scholarly journals Threshold Effect of Foreign Direct Investment on Economic Growth: New Evidence From a Panel Regime Switching Models

2021 ◽  
Author(s):  
Maha Kalai ◽  
HELALI Kamel
Keyword(s):  
Foreign Direct Investment ◽  
Regime Switching ◽  
Direct Investment ◽  
Threshold Effect ◽  
Jel Classification ◽  
Policy Implications ◽  
Smooth Transition ◽  
Linear Effect ◽  
Positive Effects ◽  
Smooth Transition Regression

Abstract The article contributes to the existing literature by examining the non-linear effect of foreign direct investment (FDI) on the development of the Arab Maghreb Union (AMU) countries during the period 1980-2019. These countries multiply their FDI attraction policies in order to enrich the national externalities offered to local businesses and benefit from some positive effects on their economy in terms of growth, technology, know-how, etc. Using Panel Smooth Transition Regression Model (PSTR) and Panel Smooth Transition Autoregressive Model (PSTAR) models, our findings reveal that the FDI shows opposite effects below and over the estimated threshold. This highlights the asymmetrical effect of unforeseen shocks on its volatility. Policy implications are also discussed.JEL Classification: C51; C53; F21; F21; F34; O16; O23; R11.

Foreign Direct Investment Flows from China to Korea in the Automobile Industry

China Report ◽  
2017 ◽  
Vol 53 (1) ◽  
pp. 26-45 ◽  
Author(s):  
Ka-Hyun Lee ◽  
Jai S. Mah
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Automobile Industry ◽  
Direct Investment ◽  
Policy Implications ◽  
Positive Effects ◽  
Transfer Of Technology ◽  
Overseas Investment ◽  
Catch Up

This article addresses the effect of foreign direct investment (FDI) flows from China to Korea, particularly in the case of the automobile industry. Despite the various positive effects that FDI brings to the growth of the automobile industry, concerns and doubts have been cast upon China’s overseas investment in Korea’s automobile industry, as FDI may involve the transfer of technology, and thereby, China may soon catch up with Korea technologically. The Shanghai Automotive Industrial Corporation’s (SAIC) acquisition of one of the automobile producers of Korea, Ssangyong Motor Corporation, and the consequent technology transfer or leakage have become a controversial national issue in Korea. This article draws the policy implications from the case of the former corporation’s acquisition of the latter in light of the economic development and industrialisation of developing countries in general.

scholarly journals Does Foreign Direct Investment Impact Energy Intensity? Evidence from Developing Countries

2020 ◽  
Vol 2020 ◽  
pp. 1-11 ◽  
Author(s):  
Wenming Cao ◽  
Shuanglian Chen ◽  
Zimei Huang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Energy Intensity ◽  
Industrial Structure ◽  
Emerging Countries ◽  
Smooth Transition ◽  
Brics Countries ◽  
Nonlinear Mechanism ◽  
Smooth Transition Regression ◽  
The Impact

The paper presents the results of a study that attempts to investigate the impact of foreign direct investment (FDI) on energy intensity by constructing panel regression model and panel smooth transition regression (PSTR) model. Based on panel data from 1990 to 2014, this study contributes to conduct the impact of FDI on energy intensity from the perspective of emerging country, including BRICS and non-BRICS countries, and investigates the channels of influence of FDI on energy intensity. Besides that, we intend to employ the PSTR model to reveal the nonlinear mechanism of FDI on energy intensity. Our findings reveal several key conclusions: first, FDI exerts insignificant impact on energy intensity in the emerging countries. Second, the impact of FDI on energy intensity is heterogeneous between BRICS and non-BRICS countries. Third, innovation capacity plays various moderating effects on the relationship of FDI and energy intensity among different types of emerging countries. Furthermore, the nonlinear mechanism of FDI on energy intensity is realized with industrial structure as the transition variable, which plays a different effect on the impact of FDI on energy intensity between different samples.

scholarly journals Towards the attainment of sustainable development goal 7: what determines clean energy accessibility in sub-Saharan Africa?

