scholarly journals The Foreign Direct Investment and Economic Growth - Case Study for Kosovo

2015 ◽  
Vol 5 (2) ◽  
pp. 27
Author(s):  
Dr.Sc. Myrvete Badivuku - Pantina ◽  
MSc. Jeton Zogjani
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Direct Investment ◽  
Political Stability ◽  
Research Paper ◽  
Positive Relation ◽  
Fair Competition ◽  
The Impact

This research paper will explain the impact and relationship between the Foreign Direct Investment (FDI) and economic growth, Kosovo case. The used data in research are secondary data and cover a period of time between 2008 and 2013. By using STATA program for calculation and by various regression analyses (descriptive statistics, linear regression and correlation) relationships have been identified between involved variables in research, where economic growth is defined as dependent variable, whereas FDI, interest rate and real effective and exchange rate (REER) are defined as independent variables. The main results in this research paper indicate that FDI has a positive relation (0.011) but non-significant effect (T<2) on economic growth while the interest rate has a positive relation (0.076) and a significant effect (T>2) on economic growth in Kosovo. The real effective exchange rate has a negative (-0.347) and non-significant relation (T<2) with economic growth. The main activities of FDI in overall Kosovo's economy are: real estate, transport and telecommunication, financial and manufacture services, construction, etc. The main conclusion is that the Kosovo institutions should create a favorable environment, such as: political stability, enforcement of justice, reduction of trade barriers, Kosovo should also create appropriate policy for protection of foreign investors, investment security, fair competition and institutional support. This will impact the drastic improvement and increase of FDI. In 2013 Kosovo had an FDI percentage of 5% of GDP while in 2007 it was over 13% of Kosovo's GDP.

scholarly journals Trade Openness and Economic Growth Nexus in Pakistan

2020 ◽  
Vol V (III) ◽  
pp. 22-33
Author(s):  
Ghulam Yahya Khan ◽  
Muhammad Masood Anwar ◽  
Aftab Anwar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Trade Openness ◽  
Explanatory Variables ◽  
Integration Approach ◽  
Long Run

This study explores the nexus amongst trade openness and economic growth for Pakistan for 1981-2019. Trade-openness is a dependent variable, and it is measured as imports plus exports to GDP ratio. Economic growth, Foreign Direct Investment, Inflation, Exchange rate, and interest rate are taken as explanatory variables. Co-integration approach by Johansen and Juselius (1988, 1991) has been used for long-run relationships. Results indicate that Trade-Openness has significantly affected the economic growth and other control variables of the study for Pakistan. There exist bidirectional Granger Causality in the selected variables.

scholarly journals Examining the impact of Exports and Exchange rate on Economic Growth of Turkey

2020 ◽  
Author(s):  
Iftikhar Muhammad ◽  
Malik Shahzad Shabbir
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Economic Policies ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

Abstract Purpose This study intends to analyze the long-run and short-run relationships along with the identification of causal links between exports, economic growth, and exchange rate in Turkey. Data/Design: This study uses auto-regressive distributed lags (ARDL) and Granger causality over time series monthly data from the year 2010–2018. The results indicate that exports are significantly positively related to economic growth while the exchange rate is found to be negatively related to economic growth. Findings: Moreover, findings from the test of Granger causality indicate that a unidirectional causal association is found from exports to foreign direct investment and economic growth and from economic growth to foreign direct investment. The Granger causality results indicate that an increase in exports accelerates the economic growth of Turkey and a change in growth rate and exchange rate leads to a change in foreign direct investment. Originality of work: The overall findings suggest that exports should be promoted along with the liberal-investment economic policies to boost the overall economic growth in Turkey.

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.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI “CAPITAL FLIGHT” DI INDONESIA (Period Kuartal I 1990 s.d. Kuartal IV 2000)

2004 ◽  
Vol 6 (2) ◽  
pp. 12-31
Author(s):  
Navik Istikomah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Exchange Rates ◽  
Stability Condition ◽  
Direct Investment ◽  
External Debt ◽  
Political Stability ◽  
Capital Flight ◽  
Series Data

The purpose of this research is to identify the problems of the effect of economic variables, that is,  changes of exchange rates Rp/US$, external debt, economic growth, inflation, differences of interest rate of Indonesian- America, Foreign Direct Investment, political stability condition, on capital flight in Indonesia, for period 1st quarter, 1990 – 4th quarter, 2000. The determinants of capital flight in Indonesia use cointegration equation model of Likelihood Johansen’s. The estimation completed by time series data validity, that is, unit-roots-test and co-integration-test.The result of research indicate that independent variable on model, that is, changes of exchange rates Rp/US$, external debt, economic growth, inflation, differences of interest rate of Indonesian-America, Foreign Direct Investment, and political stability condition, on the long run could explain changes of capital flight about 58,85 percent and altogether significant (computed-F = 7,1520 > value-F = 3,192). Partially, knowed that all variable on model, exceptly inflation and differences of interest rate of Indonesia-America, to have significant influence on capital flight in Indonesia. All variable sufficient stationery-condition at first different and the model could cointegrated at first different.Keywords: Capital Flight and determinant factors, and Cointegration of Johansen’s Likelihood

scholarly journals Trade Openness and Economic Growth Nexus in Pakistan

2020 ◽  
Vol V (IV) ◽  
pp. 24-33
Author(s):  
Ghulam Yahya Khan ◽  
Muhammad Masood Anwar ◽  
Aftab Anwar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Trade Openness ◽  
Explanatory Variables ◽  
Integration Approach ◽  
Long Run

