scholarly journals Does Foreign Direct Investment More Important Than Domestic Direct Investment for Export Structure? Evidence from Indonesia

2021 ◽  
Author(s):  
Ariyo DP Irhamna ◽  
Ely Nurhayati ◽  
Adinda Putri Safira ◽  
Galuh Indra Wijaya
Keyword(s):  
Time Series ◽  
Foreign Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Domestic Investment ◽  
Fdi Inflows ◽  
Export Structure ◽  
The Impact ◽  
Export Product

Abstract Scholars have long studied the spillover of FDI on trade. However, there has been limited study which spesifically investigate the impact of FDI on the export structure in a developing country. Does FDI more important than domestic investment for export structure? To examine the question, we test the impact of FDI and DDI on the export structure in time series framework, utilizing data on FDI inflows to Indonesia and export data based on product stage over 1992–2017. The export structure is analyzed based on three categories, namely primary product, intermediate product, and final product. Our results show that domestic investment has a negative impact on the primary export product, while foreign investment has a positive impact on the final export product. The result highlights the importance of domestic and foreign investment in export upgrading.

CONSTRAINTS TO FOREIGN DIRECT INVESTMENT IN INDIAN HOSPITALS

2010 ◽  
Vol 01 (01) ◽  
pp. 121-143 ◽  
Author(s):  
RUPA CHANDA
Keyword(s):  
Foreign Direct Investment ◽  
Health Insurance ◽  
Foreign Investment ◽  
Direct Investment ◽  
Medical Equipment ◽  
Domestic Investment ◽  
Fdi Inflows ◽  
Domestic Constraints ◽  
Insurance Penetration ◽  
The Impact

This paper examines the impact of a liberalised foreign direct investment (FDI) regime in Indian hospitals on FDI inflows. The paper shows that there is hardly any FDI in Indian hospitals due to domestic constraints such as high initial establishment costs, low health insurance penetration, manpower shortages, high cost of medical equipment, and regulatory deficiencies. These constraints also impede domestic investment in hospitals. The paper concludes that a liberal foreign investment regime may not result in increased FDI inflows if regulatory and structural impediments continue to constrain investment in the host economy. Investment liberalisation must thus be supplemented by domestic regulatory reforms to create an environment that is conducive to all investors.

The Impact Of Monetary Policy Using Islamic Or Non-islamic Money Supply On Fdi In Jordan (1980-2018)

2021 ◽  
pp. 73-103
Author(s):  
Adham Taher Mohmmad Alessa ◽  
Hartini Mohammad
Keyword(s):  
Monetary Policy ◽  
Foreign Direct Investment ◽  
Money Supply ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Statistical Tests ◽  
Domestic Investment ◽  
Study Results ◽  
The Impact

This study aimed to investigate the impact of monetary policy using Islamic or non-Islamic money supply on FDI in Jordan. Using time series analysis of selected variables during the period 1980 until 2018 using the ARDL model. The objective achieved the appropriate statistical tests such as data stability and co-integration tests have been used. The variables analyzed include the money supply (M2), the Islamic money supply (IMS), the export (EXP), Government Expenditure (GOV), inflation rate (INR), The gross domestic product (GDP) as independent variables. The dependant variable is the foreign direct investment (FDI). This study results in a long-term and short-term statistically significant correlation between the money supply (M2), the Islamic money supply (IMS) and FDI. The Islamic money supply (IMS) has a positive impact and the money supply (M2) has a negative impact on the FDI. The study recommended; the Jordanian government must implement a targeted Islamic monetary policy to attract foreign direct investment in the Jordanian economy. Provide an appropriate environment for investment and to remove the obstacles to investment in general, in order to attract the capital of Jordanians working abroad for domestic investment, as well as for foreign investments.

Analysis of investment resources’ impact on food security condition

2020 ◽  
pp. 94-101
Author(s):  
Gelena Pruntseva
Keyword(s):  
Foreign Direct Investment ◽  
Food Security ◽  
Foreign Investment ◽  
Agricultural Production ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Security Mechanism ◽  
The Impact

