scholarly journals FDI and long-term economic growth in Egypt

2017 ◽  
Vol 13 (1) ◽  
pp. 65-74
Author(s):  
Saif Alhakimi
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Government Expenditure ◽  
Wage Structure ◽  
Series Data ◽  
The Impact

This research paper aims to empirically analyze the impact of FDI on the long-term economic growth of Egypt. An empirical model was developed to explain the aggregate output, including total labor force, capital stock, foreign direct investment, government expenditure, and the real exchange rate. Annual time-series data from 1990–2013 were then used to estimate the model. Prior to calculating this estimation, the properties of the time series were diagnosed, and an error-correction model was developed and assessed. The overall results suggest that foreign direct investment makes a positive, yet weak and insignificant, contribution to the long-term economic growth of Egypt. This finding warrants further investigation to explore the possible reasons behind it, such as the degree of spillover that FDI has on economic growth and its impact on employment in areas like job creation, wage structure, research, and development.

Impact of Globalization on Economic Growth in Vietnam: An Empirical Analysis

2018 ◽  
pp. 32-47 ◽  
Author(s):  
Dat Tho Tran ◽  
Van Thi Cam Nguyen
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Balance Of Trade ◽  
The Impact

This study aims at investigating the impact of globalization on economic growth in the case of Vietnam. Empirical analysis is done by using time series data for the period from 1995 to 2014. The paper tested the stationary cointegration of time series data and utilized the error correction modeling technique to determine the short run relationships among economic growth, globalization, foreign direct investment, balance of trade and exchange rate variables. Then, the long run relationship between economic growth and the variables representing economic integration were estimated by ordinary least square. The results show that globalization, measured by the KOF index, promotes economic growth and Vietnam has gained from integrating into the global economy. The overall index of globalization had positively and significantly impacted the economic growth in Vietnam. The results also indicated that economic globalization had a significantly positive effect on economic growth in the period examined. The study further revealed that foreign direct investment and the exchange rate affect economic growth positively whereas balance of trade affects economic growth negatively.

The Impact of Foreign Direct Investment (FDI) on Economic Growth (EG) : Evidence from Djibouti

2021 ◽  
Vol 9 (10) ◽  
pp. 701-706
Author(s):  
Nashwa Maguid Hayel
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Development ◽  
Direct Investment ◽  
Time Series Data ◽  
Developed Countries ◽  
Least Square ◽  
Series Data ◽  
Study Results ◽  
The Impact

Abstract: The achievement of EG and development is considered the core objective for both Developing Countires (DCs) and Least Developed Countries (LDCs), so countries try to get adequate funding to achieve this goal through optimal macroeconomic policies and different strategies. Countries prefer other mechanisms with less burden and cost to achieve economic growth, such as FDI flows. International development-oriented institutions such as WB and IMF recommend and consider FDI flows are the most important factors of the modern technology transfer, management, and know-how, which is necessarily needed in the local investment projects in poor countries, so FDI represents optimal external sources of growth. The objective of this study is to explain the impact of FDI on the EG of Djibouti. To achieve this objective the study used a secondary annual time series data for the period 1985-2019 by the method of Ordinary Least Square (OLS). The study results showed that FDI in the case of Djibouti tends to be statistically insignificant effects and a limited impact on Djibouti‘s EG, Moreover,other factors such as the Human Development Index(HDI), and Gross Fixed Capital Formation(GFCF), Trade Openness(TOP) shows significant effects on the Gross Domestic Product (GDP). Finally, the Consumer Price Index (CPI) has no significance in the EG of Djibouti. The findings provide critical information to Djibouti policy decision-makers to make an informed decision with regard to attracting investment sectors and policies in encouraging foreign investors to invest in the country. KEYWORDS: Foreign Direct Investment, Economic Growth, Djibouti, Empirical Analysis.

scholarly journals ANALISIS PENGARUH INVESTASI ASING LANGSUNG (FDI) DAN INVESTASI DALAM NEGERI TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2017 ◽  
Vol 2 (1) ◽  
pp. 54-68
Author(s):  
Firdaus Jufrida ◽  
Mohd. Nur Syechalad ◽  
Muhammad Nasir
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Multiple Regression Model ◽  
Least Square ◽  
Series Data ◽  
Domestic Investment ◽  
Ordinary Least Square

