scholarly journals IMPACT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIC GROWTH OF SENEGAL

2018 ◽  
Vol 1 (39) ◽  
pp. 26
Author(s):  
Reisoli Bender Filho ◽  
Ibrahima Diallo

Since the local market liberalization in the late 1980s and early 1990s, Senegal has been striving to attract foreign private capital by adopting new economic policies such as the implementation of structural adjustment programs, reduction of the State i

2020 ◽  
Author(s):  
Iftikhar Muhammad ◽  
Malik Shahzad Shabbir

Abstract Purpose This study intends to analyze the long-run and short-run relationships along with the identification of causal links between exports, economic growth, and exchange rate in Turkey. Data/Design: This study uses auto-regressive distributed lags (ARDL) and Granger causality over time series monthly data from the year 2010–2018. The results indicate that exports are significantly positively related to economic growth while the exchange rate is found to be negatively related to economic growth. Findings: Moreover, findings from the test of Granger causality indicate that a unidirectional causal association is found from exports to foreign direct investment and economic growth and from economic growth to foreign direct investment. The Granger causality results indicate that an increase in exports accelerates the economic growth of Turkey and a change in growth rate and exchange rate leads to a change in foreign direct investment. Originality of work: The overall findings suggest that exports should be promoted along with the liberal-investment economic policies to boost the overall economic growth in Turkey.


Author(s):  
Yuliia Horodnichenko

Subject of research is the directions and ways of attracting foreign direct investment in Ukraine. The purpose of the article is to study the essence and features of foreign direct investment and to study the foreign experience of ways to attract direct investment to Ukraine. Methods used in the research process: method of system-structural analysis and synthesis, method of comparative analysis, generalization, general scientific, special methods of scientific knowledge and other research methods. Study results. The importance of foreign investments in the activity and development of the state is described. The main measures that need to be implemented to attract foreign investment are identified. International investment cooperation, given the high level of its efficiency, provides the country and its businesses with a number of current and future benefits. Positive and negative factors influencing the attraction of foreign investments into the state economy are outlined. One of the most common ways to attract direct investment to Ukraine is to create joint ventures, which are manifested in the processes of cooperation, pooling of knowledge, efforts, resources and experience. Motivational levers of influence on direct investment partners are singled out. They can be divided into two large groups. In the first case, firms are mainly engaged in the sale of goods and services produced in other countries, in the second - invest in the creation of production facilities in this country in order to sell products in the local market or export it to markets in other countries. Application of results. The results of the study can be used in the activities of the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine, the National Commission on Securities and Stock Market, as well as in higher education institutions in the teaching of economic disciplines. Conclusions. Foreign investment plays an important role in the development of the country's economy. Attracting funds from foreign investors contributes to the intensification of the investment process, the introduction of new technologies, the use of advanced foreign experience, the development of small and medium-sized businesses, the growth of investment potential of the territories.


2018 ◽  
Vol 21 (2) ◽  
pp. 473-489 ◽  
Author(s):  
Pooja Sengupta ◽  
Roma Puri

Foreign direct investment (FDI) inflows have been a trigger for accelerating economic growth in a number of countries. The pattern of FDI flows into India and its neighbourhood has been varied and so has been its impact on the economic growth in each of the countries. Although a lot of research has been carried out to establish causality between FDI and economic growth, the results are sometimes varied and conflicting. This study attempted to study the pattern of FDI into the Indian subcontinent and India’s neighbours, such as Pakistan, Nepal, Bangladesh and Sri Lanka, and explore the causality between FDI and gross domestic product (GDP). The results showed that the different economic policies of the respective countries had a role to play in explaining the difference in the quantum of the flow and there is an association between FDI and GDP, and in all the cases, FDI is instrumental in enhancing the economic growth of the countries included in the study.


