Analyzing Short-Run and Long-Run Causality between FDI Inflows, Labor Productivity and Education in Pakistan

2018 ◽  
Vol 5 (1) ◽  
pp. 36-59
Author(s):  
Ayesha Serfraz
Keyword(s):  
Labor Productivity ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run

An Empirical Investigation of India’s Outward Foreign Direct Investment: A Macro Perspective

2019 ◽  
Vol 5 (2) ◽  
pp. 79-88
Author(s):  
Dikshita Kakoti
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Real Effective Exchange Rate ◽  
Outward Foreign Direct Investment ◽  
Fdi Inflows ◽  
Long Run ◽  
Increasing Trend ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Since 1990, globalization of Indian economy led to a speedy growth of foreign direct investment (FDI) inflows and simultaneously outward foreign direct investment (OFDI) also shows an increasing trend. However, India’s OFDI has attracted a little attention from the researchers and they have considered the OFDI in terms of commitments or approved equities. The motivation of this article is to investigate the India’s macro factors influencing actual OFDI flows from India by empirically recognizing four factors, namely gross domestic product, inward FDI, real effective exchange rate, and real interest rate over the period 1980–2016. The study has used Augmented Dicky-Fuller (ADF) and Phillips–Perron (PP) Unit root tests for checking the stationarity of the variable of the model. Later on, autoregressive distributive lag (ARDL) model and error correction mechanism is used for testing the long-run as well as short-run dynamics of the model. The result shows that all the selected variables have positive and significant influence on India’s outward investment flows.

scholarly journals Dynamic Causal Relationships among GDP, Exports, and Foreign Direct Investment (FDI) in the Developing Countries

2013 ◽  
Vol 14 ◽  
pp. 1-19 ◽  
Author(s):  
Mohsen Mehrara ◽  
Amin Haghnejad ◽  
Jalal Dehnavi ◽  
Fereshteh Jandaghi Meybodi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Strong Evidence ◽  
Direct Investment ◽  
The Other ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Growth Hypothesis

Using panel techniques, this paper estimates the causality among economic growth, exports, and Foreign Direct Investment (FDI) inflows for developing countries over the period of 1980 to 2008. The study indicates that; firstly, there is strong evidence of bidirectional causality between economic growth and FDI inflows. Secondly, the exports-led growth hypothesis is supported by the finding of unidirectional causality running from exports to economic growth in both the short-run and the long-run. Thirdly, export is not Granger caused by economic growth and FDI inflow in either the short run or the long run. On the basis of the obtained results, it is recommended that outward-oriented strategies and policies of attracting FDI be pursued by developing countries to achieve higher rates of economic growth. On the other hand, the countries can increase FDI inflows by stimulating their economic growth.

scholarly journals Role of Information and Communication Technology, Foreign Direct Investment and Trade Openness in Environmental Sustainability

2021 ◽  
Vol 7 (2) ◽  
pp. 263-272
Author(s):  
Sulaman Hafeez Siddiqui ◽  
Sohail Saeed ◽  
Areeba Khan ◽  
Hina Bhatti
Keyword(s):  
Co2 Emissions ◽  
Information And Communication Technologies ◽  
Environmental Sustainability ◽  
Trade Openness ◽  
Communication Technologies ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Information And Communication ◽  
The Government

Purpose: The benefits of Information and Communication Technologies (ICTs) in environmental resource management has been a topic of hot discussion for the policymakers across the world.  For the purpose, the government of Pakistan took initiative in 2018 to use technology for the country’s social welfare, financial benefits and to enhance environmental sustainability and named it as “Digital Pakistan Initiative”.Design/Methodology/Approach: For analysis, this study took CO2 emissions as the dependent variable and ICT, FDI inflows, and Trade Openness as independent variables. Data were collected on bimonthly basis from 2004 through 2019, and analyzed employing ARDL approach. Main purpose of the study was to examine the short-run and long-run relationship among carbon emissions and ICT, FDI Inflows and Trade Openness.Findings: The findings show that there exists a short-run relationship among all the variables; however, FDI inflows and trade openness have a significant relationship with CO2 emissions. The results also exhibit that there is no long-run relationship between CO2 emissions, FDI inflows, and Trade openness while ICT has an insignificant long-run relationship with CO2 emissions. With the increase of information and communication, the country’s environmental sustainability is also increased. Implications/Originality/Value: The current study was based on least considered variables and the pioneer in testing the complex relationship through VAR estimation.

