The impact of trade openness on foreign direct investment in Sudan by sector in the 1990-2017 period: an empirical analysis

PurposeWe investigate the impact of the strength of intellectual property (IP) institutions on Chinese outward foreign direct investment (OFDI).Design/methodology/approachWe use two different measures of IP on a sample of 21 European countries in the period 2003–2015. Panel quantile methodology is applied to assess the relationship at several points of the conditional distribution of OFDI.FindingsWe provide novel and robust evidence revealing a highly negative relationship between OFDI and the strength of IP institutions in Europe. This relationship which is more pronounced in the median and upper-quantiles, bolsters the conventional theoretical expectation that high institutional distance between home and host countries is inversely related to OFDI. Equally important is the preliminary evidence of the non-linear impact of IP at the median and upper-quantiles as well as the impact of other controlling variables such as GDP, population, trade openness and unit labour costs on Chinese OFDI.Originality/valueThe ensuing theoretical implications are of great significance for future studies on the institutional distance and drivers of OFDI by emerging economies as well as for European policymakers in so far as the strengthening of IP institutions constitutes a gravitational point for inward investment flows from China.

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Foreign Direct Investment and Trade Components in Context of Pakistan

European Scientific Journal ESJ ◽

10.19044/esj.2016.v12n34p384 ◽

2016 ◽

Vol 12 (34) ◽

pp. 384 ◽

Cited By ~ 1

Author(s):

Muhammad Akram Gilal ◽

Khadim Hussain ◽

Muhammad Ajmair ◽

Sabahat Akram

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Trade Openness ◽

Annual Data ◽

Investment Liberalization ◽

Long Run ◽

Short Run ◽

The Impact

Objective of this paper was to evaluate the impact of foreign direct investment (FDI) on trade components (exports and imports) of Pakistan using annual data from 1975 to 2013. Engle and Granger two step cointegration method was used for conducting the analysis. This method was adopted because all the variables of interest were non stationary in level and stationary at first difference. Results provide evidence of long run cointegrating relationship as well as short run relationship between FDI and trade components. A rise in FDI causes both exports and imports to increase. Based on these empirical findings, we strongly recommend Government of Pakistan to focus on the strategy of investment liberalization as well as trade openness.

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The Influence of Foreign Direct Investment on the GDP Progression of Pakistan

Jurnal Aplikasi Manajemen, Ekonomi dan Bisnis ◽

10.51263/jameb.v4i2.103 ◽

2020 ◽

Vol 4 (2) ◽

pp. 22-33

Author(s):

Muhammad Aslam Javed

Keyword(s):

Foreign Direct Investment ◽

Exchange Rate ◽

Direct Investment ◽

Price Index ◽

Trade Openness ◽

Consumer Price Index ◽

Annual Data ◽

Monthly Basis ◽

Beneficiary Country ◽

The Impact

The Foreign Direct Investment (FDI) inflows play a very important role in the economic development of the beneficiary country. The objective of this study is to check the impact of the exchange rate (and other variables like Foreign Exchange Rate, Consumer price index, Trade Openness, and Energy Imports) on foreign direct investment in Pakistan by taking annual data from the period 1999-2013 (Monthly Basis).By using Descriptive,Correlation and regression , the effect of Consumer Price Index, exchange rate, trade openness, energy imports on Foreign Direct Investment (FDI) of Pakistan. The study guide the foreign investor and to categorize the factors, that can affect the Foreign Direct Investment (FDI), while investing in Pakistan.

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Environmental Pollution a Negative Externality from China Pakistan Economic Corridor (CPEC): Policy implications for Pakistan

International Journal of Economic and Environmental Geology ◽

10.46660/ijeeg.vol11.iss3.2020.482 ◽

2020 ◽

Vol 11 (3) ◽

pp. 5-8

Author(s):

Rehmat Karim ◽

Faqeer Muhammad ◽

Javed Akhter Qureshi ◽

Naveed Razzaq ◽

Akber Ali

Keyword(s):

