scholarly journals IMPACT OF MACROECONOMIC FACTORS ON FOREIGN DIRECT INVESTMENT IN SELECTED SOUTHEASTERN EUROPEAN COUNTRIES

TEME ◽  
2019 ◽  
pp. 1237 ◽  
Author(s):  
Jelena Andrašić ◽  
Vera Mirović ◽  
Branimir Kalaš
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Fixed Effect Model ◽  
European Countries ◽  
Market Size ◽  
Macroeconomic Factors ◽  
Effect Model ◽  
The Impact

Foreign direct investment has a significant role in Southeastern European countries. The aim of the paper is reflected in assessing the character and nature of the relationship between macroeconomic factors and foreign direct investment in Southeastern European countries. Further, the subject of paper includes the examination of the impact of selected macroeconomic variables on foreign direct investment in six countries for the period from 2000 to 2012. The selected countries are Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, Romania and Serbia. The research includes an examination impact of market size, national competitiveness and employment on foreign direct investment. By using the Hausman test, it was confirmed that the fixed effect model is an appropriate model in panel analysis. Based on the result, it determined the positive impact of market size, while the industry's share of GDP and employment have a negative impact on this variable. Also, the results confirmed that only the market size of the countries significantly affected on the flow of foreign direct investment in Southeastern European countries.

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 China’s One Belt and One Road Initiative and Outward Chinese Foreign Direct Investment in Europe

2019 ◽  
Vol 11 (24) ◽  
pp. 7055 ◽  
Author(s):  
Degong Ma ◽  
Chun Lei ◽  
Farid Ullah ◽  
Raza Ullah ◽  
Qadar Bakhsh Baloch
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
European Countries ◽  
Belt And Road Initiative ◽  
Upward Trend ◽  
Belt And Road ◽  
Chinese Foreign Direct Investment ◽  
The Belt And Road

For the last few years, the execution of the Belt and Road Initiative (hereinafter referred to as the BRI) and China’s outward foreign direct investment (hereinafter referred to as OFDI) in Europe have seen a significant upward trend. For our current paper, we collected empirical data pertaining to China’s OFDI and foreign trade (gathered from 21 European countries in the trade gravity market for the period 2003 to 2016) that yielded the following results: (a) China’s OFDI to Europe has significantly promoted international trade between China and European countries. On the other hand, OFDI has equally promoted China’s exports to European counties, while it has not encouraged China’s imports from European counties. (b) The Belt and Road Initiative has had a positive impact on China’s exports to European counties and has had a negative impact on China’s imports from European counties. (c) There have been both complementary trade impacts and substitution trade impacts when China has directly invested in European countries, but the complementary impact was much stronger than its substitution impact in the chosen sample period.

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.

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.

scholarly journals The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran: A Case Study

2019 ◽  
Author(s):  
Mehdi Rasouli Ghahroudi ◽  
Li chy Chong
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Inflation Rate ◽  
Positive Impact ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Macroeconomic Determinants ◽  
The Impact ◽  
Moderating Role

In this paper, we examine the impact of the macroeconomic determinants of foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI inflows into Iran. The empirical results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run impact on FDI inflows in Iran. Our findings also show that GDP growth rate and trade openness have no significant effect on FDI. Our results indicate that sanctions do not have a significant moderating role in the relationship between macroeconomic factors and foreign direct investment. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanction has a positive impact on inflation rate and exchange rate in Iran. Finally, our findings show that sanctions have had a significant impact on Iran's economic growth in recent years due to increasing the severity level of sanctions.

scholarly journals The Impact of Innovation Activities, Foreign Direct Investment on Improved Green Productivity: Evidence From Developing Countries

2021 ◽  
Vol 9 ◽  
Author(s):  
Sa Xu ◽  
Zejun Li
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Productivity Index ◽  
Innovation Activities ◽  
Green Productivity ◽  
Significant Negative Impact ◽  
The Impact

This paper from the perspective of productivity changes examines the impact of innovation activities and foreign direct investment (FDI) on improved green productivity (IGP) in developing countries. We divide the sample into two sub-groups; the BRICS and the other developing countries so as to account for underlying country heterogeneity. The analysis follows a panel data approach over the period 1991 to 2014, and used the global Malmquist-Luenberger productivity index to measure IGP. The results indicate that IGP in developing countries has declined. Innovation activities have a positive impact on IGP. FDI has a significant negative impact on IGP. Further study finds that there are threshold effects between FDI and IGP based on innovation activities, when the developing countries with a low-level of innovation, FDI has a negative impact on IGP; when the developing countries innovation activities above the threshold, innovation activities and FDI both can promote IGP.

scholarly journals PENGARUH FOREIGN DIRECT INVESTMENT DAN AFTA TERHADAP KESEMPATAN KERJA SEKTORAL DI ASEAN 5

2018 ◽  
Vol 4 (2) ◽  
pp. 140-152
Author(s):  
Ilhamdi Ilhamdi ◽  
Rina Oktaviani ◽  
Yeti Lis Purnamadewi
Keyword(s):  
Foreign Direct Investment ◽  
Free Trade ◽  
Direct Investment ◽  
Free Trade Agreement ◽  
Service Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Agreement ◽  
Service Sectors ◽  
The Impact

