scholarly journals THE ROLE OF SPECIAL ECONOMIC ZONES IN ATTRACTING FOREIGN DIRECT INVESTMENT TO DEVELOPING ECONOMIES

2020 ◽  
pp. 16-29
Author(s):  
L. V. Progunova ◽  
V. I. Masalytin
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Well Being ◽  
Economic Downturn ◽  
Special Economic Zones ◽  
Geographical Regions ◽  
Economic Zones ◽  
The Impact

The article analyzes the possibilities of developing countries to use special economic zones (SEZs) to attract foreign direct investment (FDI) as a source of economic growth, especially in times of global economic downturn. Special economic zones have played and continue to play an important role as drivers of the global economy, passing through themselves about 30 percent of world trade and affecting the growth of well-being and prosperity of people around the world. Each zone is unique and has its own specialization. Subject to a well-thoughtout concept, political will, the maintenance of an adequate infrastructure, and the use of world best practices, SEZs help to attract investments to create jobs, increase income and export, receive foreign exchange, connect to international supply chains and develop indirect employment outside the SEZ, but inside economies that accept FDI. The impact of SEZs on FDI inflows is examined using examples from different geographical regions. More than two thirds of the SEZ managed to attract FDI to their territory, and about half – significant. The leaders in attracting foreign direct investment are zones created on the territory of developing countries and especially Asian states. Among the top ten zones for attracting FDI, eight zones have been created in the developing world. In our opinion, these results can be considered essential for the further study, use and improvement of the SEZ instrument as an investment driver of developing economies.

scholarly journals Impact of Foreign Direct Investment on Domestic Investment in Developing Countries

2020 ◽  
Vol 6 (9) ◽  
pp. 256-266
Author(s):  
A. Mamatkulov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Negative Impact ◽  
Domestic Investment ◽  
Short Term ◽  
Total Investment ◽  
The Impact

Author analyzes the impact of foreign direct investment on domestic investment in host developing countries and checks whether a foreign direct investment has a “positive” or “negative” impact on domestic investment, as well as evaluating the impact of selected variables on this relationship. Using a full sample, the main conclusion of this study is that FDI does have a positive (crowding out) effect on domestic investment in this sample of developing economies. In the short term, an increase in FDI by one percentage point as a percentage of GDP leads to an increase in total investment as a percentage of the host country’s GDP of about 10.7%, while in the long term this effect is about 31% dollar terms, one US dollar represents us 1.7$ of total investment in the short term and us 3.1$ in the long term. Based on the results of this study, it was once again proved that inflation hinders domestic investment in host countries by 0.04% and 0.12% in the short and long term, respectively.

scholarly journals Determinants of Foreign Direct Investment in Developed and Developing Countries: Impact of Political Stability

2021 ◽  
Vol 17 (4) ◽  
pp. 1390-1404
Author(s):  
R.I. Vasilyeva ◽  
◽  
O.S. Mariev ◽  
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Political Stability ◽  
Policy Implications ◽  
Likelihood Method ◽  
Developed Economies ◽  
Development Level ◽  
The Impact

Stable political environment and prominent development of political institutions increase foreign direct investment flows by providing lower risks for investors. However, this impact can vary according to the development of the country. This study aims to investigate the impact of various indicators of political stability on foreign direct investment attraction for different economies distinguished by their development level. Our database includes 66 FDI-recipient countries and 98 FDI-investing countries for the period from 2001 to 2018. By applying the gravity approach and Poisson Pseudo Maximum Likelihood method with instrumental variables (IV PPML), we model bilateral FDI flows, incorporating variables reflecting various aspects of political stability formed by the principal components analysis. Interestingly, we found mixed results regarding the impact of political stability on FDI flows. In particular, political stability indicators were found to be insignificant, when analysing the bilateral FDI flows for the group of developed economies. We obtained similar result for the group of developing economies. However, political stability variables significantly influence FDI flows for countries with different development level, confirming the hypothesis that countries’ development affects bilateral FDI flows. Besides, we discover the significant difference between developed and developing countries referring to FDI-investors. Based on the obtained results, we highlight a few policy implications for developing and developed economies.

scholarly journals The Impact of Globalisation on Employment Statute Related to Employers in Zimbabwe

2021 ◽  
Vol 10 (4) ◽  
pp. 42-65
Author(s):  
Cleopas Fore ◽  
◽  
Wilfred Ukpere ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Impact ◽  
Social Aspects ◽  
Special Economic Zones ◽  
The World ◽  
Contract Of Employment ◽  
Labour Legislation ◽  
Economic Zones ◽  
The Impact

Globalisation led to the reduction of barriers between countries and intensified international interdependency such that developments unfolding in a faraway country now affect the rest of the world in economic, political and social aspects (Giddens, 1990). The Zimbabwean labour market and its national labour legislation has not been spared from the impact of globalisation. Zimbabwean labour legislation had had several amendments from its inception in 1985 to date. The amendments done at each epoch had caused serious outcry from both labour and business with the main accusations arising from unions who claimed that the effects of globalisation and government’s desire to lure foreign direct investment (FDI) led to serious bias towards employers. It is against this background that this article’s objective is to interrogate the impact of globalisation on labour legislation for employers. The article adopted a qualitative paradigm and made use of interviews and participants' memoirs to understand this phenomenon. Results were analysed thematically by use of both Nvivo 10 and manual coding. Results showed that globalisation has impact on labour legislation for employers. Foreign direct investment and special economic zones were identified as drivers of globalisation responsible for positive impact on labour legislation for employers by influencing deregulation of unfriendly employment laws, instituting flexible contract of employment, easy termination of contracts of employment and giving immunity from dictates of the labour laws for employers operating in special economic zones. The positives of globalisation for employers resulted in direct negatives for employees. The article recommends that employers need to put into context both globalisation dynamics and dictates of the labour legislation to ensure employee dignity and fair globalisation

scholarly journals THE IMPACT OF INSTITUTIONAL FACTORS ON FOREIGN DIRECT INVESTMENT INFLOWS: CROSS-COUNTRY ANALYSIS

2019 ◽  
Vol 7 ◽  
Author(s):  
Rogneda Groznykh ◽  
Igor Drapkin ◽  
Oleg Mariev
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Institutional Development ◽  
Institutional Factors ◽  
Fdi Inflows ◽  
Positive Effects ◽  
Cross Country ◽  
The Impact