Foreign Direct Investment ◽

Energy Consumption ◽

Environmental Pollution ◽

South Asia ◽

Direct Investment ◽

Global Economy ◽

Middle Eastern ◽

Trade Openness ◽

Policy Implications ◽

The Impact

The China-Pakistan Economic Corridor (CPEC) isconsidered as the ‘flagship’ project of China’s Belt andRoad Initiative (BRI) and has been widely acclaimedby both Chinese and Pakistani officials often terming itas ‘game-changer’ to overcome Pakistan’s lingeringissues of energy and economic crisis. Within theframework of CPEC, China is investing more than 56billion US dollars as Foreign Direct Investment (FDI)in various energy and infrastructure projects includinga vast network of railways, highways, economic zonesand gas pipelines. While much has been debated andwritten about various projects under CPEC in theexisting academic discourses, vis-à-vis threats to thebiodiversity (Nabi et al., 2017), its potentialimplications to environmental hazards (Ali, 2018) andto overcome energy shortfall of Pakistan (Kugelman,2017). However, scientific study to reinforce the issuesof environmental pollution, particularly related toCEPEC coal-based energy projects have been stilllacking.The pertained literature on CPEC consisted qualitativestudies to inspect and judge different aspects such asimportance of CPEC for both countries and its effectson geo political of South Asia. Challenges for CPEC inPakistan, South Asia and foreign policy betweenChina-Pakistan), as Nan, (2015) explained that thisproject is not only valuable for Pakistan and China, butit is also beneficial for the global economy byincluding several other countries. Furthermore, Li andSun, (2015) and Irshad, etal, (2015) reported theimportance of CPEC and it long and short-termbenefits for both countries. Further, Hussain and Khan(2017) also stated that it will enhance the cooperationbetween two countries and advantageous for Chinese,Middle Eastern and South Asian people (Ali, 2016).Further, Wolf, (2017) explained the insights, potentialsand challenges concerning CPEC and domestic levelcooperation between China and Pakistan.In addition, quantitative studies focused to shed a lighton the impact of China Pakistan Economic Corridor(CPEC) (Such as, impact on gdp, socio-economy,trade, stock market, energy sector and infrastructure).CPEC will build rails and roads infrastructure andinfrastructure development may decrease the povertyand increases the agriculture development in Pakistan(Ahmed & Mustafa, 2016). Most recent articleexamined the impact of CPEC impact on energy(energy consumption and energy saving potential) inthe prospect of Pakistan (Mirza, Fatima, Ullah, 2019).A latest study surveyed in Pakistan and their researchresults shows that entrepreneur’s attitude andintentions to China and Pakistan Economic Corridor(CPEC) development is positive, it means CPECproject also designing an entrepreneurial environment(Kanwal et al., 2019).A large number of studies (Begum, etal., 2015; Ozturk,and Acaravci, 2010) have discussed various elementsand causes of CO2 emissions. Similarly, manyresearches (Khurshid, etal., 2018; Hadi, etal., 2018;Hussain, 2017; Hussain, 2015) on Pakistan-Chinarelations in the context of economy, society andgeopolitical point of view. Present study is aimed toinvestigate the CPEC development effects i.e. grossdomestic product (gdp), foreign direct investment (fdi),trade openness (top), energy consumption (enguse) onenvironmental pollution (CO2) in Pakistan usingFMOLS and DOLS methods.

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Impact of Trade Openness on Economic Growth: A Case Study of Pakistan'

Review of Economics and Development Studies ◽

10.26710/reads.v3i1.165 ◽

2017 ◽

Vol 3 (1) ◽

pp. 57-68

Author(s):

Rashid Ahmad ◽

Kashif Raza ◽

Sobia Saher

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Direct Investment ◽

Negative Impact ◽

Trade Openness ◽

Capital Formation ◽

Fixed Capital ◽

Series Data ◽

Fixed Capital Formation ◽

The Impact

Purpose: This paper estimates the impact of trade openness and economic growth in Pakistan by using time series data from period of 1975-2014. Econometric method was applied to estimate the impact of trade openness on economic growth. Gross fixed capital formation (proxy of investment), Foreign direct investment, Imports, Exports & trade openness (proxy of trade openness to check the volume of trade of a country) is used as explanatory variables while gross domestic product is treated as dependent variable in this study. Johansson co. integration approach developed by Johannes & Jeslius (1988) is used to evaluate the long run relationship among variables in this study. The results suggest that trade openness, imports, exports and foreign direct investment cast have positive impact on economic growth while on the other hand; gross fixed capital formation &labor force has negative impact on economic growth.

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The Use of Auto-Regressive Distributed Lag Method in Investigating The Impact of Interest Rate on Foreign Direct Investment in Yemen for the Period 1990-2018

Journal of Economics and Administrative Sciences ◽

10.33095/jeas.v26i123.1992 ◽

2020 ◽

Vol 26 (123) ◽

pp. 145-157

Author(s):

Saif Sallam Alhakimi

Keyword(s):

Foreign Direct Investment ◽

Interest Rate ◽

Interest Rates ◽

Direct Investment ◽

Inflation Rate ◽

Trade Openness ◽

Fdi Inflows ◽

Distributed Lag ◽

Auto Regressive ◽

The Impact

Foreign direct investment has seen increasing interest worldwide, especially in developing economies. However, statistics have shown that Yemen received fluctuating FDI inflows during the period under study. Against this background, this research seeks to determine the relationship and impact of interest rates on FDI flows. The study also found other determinants that greatly affected FDI inflows in Yemen for the period 1990-2018. Study data collected from the World Bank and International Monetary Fund databases. It also ensured that the time series were made balanced and interconnected, and then the Auto Regressive Distributed Lag method used in the analysis. The results showed that the interest rates and inflation rate harmed FDI flows and, therefore, could not be used for policymaking purposes. The research also discovered that GDP growth and trade openness are the main determinants of foreign direct investment in Yemen. Trade openness policies should be encouraged, and GDP growth facilitated if the economy is to achieve long-term FDI flows. Purpose –The purpose of the paper is to discover the impact of interest rate on foreign direct investment with a combination of the exchange rate, inflation, gross domestic product, and trade openness. Design/methodology/approach – The paper implements the Auto Regressive Distributed Lag (ARDL)-Bounds testing approach to analyze maintaining the time series properties in terms of stationarity. Findings – The results indicate that there is a long-run equilibrium between the Foreign Direct Investment and the explanatory variables. Furthermore, the significant factors influencing, positively, FDI in Yemen are Growth domestic product, Exchange rate, and Trade openness. In contrast, both the Interest rate and Inflation rate have a substantial negative impact on Foreign Direct Investment. Practical implications – Policymakers in Yemen advised reconsidering many of the general state policies, including investment policies, financial and administrative governance, and monetary policy that focuses on maintaining an adequate interest rate and reduce the rate of inflation. Originality/value – As for the case of Yemen, this the first study empirically explores the impact of interest rate and the foreign direct investment using the Auto Regressive Distributed Lag method aiming for more reliable results.

