scholarly journals DOES THE SHADOW ECONOMY AFFECT FOREIGN DIRECT INVESTMENT? CASE STUDY OF POLAND AND POLISH REGIONS

2021 ◽  
pp. 22-39
Author(s):  
Andrzej Buszko
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Shadow Economy ◽  
Pearson Correlation ◽  
Positive Association ◽  
Correlation Index ◽  
Regional Associations ◽  
The Relationship ◽  
Mimic Approach

The main goal of the research was to identify the relationship between the level of shadow economy and Foreign Direct Investment. The research was carried in Poland and Polish regions during 1990-2020. MIMIC approach was employed to calculate the level of shadow economy as a % of Polish and regional GDP. Pearson correlation index and Kolmogrov-Smirnov test were applied as well. The study proved there is a sound negative correlation (-0,636) between the shadow economy and foreign direct investment in Poland, but regional associations between those two variables demonstrated different results. Unlike in other Polish provinces, in Opolskie and Podkarpackie the correlation index confirmed a positive association between the level of shadow economy and FDI flow.

scholarly journals Features and Factors of Developing the Volume of Foreign Direct Investment in Iran and in Russia

2020 ◽  
pp. 213-219
Author(s):  
Ehsan Rasoulinezhad ◽  
Parisa Sabri
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Pearson Correlation ◽  
Oil Prices ◽  
Macroeconomic Variables ◽  
Developed Economies ◽  
Export Volume ◽  
Economic Ties ◽  
The Relationship ◽  
Geopolitical Risks

The article discusses the features of foreign direct investment (FDI) in Iran and Russia from 2000 to 2018. The research methodology used in the article is focused on two main methods: theoretical and correlation analysis (using the Pearson correlation coefficient test). This test analyzes the relationship between foreign direct investment in the above countries and some macroeconomic variables. The results of the study show that economic structures and the influx of foreign direct investment in Iran and Russia are affected by Western economic sanctions, geopolitical risks and lower world oil prices. In addition, despite similar approaches to the absorption of foreign direct investment in Iran and Russia, the relationships between this indicator and macroeconomic variables (gross domestic product, inflation, employment in industry, services and agriculture, export volume and exchange rate) in these two countries differ significantly in the analyzed period (from 2000 to 2018). As a result of the analysis, it has been concluded that various factors, such as the size of the economy and the level of economic ties with developed economies, make the result of strategies and approaches to them different for these two countries.

scholarly journals Labour Market Flexibility in the Context of the Shadow Economy for the Construction Industry

2020 ◽  
Vol 19 (4) ◽  
pp. 23-32
Author(s):  
Andrzej Buszko
Keyword(s):  
Labour Market ◽  
Construction Industry ◽  
Shadow Economy ◽  
Pearson Correlation ◽  
Research Problem ◽  
Correlation Index ◽  
Main Research ◽  
Labour Market Flexibility ◽  
Industry Output ◽  
Mimic Approach

The article analyses labour market flexibility in the context of the shadow economy. The main research problem is devoted to the flexibility of the construction labour market in relation to the level of labourers who work in a country's shadow economy. The following hypothesis was adopted: Flexibility of the labour market for the construction industry decreases with an increase in the level of the shadow economy. The MIMIC approach was used to calculate the level of the shadow economy in a group of selected countries, divided into three categories. The first category includes countries with a relatively low level of shadow economy (less than 15% of their GDP). The second group contains a level starting from 15 to 25% of their GDP, while the third group has a shadow economy that exceeds 25% of GDP. The Pearson correlation index was applied in order to measure the coefficient level between market flexibility and the size of the shadow economy. The flexibility of the labour market was calculated as the change of unemployment caused by the change of construction industry output. The research proved that the correlation between market flexibility and the shadow economy is significant. This is due to the fact that the Pearson index reached the level of 0.866, which means that whenever the shadow economy increases, the labour market flexibility of the construction industry decreases. (original abstract)

scholarly journals Relationship in Between FDI Inflow and Economic Growth in Kosovo

2016 ◽  
Vol 4 (1) ◽  
pp. 50 ◽  
Author(s):  
Xhavit Islami ◽  
Enis Mulolli ◽  
Nagip Skenderi
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Pearson Correlation ◽  
Negative Relationship ◽  
Correlation Technique ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

This study treats the relationship of foreign direct investment (FDI) and economic development in Kosovo. FDI is considered as an important factor of economic growth of places in development, so rightly the question is asked: “Which is the impact of FDI inflow on economic growth of Kosovo?” This study shows the relationship in between FDI inflow and five macroeconomic indicators that have an important role in economic development of Kosovo such as: GDP, GDP per capita, GNI, Exports, and Balance Trade. The data were taken from World Bank and the statistic agency of Kosovo for 2005 to 2014 period. Pearson Correlation technique was used for empirical analysis that is realized with SPSS v. 21.0 statistical program, the results showed that there is a positive relationship in between FDI inflow and GDP growth, whereas there is a negative relationship of FDI inflow and trade balance of Kosovo. This study arguments what is necessary to be done in leading policies to attract foreign direct investment in Kosovo.

