scholarly journals Vertical spillovers from multinational enterprises: Does technological gap matter?

2016 ◽  
Vol 63 (3) ◽  
pp. 313-323 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Empirical Literature ◽  
Foreign Investors ◽  
Technological Gap ◽  
Local Companies ◽  
The Relationship

Foreign direct investment (FDI) from Multinational enterprises (MNEs) can augment the productivity of domestic firms insofar as knowledge ?spills over? from foreign investors to local producers. The capacity of local companies to exploit knowledge from MNEs can be affected by the technology gap between foreign and local enterprises at both horizontal (in the same industry) and vertical (in different industries) level. Whereas most of the empirical literature has focused exclusively on the analysis of horizontal and backward spillovers (i.e. between MNEs and local suppliers), the present paper also examines the relationship between FDI-related spillovers and technological gap in the Italian manufacturing sector at forward level (i.e. between MNEs and local buyers). Results suggest that at both intra-industry and forward level, the technological gap is of considerable importance for the spillover effect, particularly in the case of low-medium gap.

scholarly journals Foreign direct investment and institutional stability: who drives whom?

2019 ◽  
Vol 24 (47) ◽  
pp. 145-156 ◽  
Author(s):  
Nihal Mahmood ◽  
Mohammad Hassan Shakil ◽  
Ishaq Mustapha Akinlaso ◽  
Mashiyat Tasnia
Keyword(s):  
Foreign Direct Investment ◽  
Financial Stability ◽  
Direct Investment ◽  
Global Financial Crisis ◽  
Institutional Development ◽  
Optimal Level ◽  
Empirical Literature ◽  
Content Type ◽  
Institutional Stability ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between foreign direct investment (FDI) flows and institutional stability. The focus country is Canada. It is one of the few countries where the economy remained relatively stable compared to other economies during the Global Financial Crisis. It is crucial for Canada to determine the optimal level of institutional development to attract more FDI and sustain the sound financial stability in future. Design/methodology/approach This study uses the auto-regressive distributive lag (ARDL) approach to understand the relationship between FDI and institutional stability along with other controlled variables, for instance, gross national product, inflation and exports. Findings The key finding of this work is that FDI and institutional stability are cointegrated in the long run. The error correction model of ARDL shed light on institutional stability being an exogenous variable, and FDI is an endogenous variable. Institutional stability affects FDI, as it is exogenous. The findings will help policymakers to implement policies to strengthen the institution’s settings, and this, in turn, will attract more investment. Originality/value Based on previous theoretical and empirical literature, most of the research points to FDI positively affect institutional stability. In some cases, the relationship does not always hold true. This study will fix the gap in the literature by investigating the relationship between FDI and institutional stability of Canada.

scholarly journals A Review of Foreign Direct Investment and Manufacturing Sector of Pakistan

2018 ◽  
Vol 6 (4) ◽  
Author(s):  
Saif Ur Rahman ◽  
Nor’Aznin Abu Bakar
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Developing Economies ◽  
Manufacturing Sector ◽  
Empirical Literature ◽  
Theoretical Methods

The objective of this study is to explore the insights of the literature on foreign direct investment (FDI) toward manufacturing industry in the context of developing economies. This paper examines and synthesizes existing theoretical and empirical literature on said issue. It first draws the overview of the FDI and manufacturing sector in Pakistan. Second, it identifies the literature based on the theoretical and empirical insights from the published literature. In addition, this article put light on theoretical methods that describes how/ why these methods work. Third, this article proposes three fruitful dimensions for further research. This paper contributes to the area of FDI and manufacturing sector growth by critically analyzing and synthesizing existing theory and research on FDI and growth of manufacturing sector.

