scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

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 Trade Openness on Economic Growth: A Case Study of Pakistan'

2017 ◽  
Vol 3 (1) ◽  
pp. 57-68
Author(s):  
Rashid Ahmad ◽  
Kashif Raza ◽  
Sobia Saher
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Trade Openness ◽  
Capital Formation ◽  
Fixed Capital ◽  
Series Data ◽  
Fixed Capital Formation ◽  
The Impact

Purpose: This paper estimates the impact of trade openness and economic growth in Pakistan by using time series data from period of 1975-2014. Econometric method was applied to estimate the impact of trade openness on economic growth. Gross fixed capital formation (proxy of investment), Foreign direct investment, Imports, Exports & trade openness (proxy of trade openness to check the volume of trade of a country) is used as explanatory variables while gross domestic product is treated as dependent variable in this study. Johansson co. integration approach developed by Johannes & Jeslius (1988) is used to evaluate the long run relationship among variables in this study. The results suggest that trade openness, imports, exports and foreign direct investment cast have positive impact on economic growth while on the other hand; gross fixed capital formation &labor force has negative impact on economic growth.

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.

Foreign Direct Investment, Financial Development, and Economic Growth Nexus in Bangladesh

2020 ◽  
pp. 056943452093867
Author(s):  
Md. Noman Siddikee ◽  
Mohammad Mafizur Rahman
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Banking Sector ◽  
Negative Impact ◽  
Capital Formation ◽  
Long Run ◽  
Short Run ◽  
The Impact

This article aims to explore the short- and long-run impact of foreign direct investment (FDI), financial development (FD), capital formation, and the labor forces on the economic growth of Bangladesh. We applied the Granger causality test and Vector Error Correction Model (VECM) for this study. The World Bank data for the period of 1990–2018 are taken into account for the analysis. Our findings suggest, in the long run, capital formation has a positive impact, and in the short run, it has a negative impact on gross domestic product (GDP) implying a lack of higher efficiency is persisting in capital management. Similarly, labor forces have an insignificant impact in the short run and a negative impact in the long run on GDP, which confirms the presence of a huge number of unskilled laborers in the economy with inefficient allocation. The impact of FD is found tiny positive in the short run but large negative in the long run on GDP indicating vulnerability of banking sector. These also confirm fraudulence and inefficient use of the domestic credit supplied to the private sector. The impact of FDI is approximately null both in the short and long run, indicating Bangladesh fails to achieve the long-term benefits of FDI. Finally, this study suggests using FDI more in the capital intensive project of the public–private partnership venture than infrastructural development only and also improving the credit management policy of the banking sector. JEL Classifications: F21, F43, J21

TRANSITION ECONOMIES PROBLEMS WITH SPECIFIC FOCUS ON DEALING WITH SCALE OF CORRUPTION CASE STUDY – KOSOVO

2018 ◽  
Vol 28 (1) ◽  
pp. 329-334
Author(s):  
Ariana Xhemajli
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Transition Economies ◽  
Direct Investment ◽  
Negative Impact ◽  
Objective Measures ◽  
Corruption Case ◽  
The World ◽  
The Impact

Theoretical and empirical debate on the impact of corruption on the economy remains unclear. Many studies on corruption seem that the world is occupied by two kinds of people, "sanders" and "greasers”. It depends on what the meaning of "corruption" is for them. Some scholars argue that corruption is an obstacle to economic growth, whereas others believe that corruption can (in some circumstances) endorse growth. Corruption also has a negative impact on investment, Foreign Direct Investment, and economic development as a whole. Measuring corruption is still an issue for most economists due to the difficulties of defining it, and also different forms of corruption require different objective measures. Nevertheless, recently, some measures of corruption have been widely accepted and recognized by researchers. This paper is a critical review at these positions by reviewing the theoretical literature on the impact of corruption on an economy as a whole. In this paper we will treat the corruption level in Kosovo, and its presence in forms and ways how the bribe is been given. Instead, this document reviews different measurements of corruption to reveal that corruption is harmful for the economy.

scholarly journals The Impacts of Human Resources and Foreign Direct Investments to Vietnam’s Economic Growth

2018 ◽  
Vol 8 (4) ◽  
pp. 125
Author(s):  
Nguyen Van Huong ◽  
Dang Quy Duong ◽  
Do Thi Thu Thuy
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Human Resources ◽  
Direct Investment ◽  
Opposite Effect ◽  
Short Term ◽  
Short And Long Term ◽  
The Impact

Research on human resources, foreign direct investment and economic development are important issues in assessing the effectiveness of employment as well as attracting foreign direct investment (FDI) in the economy. In this study, the author analyzes the impact of human resource factors and FDI on economic growth in Vietnam from 1990 to 2017. By regression analysis based on the ARDL model, the result shows FDI has only a positive effect on economic growth in the short term but has the opposite effect in the long term. At the same time, unemployment rates have the opposite effect on economic growth in the short term. Average life expectancy does not affect economic growth in both the short and long term. From this result, the author also offers some suggestions for economic development in both the short and long term.

scholarly journals FOREIGN DIRECT INVESTMENT AND WAGES:A BARGAINING POWER APPROACH

2007 ◽  
pp. 83-95 ◽  
Author(s):  
Ramya M. Vijaya ◽  
Linda Kaltani
Keyword(s):  
Foreign Direct Investment ◽  
Bargaining Power ◽  
Direct Investment ◽  
Global Economy ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Female Workers ◽  
Female Wages ◽  
Favorable Conditions ◽  
The Impact