This study aims to analyze the effect of foreign direct investment (FDI) and domestic investment on Indonesian economic growth. The data used was time series data on Indonesian economy from year. Furthermore, the analysis was conducted with quantitative method using Ordinary Least Square (OLS) regression method with multiple regression model. The result shows that Foreign Direct Investment (FDI) has a positive but not significantly affected Indonesia economic growth, while Domestic Investment has a positive significant effect on Indonesian economic growth. Based on the research results, it is recommended that the Indonesia government has to maintain the stability of economic variables that can stimulate foreign and domestic investment in order to achieve sustainable economic growth.Penelitian ini bertujuan untuk menganalisis pengaruh investasi asing langsung (FDI) dan investasi domestik pada pertumbuhan ekonomi Indonesia. Data yang digunakan adalah data time series pada perekonomian Indonesia dari tahun. Selanjutnya, analisis dilakukan dengan metode kuantitatif dengan menggunakan metode regresi Ordinary Least Square (OLS) dengan model regresi berganda. Hasil penelitian menunjukkan bahwa Foreign Direct Investment (FDI) memiliki positif tetapi tidak pertumbuhan ekonomi secara signifikan mempengaruhi Indonesia, sedangkan PMDN memiliki efek positif yang signifikan terhadap pertumbuhan ekonomi Indonesia. Berdasarkan hasil penelitian, disarankan agar pemerintah Indonesia harus menjaga stabilitas variabel ekonomi yang dapat merangsang investasi asing dan domestik dalam rangka mencapai pertumbuhan ekonomi yang berkelanjutan.

scholarly journals Relationship between Corruption and FDI Inflow: A Causality Test

2019 ◽  
Vol 11 (1) ◽  
pp. 93-99
Author(s):  
Abdelhamid A. Mahboub ◽  
Hatem Hassan Garamon
Keyword(s):  
Time Series ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Developed Countries ◽  
Series Data ◽  
Strong Impact ◽  
Causality Test ◽  
The Developed Countries ◽  
The Impact

This study examines the relationship between the inflow of foreign direct investment and corruption. By using 2006 – 2015 time series data from 19 developed countries and 18 developing countries, it starts by testing the Granger causality between these two variables. It finds that causality direction goes from corruption to foreign direct investment. After making the time series data stationary, the study runs regression analysis for each country group separately. Significant and strong impact of corruption on foreign direct investment is found for each group, and the impact is even stronger for the developed countries. Data from each group could not support the hypothesis of ‘greasing the wheels of business’, which is used for justifying soft treatment of corruption in some countries. Policy implication is to stand strong against corruption in order to promote the inflow of foreign direct investment.

scholarly journals The Impact of Foreign Direct Investment on Economic Growth in Nigeria

2015 ◽  
Vol 7 (4) ◽  
pp. 90-97
Author(s):  
Sani Ali Ibrahim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Empirical Studies ◽  
Trade Openness ◽  
National Income ◽  
Series Data ◽  
Long Run ◽  
The Impact

The economic development performance can be used to measure the economic growth of a given country. In economic analysis, a country can attain economic growth through the growth in national income measurement. However, there were rigorous discussions on the role of foreign direct investment (FDI) on economic growth and continued to be a topic of discussion on the contemporary economy. This paper serves as an extension to the previous empirical studies on the issue by providing some evidence from time series data for the period 1971 to 2013 of Nigeria. The primary aim of this study is to analyze the impact of FDI on economic growth of Nigeria taking trade openness, Gross Fixed Capital Formation and human capital as control variables. To investigate the long run equilibrium relationship, Johansen and Juselius co-integration approach is analyzed, while the speed of adjustment in the short run is analyzed through the use of VECM method. In Nigeria, FDI, GFCF and HK have long run relationship with economic growth. However, the coefficient of ECM in Nigeria is statistically significant at 1% level of significance. Thus, 10.8% of the adjustment is achieved due to the correction of the adjustment speed in a year.

scholarly journals The Effect of Foreign Direct Investment Human Capital and Community Welfare

2021 ◽  
pp. 244-251
Author(s):  
Ifqi Khairunnisa ◽  
Sri Hartojo ◽  
Yeti Lis Purnamadewi
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
National Development ◽  
Structural Equations ◽  
Series Data ◽  
Simultaneous Equation System

National development goals are not merely to create growth in Gross Domestic Product (GDP) and high per capita income. But more than that, it expected to alleviate poverty levels and income inequality in every class of society. Foreign Direct Investment (FDI) one of the most important investment to accelerate economic growth. The advantages of FDI inflow for host country are: capital accumulation; job creation; transfer of technology and management; and access to international market networks. This study aims to determine the relationship between FDI, economic growth, human capital, and community welfare. The quantitative analysis method in this study uses a simultaneous equation system model with six structural equations: domestic investment, economic growth, public consumption, education, health, unemployment and poverty. In addition, there are 3 identity equations: investment equation, the labour force, and economic growth. All data is a combination of cross-sectional and time-series data. The cross-section data used are 33 provinces in Indonesia and the time series data for the period 2010 to 2019.

scholarly journals ANALISIS PENGARUH VARIABEL MAKRO EKONOMI TERHADAP INVESTASI ASING LANGSUNG (STUDY KASUS CHINA-INDONESIA).

