scholarly journals Effect of Environmental Regulations on Foreign Direct Investment: Empirical Evidence From China

2021 ◽  
Author(s):  
Dongbei Bai ◽  
Ling Cai Liu ◽  
Shah Fahad ◽  
Zulfiqar Ali Baloch
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Regulation ◽  
Technological Innovation ◽  
Direct Investment ◽  
Capital Investment ◽  
Manufacturing Industry ◽  
Foreign Capital ◽  
Dynamic Effect ◽  
High Tech ◽  
The Impact

Abstract The industry selection effect arising from the impact of environmental regulation on Foreign Direct Investment (FDI) in China is heterogeneous. Based on an extension of the principal-agent Game Theory, this paper constructs a system of simultaneous equations to study the dynamic effect of environmental regulation on Chinese FDI in terms of industry selection decisions, by utilizing panel data from 2005 to 2014 in China. Results of this study show that environmental regulation promotes the technological innovation within the Chinese industry and attract greater foreign capital investment. While the influx of capital will furthermore boost technological progress, a benign interaction effect may be observed between technological innovation and foreign capital. The implementation of the new environmental policy will intensify game strategies between managers and enterprises. Enhanced co-ordination activity within industrial organizations will generate more effective organizational and technological innovation, thereby attracting a large flow of FDI, Phase analysis suggests that the policy of market borrowing technologies is more effective. In addition, industry sample results highlight a compensation effect of technological innovation in the raw materials and manufacturing industry, though environmental regulation of high-tech industries will generate an offset effect with respect to technological innovation. Industries that show the strongest technological and innovative prospects will prove the most attractive for foreign capital investment.

scholarly journals Environmental Regulation, Two-Way Foreign Direct Investment, and Green Innovation Efficiency in China’s Manufacturing Industry

2018 ◽  
Vol 15 (10) ◽  
pp. 2292 ◽  
Author(s):  
Zhijun Feng ◽  
Bo Zeng ◽  
Qian Ming
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Environmental Regulation ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Green Innovation ◽  
Negative Effects ◽  
Positive Effects ◽  
The Impact ◽  
Positive Effect

This paper adopts 2009 to 2015 panel data from 27 manufacturing industries in China. A Super-SBM model is used to measure the green innovation efficiency (GIE) of China’s manufacturing industry. A panel data model is then built to systematically examine the impact of environmental regulation (ER) and two-way foreign direct investment (FDI) on the GIE of China’s manufacturing industry under a unified analysis framework. The results are as follows: (1) the overall level of the green innovation efficiency in China’s manufacturing is low, and there is still great potential for improvement. Considering industry heterogeneity, the green innovation efficiency of patent-intensive manufacturing is significantly higher than that of non-patent-intensive manufacturing; (2) in terms of the whole manufacturing industry, ER and the interaction between ER and outward foreign direct investment (OFDI) have significantly negative effects on GIE, OFDI has significantly positive effects on GIE. (3) when considering industry heterogeneity, for patent-intensive manufacturing, ER and the interaction between ER and inward foreign direct investment (IFDI) have significantly negative effects on GIE, while IFDI has significantly positive effect on GIE. For non-patent-intensive manufacturing, ER and the interaction between ER and OFDI have significantly negative effects on GIE, while IFDI and the interaction between ER and IFDI have significantly positive effects on GIE.

scholarly journals The Impact and Contribution of FDI to Saudi Economy During King Abdullah Regime

2020 ◽  
Vol 11 (6) ◽  
pp. 37
Author(s):  
Khaled Jadeaf Alanazi ◽  
Salawati Mat Basir
Keyword(s):  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Regulatory Environment ◽  
Investment Promotion ◽  
Incentive Policies ◽  
The Government ◽  
The Impact ◽  
Opening Up

Foreign Direct Investment resulted in the disclosure of different investment chances and opportunities through active investment promotion agencies. A country must execute various reforms capable of improving the fundamental determinants of FDI for achieving a high percentage of Foreign Direct Investment. These reforms among others include improving investment laws, reducing political risk and level of corruption, establishing a consistent legitimate and regulatory environment, freeing repatriation of funds and capital, as well as opening up to international trade. Saudi Arabia adopted generous incentive policies for attracting foreign capital and invite Foreign Direct Investment during king Abdullah regime. These policies present positive incentives while eliminating negative disincentives. Positive incentives consist free custom duties, reductions of tax and export zones, by the government of Saudi Arabia. Disincentives elimination to investments indicates the removal of overlong and rigid systems as they can delay visas issuance, restraint travel and complicate the licensing and registration of a project. This paper discusses the impact of FDI on Saudi economy during King Abdullah regime and finally, ascertains the contribution of FDI to Saudi Economy during King Abdullah regime.