Ensuring food security and developing agricultural production is impossible without investment. At the same time, some scientists note that a significant amount of foreign investment increases the dependence of the domestic economy and enterprises on foreign investors. In addition, subsidies lead to a lack of motivation among entrepreneurs to attract additional investment resources and increase the dependence of production on areas of state support. Some investment models contribute to the deterioration of the environment, and technological advances are not available to small farmers who do not have the financial resources to apply the technology. Therefore, investment is important to ensure the effective development of the agricultural sector and food security mechanism. However, the presence of a significant amount of foreign investment can lead to the dependence of the national economy on investors, which can have a negative impact on the cost of agricultural products, production volumes, exchange rates and purchasing power of the population. The aim of the article is to analyze the impact of investment on the agricultural production as the main component of food security mechanism. To analyze the effectiveness of investment we chose the indicators “Government spending on agriculture”, “Foreign direct investment in agriculture” and the indicator “Agricultural production”. As a result of the analysis, it was found that the impact of government investments on agricultural production is not significant. This trend can be explained by the existing theory that there is no significant positive impact of government investments on the efficiency of agricultural enterprises due to the lack of incentives for farmers to innovate and compete in the market environment. A strong direct link between the indicators “Foreign direct investment in agriculture” and “Agricultural production”, which indicates a significant impact of foreign direct investment on agricultural production, is emphasized.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

scholarly journals Impact of FDI in Agriculture Sector in India: Opportunities and Challenges

2019 ◽  
Vol 8 (3S) ◽  
pp. 380-383
Keyword(s):  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Fdi Inflows ◽  
Indian Economy ◽  
Agriculture Sector ◽  
Course Of Action ◽  
The People ◽  
The Impact ◽  
Agrarian Development

Foreign Direct Investment has a vital errand to do in the rustic part for the Indian financial system. FDI is empowered in the cultivating section to improve the idea of yields. In the Indian Economy the FDI inflows to the cultivating portion since 2010 – 2018 there is an important perfection in the Agriculture section. Agriculture is said to be the establishment of the nation and it encompasses of 65% of the Indian people. Along these lines, the methodologies are limited in gathering to the agriculture influences a people. In order to forgo the poverty, government has upheld the FDI in Agricultural part and it is most acclaimed way to deal with discard the dejection and longing for. There is an emergency in agrarian part because of the colossal advances and advances which are paid by the banks to the ranchers. The ongoing patterns in the horticultural part have delineated a deceleration in the agrarian development. FDI in Agricultural Sector is one of the copious walks in improving bothers of Indian Farmers. For propelling cultivating improvement, reducing poverty and hunger, and progressing environmental supportability, country theory is crucial. FDI enthusiasm for agriculture requires a logically point by point ask about. Both positive and negative impact should be eagerly examination, with respect to Indian economy. In order to grow the lifestyle for the people and to engage those to use for sound and reflex improvements it is pivotal principal that, capital course of action ought to occur at a higher rate. This paper attempts to consider the impact of FDI in India expressly in green part and to examine the likelihood and confusions looked by the fragment in pulling in the black out budgetary masters adjacent to the various exercises taken by the administrationBased on the results and findings, suitable suggestions and conclusions will be made for the further research.

scholarly journals The impact of credits to the private sector and FDI on the economic growth in ASEAN

2020 ◽  
Vol 3 (4) ◽  
pp. 343-351
Author(s):  
Dang Van Cuong
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Random Effect ◽  
Estimation Method ◽  
Least Square ◽  
Fdi Inflows ◽  
Asean Countries ◽  
The Impact

The paper examines the impact of credits to private sector and foreign direct investment (FDI) flows on the economic growth of ASEAN countries in the period 1995-2017. The paper also validates the capital spread of FDI inflows to economic growth through credits to private sector. Using fixed effect estimation method (FEM), random effect (REM) and generalized least square (GLS) for panel data, we found that FDI inflows are positvely correlated with the economic growth of the ASEAN countries. This once again confirms the role of FDI in promoting the economic growth as evidenced in previous studies. Meanwhile, credits to private sector exert a negative impact on the economic growth in these countries which is an interesting finding given that few studies yield a similar result. To assess the spillover effect of FDI to growth through credits to private sector, we augment our model with a variable that reflects the interaction between credits to private sector and FDI. This variable is negative and statistically significant, suggesting that FDI is yet to show its positive impact on growth through spreading capital to credits to privatte sector.

scholarly journals The Impact of Remittances on Domestic Investment in Developing Countries: Fresh Evidence From the Asia-pacific Region

2018 ◽  
Vol 9 (2) ◽  
pp. 193-211 ◽  
Author(s):  
Le Thanh Tung
Keyword(s):  
Developing Countries ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Asia Pacific ◽  
Series Data ◽  
Pacific Region ◽  
Domestic Investment ◽  
Asia Pacific Region ◽  
The Impact