This paper presents a cross-country empirical investigation of the impact of Foreign Direct Investment (FDI) on manufacturing wages. Our results indicate that FDI-Flows have a negative impact on overall wages in the manufacturing sector and this impact is stronger for female wages. We argue that one possible explanation for such an impact may be a decrease in the bargaining power of labor due to new labor market arrangements in a global economy where capital is free to move across countries in search of more favorable conditions. This decline in labor power also tends to have a greater impact on the more vulnerable workers female workers whose bargainingpositions have been traditionally lower than male workers.

scholarly journals Mitigating Environmental Degradation With Institutional Quality and Foreign Direct Investment (FDI): New Evidence From Asymmetric Approach

2021 ◽  
Author(s):  
Edmund Ntom Udemba
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Direct Investment ◽  
Carbon Emission ◽  
Fossil Fuels ◽  
Negative Impact ◽  
Institutional Quality ◽  
Renewable Energy Consumption ◽  
The Impact

Abstract Chile is currently rated among the performing countries towards the achievement of the global goals of reducing carbon emission. It is on recorded that Chile as a country has moved from highly insufficient to insufficient and still working towards conforming to the recommend the region of 20C in quest of controlling climate change through carbon emission reduction. From this development, it is essential to investigate on the country’s strategies in achieving this success and equally make recommendation for other countries to adopt Chile’s strategy as a blue print in controlling carbon emission. To effectively do this and achieve the objective of this study, I adopt nonlinear and asymmetric approaches to have a combine (positive and negative) view of the reactions of the selected variable towards determining the impact of each variable towards curbing emission in Chile. Also, a careful selection of variable which includes economic growth (GDP per capita-Y), institutional quality, foreign direct investment (FDI), fossil fuels and renewable energy consumption was undertaken in this study. The focus was on the interaction of institutional quality and FDI towards ascertainment of environment performance. Chile’s quarterly data of 1996Q1 to 2018Q4 was utilized and the following findings were made: positive and negative shocks to the economic growth, institutional quality and renewable energy impacted favorably and negatively on Chile’s environment through reduction and promotion of emission respectively. In contrast, positive and negative shocks to FDI and fossil fuels impact both negatively on the Chile’s environment through increase in carbon emission. So institutional quality is vital in controlling the negative impact from FDI and fossil fuels.

scholarly journals THE EFFECT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN KOSOVO

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Isuf Qabrati
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Financial Stability ◽  
Direct Investment ◽  
Economic Activities ◽  
Professional Management ◽  
Independent Variable ◽  
Countries In Transition ◽  
The Impact

Foreign direct investment plays a very important role in the economic development of countries, especially in countries in transition. Foreign direct investment is defined as any investment where the investor invests in a foreign country the factors of production including labor, financial capital, technology and professional management knowledge. FDI can ensure financial stability, promote economic development and improve social welfare. The purpose of this paper is to investigate the impact of FDI on Kosovo's economic growth, for the years 2007-2017. In particular, the paper aims to measure the effect that FDI has had on GDP over the years, examining the impact of FDI by economic activities on economic growth, expressed in GDP. Two basic variables were used: the independent variable (FDI) and the dependent variable (GDP). To measure the effect of the independent variable on the dependent variable, the data realized for these two variables were collected by the relevant public institutions. From the derived data, the results of the regression analysis show that FDI has a significant effect on economic growth. The change in economic growth depends almost entirely on the change in FDI by sectors of economic activity. JEL: E20, E22 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0736/a.php" alt="Hit counter" /></p>

The Effect of Economic Growth, Foreign Direct Investment, and Energy Use on Environment Degradation: Evidenced from ASEAN Nations

2021 ◽  
Vol 9 (2) ◽  
pp. 114-124
Author(s):  
Baserat Sultana ◽  
Syeda Nida Raza ◽  
Kinza Rana ◽  
Aaqib Qayyum
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Carbon Emission ◽  
Energy Use ◽  
Chi Square ◽  
Positive Effects ◽  
The Impact ◽  
Environment Degradation

Literature evidenced that environmental degradation creates hurdles in economic development. So, this study highlights the leading macroeconomic indicators which affect the environment and investigates the nexus among FDI, energy utilization, economic development, and environmental pollution for ASEAN nations from 1990 to 2018. Panel Autor Regressive Distributive lag (ARDL) methodology is used to examine the impact of economic growth, foreign direct investment and energy use on environment degradation. Different panel unit roots (Im, Pesaran and Shin W-stat, Levin, Lin & Chu, ADF - Fisher Chi-square, PP - Fisher Chi-square) tests are applied to confirm the intergradation order, and results confirm that there exits I (0) and I(1) order of intergradation. There exists a unidirectional relationship between energy consumption and carbon emission of CO2 and CO2 to foreign direct investment in the long run. While in the short run, there does not exist any relationship. The results confirm the existence EKC hypothesis, which confirms there exits negative and positive effects of GDP and square of GDP on carbon emission. Hence this study concludes that its essential to develop some strategies and policies to guarantee economic stability. Additionally, reliable and sustainable power resources should be used for positive environmental changes. The carbon dioxide emission should be reduced for the GDP growth by utilizing different eco-technologies and renewable energy resources, which can nullify the effect of emission of CO2 to maintain the greenhouse environment.

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