Causal Relationship Between FDI Flow and Technological Innovation in China and Japan

2019 ◽  
Vol 23 (3) ◽  
pp. 536-545
Author(s):  
Chengkun Liu ◽  
Xiuwu Zhang ◽  
Takashi Tamamine ◽  
◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Technological Innovation ◽  
Direct Investment ◽  
International Capital ◽  
Short Term ◽  
International Capital Flow ◽  
Measure Model ◽  
China And Japan ◽  
The One

The improvement of a country’s technological innovation level is influenced by the technology spillover of inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI). Based on the Coe and Helpmen’s theory of international capital flow model and one-way causality measure model, this study examines the similarities and dissimilarities between the dynamic effects of IDFI and OFDI on technological innovation in China and Japan to enumerate the differences in the utilization effect of FDI between developed and developing countries. The empirical results show that the one-way causality intensity of IFDI to technological innovation in China is weaker than that in Japan, but the FDI volatility in China is stronger than that in Japan. The one-way causality intensity of OFDI to technological innovation are low both in China and Japan, and the patterns of long-term and short-term effects are not identical. According to the results of our empirical research, we draw the conclusions and proposed suggestions for using IFDI and OFDI in China and Japan.

Analysis of the current state of the investment relations between Russia and India

2020 ◽  
pp. 168-174
Author(s):  
Л.Н. Красавина ◽  
Л.И. Хомякова
Keyword(s):  
Foreign Direct Investment ◽  
International Organizations ◽  
Direct Investment ◽  
Uneven Distribution ◽  
International Capital ◽  
Investment Projects ◽  
Specific Investment ◽  
Current State ◽  
International Capital Flow

Статья посвящена анализу длительного сотрудничества России и Индии в инвестиционной сфере. Объектом исследования стали инвестиционные связи между данными государствами. На основании российской и индийской статистики, а таакже статистики международных организаций сделаны выводы о неравномерности распределения прямых иностранных инвестиций России и Индии, указано на их различное положение в международном движении капитала. Приведены примеры конкретных инвестиционных проектов между ТНК двух стран. Обоснованы выводы о недостаточном использовании потенциала российско-индийских инвестиционных отношений и даны предложения по их активизации. The article is devoted to the analysis of the long-term cooperation between Russia and India in the investment sphere. The object of the study was the investment relationships between these states. Based on the Russian and Indian statistics, as well as on the statistics of the international organizations, conclusions are given about the uneven distribution of foreign direct investment between Russia and India, their different position in the international capital flow is indicated. Examples of specific investment projects between TNCs of the two countries are given. The conclusions about the underutilization of the potential of Russian-Indian investment relations are substantiated and proposals for their activation are given.

scholarly journals Foreign Direct Investment Led Growth Hypothesis and Economic Development in Nigeria

2021 ◽  
Vol 2 (4) ◽  
pp. 376-393
Author(s):  
Ubong Edem Effiong ◽  
Nora Francis Inyang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Unit Root Test ◽  
Secondary Data ◽  
Short Term ◽  
Causality Test ◽  
Bounds Test ◽  
Growth Hypothesis

This study was an inquiry into the nexus of the foreign-direct investment (FDI) led growth hypothesis, and how it translates into the development of the Nigerian economy as of 1970 – 2018. The study utilized secondary data from the ‘World Development Indicators’ which were analysed using the Bounds test for cointegration and the ‘autoregressive distributed lag (ARDL) approach to divulge both the short-term cum the long-term influence of foreign direct investment net inflow on ‘economic development’ of Nigeria. The Bounds test was conducted after the unit root test revealed that the variables were stationary at mixed order of level and first difference. The outcome of the ARDL Bounds test supported confirmation of long-term association among the variables. The ARDL short-run error correction showed that 14.62% of the instability in the model was corrected yearly. In the short-term, it was discovered that FDI wielded a deleterious and substantial weight on ‘economic development of Nigeria. Meanwhile, the long-term estimates indicated that FDI influenced economic development positively, though not in a significant manner. The Granger causality test supported the fact that FDI causes ‘economic development’ in Nigeria. Given this potential of FDI exerting a positive effect on ‘economic development’, the paper recommended that bottlenecks inherent in FDI influxes in the country should be removed so as to reap the fullest benefits of such inflows in Nigeria.

scholarly journals Macroeconomic Variables and Foreign Direct Investment Inflows in Turkey

