Are Emerging Economies FDI Inflows Cointegrated with FDI Inflows of China? - An Empirical Investigation

Author(s):  
Krishna Chaitanya V.
Author(s):  
Debabrata Mukhopadhyay ◽  
Dipankar Das

This chapter attempts to investigate the effect of military expenditure on FDI inflows in the 15 emerging market economies over the year 2002 to 2015. Military expenditure takes away scarce public resources, which could have been used for the development of crucial physical and social infrastructure leads to have a negative impact on FDI inflows. The authors have followed both the static and dynamic panel data methodology along with other relevant macroeconomic variables for this exercise. They have found from their analysis that military expenditure is statistically significant on FDI inflows in emerging economies over the year 2002 to 2015. The authors have also examined the relationship between military spending and FDI inflows in the context of economic growth across the emerging economies during the period 2002 to 2014. It has also been found that the military expenditure has a significant impact on FDI inflows in special reference to BRICS countries.


2020 ◽  
Vol 12 (17) ◽  
pp. 7057 ◽  
Author(s):  
Jaewon Jung

While many important links between institutional quality and foreign direct investment (FDI) inflows and/or between inward FDI and economic development through productivity growth have been uncovered, the full links between emerging and advanced economies are not yet well understood. This paper develops a model of FDI with an explicit distinction between the two economies where domestic and multinational firms using different technologies compete on the final good market and highlights the institutional quality–FDI–productivity link within a unified theoretical general equilibrium framework. We show that an improvement of institutional quality in the emerging economies induces pervasive technology-upgrading effects in the advanced economies, which generates aggregate productivity gains.


2016 ◽  
Vol 8 (1) ◽  
pp. 35-52 ◽  
Author(s):  
Mumtaz Hussain Shah ◽  
Yahya Khan

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