scholarly journals Role of Education and Financial Market Development in Attracting Foreign Direct Investment Inflows in Pakistan

TEM Journal ◽  
2021 ◽  
pp. 1184-1189
Author(s):  
Haider Mahmood ◽  
Muhammad Tanveer
Keyword(s):  
Foreign Direct Investment ◽  
Financial Market ◽  
Direct Investment ◽  
Market Development ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Financial Market Development ◽  
Positive Effect

This paper has investigated the role of education and Financial Market Development (FMD) on the Foreign Direct Investment (FDI) inflows in Pakistan from 1970-2019. In the short run, education has a positive effect on FDI inflows. 1% increasing of government's spending on education would increase 0.361% of FDI inflows in Pakistan. Moreover, the FMD has a positive effect on FDI inflows in the short run. 1% increasing FMD may increase 0.0496% of FDI in the short run. Both education and FMD are supporting the FDI inflows in the short run. Comparatively, education shows a larger effect on FDI than that of FMD in the short run. However, FMD and government spending on education could not affect the FDI inflows in the long run. This paper recommends supporting education and financial markets to attract FDI inflows in Pakistan.

scholarly journals Foreign Direct Investment, Export Performance and Sustainable Development in Nigeria

2019 ◽  
Vol 12 (2) ◽  
pp. 110
Author(s):  
Akintoye Victor Adejumo
Keyword(s):  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Export Performance ◽  
Fdi Inflows ◽  
Export Sector ◽  
Long Run ◽  
Short Run ◽  
Manufactured Exports

This study sets out to examine the role of manufacturing sector Foreign Direct Investment (FDI) in the quest for export sector diversification in Nigeria for sustainable development. This objective was achieved by estimating the effects of manufacturing sector FDI on manufactured goods export from Nigeria using the Autoregressive Distributed Lag estimating technique. The study discovered that FDI inflows into the country’s manufacturing sector impacted negatively on manufactured exports in the short run. The short run result nevertheless gave way to a positive and significant influence of FDI on manufactured exports in the long run, indicating that this form of foreign capital is important for manufactured export promotion in Nigeria. The resulting long run positive FDI- spillovers on export performance in Nigeria is in tandem with the neoliberal theoretical viewpoint that developing countries can rely on FDI as ladder to sustainable development. The findings suggest that sustainable development can be enhanced in Nigeria by exploiting the channel of positive spillovers from sector specific FDI inflows. The study concludes that with appropriate policy stance, one important way of pursuing the long run goal of sustainable development is to route FDI inflows in the direction of the country’s manufacturing sector.

scholarly journals A cross-sectoral analysis of the relation between labor productivity and labor compensation in the European Union

2021 ◽  
Vol 62 ◽  
pp. 54-65
Author(s):  
A.D. Fofack ◽  
◽  
S.D. Temkeng ◽  
Keyword(s):  
European Union ◽  
Labor Productivity ◽  
Fixed Effects ◽  
The European Union ◽  
Labor Compensation ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
The Mean ◽  
Productivity Gains

The aim of this paper is to assess and compare the link between labor productivity and compensation in four industries — air transport, electronics, finance, and telecommunications — of twenty‐five member states of the European Union (EU) from 2000 to 2014. The long‐run and short‐run dynamics of productivity and compensation are analyzed using the pooled mean group (PMG), the mean group (MG) and the dynamic fixed effects (DFE) estimators. The results confirm the existence of a gap between productivity and compensation in each of those industries as mentioned in previous studies. However, the results show that despite that gap, the link between the two variables is not broken. That is, productivity and compensation are not only linked in the long run, but they also return to their long‐run equilibrium after every short‐run disturbance. The econometric analysis also reveals that the relation between productivity and compensation does not follow a significantly different pattern from one industry to the other. These findings robust to alternative models, estimation techniques and across industries, suggest that there are some other cross‐sectoral factors preventing productivity gains to be fully reflected on paychecks.

scholarly journals Examining the Equilibrium Relationships between Foreign Direct Investment Inflows and Employment in Manufacturing and Services Sectors: Evidence from Malaysia

2013 ◽  
Vol 4 (1) ◽  
pp. 32-38
Author(s):  
Hussain Ali Bekhet
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Current Paper ◽  
Policy Makers ◽  
Fdi Inflows ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Equilibrium Relationships ◽  
F Statistics

