The Energy Consumption-Environmental Quality Nexus in BRICS Countries: The Role of Outward Foreign Direct Investment (OFDI)

2021 ◽  
Author(s):  
Saileja Mohanty ◽  
Narayan Sethi
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Quality ◽  
Direct Investment ◽  
Early Stage ◽  
Outward Foreign Direct Investment ◽  
Stage Of Development ◽  
Long Run

Abstract This paper examines the role of outward foreign direct investment (OFDI) on energy consumption and environmental quality in BRICS from 1990 to 2019. We use cross-sectional dependence (CSD) and the Pesaran-Yamagata slope homogeneity for the diagnostic test. After confirming the diagnosis test, we employ CIPS and CADF second generation panel unit root test, which confirms that all elements are stationary at first difference. The Pooled Mean Group (PMG), Westerlund cointegration, two-step GMM, panel FMOLS and DOLS model have been used to determine the short term and long-term association among the variables. The cointegration and PMG results confirm that the short-run and long-run association exists among the considered variables. The GMM and DOLS results reveal that developing countries produced environmental pollution at the early stage of development and checked in the long run. The empirical results hold up the EKC hypothesis, which implies that OFDI and energy consumption help expand greener technology to host countries' environmental improvement in the long run and confirm that an inverted U-shaped linkage exists. Hence, the study suggests that developing countries should pay more attention to sustainable development and technological development that encourages more eco-friendly and environment-friendly technology. To frame the profitable strategies, governments of emerging countries should inspire public-private partnerships to circulate the environmental consciousness, guideline for energy efficiency, and generate a pollution-free environment.

Motivations of Chinese Outward Foreign Direct Investment: An Organizing Framework and Empirical Investigation

2015 ◽  
Vol 16 (1) ◽  
pp. 82-106
Author(s):  
Wenyan Yin
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Investigation ◽  
Early Stage ◽  
Outward Foreign Direct Investment ◽  
Proxy Variables ◽  
Stage Of Development ◽  
Commercial Technology ◽  
Comprehensive Framework ◽  
Similar Stage

This article examines the recent motivations of Chinese outward foreign direct investment (FDI) by introducing a more comprehensive organizing framework. Theoretically, this paper extends Moon and Roehl’s (2001) imbalance theory from the imbalance of firm ownership to locational perspective as an important motivation of MNCs, and finds that such extension can better explain Chinese FDI. This paper also introduces a more comprehensive framework of Chinese FDI motivations, which includes four types of conventional FDI based on ownership or locational advantages and other six types of unconventional FDI. Empirically, this article provides some important proxy variables for FDI motivations and tests hypotheses. The results show that Chinese FDI is driven by conventional types and unconventional types at its early stage of Chinese FDI, which provides important implications for FDI decisions of firms from China and other countries at similar stage of development. This paper also distinguishes the asset-seeking FDI of scientific and commercial technology, and it finds different patterns of spatial distribution regarding the two motivations.

An Empirical Investigation of India’s Outward Foreign Direct Investment: A Macro Perspective

2019 ◽  
Vol 5 (2) ◽  
pp. 79-88
Author(s):  
Dikshita Kakoti
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Real Effective Exchange Rate ◽  
Outward Foreign Direct Investment ◽  
Fdi Inflows ◽  
Long Run ◽  
Increasing Trend ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Since 1990, globalization of Indian economy led to a speedy growth of foreign direct investment (FDI) inflows and simultaneously outward foreign direct investment (OFDI) also shows an increasing trend. However, India’s OFDI has attracted a little attention from the researchers and they have considered the OFDI in terms of commitments or approved equities. The motivation of this article is to investigate the India’s macro factors influencing actual OFDI flows from India by empirically recognizing four factors, namely gross domestic product, inward FDI, real effective exchange rate, and real interest rate over the period 1980–2016. The study has used Augmented Dicky-Fuller (ADF) and Phillips–Perron (PP) Unit root tests for checking the stationarity of the variable of the model. Later on, autoregressive distributive lag (ARDL) model and error correction mechanism is used for testing the long-run as well as short-run dynamics of the model. The result shows that all the selected variables have positive and significant influence on India’s outward investment flows.

