):  
E. K. Khafizova ◽  
◽  
S. V. SALMINA ◽  
Yu. N. BALABANOVA ◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Sanctions ◽  
Real Sector ◽  
The Real ◽  
Russian Economy

The article examines the topical problems of attracting foreign direct investment in the real sector of the economy under conditions of economic sanctions and the influence of geopolitical factors. The dynamics of investment inflows into the Russian economy is analyzed, the reasons for the changes are determined.

The Effect of International Financial Reporting Standards Adoption on Foreign Direct Investment and the Economy

2016 ◽  
pp. 342-361 ◽  
Author(s):  
Christopher Boachie
Keyword(s):  
Foreign Direct Investment ◽  
Financial Reporting ◽  
Direct Investment ◽  
Survey Study ◽  
International Financial Reporting Standards ◽  
Primary Data ◽  
Reporting Standards ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Financial Reporting Standards

This chapter examines the effect of International Financial Reporting Standards (IFRS) adoption on Foreign Direct Investment (FDI) and Ghanaian economy. It is a cross sectional survey study, with the population consisting of both Preparers and Users of financial statements. Stratified Random sampling method was adopted to gather primary data. Findings showed that IFRS has been adopted in Ghana and it is perceived that IFRS implementation promotes FDI inflows and economic growth. This study recommends all stakeholders to have full implementation to reap benefits of the IFRS and principle - based standards. The implication is that preparers need to work on their skills and expertise gap through training and development and to ensure that these standards are included in the academic and professional curricula. Moreover, regulatory bodies should monitor and enforce these standards but where local content is needed, convergence should be the solution.

Examining financial needs of banking customers for product development in Islamic banking in Indonesia

2019 ◽  
Vol 12 (5) ◽  
pp. 712-726 ◽  
Author(s):  
Aimatul Yumna
Keyword(s):  
Product Development ◽  
Primary Data ◽  
Islamic Banking ◽  
Life Cycle Approach ◽  
Real Economy ◽  
Structured Interviews ◽  
Content Type ◽  
The Real ◽  
Financial Products ◽  
Qualitative Approaches

Purpose This study aims at product development in Syariah banking, using the theory of Pyramid of Maslahah. Product development are important aspects of Islamic banking to realize Maqasid Al Shariah and to better serve the real economy. Design/methodology/approach To understand the needs of the customers, this study uses qualitative approaches and collects primary data from semi-structured interviews of 25 banking customers in Indonesia. Findings The study found that the group of respondents who have similar characteristics in age, marital status and number of kids tend to have similar financial needs. Some of the needs that have not been fulfilled by Sharia banking are the needs for investment in banking products, the needs for pension plan products and the needs for travelling-related financial products. Practical implications This study proposed that Islamic banking should provide financial products that cater to three needs of the society, including the needs for necessities/essentials (daruriyat), the needs of complementary requirements (hajiyyat) and the needs for beautifications or embellishments (tahsiniyat), to be able to better serve the real economy. Originality/value Financial needs and the life cycle approach can be used for product development in banking industry. However, this approach has not been widely used for consideration in the development of Sharia banking products in Indonesia. This study provides some novelty in Islamic banking customer behavior, especially in understanding financial needs based on the theory of Pyramid of Maslahah.

scholarly journals Interactions between the Real Economy and the Stock Market: A Simple Agent-Based Approach

2012 ◽  
Vol 2012 ◽  
pp. 1-21 ◽  
Author(s):  
Frank Westerhoff
Keyword(s):  
Stock Market ◽  
Economic Activity ◽  
Real Economy ◽  
Agent Based ◽  
The Real ◽  
Goods Market ◽  
Numerical Tools ◽  
Market Approach ◽  
Fundamental Values

We develop a simple behavioral macromodel to study interactions between the real economy and the stock market. The real economy is represented by a Keynesian-type goods market approach while the setup for the stock market includes heterogeneous speculators. Using a mixture of analytical and numerical tools we find, for instance, that speculators may create endogenous boom-bust dynamics in the stock market which, by spilling over into the real economy, can cause lasting fluctuations in economic activity. However, fluctuations in economic activity may, by shaping the firms' fundamental values, also have an impact on the dynamics of the stock market.

scholarly journals CORONAVIRUS BIAS OF THE MODERN WORLD ECONOMY : SCALES , RISKS, CONSEQUENCES

2021 ◽  
Vol 7 (1) ◽  
pp. 5-17
Author(s):  
E. N. Smirnov
Keyword(s):  
Economic Growth ◽  
International Economic ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
World Economy ◽  
Global Value Chains ◽  
Value Chains ◽  
Modern World ◽  
Economic Relations

The objective of our article is to analyze the risks of a new coronavirus pandemic with impact on the dynamics of the modern world economy, as well as to assess the corresponding consequences and risks that will lead to the formation of a new model for organizing interactions in international trade, foreign direct investment and a revision of the determinants of global economic growth. The nature of the impact of the current pandemic on the existing system of international economic relations, in contrast to the previous global crises, is unprecedentedly tough, which has led to a number of contradictions in the development of global value chains, international trade flows, and  the  transformation  of  external  financing  conditions.  The  author  believes  that  the  most important  challenge  of  the  pandemic  is  not  only  the  recovery  of  the  economy  and  economic activity, maintaining the growth rate of labor productivity, but also in preventing the growth of inequality, in shaping the ability to manage global risks and imbalances. The trends towards the localization of international trade and the repatriation of global  value chains act as a risk of a significant slowdown in international exchange, which contradicts the canons and strategies for the development of foreign economic relations  of those countries  that ensured their economic growth by expanding participation in international trade and attracting foreign direct investment. According to the author, a new wave of international economic cooperation between countries can bring a new impetus to the development of international trade, capital movement and the dynamics of economic mobility.

scholarly journals Inward Foreign Direct Investment and National Innovative Capacity

2019 ◽  
Vol 30 (3) ◽  
pp. 339-348 ◽  
Author(s):  
Meda Andrijauskiene ◽  
Daiva Dumčiuvienė
Keyword(s):  
International Economic ◽  
Foreign Direct Investment ◽  
Technological Innovation ◽  
Direct Investment ◽  
Global Network ◽  
Economic Activities ◽  
Eu Member States ◽  
Transmission Of Knowledge ◽  
Inward Foreign Direct Investment ◽  
Innovative Capacity

A remarkable increase in the attention devoted to national innovative capacity (NIC) has been noticed over the last decades. There is a strong debate whether a country’s national innovative capacity is entirely determined by local effects or it is also influenced by global network position and international economic activities. Furthermore, despite its’ importance, there is a lack of studies which take the variables of non-technological innovation into account. This paper aims to fill the empirical research gap by focusing on inward foreign direct investment as an input of NIC and engaging non–technological innovation as an output in NIC models. An investigation of 28 European Union (EU) Member States in the period of 2013-2016 shows that EU has a great intellectual capacity of human capital which drives both technological and non-technological innovation. The regression analysis revealed that the international transmission of knowledge through inward FDI and import boost the employment in knowledge-intensive sectors and has a positive effect on trademark and design applications. The findings thus help to better understand the role of international economic activities in enhancing national innovative capacity and facilitate EU efforts to catch up with the strongest innovators in the World.

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