scholarly journals The role of environmental regulation, industrial upgrading and resource allocation on foreign direct investment: Evidence from 276 Chinese cities

2021 ◽  
Author(s):  
Wei Qiu ◽  
Yaojun Bian ◽  
Jinwei Zhang ◽  
Muhammad Irfan
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Regulation ◽  
Direct Investment ◽  
Inhibitory Effects ◽  
Industrial Upgrading ◽  
Resource Configuration ◽  
Negative Space ◽  
The Impact ◽  
Reasonable Use

Abstract Environmental pollution is becoming more and more prevalent in China, accompanied by the excessive expansion of the country's foreign direct investment in the scale of resource-based industries. This article uses the panel data of 276 prefecture-level cities in China from 2003 to 2016 to estimate the impact of environmental regulation on foreign direct investment by employing the Spatial Durbin model. The empirical results show that: firstly, environmental regulation, and foreign direct investment have an obvious spatial correlation. Secondly, environmental regulation significantly inhibits foreign direct investment and has significant negative space spillover. Thirdly, non-eastern cities' environmental regulation has significantly greater inhibitory effects on foreign direct investment than eastern cities, and the key cities' environmental regulation has greater inhibitory effects than ordinary cities. Finally, from the perspective of industrial upgrading and resource configuration, environmental regulation has significantly promoted foreign direct investment and have significant negative space spillovers. Therefore, the reasonable use of environmental regulatory measures through industrial upgrading and resource configuration to attract clean, capital-intensive and technology-intensive enterprises and to achieve the effect of "decontamination and clean" for foreign-funded enterprises is critical.

scholarly journals Impact of Foreign Capital Inflows on Household Savings in Pakistan

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Muhammad Abdullah Idrees ◽  
Ayesha Khan ◽  
Muhammad Arsalan Khan ◽  
Muhammad Bilal Raees ◽  
Muniza Syed
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Household Savings ◽  
Statistical Tools ◽  
Household Saving ◽  
Foreign Capital Inflows ◽  
The Impact

This study aims to discover the impact of foreign capital inflows (FDI, RT and FA) on household savings of Pakistan. Data used in this study has been obtained from the website of State Bank of Pakistan for the period of 1981-2010. Statistical tools including multiple regressions analysis was applied for analysis. Results explain that foreign direct investment (FDI), remittances (RT) are having positive and significant impact on household saving (HS) but foreign aid (FA) is having negative and insignificant impact on household saving, so it is recommended that if a developing country like Pakistan wants to increase the household saving it should give thoughtful importance to FDI and RT than FA with respect to household savings in Pakistan.

scholarly journals FOREIGN INFRASTRUCTURE INVESTMENT IN DEVELOPING COUNTRIES: A DYNAMIC PANEL DATA MODEL OF POLITICAL RISK IMPACTS

2019 ◽  
Vol 25 (2) ◽  
pp. 134-167 ◽  
Author(s):  
Weiling Jiang ◽  
Igor Martek ◽  
M. Reza Hosseini ◽  
Jolanta Tamošaitienė ◽  
Chuan Chen
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Investment ◽  
Risk Mitigation ◽  
Political Risk ◽  
Dynamic Panel Data ◽  
Mitigation Strategies ◽  
Risk Indicators ◽  
The Impact

Foreign direct investment (FDI) is inhibited by political risk. Developing countries tend to experience higher levels of such risk, yet need foreign capital to generate growth. Moreover, foreign direct investment in infrastructure (FDII) – fundamental to economic growth – is particularly sensitive to political risk; characterized by high capital investment, longer investment periods, while especially exposed to mercurial shifts in government policy. Yet, no comprehensive study has been undertaken that measures the impact of political risk on FDII in developing countries. This paper addresses this lack. Twelve political risk indicators, drawn from the International Country Risk Guide Index, are used to quantify the political risk inherent to 90 developing countries, over the period 2006 to 2015. An Arellano-Bond GMM estimator is developed which measures the dollar value impact of risk on both FDI and FDII. A comparison of results confirms that FDII is generally more sensitive to risk than is FDI, however the influence of risk categories is found to vary significantly. The findings can be expected to inform infrastructure policy-makers and foreign investors alike on the dollar-impact of determinable risk levels on foreign-funded projects, and in so doing better facilitate corrective risk mitigation strategies.

scholarly journals How Does Technological Innovation Mediate the Relationship between Environmental Regulation and High-Quality Economic Development? Empirical Evidence from China