2017 ◽  
Vol 6 (2) ◽  
pp. 103
Author(s):  
Ririn Martini Rezki ◽  
Yeniwati Yeniwati ◽  
Mike Triani
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Time Series Data ◽  
Least Square ◽  
Series Data ◽  
Short Term

This research to analyze the influence of macro economic variables impact on Chinese Foreign Direct Investment in Indonesia. The influence of China’s economic growth, Indonesia’s economic growth, interest rates, inflation and exchange rates against Foreign Direct Investment (FDI) China in Indonesia in the long term and short term. Type of this research is descriptive research, the secondary data use form time series data, from 2001Q1 – 2016Q4, taken  from agencies and related institution, the analysis using the Ordinary Least Square (OLS) and Error Correction Model (ECM) to see the influence in a long term and impact in the short term. This research show that Indonesia’s economic growth of China’s economic growth and inflation is have a significant effect in the long term Chinas’s FDI in Indonesia. Variable economic growth of Indonesia’s, interest rates, inflation, exchange rate in the short term influence China’s Foreign Direct Investment in Indonesia. How ever in the long term interest rates and exchange rate do not influence significantly, to China’s FDI in Indonesia.

An empirical analysis among foreign direct investment, trade openness and economic growth: evidence from the Indian economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reenu Kumari ◽  
Malik Shahzad Shabbir ◽  
Sharjeel Saleem ◽  
Ghulam Yahya Khan ◽  
Bilal Ahmed Abbasi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Fdi Inflows ◽  
Content Type ◽  
Study Results

PurposeThis study examines the long-term and causal relationship among foreign direct investment (FDI) inflows, trade openness and economic growth from India.Design/methodology/approachThis study has used annual time series data from the period 1985–2018 and applied the Johansen cointegration and vector autoregression (VAR) model.FindingsThe results of Johansen's cointegration confirm no long-term relationship among all the above three variables. Further, the results of VAR Granger causality indicate that FDI causes economic growth and economic growth causes FDI, which confirms the bi-directional causality. In contrast, this study found that there is no bi-directional causality between trade openness and economic growth.Social implicationsThrough this study, the government could take the decisions related to foreign investment after adopting more trade openness because the study results revealed that if India follows more trade openness, then how FDI will flow (upward and downward). With impulse analysis, researchers, government and policymakers take the decision-related FDI inflows for the forthcoming ten years after 2018.Originality/valueThis study has found the most exciting results from the impulse functions of FDI inflows, trade openness and economic growth, which showed the situation of these three variables as increase and decrease in the forthcoming ten years.

scholarly journals The Effect of Foreign Direct Investment on Indonesia’s Economic Growth

2016 ◽  
Vol 1 (2) ◽  
pp. 18-24
Author(s):  
Abdul Hadi Ilman
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Linear Regression Method ◽  
Domestic Investment ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

The relationship of Foreign Direct Investment (FDI) on economic growth is one of the most debatable topic in economic. This study is aiming to investigate the impact of FDI on economic growth in Indonesia. This research using linear regression method which base on time series data from 1981 to 2012. A Major finding is there is no special relationship between FDI and economic growth, both directly and indirectly. Moreover, FDI does crowd-in the domestic investment and is no significance evidence to prove that FDI is more efficient on economic growth than domestic investment.

scholarly journals DOES DEMOCRATIC INSTITUTIONS AND FOREIGN DIRECT INVESTMENT AFFECT ECONOMIC GROWTH? EVIDENCE FROM NIGERIA

2017 ◽  
Vol 2 (2) ◽  
pp. 27-36 ◽  
Author(s):  
Hassan O. Ozekhome
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Generalized Method Of Moments ◽  
Institutional Framework ◽  
Series Data ◽  
Democratic Institutions ◽  
Rapid Economic Growth ◽  
The Impact

A reciprocally re-enforcing relationship exists between institutions, foreign direct investment and economic growth. Sound institutional framework which supports foreign direct investment is significant for driving rapid Economic growth. An important factor that has undermined rapid and sustained economic growth is the weak institutional structure, decrepit state capacity and low level of foreign direct investment in Nigeria. Democratic structures reflected in the rule of law, effectiveness and predictability of the judiciary and enforceability of contracts proceedings is imperative for accelerating economic growth. Employing the Generalized Method of Moments (GMM) estimation techniques on annual time series data covering the period from 1981 to 2015, the relationship between these variables was empirically investigated. The empirical findings reveal that democratic institutions and foreign direct investment are significant variables influencing economic growth in Nigeria. In particular, the results, using Nigerian data, show that weak institutions have a destabilizing impact on growth. The impact of FDI on the other hand is found to be positive and significant. Therefore, sound institutional framework, as well as appropriate and consistent macroeconomic policies that encourage foreign direct investment to propel rapid economic growth in Nigeria needs to be put in place.

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