The current paper examines the long-run and short-run equilibrium relationships between FDI inflows and employment in Malaysian manufacturing and services sectors using ARDL approach for the 19722011 period. It employs ADF and PP tests to detect the stationary levels of above variables. Also, it utilizes the bounds F-statistics test to identify the co-integration among variables. Results of ARDL approach indicate the presence of significant long-run and short-run equilibrium relationships between FDI inflows and employment in manufacturing and services sectors. The paper’s findings are of particular interest and importance to Malaysian policy makers towards increasing FDI inflows and employment in manufacturing and services sectors.

scholarly journals Testing The FDI Hypothesis Of Location Advantage In The Case Of Kuwait

2016 ◽  
Vol 32 (2) ◽  
pp. 597 ◽  
Author(s):  
Nayef Al-Shammari ◽  
Said Al-Halaq ◽  
Dhuha Al-Shammari
Keyword(s):  
Economic Development ◽  
Error Correction ◽  
Market Size ◽  
Infrastructure Development ◽  
Financial Deepening ◽  
Fdi Inflows ◽  
Correction Model ◽  
Long Run ◽  
Determining Factors ◽  
Short Run

This study examines the determining factors of FDI inflows in Kuwait. Data sample covers the period from 1975 to 2013. In this study, estimates are tested using Augmented Dickey and Fuller, Johansen Co-integration tests and Error Correction Model (ECM). Results of the Johansen test show that all variables are co-integrated with the Kuwait’s FDI inflows in the long run. Interestingly, factors of market size, economic development, financial deepening, number of population, infrastructure development, openness, and oil rent have long run relationship with the FDI inflows in Kuwait. In the short run, findings also show that the short-run models are in equilibrium.

scholarly journals The Role of FDI on Structural Transformation among Sub-Saharan African and EAP Countries Using a Panel Data Approach

2021 ◽  
Vol 23 (11) ◽  
pp. 402-428
Author(s):  
Solomon Kebede Menza ◽  
◽  
Zerihun Getachew ◽  
Berhanu Kuma ◽  
Tora Abebe ◽  
...  
Keyword(s):  
Panel Data ◽  
Structural Transformation ◽  
Descriptive Analysis ◽  
African Countries ◽  
Fdi Inflows ◽  
Income Category ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan

In recent decades the activities of multinational corporations have increased across the globe substantially having a massive flows of foreign direct investment. This paper empirically examines the role of FDI on structural transformation among Sub-Saharan African and EAP Countries Using a Panel Data Approach. To achieve the objective the study took 31 years panel data . The study used descriptive analysis and empirical methods of analysis. The panel Autoregressive Distributed Lag model with error correction models of Pooled Mean Group technique were employed after checking the possible assumptions of our economic series. The results of Im-Pesaran-Shin test confirms our economic series are stationary at level and first difference forms. Pedroni’s cointegration tests suggests the existence of co-integration between the variables. According to the descriptive analysis, on average structural transformation index (STI) is the highest for China (30.52%) followed by South Korea (25.86), while Ethiopia (4.85) is having the lowest. On other hand, the East Asian and Pacific (EAP) countries in the higher income category are performing better than Sub-Saharan African countries. In addition,Sub-Saharan Africa countries are by far having low level of FDI inflows as compared to EAP countries. Particularly, the FDI inflows for EAP countries in the higher income category is around USD 52 Billion, and while for low and middle income category SSA countries it accounts around USD 2.2 Billion and USD 85 million, respectively. More specifically, across countries in the panel the FDI inflow is the highest for China while on average Kenya is having the lowest FDI inflows. On the other hand, according to the ARDL model of Pooled Mean Group estimation technique in the long-run financial development indicator and FDI have positive impact on the structural transformation index of nations at 1percent level of significance for the full sample in the panel. Moreover, pooled mean group regression result among the Sub-Saharan African and EAP countries FDI has a significant but having different sign for the two group in predicting structural transformation. Particularly, for EAP countries FDI has a negative effect in the long run and a positive effect in the short-run on structural transformation index which are also statistically significant. While for Sub-Saharan African countries FDI has a positive and statistically significant effect on structural transformation both in the long run and short-run. Finally, the government of developing countries like SSAs should provide different incentive packages to attract FDI inflows, among others.

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