Despite the sharply increasing remittances in developing countries (especially in the AsiaPacific region), the relationship between remittances and domestic investment in recipient countries has not been fluently evidenced. This paper aims to fill the empirical gap in the Asia-Pacific region by investigating the impact of remittances on domestic investment with a sample including nineteen developing countries based on time series data from 1980 to 2015. However, our findings contradict some evidence from other regions. The results robustly confirm that remittances have a negative impact on domestic investment in these countries. Our results also indicate that the annual GDP per capita growth, official development assistance, domestic credit, gross saving, and inflation have a positive impact on domestic investment, however, we conclude that the impact of trade openness on domestic investment has a negative sign in the study period. The paper also provides some policy suggestions with regard to remittance flows in this region.

scholarly journals Impact of Foreign Direct Investment on Domestic Investment in Developing Countries

2020 ◽  
Vol 6 (9) ◽  
pp. 256-266
Author(s):  
A. Mamatkulov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Negative Impact ◽  
Domestic Investment ◽  
Short Term ◽  
Total Investment ◽  
The Impact

Author analyzes the impact of foreign direct investment on domestic investment in host developing countries and checks whether a foreign direct investment has a “positive” or “negative” impact on domestic investment, as well as evaluating the impact of selected variables on this relationship. Using a full sample, the main conclusion of this study is that FDI does have a positive (crowding out) effect on domestic investment in this sample of developing economies. In the short term, an increase in FDI by one percentage point as a percentage of GDP leads to an increase in total investment as a percentage of the host country’s GDP of about 10.7%, while in the long term this effect is about 31% dollar terms, one US dollar represents us 1.7$ of total investment in the short term and us 3.1$ in the long term. Based on the results of this study, it was once again proved that inflation hinders domestic investment in host countries by 0.04% and 0.12% in the short and long term, respectively.

scholarly journals The Consequences of Foreign Direct Investments in Redefining Bilateral Trade Flow in Nigeria: A Gravity Panel Approach

2020 ◽  
Vol 10 (4) ◽  
pp. 367-379
Author(s):  
Saidu D Muhammad ◽  
Kenneth O Diyoke ◽  
Nnanna P Azu
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Bilateral Trade ◽  
Negative Impact ◽  
Import Substitution ◽  
Trade Flow ◽  
Foreign Direct Investments ◽  
Bilateral Trade Flow ◽  
The Impact

Most of the Nigerian government’s transformation agenda is geared toward creating and enabling business environments to attract foreign direct investment. Opinions are divided as to the impact of foreign investment on trade and this researcher believed it could be either positive or negative. Hence, this research is to ascertain the magnitude of foreign investment’s impact on Nigeria’s bilateral trade. Integrating foreign direct investment in the gravity model, we applied the PPML technique because of its robustness and ability to recognise zero trade. We segregated foreign investment into three-flow, stock and its annual growth. Our estimation revealed that foreign direct investment stock impacts negatively on bilateral trade flow in Nigeria for both exports and imports and it is robust with the overall sample. Exporters’ foreign direct investment inflow was also revealed to have an impact on bilateral trade in Nigeria. But in all ramifications the magnitude of the negative impact is relatively small but statistically significant reflecting that trade and inward foreign investment are at least substitutes. Nigeria should further encourage inward foreign investment to further stimulate economic growth and aid in creating import substitution.

scholarly journals Reforming the IMF to Increase FDI Led Economic Growth: The Case of Latin American and Caribbean Countries

2018 ◽  
Vol 04 (S1) ◽  
pp. 81
Author(s):  
Ashraf Mahate ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Latin American ◽  
Host Country ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
The Impact ◽  
Latin American And Caribbean ◽  
The Imf

There is a strong body of literature that finds a direct connection between inward foreign direct investment and economic growth in the host country. At the same time, economic growth in the host country attracts additional Foreign Direct Investment (FDI). This bidirectional relationship can be supported by the IMF through its lending program to countries to assist in dealing with short-term shocks as well as managing more long-term structural issues. In fact, the IMF programs in theory should provide an indicator to potential investors that the country is committed to making a change and opening its economy, which are typical requirements under IMF conditions. IMF intervention should lead to a positive impact on inward FDI. This study examines the impact of IMF-support programs on inward FDI for a sample of Latin American and Caribbean Countries. The results from this study reveal that being on an IMF borrowing program has a negative impact on inward FDI in the second and third year. We argue that being on an IMF borrowing program does not provide inward FDI with the seal of approval that it requires in making an investment.

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