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Research on the impact of home country patent level on outward foreign direct investment: Empirical analysis via equal part linear regression model and Grey Computing

International Journal of Electrical Engineering Education ◽

10.1177/0020720920922517 ◽

2020 ◽

pp. 002072092092251

Author(s):

Yuanbing Zhu ◽

Xueying Chen ◽

Gang Wang ◽

Zuchang Zhong ◽

Meier Zhuang

Keyword(s):

Foreign Direct Investment ◽

Linear Regression ◽

Regression Model ◽

Empirical Analysis ◽

Linear Regression Model ◽

Direct Investment ◽

Outward Foreign Direct Investment ◽

Equal Part ◽

Patent Applications ◽

The Impact

From the practice of developed countries, countries with higher patent applications and PCT patent applications (such as the United States, China, Japan, the United Kingdom, Germany, etc.) have relatively higher outward foreign direct investment, and the actual data of provinces in China also show that with the improvement of the patent level in various provinces and cities, the intensity of outward foreign direct investment in each province and city has also increased. At present, there are relatively few research data and the research method is relatively single. Therefore, collecting panel data on China’s 31 provinces from 2003 to 2016, this paper conducts an empirical analysis on the influence of patent level on outward foreign direct investment via analytical method of equal part linear regression and Grey Computing. By comparing analysis results with the model and the results with conventional linear regression model, the difference of different regression models is observed. Furthermore, the impact of China’s patent level on China’s inter-provincial outward foreign direct investment is further analyzed.

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

Journal of Economics and Development ◽

10.33301/jed-p-2018-20-01-02 ◽

2018 ◽

pp. 32-47 ◽

Cited By ~ 1

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.

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Trade openness and foreign direct investment in Africa

South African Journal of Economic and Management Sciences ◽

10.4102/sajems.v9i3.1093 ◽

2014 ◽

Vol 9 (3) ◽

pp. 355-370 ◽

Cited By ~ 20

Author(s):

T Kandiero ◽

M Chitiga

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Trade Openness ◽

Empirical Work ◽

African Countries ◽

Fdi Inflows ◽

Services Sector ◽

Openness To Trade ◽

The Impact ◽

Poor Infrastructure

Africa’s share of foreign direct investment (FDI) has lagged behind other regions in the world, despite a sharp increase in FDI inflows to the region in 2001. Factors contributing to this circumstance include perceptions of high corruption, weak governance and poor infrastructure. The motivation of this paper is to investigate the impact of openness to trade on the FDI inflow to Africa. In addition to economy-wide trade openness, we also analyse the impact on FDI of openness in manufactured goods, primary commodities and services. The empirical work uses cross-country data from selected African countries observed over four periods: 1980-1985, 1985-1990, 1990- 1995 and 1995-2001. We find that the FDI to GDP ratio responds well to increased openness in the whole economy and in the services sector in particular.

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Impact of Foreign Direct Investment, Trade Openness, Domestic Demand, and Exchange Rate on the Export Performance of Bangladesh: A VEC Approach

Economics Research International ◽

10.1155/2012/463856 ◽

2012 ◽

Vol 2012 ◽

pp. 1-10 ◽

Cited By ~ 4

Author(s):

Bishnu Kumar Adhikary

Keyword(s):

Foreign Direct Investment ◽

Exchange Rate ◽

Direct Investment ◽

Export Performance ◽

Trade Openness ◽

Domestic Demand ◽

Vec Model ◽

Long Run ◽

Short Run ◽

The Impact

This paper investigates the impact of foreign direct investment (FDI), trade openness, domestic demand, and exchange rate on the export performance of Bangladesh over the period of 1980–2009 using the vector error correction (VEC) model under the time series framework. The stationarity of the variables is checked both at the intercept and intercept plus trend regression forms under the ADF and PP stationarity tests. The Johansen-Juselius procedure is applied to test the cointegration relationship between variables followed by the VEC regression model. The empirical results trace a long-run equilibrium relationship in the variables. FDI is found to be an important factor in explaining the changes in exports both in the short run and long-run. However, the study does not trace any significant causal relationship for the cases of trade openness, domestic demand, and exchange rate. The study concludes that Bangladesh should formulate FDI-led polices to enhance its exports.

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