The Rise of Transnational Corporations from Developing Countries in the Second Half of the 20th Century

Istoriya ◽  
2021 ◽  
Vol 12 (11 (109)) ◽  
pp. 0
Author(s):  
Alexey Kuznetsov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
World Order ◽  
Developed Countries ◽  
Global South ◽  
Business Environment ◽  
Outward Foreign Direct Investment ◽  
Foreign Direct Investment Stock

The article highlights three stages of the formation of multinationals from developing countries. Although first Argentine TNCs appeared at the turn of the 19th — 20th centuries, in the majority of the Global South countries TNCs appeared in the 1960s — 1980s. With the collapse of the bipolar world order, which in many developing countries was accompanied by significant internal political and economic transformations, the second stage of foreign expansion of TNCs from the Global South began. Indeed, in 1990 they accounted for 6 % of global outward foreign direct investment stock, while the figure was 10 % by the end of 2005. We date the beginning of the third stage to the financial and economic crisis of 2007—2009, since multinationals from developing countries as a whole are more successfully overcoming the period of turbulence in the global economy. By the end of 2020, they accounted for 22 % of global outward foreign direct investment stock, and during the COVID-19 pandemic crisis they generally exported more than 50% of the capital. The modern foreign expansion of such TNCs has many reasons, differs greatly from country to country, and often differs slightly from the specifics of Western multinationals. At the same time, initially, “late internationalization” in developing countries had two main vectors — the use of new opportunities for South — South cooperation and overcoming, through the creation of subsidiaries in highly developed countries, the shortcomings of the business environment of “catching up” countries.

scholarly journals Dynamic Causal Relationships among GDP, Exports, and Foreign Direct Investment (FDI) in the Developing Countries

2013 ◽  
Vol 14 ◽  
pp. 1-19 ◽  
Author(s):  
Mohsen Mehrara ◽  
Amin Haghnejad ◽  
Jalal Dehnavi ◽  
Fereshteh Jandaghi Meybodi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Strong Evidence ◽  
Direct Investment ◽  
The Other ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Growth Hypothesis

Using panel techniques, this paper estimates the causality among economic growth, exports, and Foreign Direct Investment (FDI) inflows for developing countries over the period of 1980 to 2008. The study indicates that; firstly, there is strong evidence of bidirectional causality between economic growth and FDI inflows. Secondly, the exports-led growth hypothesis is supported by the finding of unidirectional causality running from exports to economic growth in both the short-run and the long-run. Thirdly, export is not Granger caused by economic growth and FDI inflow in either the short run or the long run. On the basis of the obtained results, it is recommended that outward-oriented strategies and policies of attracting FDI be pursued by developing countries to achieve higher rates of economic growth. On the other hand, the countries can increase FDI inflows by stimulating their economic growth.

scholarly journals INVESTASI ASING LANGSUNG DAN PERTUMBUHAN EKONOMI DI WILAYAH ASEAN PERIODE 2004-2016

2019 ◽  
Vol 23 (2) ◽  
pp. 57-66
Author(s):  
Aditya Febriananta Putra ◽  
Suyanto . ◽  
Irzameingindra Putri Radjamin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Significant Role ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Accelerate Development ◽  
Fixed Capital Formation

Exertions to accelerate development carried out by developing countries in general are oriented towards improving or improving people’s lives. Developing countries are characterized as countries that lack capital, savings and investment. The role of Labor has a significant effect but has a negative impact on economic growth. Agriculture and Service also performance a significant role, despite having a positive impact on economic growth. While other variables, namely Fixed Capital Formation, Foreign Direct Investment, Export, Manufacture, and Fertility showed insignificant results on economic growth.

Sign in / Sign up

Export Citation Format

Share Document