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Saliha Meftah ◽  
Abdelkader Nassour
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Short Term ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Macroeconomic Variables ◽  
Vector Error ◽  
Causality Relationship

Foreign direct investment (FDI) is an essential factor in the development of a country. This study aims to examine what factors influence foreign direct investment. By using the vector error correction model, the research shows that there is a long-term causality relationship between exchange rates and inflation with FDI. However, in the short term, there are no variables that affect FDI. Besides, the Granger causality test shows causality in the direction of GDP and FDI, while other variables do not have causality. This research has implications for policymakers to pay attention to macroeconomic variables in increasing the flow of foreign direct investment.

scholarly journals DETERMINAN ALIRAN FOREIGN DIRECT INVESTMENT DI INDONESIA (PENDEKATAN MODEL DUNNING)

Media Trend ◽  
2016 ◽  
Vol 11 (2) ◽  
pp. 141
Author(s):  
Claudia TeziaJanuarita Putri ◽  
Regina Niken Wilantari
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Descriptive Analysis ◽  
Capital Inflow ◽  
Economic Shocks ◽  
Short Term ◽  
Economic Openness ◽  
Correction Model ◽  
Investment Opportunities

<p><em>Traffic capital across countries is one of  investment opportunities from domestic and abroad to stimulate the economic growth  of developing countries</em><em>. Compared to other forms of capital, Foreign Direct Investment is the flow of capital is long-term and relatively not as vulnerable to economic shocks. The aim of this study is to see the performance of FDI movement as a capital inflow in Indonesia and to explores whether factors that affect FDI using Dunning’s ecletic model. </em><em>This study focused on two basic analysis, descriptive analysis and quantitative analysis using the Error Correction Model (ECM). </em><em>The results of short-term ECM estimate shows that FDI is influenced by inflation and the degree of economic openness. Furthermore, the result in the long term ECM estimate show that only variable that infrastructure does not significantly affect the movement of FDI in Indonesia. </em></p>

scholarly journals Bootstrap ARDL Test on the Relationship among Trade, FDI and CO2 Emissions: Based on the Experience of BRICS Countries

2019 ◽  
Author(s):  
Fumei He ◽  
Ke-Chiun Chang ◽  
Min Li ◽  
Xueping Li ◽  
Fangjhy Li
Keyword(s):  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Export Trade ◽  
Short Term ◽  
Brics Countries ◽  
The Relationship ◽  
Cointegration Relationship

We used the Bootstrap ARDL method to test the relationship between the export trades, FDI and CO2 emissions of the BRICS countries. We found that China's foreign direct investment and the lag one period of CO2 emissions have a cointegration on exports. South Africa's foreign direct investment and CO2 emissions have a cointegration relationship with the lag one period of exports, and South Africa's the lag one period of exports and foreign direct investment have a cointegration relationship with the lag one period of CO2 emissions. But whether it is China or South Africa, these three variables have no causal relationship in the long-term. Among the variables of other BRICS countries, Russia is the only country showed degenerate case #1 in McNown et al. mentioned in their paper. When we examined short-term causality, we found that CO2 emissions and export trade showed a reverse causal relationship, while FDI and carbon emissions were not so obvious. Export trade has a positive causal relationship with FDI. Those variables are different from different situations and different countries.

scholarly journals PENGARUH PENANAMAN MODAL ASING TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA

Media Ekonomi ◽  
2016 ◽  
Vol 24 (1) ◽  
pp. 63
Author(s):  
Fajar Bimantoro ◽  
Mona Adriana S
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Financial Crisis ◽  
Direct Investment ◽  
Global Financial Crisis ◽  
Consumer Price Index ◽  
Impulse Response Function ◽  
Short Term ◽  
The Impact

<em>The present study aimed to analyze the relationship between the level of foreign direct investment to Indonesia's economic growth in the period 1991-2014.Fokus of the present study was to analyze the short-term relationship between foreign direct investment and economic growth Indonesia. In addition, along with the financial crisis 2008 global bit much negative of Indonesia affected by the global economic slowdown due to the crisis. This prompted the present study was to also perform forecasting of the impact of global financial crisis on foreign direct investment and relation to economic growth. To answer these questions, this research chose VAR Vector Auto Regression or as a method to answer the research questions. Gross Domestic Product (GDP), Consumer Price Index, BI rate, and the Exchange Rate, the variables used in this research. The estimation results of the VAR indicate that direct investment from abroad did not have an impact on economic growth in the long term but has a strong bond in the short term against the growth of economics. This indicates that foreign investment into Indonesia increasingly quality in promoting economic growth. In addition, the results of forecasting using impulse response function indicates there will be the tendency of a decrease in the level of foreign direct investment and economic growth in Indonesia.</em>

scholarly journals Impact of Foreign Direct Investment on Domestic Investment in Developing Countries