Corporate Taxes and Foreign Direct Investment: An Impact Analysis

2020 ◽  
Vol 5 (2) ◽  
pp. 28-43
Author(s):  
Onome Christopher Edo ◽  
Anthony Okafor ◽  
Akhigbodemhe Emmanuel Justice
Keyword(s):  
Foreign Direct Investment ◽  
Error Correction ◽  
Direct Investment ◽  
Impact Analysis ◽  
Negative Relationship ◽  
Value Added ◽  
Positive Association ◽  
Error Correction Model ◽  
Corporate Taxes ◽  
Correction Model

Objective – The purpose of this study is to investigate the effect of corporate taxes on the flow of Foreign Direct Investment (FDI) in Nigeria between 1983 and 2017. Methodology/Technique – This study adopts an ex-post facto research design. Secondary data was sourced from the World Bank Development Indicator, the Central Bank of Nigeria database, and the Federal Inland Revenue database. The research data was analyzed using the Error Correction Model (ECM). Findings – The coefficient of determination (R2) shows that approximately 77% of systematic changes in FDI are attributed to the combined effect of all of the explanatory variables used in this study. Specifically, the study concludes that Company Income Tax, Value Added Tax, and Custom and Excise Duties have a significant but negative relationship with FDI. In contrast, Tertiary Education Tax has a positive association with FDI. Further, Exchange Rate has a negative but significant relationship with FDI, Inflation had an insignificant but positive association with FDI, and GDP growth Rate and Trade Openness demonstrate a positive and significant association with FDI. Novelty – The findings of this study are distinguishable from previous studies, as it uncovers new evidence that higher Education Tax Rates influences FDI and emerging evidence on the effect of non-tax variables on FDI inflow. Type of Paper: Empirical. JEL Classification: E22, F21, H2, P33. Keywords: Corporate Taxes; Foreign Direct Investment; Error Correction Model; Nigeria; Non-Tax Variables. Reference to this paper should be made as follows: Edo, O.C; Okafor, A; Justice, A.E. 2020. Corporate Taxes and Foreign Direct Investment: An Impact Analysis, Acc. Fin. Review 5 (2): 28 – 43. https://doi.org/10.35609/afr.2020.5.2(1)

scholarly journals Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 332
Author(s):  
Janusz Grabara ◽  
Arsen Tleppayev ◽  
Malika Dabylova ◽  
Leonardus W. W. Mihardjo ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Direct Investment ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Integration Test ◽  
The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

scholarly journals Does Foreign Direct Investment Influence Renewable Energy Consumption? Empirical Evidence from South Asian Countries

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3470
Author(s):  
Xueqing Kang ◽  
Farman Ullah Khan ◽  
Raza Ullah ◽  
Muhammad Arif ◽  
Shams Ur Rehman ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Sri Lanka ◽  
South Asian ◽  
Environmental Sustainability ◽  
Direct Investment ◽  
Least Square ◽  
Asian Countries ◽  
Ordinary Least Square ◽  
The Relationship

In selected South Asian countries, the study intends to investigate the relationship between urban population (UP), carbon dioxide (CO2), trade openness (TO), gross domestic product (GDP), foreign direct investment (FDI), and renewable energy (RE). Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models for estimation were used in the study, which covered yearly data from 1990 to 2019. We used Levin–Lin–Chu, Im–Pesaran–Shin, and Fisher PP tests for the stationarity of the variables. The outcomes of the panel cointegration approach looked at whether there was a long-run equilibrium nexus between selected variables in Pakistan, Bangladesh, India, and Sri Lanka. The FMOLS approach was also used to assess the relationship, and the results suggest that there is a significant and negative nexus between FDI and renewable energy in south Asian nations. The study’s findings reveal a strong and favorable relationship between GDP and renewable energy use. In South Asian nations (Sri Lanka, Pakistan, India, and Bangladesh), the FMOLS and DOLS findings are nearly identical, but the authors used the DOLS model for robustification. According to the findings, policymakers in South Asian economies (Sri Lanka, Pakistan, India, and Bangladesh) should view GDP and FDI as fundamental policy instruments for environmental sustainability. To reduce reliance on hazardous energy sources, the government should also reassure financial sectors to participate in renewable energy.

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