FOREIGN DIRECT INVESTMENTS AND MANUFACTURING SECTOR PERFORMANCE IN NIGERIA, (1970-2009)

2013 ◽  
Vol 03 (04) ◽  
pp. 39-56
Author(s):  
Adejumo Akintoye Victor
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Value Added ◽  
Foreign Direct Investments ◽  
Long Run ◽  
Negative Effect ◽  
Sector Performance ◽  
The Relationship

The study examined the relationship between foreign direct investment and the value added to the manufacturing industry in Nigeria, between the period 1970 and 2009. In view of the development and industrialising desires of Nigeria, as well as the foreign aid received in form of private investments, it is pertinent to examine the effect the presence of multinationals has had in shaping the Nigerian manufacturing industry. Using the autoregressive lag distribution technique to determine the relationship between foreign direct investment and manufacturing value added, it was discovered that in the long-run, foreign direct investments have had a negative effect on the manufacturing sub-sector in Nigeria.

scholarly journals articles/v6n12/bed/ijaar-sms-v6n12-dec20-p13.pdf

2021 ◽  
pp. 17-27
Author(s):  
Victor Obasse ◽  
Chima Onuoha
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Direct Foreign Investment ◽  
Working Environment ◽  
Social Infrastructure ◽  
Foreign Investors ◽  
Advantages And Disadvantages ◽  
The Impact

This study is an empirical inquiry into the impact of Direct Foreign Investment (DFI) of other countries into the manufacturing sector in River State, Nigeria. It would lead to a better understanding of the economic mechanism and the behavior of economic agents, both at micro and macro cadre allowing the opening of new areas of study in economic growths. This study would also look through the advantages and disadvantages which foreign direct investment has on Nigeria economy, thereby, reveal if there is a correlation between the direct foreign investment and the Nigerian economy. As a cross section survey, data for this study was generated using well and articulately structured survey from 50 respondents across 10 manufacturing firms in Rivers State. A total of three hypotheses were proposed with analysis revealing the relationship between direct foreign investments and manufacturing sector, it was revealed that direct foreign investment had a positive and significant relationship with manufacturing sector. The researcher believes that if appropriate actions are taken and necessary structures erected, the Nigerian manufacturing sector will be a healthier place to access the benefits that foreign direct investment conveys. This will lead to growth in Nigeria manufacturing sector. It was revealed that in spite of the acknowledged remuneration foreign direct investment conveys. It is nonetheless, criticized on grounds, of the defective activities that foreign investors indulge in. In conclusion, the study showed that the expansion of the manufacturing sector and direct foreign investment in Nigeria is based on a number of problems which may be reason for the positive but insignificant impact on DFI when the variables was regressed against manufacturing sector. It was at that point recommended that, Government needs to do a few needful in order to motivate foreign investors, this is by providing good and right social infrastructure and also a pool of relevant workforce, a safe working environment against militancy and a potentially strong market for their product and services can be sold.

scholarly journals Impact of Foreign Direct Investment on Industrial Growth of India

2019 ◽  
Vol 8 (2S10) ◽  
pp. 165-169
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Industrial Growth ◽  
Coefficient Corrélation ◽  
The Government ◽  
The One ◽  
The Impact ◽  
The Relationship

In India the Foreign direct investment (FDI) has received a staged improvement from instigate of the Make in India scheme, according to recent survey. There was a incredible increase in FDI inflows (40%) particularly in manufacturing sector from October, 2014 to June, 2019 . The industrial sector is considered to be the one of the dominant sectors that contribute the major Indian GDP. India has been ranked fourteenth in the factory output in the world. This was because of the launch of initiative, which sought for promoting manufacturing segments and be a magnet for foreign investments. More than 56 manufacturing units are benefitted in the entire globe. In the recent times during the year 2014 to 2019 the Industrial production inclined to 3.1 per cent, mainly on account of improvement and to encourage talent augmentation towards the various sectors of the economy. This article brings out the recent efforts taken by the government for encouraging the FDI into various sectors and how it has made a pathway. In the last ten years India has shown a tremendous increase in Foreign Direct Investment into the various sectors in economy. Even though Government of India has make a pathway for attracting FDI on various sectors, this papers focuses on explaining the impact of make in India scheme on FDI. In this paper period of five years has been considered for the analysis. The Statistical Tools like Karl Pearson's Coefficient Correlation and One - Way ANOVA has been used for the analysis of data. To study the relationship between the FDI and IIP correlation is used for the analysis of data

scholarly journals Análisis interno de las subsidiarias costarricenses: Mecanismos que determinan su Contribución al Crecimiento (Internal analysis for the Costa Rican branches of multinational companies: Their growth contributing mechanisms)