This study explores the nexus amongst trade openness and economic growth for Pakistan for 1981-2019. Trade-openness is a dependent variable, and it is measured as imports plus exports to GDP ratio. Economic growth, Foreign Direct Investment, Inflation, Exchange rate, and interest rate are taken as explanatory variables. Co-integration approach by Johansen and Juselius (1988, 1991) has been used for long-run relationships. Results indicate that Trade-Openness has significantly affected the economic growth and other control variables of the study for Pakistan. There exist bidirectional Granger Causality in the selected variables.

scholarly journals Impact of Macro Economic Variables on Return on Assets of Textile Industry of Pakistan

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Irfan Ullah ◽  
Humaira Noreen ◽  
Zia Ur Rehman ◽  
Naveed Shinwari
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Financial Stability ◽  
Direct Investment ◽  
Inflation Rate ◽  
Trade Openness ◽  
Future Research ◽  
Return On Assets ◽  
The Impact

The aim of this study was to find the impact of Inflation rate, Interest rate, Foreign direct investment, Trade openness and Exchange rate on Return of assets of textile weaving sector of Pakistan during the period of 1997 to 2019. The Dependent variable was Return on Assets while Inflation rate, Interest rate, Foreign direct investment, Trade openness and Exchange rate were independent variables, Data for the study was obtained from secondary sources like World Development Indicator, Pakistan Stock exchange and financial stability review issued by State Bank of Pakistan during 1997 to 2019. ROA were collected from Annual reports of the selected textile businesses (weaving sector). The results of Co-integration indicated the long run relationship among the variables. However, inflation rate, interest rate and exchange rate have positive and significant impact on return on Assets of textile weaving sector of Pakistan, on the other hand Foreign direct investment and Trade openness have insignificant effect on Return on assets of textile weaving sector of Pakistan. This paper is limited to linear framework some results may be sensitive to non-linearities, a non-linear frame work should be included in future research.

scholarly journals The Impact of key Macroeconomic factors on Economic Growth of Bangladesh: a VAR Co-integration Analysis

2015 ◽  
Vol 6 (1) ◽  
pp. 667-673
Author(s):  
Md. Arphan Ali ◽  
Md. Khaled Saifullah ◽  
Fatimah Binti Kari
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Direct Investment ◽  
Real Interest Rate ◽  
Macroeconomic Factors ◽  
Market Capitalization ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyzes the impact of key macroeconomic factors on economic growth of Bangladesh from the period of 1988 to 2012.The key macroeconomic factors studied are market capitalization, foreign direct investment and real interest rate. This study also examines the long run and short run relationship between the economic growth and capital market, foreign direct investment, and real interest rate by using vector autoregressive (VAR) model. The VAR results suggest that the market capitalization, foreign direct investment and real interest rate have impact on economic growth in the long run, but in short run it does not have any predictable behavior. The variance decomposition results also conclude the same result as VAR model. All variables have the long run effects on economic growth but it does not have in short run, and the effects increases with time. Based on the finding, this study suggests that the government should come out with the appropriate macroeconomic plan and policy to draw more inward foreign direct investment, increase market capitalization and stabilize real interest rate in order to faster the economic growth in future. As finding of this study shows that these factors do not have significant impact on economic growth in Bangladesh in the short run

scholarly journals Oil Prices Fluctuations & Its Impact on Russians Economy; An Exchange Rate Exposure

2014 ◽  
Vol 2 (4) ◽  
pp. 169-177
Author(s):  
Khuram Shafi ◽  
Liu Hua
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Direct Investment ◽  
Oil Prices ◽  
Consumption Expenditure ◽  
Government Consumption ◽  
Oil Reserves ◽  
Long Run ◽  
The Impact

Countries suffering from a shortage of oil reserves or importing oil are trying to reduce the oil consumption. But this can be only possible if alternatives of oil reserves are available. The factors affecting exchange rate are inflation, interest rate, foreign direct investment, government consumption expenditure and balance of trade. This paper seeks to identify the impact of oil prices and risk exposure of exchange rate volatility on economic growth in Russian economy on annual data of from year 1971 to 2012. Based on results it is estimated that imports, exports, inflation, interest rate, government consumption expenditure and foreign direct investment has a significant impact on real effective exchange rate in the long run and short run. Secondly, Engle Granger results indicate that relationship is significant in the long run and its error correction adjustment mechanism in short runs is significant and correctly signed for Russia.

scholarly journals Impact of Exchange Rate on Economic Growth of Bangladesh

2021 ◽  
Vol 6 (3) ◽  
pp. 173-175
Author(s):  
Md. Fazlul Huq Khan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Least Squares Method ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
The Impact

This paper investigates the impact of inflation, nominal exchange rate, foreign direct investment, and unexpected event shock on the economic growth of Bangladesh by using the time series data from 1990 through 2020. Augmented Dickey-Fuller and Phillips-Perron Unit Root Test used to identify unit-roots existence and check the stationary of variables. The Ordinary Least Squares method is applied to determine the relationship between the dependent variable and independent variables. The results revealed that the exchange rate and foreign direct investment have significantly affected the country's economic growth. Inflation, FDI, and exchange rate positive impact, whereas unexpected events like Covid-19, natural disasters, etc., negatively affect the economic development of Bangladesh. The study can be helpful for the policy makers to identify, formulate and implement the effect policies for the economic growth of the country.

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