scholarly journals An Algorithm of Decomposing the Trend and Cyclical Components of FDI Inflows: The Case of Ukraine

2020 ◽  
Vol 4 (3) ◽  
pp. 95-101
Author(s):  
Bogdan A. Moskalenko ◽  
Pavlin Mitev
Keyword(s):  
Time Series ◽  
Foreign Direct Investment ◽  
Statistical Methods ◽  
Direct Investment ◽  
Joint Stock Company ◽  
Stock Company ◽  
Trend Component ◽  
Potential Evaluation ◽  
The Impact ◽  
Foreign Direct Investment Inflows

Authors: Bogdan A. Moskalenko, ORCID: https://orcid.org/0000-0003-3972-1705 Joint stock company “ProCredit Bank”, Business Client Advisor, Kyiv, Ukraine Pavlin Mitev, ORCID: https://orcid.org/0000-0001-5798-4192 Joint stock company “Raiffeisenbank EAD”, Credit Risk Policy Manager, Bulgaria Pages: 95-101 Language: English DOI: https://doi.org/10.21272/fmir.4(3).95-101.2020 Download: Views: Downloads: 26 7 Abstract The article summarizes the arguments within the scientific challenge on improving approaches to country investment potential evaluation. The main objective of the research is to systematize the existing statistical methods of decomposing macroeconomic time series into growth (trend) and cyclical components. Systematization of theoretical and methodological materials on solving the problem of decomposing the trend and cyclical components of time data series showed that the use of filtering series of economic dynamics based on the Hodrick-Prescott filter allows identifying long-term growth trends or recessions. The relevance of solving this problem is that the country investment potential evaluation is often based on investigating the impact of foreign direct investment`s determinants in a domestic economy while ignoring cyclical macroeconomic processes within and outside the country, on which those determinants often have not responded yet or reacted late. The methodical tools of the research are carried out in the following logical sequence: systematization of existing statistical methods for trend component decomposing; analysis of data that will be used in the decomposition process and in further country investment potential evaluation; application of the Hodrick-Prescott filter and trend component decomposing in foreign direct investment net inflows dynamics into the economy of Ukraine. The Research methods combine in following dimensions: comparative analysis, regression analysis and univariate methodology of time series decomposing. The period from 1999 to 2019 was chosen as the research period. The object of the research is foreign direct investment net inflows into the economy of Ukraine, as they are the determining element within the country investment potential evaluation process. The article presents the results of empirical analysis, which showed that the decomposing a trend and cyclical components of foreign direct investment inflows can improve the quality of investment potential evaluation, considering the impact of current economic cycle phase. The results of the research can be useful for a more accurate investment potential evaluation on the macroeconomic level and forecasting foreign direct investment inflows for the following time periods. Keywords: business cycle synchronization; country investment potential; foreign direct investment; Hodrick-Prescott filter; national economy.

Impact of foreign direct investment inflows on environmental pollution in Turkey

2016 ◽  
Author(s):  
Yilmaz Bayar
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Global Economy ◽  
Developed Countries ◽  
Foreign Direct Investments ◽  
Causality Analysis ◽  
Causality Test ◽  
The Impact ◽  
Foreign Direct Investment Inflows

The globalization accelerated especially as of 1980s and the countries began to integrate global economy and remove the constraints on the flows of goods, services and capital. In this context, the developed countries partly shifted their environmentally hazardous production activities to the developing countries especially by means of foreign direct investments. This study investigates the impact of foreign direct investment inflows on the environmental pollution in Turkey during the period 1974-2010 by using Toda and Yamamoto (1995) causality test. We found that there was a bidirectional causality between foreign direct investment inflows and  emissions.Keywords: Foreign direct investment inflows,  emissions, causality analysis

scholarly journals FDI and long-term economic growth in Egypt

2017 ◽  
Vol 13 (1) ◽  
pp. 65-74
Author(s):  
Saif Alhakimi
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Government Expenditure ◽  
Wage Structure ◽  
Series Data ◽  
The Impact

This research paper aims to empirically analyze the impact of FDI on the long-term economic growth of Egypt. An empirical model was developed to explain the aggregate output, including total labor force, capital stock, foreign direct investment, government expenditure, and the real exchange rate. Annual time-series data from 1990–2013 were then used to estimate the model. Prior to calculating this estimation, the properties of the time series were diagnosed, and an error-correction model was developed and assessed. The overall results suggest that foreign direct investment makes a positive, yet weak and insignificant, contribution to the long-term economic growth of Egypt. This finding warrants further investigation to explore the possible reasons behind it, such as the degree of spillover that FDI has on economic growth and its impact on employment in areas like job creation, wage structure, research, and development.