2021 ◽  
Vol 13 (4) ◽  
pp. 2231
Author(s):  
Die Li ◽  
Sumin Hu
Keyword(s):  
Economic Development ◽  
Environmental Regulation ◽  
Technological Innovation ◽  
Mediating Effect ◽  
Mediation Effect ◽  
High Tech ◽  
High Quality ◽  
Measure Model ◽  
The Impact

Technological innovation is considered to be an effective way to promote the quality of economic development and green transition under environmental policies, while the specific mechanism of this process is still unclear. Thus, the purpose of this paper was to examine how technological innovation mediates the relation between environmental regulation and high-quality economic development. Based on the panel data of 34 industries in China from 2007 to 2015, this paper firstly calculated the green total factor productivity (GTFP) as a proxy variable for the quality of economic development through the super-slack-based measure model, and then analyzed the impact of environmental regulation and technical innovation on the GTFP by making use of the mediation effect model. The results showed that environmental-related policy directly affected the GTFP while technological innovation indirectly moderated this process, where the moderate impact of technological innovation was industrial heterogeneous. Specifically, the relation between environmental regulation and GTFP was positively and partially moderated by technological innovation in clean industries and high-tech industries, while positively but completely moderated by technological innovation in low-and medium-tech industries. Moreover, the mediating effect of technological innovation in pollution-intensive industries was positive but insignificant.

scholarly journals The impact of foreign direct investment and venture capital investment on entrepreneurship in the Republic of Serbia

2019 ◽  
Vol 8 ◽  
pp. 67-86
Author(s):  
Ivana Jolović ◽  
Alpar Lošonc
Keyword(s):  
Foreign Direct Investment ◽  
Venture Capital ◽  
Financial Stability ◽  
Direct Investment ◽  
Capital Investment ◽  
Venture Capital Investment ◽  
Starting Point ◽  
The Republic ◽  
The Impact ◽  
Venture Capital Investments

The subject of the research is the examination of features and significance of two modern types of investment intended for financing entrepreneurship: that is, foreign direct investment and venture capital investment. The starting point of the study is the sector of small and medium-sized enterprises and entrepreneurs with all the challenges and opportunities that characterize its financial position in the Republic of Serbia. The aim of this research is to analyse the impact of both direct investment and entrepreneurial capital investment on small businesses, or more precisely, to examine the influence of foreign direct investment and venture capital investment on entrepreneurship. This paper focuses on the impact that these types of financing have on management, financial stability, and the performance of the relevant business entities. Furthermore, the current situation and perspectives of these types of financing are analysed in detail. The aim of this paper is to provide insight into the effects that foreign direct and venture capital investments have on Serbian small and medium-sized enterprises and the entrepreneurial sector, as well as to point to what is currently the more favourable solution for the financing problem with which these entities are faced. The following methods are used for the preparation of this paper: a detailed analysis of the content of European and national statistical reports; available national and foreign literature of international and domestic authors in the field of foreign direct investment, venture capital investment and entrepreneurship; descriptive and comparative methods.

Analyzing the reality of foreign direct investment and measuring its impact on economic growth for the period (2000-2017)Algeria as a model

2021 ◽  
Vol 11 (1) ◽  
pp. 165-175
Author(s):  
Bakir Hameed Jasoum ◽  
Noaman Mundher Younus ◽  
Fouad Farhan Hussein
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Investment ◽  
Arab Countries ◽  
Advanced Technology ◽  
Investment Environment ◽  
Bilateral Agreements ◽  
The Impact

Foreign direct investment is of paramount importance at the international level, especially in developing countries, as many studies have shown its effective impact and its essential role in the medium and long term in advancing economic growth by stimulating GDP rates, providing employment opportunities, providing expertise and advanced technology. What prompted most Arab countries, including Algeria, to exert efforts in order to provide an appropriate investment environment to attract direct investment through a set of economic reforms, guarantees and facilities, and their conclusion of multiple bilateral agreements to encourage and protect the foreign investor.The research aims to know the extent of the impact of foreign direct investment on economic growth in Algeria for the period (2000-2017) by using standard analysis tools to identify the nature of the relationship between foreign direct investment and economic growth.The research also found that the gross domestic product has a positive relationship with foreign direct investment, that is, when foreign direct investment increases by one unit, this will inevitably lead to an increase in economic growth by (6.43). The research also recommends the necessity of adopting economic structural reform policies in line with the reality The Algerian economy, and working to develop and develop the financial markets through their size and tools, with an emphasis on the issue of legislation and laws that guarantee the regulation of capital investment flows.

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