This research paper is devoted to analysis of various institutional factors as determinants of foreign direct investment (further – FDI) inflows to different countries. The objective of the research is to estimate the effect of institutions on FDI inflows. The analysis is provided on a database of cross-country FDI inflows on 72 countries FDI-importers and 112 countries FDI-exporters in the period from 2001 to 2016. It is supposed in the paper that the impact of institutional factors might be different for the groups of developed and developing countries; since developed economies have higher institutional indicators, they tend to attract larger amounts of foreign direct investment compared to developing economies, where institutional development is at the lower level. The estimation is based on the gravity approach, which considers the positive effects of countries’ GDP and the negative effect of the distance between them. The main method used for the econometric estimation is the Pseudo Poisson Maximum Likelihood (PPML) regression, which is considered to be one of the adequate methods for estimating such data. During the research the problems of zero-observations and correlation between institutional indicators are solved. The results have shown that higher quality of institutions tends to attract more foreign direct investment to a country. Thus, institutions in developed countries have positive and significant impact on FDI attraction. At the same time, the analysis of developing countries has shown that some institutions have less significant influence on the FDI inflows. Based on the results of the research, possible recommendations for government policy on institutional improvement can be suggested.

scholarly journals Does Greenfield Foreign Direct Investment Inflow contribute in Socioeconomic Development? Empirical Evidence from Developing Countries

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Shahid Akbar ◽  
Ali Raza ◽  
Zahid Raza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Dependent Variables ◽  
Socio Economic Development ◽  
The Impact ◽  
Positive Effect

This study aims to assess the impact of Greenfield-Foreign Direct Investment (FDI) inflows on the socio-economic development of ten developing countries. Developing economies rely on investment from developed countries, especially Greenfield investment. Greenfield investment is the new capital inflow to the host country's economy that helps to improve economic activities, boosts economic growth, and improves socio-economic welfare. This study has used Greenfield investment as the target-independent variable and other controlled variables remittances, aid, inflation, population, and trade openness. At the same time, socio-economic development, health, economic growth, and education are dependent variables. For this purpose, Pooled Mean Group (PMG) technique/Panel Autoregressive-Distributed Lag (ARDL) has applied for estimation purposes from 1990 to 2017. The empirical findings have shown that Greenfield-FDI has a long-term statistically significant and positive effect on economic growth, health, education, and socio-economic development. In comparison, remittances and official development assistance have positive and negative impacts on the study's dependent variables. The population also has a positive effect, whereas inflation and trade have mixed results. Outcomes of this study advise that policymakers should adopt attractive investment policies to enhance more foreign investment and utilize it efficiently, thereby promoting sustainable development. The government should announce firms to invest in human capital, which will impact productivity.   

Casinos as Special Zones

2021 ◽  
Author(s):  
Juan Zhang
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Special Economic Zones ◽  
Economic Zones

This chapter offers a reflection on the speculative ways in which global casino hotels become new zones of development in many Asian destinations. As ultra-modern integrated resorts developed to boost tourism and foreign direct investment, these casino and entertainment enclaves carve out exceptional spaces in search of profit and legitimacy. Looking at casino establishments in Asia’s special economic zones, this chapter examines the development of casino zones as a strategy for progress in places still marred by underdevelopment. New casino zones create novel forms of territorialisation and responsibilisation, enabling differentiated biopolitics of control.

Korea’s Foreign Direct Investment in the Automotive Industry in China

China Report ◽  
2018 ◽  
Vol 54 (2) ◽  
pp. 175-193 ◽  
Author(s):  
Jungmin Lee ◽  
Jai S. Mah
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Automotive Industry ◽  
Direct Investment ◽  
Policy Implications ◽  
Foreign Firms ◽  
Job Opportunities ◽  
Korean Firm ◽  
The Impact

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

scholarly journals Positive impacts of foreign direct investment on socioeconomic development in Vietnam’s Southern Key Economic Region

2015 ◽  
Vol 18 (3) ◽  
pp. 18-29
Author(s):  
Hung Van Pham
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Socioeconomic Development ◽  
Special Economic Zones ◽  
Economic Region ◽  
Investment Environment ◽  
Policy Makers ◽  
Economic Zones ◽  
Positive Impacts ◽  
Fdi Attraction

This paper evaluates the attraction of foreign direct investment (FDI) and its positive impacts on the socioeconomic growth in the special economic zones in Vietnam’s Southern Key Economic Region. Findings of the study confirm theories of FDI attraction. In particular, to promote the socioeconomic development in each area, it is necessary to improve the investment environment and enhance the FDI. Furthermore, the findings also provide researchers and policy makers a more comprehensive understanding about the current situation of the FDI attraction in the special economic zones in the Vietnam’s Southern Key Economic Region

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