This study aims to analyze the impact of Foreign Direct Investment (FDI) ‎and ‎ASEAN Free Trade Agreement (AFTA) on sectoral employment in ASEAN ‎‎5. The analysis ‎focused on five main sectors, namely agriculture, mining, ‎manufacturing, ‎construction and service sectors. This paper uses panel data ‎approach with Fixed Effect Model. Variable used include employment as an ‎edogenous variable, while GDP, wages and AFTA as exogenous variables. Cross section data that are used in this study consist of ASEAN 5 countries, ‎namely Indonesia, Malaysia, Philippines, Thailand and Vietnam with periods of ‎observation as much as 9 years, from  2006 until 2014.‎The result of this paper that FDI, GDP, wages and AFTA have different ‎impacts in each sector. FDI has positive impact on employment in service sector. ‎GDP has positive impact on employment in manufacturing, construction and ‎service sectors. While GDP in the agricultural and mining sectors has negative ‎impact on employment. The wage has a positive impact on employment in the ‎mining and agricultural sectors. ASEAN Free Trade Agreement (AFTA) that took ‎place in 2010 has a positive impact on employment in the manufacturing and ‎mining sectors.‎Foreign Direct Investment is one factor to overcome employment issues in ‎ASEAN 5, especially in service sector. While GDP becomes an important variable ‎in enhancing ASEAN 5  employment in the manufacturing, construction and ‎services. Increasing wages can be applied on agriculture and mining as it has a ‎positive impact on employment. AFTA that has taken place is proper policy for the ‎ASEAN 5 to encourage economic growth in the mining and manufacturing ‎sectors that have an impact on increasing demand of labor in the sector.‎

The Impact Of Monetary Policy Using Islamic Or Non-islamic Money Supply On Fdi In Jordan (1980-2018)

2021 ◽  
pp. 73-103
Author(s):  
Adham Taher Mohmmad Alessa ◽  
Hartini Mohammad
Keyword(s):  
Monetary Policy ◽  
Foreign Direct Investment ◽  
Money Supply ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Statistical Tests ◽  
Domestic Investment ◽  
Study Results ◽  
The Impact

This study aimed to investigate the impact of monetary policy using Islamic or non-Islamic money supply on FDI in Jordan. Using time series analysis of selected variables during the period 1980 until 2018 using the ARDL model. The objective achieved the appropriate statistical tests such as data stability and co-integration tests have been used. The variables analyzed include the money supply (M2), the Islamic money supply (IMS), the export (EXP), Government Expenditure (GOV), inflation rate (INR), The gross domestic product (GDP) as independent variables. The dependant variable is the foreign direct investment (FDI). This study results in a long-term and short-term statistically significant correlation between the money supply (M2), the Islamic money supply (IMS) and FDI. The Islamic money supply (IMS) has a positive impact and the money supply (M2) has a negative impact on the FDI. The study recommended; the Jordanian government must implement a targeted Islamic monetary policy to attract foreign direct investment in the Jordanian economy. Provide an appropriate environment for investment and to remove the obstacles to investment in general, in order to attract the capital of Jordanians working abroad for domestic investment, as well as for foreign investments.

scholarly journals The impact of Two-way FDI on the upgrading of global value chain of China’s manufacturing industry

2021 ◽  
Vol 251 ◽  
pp. 01077
Author(s):  
Qiannan Zhang ◽  
Yiyin Huang ◽  
Miraj Ahmed Bhuiyan
Keyword(s):  
Foreign Direct Investment ◽  
Value Chain ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Fixed Effect Model ◽  
Global Value Chain ◽  
Effect Model ◽  
Starting Point ◽  
Leading Industry ◽  
The Impact

Manufacturing industry is the leading industry in China’s national economy. The participation of global value chain (GVC) in China’s manufacturing industry is very high, whereas its GVC status is very low. The inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) are the main ways for China’s manufacturing industry to integrate into the global value chain. Previous studies mainly focused on the upgrading of GVC in China’s manufacturing industry from the perspective of single IFDI or single OFDI. This paper takes the perspective of “Two-Way FDI” as the starting point. Using the panel data of China’s manufacturing sub-industries, this paper analyzes the mechanism of IFDI, OFDI and two-way FDI influencing GVC. The Fixed Effect Model is established to analyze the impact of IFDI, OFDI and two-way FDI on GVC upgrading of China’s manufacturing industry.

scholarly journals Foreign Investment as a Potential Factor of Overcoming the Poverty Trap for Ukraine

2021 ◽  
Vol 8 (523) ◽  
pp. 19-28
Author(s):  
S. O. Ostapenko ◽  
◽  
Y. O. Namiasenko ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Institutional Environment ◽  
Positive Impact ◽  
Chinese Economy ◽  
Macroeconomic Factors ◽  
Significant Difference ◽  
The Impact

The analysis of the impact of foreign direct investment (FDI) on the rate of economic growth on the example of China and Ukraine is carried out. It is shown that foreign direct investment has a positive impact, but this is not the only factor that determines economic growth. Apart from the attracted foreign investment, the country must have developed institutions that will protect foreign capital from both the internal political and the external risks. Such an institutional environment will contribute to the growth of foreign direct investment and the effectiveness of their implementation. It is shown that at the same levels of foreign direct investment per capita – investments in China tend to grow steadily and less volatility. At the same time, foreign investment in Ukraine is unstable and highly dependent on macroeconomic factors, such as global economic crises and armed aggression of the neighboring country. To determine the impact of foreign investments on the pace of economic growth, the article used a regression and correlation apparatus. A cross-correlation function was used to assess the lagging impact of foreign investment on economic growth. The novelty of this publication is that by using correlation analysis, a significant difference in the lags of FDI impact on the GDP growth rates for the economies of Ukraine and China has been proved. It is found that Ukraine is characterized by a rapid short-term response to foreign direct investment with zero and single lag, while for the Chinese economy this response is dissolved over time. The main stagnation factors in Ukraine include the following: practical absence of the possibility of direct investment of the population into the country’s economy (underdeveloped stock market), significant political (risks of loss of property), macroeconomic and corruption risks.

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