2014 ◽  
Vol 8 (1) ◽  
pp. 7
Author(s):  
Grettel Brenes Leiva ◽  
Fidel León Darder
Keyword(s):  
Foreign Direct Investment ◽  
Costa Rica ◽  
Foreign Investment ◽  
Direct Investment ◽  
Multinational Companies ◽  
Costa Rican ◽  
Foreign Investors ◽  
Top Executives ◽  
Local Companies

<p>La inversión directa extranjera (IED) tiene un claro impacto en la mejora de los niveles de desarrollo y crecimiento económico de los países receptores. En los últimos veinte años, Costa Rica ha realizado una decidida apuesta por la atracción de IED que, además, ha contribuido al incremento del volumen y la calidad de las exportaciones del país. Las subsidiarias costa- rricenses, propiedad de las empresas multinacionales, constituyen el instrumento a través del cual esa inver- sión exterior se transforma en actividad productiva. El presente estudio, basado en una muestra de ciento dos subsidiarias costarricenses, permite ahondar en el conocimiento de las subsidiarias costarricenses dado que brinda información a nivel micro empresarial de estas unidades corporativas. A partir de los hallazgos encontrados, se presenta una caracterización de dichas subsidiarias y de los altos directos a su cargo. Adicional- mente, se analizan otros aspectos asociados al manejo de las relaciones subsidiaria-casa matriz, las capacidades distintivas que poseen en las diversas actividades que realizan y que las hacen ser atractivas para los inver- sionistas extranjeros, además, se examina el potencial que podrían tener para establecer encadenamientos productivos con empresas nacionales, y, por último, se investiga la gestión emprendedora que ellas realizan, manifestada a través de las iniciativas emprendedoras que impulsan.</p><p> </p><p><strong>Abstract </strong></p><p>The foreign direct investment (FDI) has a clearimpact on improving the development and economicgrowth of the receiving countries. During the lasttwenty years Costa Rica bet decidedly on attractingFDI that has contributed to increase the volume andquality of the country’s exports. The Costa Rican foreignsubsidiaries have become the means in whichsaid foreign investment is transformed into productiveactivities. This research of 102 Costa Rican subsidiariesof multinational companies allows us to reach deeplyand unders-tand these corporate units at a micro entrepreneuriallevel. A characterization of said subsidiariesand their top executives is made. Also, the relationshipsbetween subsidiaries and head offices, the distinctivecapabilities for their area of business that make themattractive for foreign investors, their potential for developingpro- ductive chains with local companies andlastly their entrepreneurial procedures were examinedfrom the entrepreneurial initiatives they drive.</p>

scholarly journals A conceptual literature analysis of the relationship between FDI and exports

2013 ◽  
Vol 11 (1) ◽  
pp. 389-393 ◽  
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Studies ◽  
Empirical Literature ◽  
Annual Data ◽  
Framework Analysis ◽  
Development Indicators ◽  
Export Sector ◽  
To Come ◽  
The Relationship

The study investigates the theoretical and empirical literature framework that explains the relationship between foreign direct investment (FDI) and exports. Three prominent views explaining the causality relationship between exports and FDI were discussed and these include the FDI- led exports view, exports-led FDI view and the feedback view. FDI-led exports view mentions that exports can increase or decrease in direct response to changes in foreign direct investment inflows or outflows. The exports-led FDI view suggests that exports spur FDI whilst the feedback view says that both exports and FDI promote each other. The trend analysis between FDI and exports for Botswana as a case study was also looked into using time series annual data ranging from 1980 to 2011 obtained from World Development Indicators. The literature review framework analysis shows that the FDI-led exports view is more popular with most theoretical and empirical studies. It is against this background that the author recommends authorities to come up with policies that attract FDI into their economies in order to boost export sector for growth reasons.

