Aid for Trade flows and Recipient-Countries' Integration into the World Market for Services Exports: Do Merchandises Exports and Foreign Direct Investment Inflows matter?

2020 ◽  
Author(s):  
SENA KIMM GNANGNON ◽  
Susana Del Mar Ramírez
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Export Performance ◽  
World Market ◽  
Fdi Inflows ◽  
Performance Effect ◽  
The World ◽  
Aid For Trade ◽  
The Empirical Analysis ◽  
Positive Effect

Abstract An important literature on the recipient-countries' export performance effect of Aid for Trade (AfT) flows has focused on the goods side. The few existing studies on the services exports effects of AfT interventions have reached mixed results, reflecting a positive or weak effect. The present study aims to complement these few studies by examining the effect of AfT flows on recipient-countries' share of services exports in the world services exports ('services export integration'), including through two main channels: their share of countries' merchandises exports in the world merchandises exports ('merchandises export integration') and the size of foreign direct investment (FDI) inflows. The empirical analysis, based on a sample of 105 countries over the period 2002-2016, has shown that these two channels definitely matter for the effect of AfT flows on countries' services export integration. Specifically, by fostering countries' merchandises export integration, AfT flows can promote their services export integration. Furthermore, promoting FDI inflows enhances the positive effect of AfT flows on countries' services export integration.

scholarly journals Aid for Trade Flows and Recipient-Countries’ Integration into the World Market for Services Exports: Do Merchandises Exports and Foreign Direct Investment Inflows Matter?

2020 ◽  
pp. 2350001 ◽  
Author(s):  
Sena Kimm Gnangnon ◽  
Susana Del Mar Ramirez Ramirez
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Export Performance ◽  
World Market ◽  
Fdi Inflows ◽  
Performance Effect ◽  
The World ◽  
Aid For Trade ◽  
The Empirical Analysis ◽  
Positive Effect

An important literature on the recipient-countries’ export performance effect of Aid for Trade (AfT) flows has focused on the goods side. The few existing studies on the services exports effects of AfT interventions have reached mixed results, reflecting a positive or weak effect. This study aims to complement these few studies by examining the effect of AfT flows on recipient-countries’ share of services exports in the world services exports (‘services export integration’), including through two main channels: their share of merchandises exports in the world merchandises exports (‘merchandises export integration’) and the size of Foreign Direct Investment (FDI) inflows. The empirical analysis, based on a sample of 105 countries over the period 2002–2016, has shown that these two channels definitely matter for the effect of AfT flows on countries’ services export integration. Specifically, by fostering countries’ merchandises export integration, AfT flows can promote their services export integration. Furthermore, promoting FDI inflows enhances the positive effect of AfT flows on countries’ services export integration.

Aid for Trade, Export Product Diversification and Foreign Direct Investment

2020 ◽  
Author(s):  
Sèna Kimm GNANGNON
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Product Diversification ◽  
Product Concentration ◽  
Fdi Inflows ◽  
Aid For Trade ◽  
High Level ◽  
Positive Effect ◽  
Export Product

Abstract The few existing studies on the relationship between Aid for Trade (AfT) flows and Foreign Direct Investment (FDI) inflows tend to report a positive effect of total AfT flows, in particular of Aid flows for building economic infrastructure, on FDI inflows. The present article aims to complement these works by investigating whether the effect of AfT flows on inward FDI stock depends on recipient-countries' level of export product concentration. The empirical analysis has shown that AfT flows exert a strong positive effect on inward FDI stock in countries that experience a high level of export product concentration. These findings are relevant for developing countries in light of the concentration of their export products on primary commodities, and given the strong role of FDI flows for employment generation, economic growth and development in these countries.

scholarly journals Aid for Trade, Foreign Direct Investment and Export Upgrading in Recipient Countries

2017 ◽  
Vol 08 (02) ◽  
pp. 1750010 ◽  
Author(s):  
Sèna Kimm Gnangnon ◽  
Michael Roberts
Keyword(s):  
Foreign Direct Investment ◽  
Quality Improvement ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Development Strategies ◽  
Export Diversification ◽  
Financial Flows ◽  
Fdi Inflows ◽  
Aid For Trade ◽  
The Empirical Analysis

This paper examines empirically whether Aid for Trade (AfT) programs and Foreign Direct Investment (FDI) inflows affect export upgrading and, if so, whether their effects are complementary or substitutable. The empirical analysis suggests that AfT and FDI do affect export upgrading, namely export diversification and export quality improvement. Moreover, there is a significant interplay between these two financial flows in affecting export upgrading in recipient countries. The importance of this interplay should be taken into account by policymakers of recipient countries when they are devising both export development strategies and policies/institutions that affect FDI inflows into their countries.

scholarly journals Foreign Direct Investment and Productivity: A Cross-Country, Multisector Analysis

2019 ◽  
Vol 36 (1) ◽  
pp. 54-79 ◽  
Author(s):  
Rodolphe Desbordes ◽  
Loe Franssen
Keyword(s):  
Foreign Direct Investment ◽  
Labor Productivity ◽  
Direct Investment ◽  
Emerging Market ◽  
Export Performance ◽  
Foreign Firms ◽  
Factor Productivity ◽  
Foreign Markets ◽  
Cross Country ◽  
Positive Effect