2020 ◽  
Vol 6 (9) ◽  
pp. 256-266
Author(s):  
A. Mamatkulov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Negative Impact ◽  
Domestic Investment ◽  
Short Term ◽  
Total Investment ◽  
The Impact

Author analyzes the impact of foreign direct investment on domestic investment in host developing countries and checks whether a foreign direct investment has a “positive” or “negative” impact on domestic investment, as well as evaluating the impact of selected variables on this relationship. Using a full sample, the main conclusion of this study is that FDI does have a positive (crowding out) effect on domestic investment in this sample of developing economies. In the short term, an increase in FDI by one percentage point as a percentage of GDP leads to an increase in total investment as a percentage of the host country’s GDP of about 10.7%, while in the long term this effect is about 31% dollar terms, one US dollar represents us 1.7$ of total investment in the short term and us 3.1$ in the long term. Based on the results of this study, it was once again proved that inflation hinders domestic investment in host countries by 0.04% and 0.12% in the short and long term, respectively.

scholarly journals Determinants of Foreign Direct Investment in Saudi Arabia: A Review

2017 ◽  
Vol 9 (7) ◽  
pp. 222
Author(s):  
Haga Elimam
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Maximum Flow ◽  
International Capital ◽  
Host Government ◽  
The Government

Foreign direct investment is identified as the major tool for the movement of international capital. Thus, the study has employed a review research to examine the determinants of foreign direct investment in Saudi Arabia. The results are significant as they have contributed towards determinants of foreign direct investment by comparing with previous studies. The results showed that trade openness, infrastructure availability, and market size play significant role in attracting foreign direct investment within a country. The inflow of foreign direct investment has a potential to benefit the investing entity as well as the host government. It also renders economic growth and socioeconomic transformation of the country. The flow of foreign direct investment in Saudi Arabia is affected by several factors including growth rate, GDP, exports and imports. It is the duty of the government to ensure the attractiveness of their country to maintain maximum flow of foreign direct investment, as it promotes sustained long-term economic growth by increased investment in the human capital.

A STUDY ON FOREIGN DIRECT INVESTMENT IN SERVICE SECTOR IN INDIA

2021 ◽  
Vol 9 (47) ◽  
pp. 11469-11476
Author(s):  
R. P. Meena ◽  
Sajjan Kumar
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Service Sector ◽  
Foreign Currency ◽  
Positive Response ◽  
International Capital ◽  
Fdi Inflows ◽  
Increasing Trend ◽  
The Relationship

FDI offers a bundle of benefits such as financial and non-financial. FDI is one such source of long term international capital. Service sector is a largest sector of India economy. Since 1991, FDI inflows in India is on an increasing trend. The FDI Inflows in service sector increased from Rs.14803.91 crores during 1991-2000 to Rs.63909.44 crores in 2018-19. It showed positive response. The easiest and cheapest way to increase the capital is foreign direct investment. There is also increase in foreign currency resources. This paper discusses about the trends of FDI equity inflows in service sector in India, to study and analyze the trend of FDI equity inflows in sub-sector of service sector in India and to examine and analysis the relationship between total FDI equity inflows and FDI equity inflows in service sector in India during 2009-10 to 2018-19.

scholarly journals The Impact of Foreign Direct Investment on Economic Diversification: The Case of the Republic of Congo

2021 ◽  
Vol 7 (03) ◽  
Author(s):  
Jean Anaclet ◽  
Lauric Ngouembe ◽  
Grâce Fleurbellia Domba Biongo
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Stability ◽  
Short Term ◽  
Economic Diversification ◽  
Republic Of Congo ◽  
The Republic ◽  
The Impact

The objective of this work is to examine the effects of foreign direct investment on the diversification of the Congolese economy. The estimation results from the ARDL process, spanning the period 1995 to 2016, showed that FDI is a means of diversifying the Congolese economy in the short term. In the long term however, FDI is not a sufficient factor for the diversification of the Congolese economy. Thus, this research has revealed the importance of integrating political stability given that the effects of FDI on diversification also depend on the quality of the institutions.

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