scholarly journals The Role Of Guatemalan Crisis Management Attitudes In Foreign Direct Investment Initiatives

2011 ◽  
Vol 3 (9) ◽  
Author(s):  
Michelle G. Hough ◽  
John E. Spillan
Keyword(s):  
Foreign Direct Investment ◽  
Crisis Management ◽  
Host Country ◽  
Natural Resource ◽  
Direct Investment ◽  
Cultural Issues ◽  
Potential Host ◽  
Resource Environment

Improvements in communication, transportation, and technology continue to drive business globalization. Foreign Direct Investment (FDI) is one way in which firms can globalize. Although firms seeking FDI opportunities may investigate the commercial, economic, political, and natural resource environment of the potential host country, cultural issues including crisis management attitudes are sometimes overlooked. This study reviews crisis management considerations, investigates attitudes of indifference displayed by Guatemalan businesses with respect to crisis management, and discusses the implications for firms seeking FDI opportunities in Guatemala.

Foreign direct investment, natural resources and economic growth: a threshold model approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arshad Hayat ◽  
Muhammad Tahir
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Natural Resources ◽  
Host Country ◽  
Natural Resource ◽  
Direct Investment ◽  
Positive Impact ◽  
Threshold Model ◽  
Resource Abundance ◽  
Content Type

PurposeThe aim of this paper is to investigate the contingency effect of natural resource abundance on the foreign direct investment (FDI)–growth relationship in a nonlinear (threshold) model.Design/methodology/approachThe authors use the fixed effect threshold model for panel data with annual frequency for 83 countries and estimate threshold level of natural resource abundance that split the sample and change the FDI–growth relationship.FindingsThe results show that FDI has a strong positive impact on the economic growth of the host country if the host country's natural resources export is below the statistically significant estimated threshold. However, this FDI-induced economic growth is watered-down if the countries natural resources export is larger than the estimated threshold.Originality/valueThe results show that FDI has a strong positive impact on the economic growth of the host country if the host country's natural resources export is below the statistically significant estimated threshold. However, this FDI-induced economic growth is watered-down if the countries natural resources export is larger than the estimated threshold. The results are robust for alternative indicators of natural resources, i.e. natural resources rents.

scholarly journals Foreign direct investment risk implication on employment in an emerging economy

2017 ◽  
Vol 7 (4-1) ◽  
pp. 148-152
Author(s):  
Collins C Ngwakwe
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Time Series Data ◽  
Negative Relationship ◽  
Least Square ◽  
Series Data ◽  
Unexpected Result

This paper analysed the employment risk-effect of foreign direct investment (FDI) inflow in South Africa for the periods 1991 to 2014. The paper is an attempt to contribute to the growing debate on the role of FDI in economic development, but specifically on employment. The paper applied a quantitative method and used time series data from the World Bank development indicators. The ordinary least square (OLS) regression statistics was used to analyse the relationship between FDI and employment in South Africa for 1991 – 2014. Consistent with some previous research findings, results showed that during the period of study, FDI showed a negative relationship with employment – a growth in FDI had a negative effect on local employment by 1.29 percent. The paper thus highlights that if FDI does not received proper strategy, the host country may run the risk of not benefitting economically from FDI. This unexpected result can be attributed to some causes, which include inter alia reduction in domestic productivity because of FDI, the nature of FDI and the host country regulation of FDI. The paper suggests further research on the role of FDI on domestic productivity in South Africa

scholarly journals Regional economic integration, natural resources and foreign direct investment in SADC

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gameli Adika
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Natural Resources ◽  
Economic Integration ◽  
Natural Resource ◽  
Direct Investment ◽  
Least Square ◽  
Regional Economic Integration ◽  
Content Type

PurposeThis paper aims to examine the role of economic integration and natural resources and foreign direct investment (FDI) complementarity in explaining economic growth in the Southern African Development Community (SADC).Design/methodology/approachThe study employed the ordinary least square-random effects and the generalized two-stage least square instrumental variables (IV) regression to examine the relationship between the variables.FindingsThe authors find that regional economic integration and natural resource abundance are essential for promoting economic growth. The results further show a potential resource curse phenomenon, offset by the complementary effect of FDI in resource-rich countries. The findings are robust after conditioning for different measures of institutional quality.Practical implicationsThe findings suggest the need for deeper regional trade integration and international cooperation, prudent natural resource management and concerted effort toward economic diversification.Originality/valueMany studies have examined the determinants of economic growth in the Southern African Development Community (SADC). However, these studies did not incorporate or assess the potential of economic integration in the region. Moreover, studies that examined the growth effects of FDI did not assess the complementary role of the region's natural resource endowment which potentially drives FDI inflows. This study fills these gaps and provides a robust analysis of economic growth drivers in the region.

scholarly journals Traditional And Non-Traditional Determinants Of Foreign Direct Investment In Developing Countries

2011 ◽  
Vol 20 (1) ◽  
Author(s):  
Simran K. Kahai
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Host Country ◽  
Empirical Model ◽  
Direct Investment ◽  
Economic Freedom ◽  
Institutional Factors ◽  
Qualitative Factors

This paper extends previous studies on the determinants of Foreign Direct Investment (FDI) by looking at both traditional and non-traditional factors that influence the amount of FDI flowing to developing countries. Emphasis is placed on the role of non-traditional qualitative factors. Data from 1998 and 2000 for fifty-five developing countries are employed to estimate an empirical model of FDI. Results indicate that FDI is significantly affected by several qualitative factors such as the level of economic freedom, level of corruption, and the level of international trade regulations adopted in the host country. These findings support the need for increased considera- tion of cultural and institutional factors in attempting to better estimate and understand the devel- opment process.

Natural resource-seeking intent and regulatory forces

2016 ◽  
Vol 39 (10) ◽  
pp. 1313-1335 ◽  
Author(s):  
Yuanfei Kang ◽  
Yulong Liu
Keyword(s):  
Foreign Direct Investment ◽  
Conceptual Framework ◽  
Host Country ◽  
Natural Resource ◽  
Direct Investment ◽  
Location Choice ◽  
Political Risk ◽  
Government Support ◽  
Content Type ◽  
Strategic Intent

Purpose This study aims to investigate how natural resource-seeking as a type of strategic intent influences foreign direct investment (FDI) location choice. Grounded in the strategic intent approach and institution theory, the authors developed an interactive conceptual framework by integrating natural resource-seeking intent (NRI) with regulatory institutional factors. Design/methodology/approach The authors developed an interactive conceptual framework by integrating NRI at a firm level with regulatory factors of governmental support, political risk and economic freedom at country level. Using empirical data from a sample of 137 Chinese outward foreign direct investment (OFDI) projects in 19 Asian countries, statistical analysis was conducted using a conditional logistic regression technique. Findings Empirical findings from our study suggest that NRI has a strong influence on OFDI location choice of the Chinese firms. More importantly, the results demonstrate that influence of NRI on location choice is contingent on the regulatory forces both in the home and host countries settings. NRI is more likely to influence FDI location choice when government support from the home country is stronger and/or when political risk in a host country FDI is higher. Originality/value This is an empirical-based original study, and it contributes to the literature in several ways. First, the study enriches the strategic intent approach by demonstrating the contingency conditions from regulatory factors, especially home government support on a firm’s pursuit of NRI. Second, the study provides an explanation for the behaviour pattern of Chinese OFDI regarding their response to political risk in a host country. Third, the study demonstrates the influence of “institutional embededness” on the firm’s strategic intent. Managerial and policy implications are also discussed.

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