This paper adopts a cross-country, multisector approach to investigate the intra- and inter-industry effects of foreign direct investment (FDI) on the productivity of 15 emerging market economies in 2000 and 2008. Our main finding is that intra-industry FDI has a large positive effect on total and “exported” labor productivity. The effects of FDI on total factor productivity are much more elusive, both in statistical and economic terms. This result suggests that foreign firms raise the performance of their host economies through a direct compositional effect. Foreign firms tend to be larger and more input intensive and have greater access to foreign markets than domestic firms. Their greater prevalence mechanically increases average labor productivity and export performance.

scholarly journals ANALYSIS AND STRUCTURE OF RUSSIAN DIRECT INVESTMENTS ABROAD

2017 ◽  
pp. 9-15
Author(s):  
O. N. Izyumova ◽  
T. A. Krylova
Keyword(s):  
Foreign Direct Investment ◽  
International Relations ◽  
Direct Investment ◽  
Foreign Capital ◽  
World Market ◽  
Economies In Transition ◽  
The World ◽  
Regulatory Measures ◽  
The Russian Federation ◽  
Market Relations

This article analyzes direct investments. Currently, with the development of market relations and the strengthening of international relations, the objective trends in the growing volume of the export of Russian capital, the increase in its scale and the size of foreign assets, the consolidation of Russian companies in the promising segments of the world market, makes the article relevant and important for consideration. For a more precise presentation of the present situation, the structure of capital flows, in the context of economic entities, as well as statistical data on regulatory measures for foreign direct investment, are provided. The analysis revealed an unfavorable situation on the world investment market for the Russian Federation. The outflow of foreign direct investment from countries with economies in transition tends to decline. Carrying out the analysis of investments it is impossible to bypass. It should be noted that the structure of the capital exported from Russia differs from the similar structure of states with a progressive market by the fact that the share of other investments approximates to the share of foreign direct investment, and this trend increases dramatically in the period of instability. A clearer idea allows us to obtain a detailed analysis of the outflow of Russian investments and the inflow of foreign capital, as given in the paper. The article allows to consider the structure and present position of Russian direct investments and foreign capital.

Paris meeting adds bright spots to mixed Sudan outlook

2021 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Uncertainty ◽  
Fdi Inflows ◽  
Content Type ◽  
Investment Projects ◽  
Bright Spots ◽  
The World

Significance Meanwhile, Sudan seized the opportunity to present itself as a foreign direct investment (FDI) destination by showcasing investment projects worth billions of dollars. Impacts FDI inflows will increase, but a more robust uptick is unlikely until political and economic uncertainty fades. Donor inflows will increase significantly following the World Bank’s announcement of USD2bn in grants over the next ten months. Growth will turn positive this year, following three years of recession.

Foreign Direct Investment from China and Latin America

2016 ◽  
pp. 1934-1944
Author(s):  
Jose Godinez ◽  
Theodore Terpstra
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Direct Investment ◽  
Fdi Inflows ◽  
The World ◽  
Motivation Strategy

Historically, Chinese corporations have been relatively unknown in Latin America. Total foreign direct investment (FDI) in Latin America was 18.1% of the world total in 2012 (UNCTAD, 2013). However, Chinese FDI in Latin America has averaged about US$10 billion per year since 2010, only a small part of Latin America's total FDI inflows (ECLAC, 2013). Yet the presence and economic leverage of Chinese corporations has become very substantial in several industries in the region, particularly the oil and mining industries. Trade between China and Latin America has also grown dramatically since 1999 (Luo, et al., 2010). Despite the growing economic connectivity between Latin America and China, the motivation, strategy and procedures behind China's FDI in the region have not yet been fully understood.

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 Developing Countries' Attractiveness for Foreign Direct Investment - Debt Overhang and Sovereign Risk as Major Impediments?

1991 ◽  
Vol 30 (4II) ◽  
pp. 1145-1158 ◽  
Author(s):  
Peter Nunnenkamp
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Sovereign Risk ◽  
Financial Flows ◽  
Fdi Inflows ◽  
Debt Overhang ◽  
Private Lending ◽  
The Impact ◽  
The Empirical Analysis

With declining debt inflows, foreign direct investment (FDI) has again become one of the major pillars of private financial flows to developing countries (Des). This has created some expectation to replace private bank olending by FDI. However, many heavily indebted countries may not only be constrained in terms of new private lending, but also in terms of FDI inflows. In order to overcome constraints in the supply of FDI, the determinants of FDI flows have to be identified in the first place. This has been done by the Kiel Institute of World Economics in a comprehensive study commissioned by the World Bank. The present paper summarizes some of the major results for details, see Agarwal et aZ. (1991). The focus is on the impact of sovereign risk on FDI and on possible disincentives for FDI arising from a debt overhang, i.e. on those aspects that reflect the most important recent changes in international capital market conditions. The empirical analysis concentrates on the 1980s. Regressions are run for an overall sample of about 35 host Des and for various subgroups. The paper is organized as follows. Section II presents the major hypotheses. The empirical results are summarized in Sections III and IV. Finally, some policy conclusions are drawn in Section V.

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