Reversal of Fortunes: Democratic Institutions and Foreign Direct Investment Inflows to Developing Countries

2003 ◽  
Vol 57 (1) ◽  
pp. 175-211 ◽  
Author(s):  
Quan Li ◽  
Adam Resnick
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Property Rights ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Democratic Institutions ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
Rights Protection ◽  
Property Rights Protection

Does increased democracy promote or jeopardize foreign direct investment (FDI) inflows to less-developed countries? We argue that democratic institutions have conflicting effects on FDI inflows. On the one hand, democratic institutions hinder FDI inflows by limiting the oligopolistic or monopolistic behaviors of multinational enterprises, facilitating indigenous businesses' pursuit of protection from foreign capital, and constraining host governments' ability to offer generous financial and fiscal incentives to foreign investors. On the other hand, democratic institutions promote FDI inflows because they tend to ensure more credible property rights protection, reducing risks and transaction costs for foreign investors. Hence, the net effect of democracy on FDI inflows is contingent on the relative strength of these two competing forces. Our argument reconciles conflicting theoretical expectations in the existing literature. Empirical analyses of fifty-three developing countries from 1982 to 1995 substantiate our claims. We find that both property rights protection and democracy-related property rights protection encourage FDI inflows; after controlling for their positive effect through property rights protection, democratic institutions reduce FDI inflows. These results are robust against alternative model specifications, statistical estimators, and variable measurements.

scholarly journals Corruption and Foreign Direct Investment: A Conceptual Review

2020 ◽  
Vol 4 (1) ◽  
pp. 22-32
Author(s):  
Suleiman Zangina ◽  
Sallahuddin Hassan ◽  
Mukaramah Harun
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Literature ◽  
Dynamic Framework ◽  
Modern Economy ◽  
Development Institutions ◽  
Areas Of Concern ◽  
The Cost ◽  
Relationship Of ◽  
The Relationship

This paper carefully reviews the empirical literature on the relationship of corruption and FDI inflow from 2000 to 2019 with a focus on more recent studies. Though corruption is not a new phenomenon, its pervasiveness in the contemporary era, as well as its role in modern economy, has continued to attract the interest of scholars and development institutions in recent times. Theoretically, there are two conflicting views on corruption. The “grabbing hand” hypothesis maintains that corruption raises the cost of transactions, risks and uncertainties which inhibits FDI inflow, while the “helping hand” hypothesis believes that corruption eases bureaucratic as well as regulatory hurdles and greases the wheels of commerce, thereby facilitating the inflow of FDI. Although the methodologies employed and the context of the various empirical investigations reviewed differ considerably, the paper has largely shown that there is no consensus on the nature of corruption-FDI nexus. While the outcomes of the studies are dominated by the validation of the “grabbing hand” hypothesis, some have supported the grease the view of the wheel, whereas few concluded on insignificant relationships between corruption and FDI inflow. These contradictory outcomes from various studies have prompted some scholars to examine the connection between some specific aspects of FDI with corruption in a more dynamic framework. Accordingly, the areas of concern from the review have been pointed out in the discussion of the findings. The paper has also documented the need for further studies in this area with relevant suggestions.

The tourism – Foreign direct investment nexus: Empirical evidence from Zimbabwe (2009–2015)

2021 ◽  
pp. 135481662110076
Author(s):  
Tafadzwa Matiza ◽  
Sandra Perks
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Brand Image ◽  
Foreign Investors ◽  
Body Of Knowledge ◽  
Survey Population ◽  
Nation Brand ◽  
Nation Image ◽  
The Relationship

The extent of research into the determinants of foreign direct inflows to particular locations is expansive and diverse; however, little is known of the influence of country images as non-financial determinants on the inflow of foreign capital. In contributing to this body of knowledge, this article aims to explore the influence of tourism as a non-financial nation image determinant of foreign direct investment (FDI) in Zimbabwe. The relationship between tourism and the four distinct forms of FDI opportunities in Zimbabwe, market-, resource-, efficiency- and strategic-asset seeking is examined. Empirical data were generated from a final purposively sampled survey population of 305 foreign investors who had applied to invest in Zimbabwe between January 2009 and April 2015. Multiple statistical techniques were employed including exploratory factor analysis and multiple regression using STATISTICA 12 software. As it emerged, eight variables were identified as constituting Zimbabwe’s tourism nation brand image. Empirically, the results of this article affirm the influence of tourism as a non-financial determinant of market-, efficiency- and strategic asset-seeking FDI opportunities in Zimbabwe.

Sign in / Sign up

Export Citation Format

Share Document