2020 ◽  
Vol 19 (1) ◽  
pp. 77-92
Author(s):  
Friday Osemenshan Anetor

Purpose This study aims to examine the relationship between private capital inflows, financial development and economic growth in 28 sub-Saharan African (SSA) countries between the periods 1995 and 2017. Design/methodology/approach The study used a secondary source of data obtained from the world development indicator (WDI) and used the system generalized method of moments (SGMM) and dynamic panel threshold regression to analyze the data. Findings The study found that foreign direct investment has a negative and significant impact on the economic growth of SSA. The study also found that portfolio investment has a positive impact on economic growth but it is statistically insignificant. However, when portfolio investment interacted with financial development, it became positive and statistically significant presupposing that financial development is a necessary condition for portfolio investment to exert impact on economic growth. Further, the study showed that the interaction of foreign direct investment with financial development has a negative and significant effect on economic growth. Finally, the study found the minimum threshold of financial development at 42.66 per cent. Practical implications Policymakers in SSA should be cautious and critical in the kind of foreign direct investment they attract as the open door policy to attract all kinds of foreign direct investment would not bring about the desired result. Also, policymakers in the region should develop and implement policies that would deepen and strengthen the financial system to foster the development of the country’s financial sector and accelerate economic growth. Originality/value The contribution of the study lies in establishing a minimum threshold of financial development; thus, providing a clear-cut direction for policymakers in SSA countries in their pursuit of financial development and economic growth.


Media Ekonomi ◽  
2015 ◽  
Vol 23 (3) ◽  
pp. 199
Author(s):  
Taufiq Rahman ◽  
Jakaria ,

<p><em>This study aims to determine the relationship between Foreign Direct Invesment, Gross Fixed Capital Formation, Trade Openness to economic growth in nine ASEAN countries, and to compare the factors that determinae the movement and economic growth ini nine countries ASEAN. The variables used invlude foreign direct investment, gross fixed capital formation, trade openness and Growth of Gross Domestic Product of each country. </em><em>The method used in this thesis is the regression method Panel . Results of the study showed an overall variable Foreign Direct Investment and Gross Fixed Capital Formation had significant results . If seen from the results of the model for pernegara Foreign Direct Investment have the significant results in the state of Singapore . Gross Fixed Capital Formation have the significant results in the state of Singapore, Thailand, Philippines and Cambodia. To have the variable Trade Openness significant results at the state of Indonesia, Malaysia, Thailand, Philippines, and Cambodia</em><em>.</em></p>


Author(s):  
Addissie Melak

Economic growth of countries is one of the fundamental questions in economics. Most African countries are opening their economies for welcoming of foreign investors. As such Ethiopia, like many African countries took measures to attract and improve foreign direct investment. The purpose of this study is to examine the contribution of foreign direct investment (FDI) for economic growth of Ethiopia over the period of 1981-2013. The study shows an overview of Ethiopian economy and investment environment by the help of descriptive and econometric methods of analysis to establish empirical investigation for the contribution of FDI on Ethiopian economy. OLS method of time series analysis is employed to analyse the data. The stationary of the variables have been checked by using Augmented Dickey Fuller (ADF) Unit Root test and hence they are stationery at first difference. The co- integration test also shows that there is a long run relationship between the dependent and independent variables. Accordingly, the finding of the study shows that FDI, GDP per capita, exchange rate, total investment as percentage of GDP, inflow of FDI stock, trade as percentage of GDP, annual growth rate of GDP and liberalization of the economy have positive impact on Ethiopian GDP. Whereas Gross fixed domestic investment, inflows of FDI and Gross capital formation influence economic growth of Ethiopia negatively. This finding suggests that there should be better policy framework to attract and improve the volume of FDI through creating conducive environment for investment.


2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Suhaily Maizan Abdul Manaf ◽  
Shuhada Mohamed Hamidi ◽  
Nur Shafini Mohd Said ◽  
Siti Rapidah Omar Ali ◽  
Nur Dalila Adenan

Economic performance of a country is mostly determined by the growth and any other internal and external factors. In this study, researchers purposely focused on Malaysian market by examining the relationship between export, inflation rate, government expenditure and foreign direct investment towards economic growth in Malaysia by applying the yearly data of 47 years from 1970 to 2016 using descriptive statistics, regression model and correlation method analysis. By applying Ordinary Least Square (OLS) method, the result suggests that export, government expenditure and foreign direct investment are positively and significantly correlated with the economic growth. However, inflation rate has negative and insignificant relationship with the economic growth. The outcome of the study is suggested to be useful in providing the future research direction towards the economic growth in Malaysia. Keywords: economic growth; export; inflation rate; government expenditure


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