Green Finance ◽  
2021 ◽  
Vol 3 (3) ◽  
pp. 268-286
Author(s):  
Paul Adjei Kwakwa ◽  
◽  
Frank Adusah-Poku ◽  
Kwame Adjei-Mantey ◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Random Effect ◽  
Clean Energy ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Political Regime ◽  
Sub Saharan

<abstract> <p>Access to clean energy is necessary for environmental cleanliness and poverty reduction. That notwithstanding, many in developing countries especially those in sub-Saharan Africa region lack clean energy for their routine domestic activities. This study sought to unravel the factors that influence clean energy accessibility in sub-Saharan Africa region. Clean energy accessibility, specifically access to electricity, and access to clean cooking fuels and technologies, were modeled as a function of income, foreign direct investment, inflation, employment and political regime for a panel of 31 sub-Saharan countries for the period 2000–2015. Regression analysis from fixed effect, random effect and Fully Modified Ordinary Least Squares show that access to clean energy is influenced positively by income, foreign direct investment, political regime and employment while inflation has some negative effect on its accessibility. The policy implications from the findings among other things include that expansion in GDP per capita in the sub-region shall be helpful in increasing accessibility to clean energy. Moreover, strengthening the democratic institutions of countries in the region shall enhance the citizens' accessibility to clean energy. Ensuring sustainable jobs for the citizens is necessary for access clean energy.</p> </abstract>

scholarly journals La importancia de la inversión extranjera directa en México

2017 ◽  
Vol 3 (5) ◽  
Author(s):  
U. De la Garza
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Trade ◽  
Trade Balance ◽  
Direct Investment ◽  
National Development ◽  
Negative Consequences ◽  
Positive Effects ◽  
Manufacturing Productivity

Abstract: The Foreign Direct Investment (FDI) has had important consequences in the Mexican economy, along the positive effects at the same time can be indicated the contributions in manufacturing, productivity, wages, employment and foreign trade; also some negative consequences have appeared, between the displacement of the internal savings and the deterioration in trade balance are one among the most important. Nevertheless, the general conclusion reflects the positive effects are enough to promote the hosting to new investments inthe national territory.Key words: Foreign Direct Investment, national development, Foreign Direct investment consequencesResumen: La inversión extranjera directa ha tenido importantes consecuencias en la economía mexicana, entre los efectos positivos de la misma se pueden señalar las contribuciones en la producción, productividad, salarios, empleo y el comercio exterior, pero también se han presentado algunas consecuencias negativas, entre las cuales el desplazamiento del ahorro interno y el deterioro en la balanza comercial son las más importantes. Sin embargo, el balancegeneral muestra que los efectos positivos son lo suficientemente satisfactorios para promover la llegada de nuevas inversiones al territorio nacional.Palabras clave: Inversión Extranjera Directa, desarrollo nacional, consecuencias de la Inversión Extranjera Directa

scholarly journals Foreign Direct Investment - Domestic Investment Nexus: Evidence from India

2021 ◽  
Vol 15 (3) ◽  
pp. 267-275
Author(s):  
Abraham Babu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Implications ◽  
Data Series ◽  
Domestic Investment ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Time Period ◽  
Reform Period

The relationship between foreign direct investment and domestic investment is intriguing. An important question arises - does foreign direct investment crowd in or crowd out domestic investment? This paper examines this nexus in the post-1991 period in India, which is also considered as the post-reform period. It is during this era; the above-mentioned topic gains more impetus as the economy opened up for further foreign inflows. The time period taken for the paper was from 1990-91 to 2014-15. The data series were checked for stationarity and the presence of long run relationship between foreign direct investment and domestic investment was analysed using cointegration test. Thereafter, the vector error correction model was estimated. The results clearly show that foreign direct investment crowds out domestic investment in India in the post reform period. The findings have significant policy implications because there is a substituting relationship between foreign direct investment and domestic investment in India.

Locational Determinants of Foreign Direct Investment in the Vietnamese Economy

2019 ◽  
pp. 422-459
Author(s):  
Ngoc Le ◽  
Xiaoqing Li ◽  
Andrey Yukhanaev
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Quantitative Research ◽  
Global Financial Crisis ◽  
Secondary Data ◽  
Labor Cost ◽  
Policy Implications ◽  
Fdi Inflows ◽  
Rapid Economic Growth ◽  
The Global Financial Crisis

This chapter investigates the determinants of inward Foreign Direct Investment (FDI) in the Vietnamese economy and their connection to the rapid economic growth the country has experienced. Using the concepts drawn from the extant Ownership-Location-Internalization (OLI) paradigm and Institutional-Based View (IBV) literature, and adopting a quantitative research with the application of secondary data analysis, the study found seven significant locational factors determining FDI inflows into the Vietnamese economy, such as business freedom, market size, labor cost, trade freedom level, inflation rate, human capital, and the effectiveness of property rights. Political risk, monetary freedom, corruption, the country's WTO accession, and the global financial crisis are found to be irrelevant to the inbound investments in the modern economy. A macro-level account and the policy implications are suggested for the promotion of FDI inflows into Vietnam to ensure the country's continuous and sustainable economic development.

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