Impact of Globalization on Economic Growth in Vietnam: An Empirical Analysis

2018 ◽  
pp. 32-47 ◽  
Author(s):  
Dat Tho Tran ◽  
Van Thi Cam Nguyen
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Balance Of Trade ◽  
The Impact

This study aims at investigating the impact of globalization on economic growth in the case of Vietnam. Empirical analysis is done by using time series data for the period from 1995 to 2014. The paper tested the stationary cointegration of time series data and utilized the error correction modeling technique to determine the short run relationships among economic growth, globalization, foreign direct investment, balance of trade and exchange rate variables. Then, the long run relationship between economic growth and the variables representing economic integration were estimated by ordinary least square. The results show that globalization, measured by the KOF index, promotes economic growth and Vietnam has gained from integrating into the global economy. The overall index of globalization had positively and significantly impacted the economic growth in Vietnam. The results also indicated that economic globalization had a significantly positive effect on economic growth in the period examined. The study further revealed that foreign direct investment and the exchange rate affect economic growth positively whereas balance of trade affects economic growth negatively.

scholarly journals THE IMPACT OF INWARD FDI ON THE GROWTH OF ADVANCED EXPORTS IN CENTRAL-EASTERN EUROPEAN REGION

2020 ◽  
Vol 1 (14) ◽  
pp. 137-145
Author(s):  
Agata Maria Gorniak
Keyword(s):  
Foreign Direct Investment ◽  
Research And Development ◽  
Direct Investment ◽  
Trade Openness ◽  
Capital Formation ◽  
Eastern European ◽  
Domestic Savings ◽  
Central Eastern ◽  
The Impact ◽  
Foreign Direct Investment Inflows

The main objective of the paper is to examine the potential factors which, according to the literature, may be impacting the structure of exports by allowing more exports from high and medium-high research and development intensive sectors. In the paper, particular emphasis is put on the foreign direct investment’s role in export advancement. Apart from foreign direct investment inflows, the research examines the impact of trade openness, gross capital formation, gross domestic savings together with research and development and human capital related factors, on the phenomenon. The research group consists of eight Central – Eastern European economies, accessed to the European Union in 2004. The statistical data utilized in the research is retrieved from commonly available statistical databases. In the study ordinary least squares panel data regression is applied. Three separate models are estimated for three varying time frames (within the years 2000 – 2018), depending on the variables data availability. Obtained results suggest a strong positive correlation between trade openness, investment factors (savings and capital formation) expressed in growth rates, and high and medium-high research and development intensive manufacturing exports. Even though foreign direct investment inflows are identified as statistically significant in two of the estimated models, the coefficient for the variable is low. The results are partially consistent with the literature on the topic. Trade openness and foreign direct investment inflows have both been identified as relevant factors in the previously conducted studies. In contrary to previous findings, the investment-related macroeconomic factors, such as gross domestic savings and gross capital formation appear as significant variables. Also, in the estimated models, factors related to research and development have no relevance.   Keywords: Foreign Direct Investment, International Business, International Trade, Exports, High Technology Exports

scholarly journals Relationship between Corruption and FDI Inflow: A Causality Test

2019 ◽  
Vol 11 (1) ◽  
pp. 93-99
Author(s):  
Abdelhamid A. Mahboub ◽  
Hatem Hassan Garamon
Keyword(s):  
Time Series ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Developed Countries ◽  
Series Data ◽  
Strong Impact ◽  
Causality Test ◽  
The Developed Countries ◽  
The Impact

This study examines the relationship between the inflow of foreign direct investment and corruption. By using 2006 – 2015 time series data from 19 developed countries and 18 developing countries, it starts by testing the Granger causality between these two variables. It finds that causality direction goes from corruption to foreign direct investment. After making the time series data stationary, the study runs regression analysis for each country group separately. Significant and strong impact of corruption on foreign direct investment is found for each group, and the impact is even stronger for the developed countries. Data from each group could not support the hypothesis of ‘greasing the wheels of business’, which is used for justifying soft treatment of corruption in some countries. Policy implication is to stand strong against corruption in order to promote the inflow of foreign direct investment.

scholarly journals MARKET SIZE AS A DETERMINANT OF THE FOREIGN DIRECT INVESTMENT INFLOWS IN THE WESTERN BALKANS COUNTRIES

2017 ◽  
pp. 093
Author(s):  
Marija Petrović-Ranđelović ◽  
Vesna Janković-Milić ◽  
Ivana Kostadinović
Keyword(s):  
Foreign Direct Investment ◽  
Population Size ◽  
Direct Investment ◽  
Negative Impact ◽  
Trade Openness ◽  
Market Size ◽  
Western Balkans ◽  
Market Growth ◽  
The Impact ◽  
Foreign Direct Investment Inflows

Numerous empirical studies confirm that market size is one of the key determinants of foreign direct investment inflows, particularly market-oriented projects of foreign direct investment. Basically, the dominant view is that a larger market of the host country attracts a greater quantum of foreign direct investment. This paper examines the influence of market size, as well as the impact of market growth, trade openness, and population size on the foreign direct investment inflows into the six countries of the Western Balkans region in the period 2007-2015. Multiple regression analysis was applied in examining the impact of these variables on foreign direct investment inflows. The obtained results show that market size, market growth and population size had a significant positive impact, while trade openness had a negative impact on foreign direct investment inflows in the observed countries. Thus, the main findings of this research confirm that market size is an important determinant of the foreign direct investment inflows in the Western Balkans countries.

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