Home Country Effects of Foreign Direct Investment

2020 ◽  
pp. 217-240
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Home Country ◽  
Country Effects

FOREIGN DIRECT INVESTMENT IN SERBIA

2021 ◽  
pp. 253-265
Author(s):  
MILOŠ PJANIĆ ◽  
MIRELA MITRAŠEVIĆ
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Financial Markets ◽  
Direct Investment ◽  
Employment Growth ◽  
Home Country ◽  
New Technology ◽  
Foreign Direct Investments ◽  
Education Innovation ◽  
National Economies

In the process of globalization, the importance of foreign direct investment has changed significantly, because today they represent one of the most important factors of competitiveness, development and application of new technology, education, innovation and economic development. As a significant form of financing national economies, foreign direct investment is a form of investment that is realized outside the home country, where one of the most important goals of both developed and especially developing countries is to attract as much foreign direct investment. A large number of developing countries, including Serbia, have liberalized restrictions on foreign investment and free trade in the last two decades, liberalized national financial markets and begun privatization processes. Due to numerous problems and consequences of economic crises they have faced, many developing countries, as well as Serbia, view foreign direct investment as one of the most important factors for stimulating trade, employment growth, openness of national economies, and establishing overall macroeconomic stability. The aim of this paper is to point out the importance and dynamics of foreign direct investments in Serbia, as well as the key incentives for their attraction. Also, in addition to the theoretical review of foreign direct investments, the effects of foreign direct investments are presented in the paper.

Evaluating Foreign Direct Investment Projects

2018 ◽  
pp. 193-239
Keyword(s):  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Home Country ◽  
Investment Project ◽  
Cash Flows ◽  
Parent Company ◽  
Investment Projects ◽  
Country Level ◽  
At Home

As explained in the foregoing chapter, once the relevant cash outflows and inflows associated with a foreign direct investment project are estimated so as to calculate the net cash flows, the desirability of the investment project should then be determined in terms of its economic profitability. Therefore, in this chapter the methods widely used in evaluating investment projects are discussed and their advantages as well as shortcomings are highlighted. Later in the chapter, evaluating foreign direct investment projects from the viewpoint of the parent company is elaborated in terms of profit and/or income transferred to the home country. The same investment evaluation techniques were applied to the net cash flows transferred to the home country of the parent company. The possible income and/or dividends to be remitted to the home country of a parent company are identified and discussed so as to reflect the viewpoints of investing parent companies when planning foreign direct investments. This two-level evaluation approach is generally followed in practice to make sure that direct investments are profitable at both host and home country levels, since an investment project that is not profitable at host country level would not be profitable at home country level either or a project that is profitable at host country level may not be profitable at home country level.

Foreign Direct Investment and Spatial Linkages: Third-Country Effects for Brazilian Outward Investment

2016 ◽  
Vol 17 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Marta C. T. Rossi ◽  
Gervásio F. Santos ◽  
Felipe Andrade Souza Campos
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Country Effects ◽  
Spatial Linkages

scholarly journals Migration und Geld: Können Remittances den Wohlstand eines Landes fördern?

2018 ◽  
Vol 87 (3) ◽  
pp. 165-179
Author(s):  
Marcus Deetz ◽  
Anna Ammon ◽  
Neele Döpkens
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Home Country ◽  
Positive Influence ◽  
Domestic Product ◽  
Control Variables ◽  
Panel Data Regression ◽  
Data Regression

Zusammenfassung: Haben Remittances, also der Geldtransfer von Migrantinnen und Migranten zur Unterstützung der Familien im Heimatland, einen positiven Einfluss auf den Wohlstand eines Landes? Hierzu können die empirischen Befunde wie folgt zusammengefasst werden: Bei den durchgeführten Paneldatenregressionen von Remittances pro Person auf das Bruttoinlandsprodukt pro Einwohner, wobei die Kontrollvariablen Arbeitslosigkeit, Export, ausländische Direktinvestitionen, Bruttoinvestitionen sowie der Einfluss der Finanzkrise 2008–2009 berücksichtigt wurden, ist der Koeffizient der Variablen Remittances pro Person mit einer Höhe von 0,026 statistisch hochsignifikant. Remittances haben demnach einen positiven Einfluss auf den Wohlstand eines Landes, wenn dieser in Bruttoinlandsprodukt pro Einwohner gemessen wird. Auch die Ergebnisse der Robustheitsanalysen haben den positiven Zusammenhang bestätigt, der auch bei Veränderung von Kontrollvariablen statistisch signifikant bleibt. Summary: Do remittances, that is, the transfer of money from migrants to support families in their home country, have a positive influence on the prosperity of a country? The empirical findings can be summarized as follows: In the panel data regression of remittances per person to the gross domestic product per inhabitant, whereby the control variables unemployment, export, foreign direct investment, gross investment and the influence of the financial crisis 2008–2009 were taken into account, the coefficient of the variable remittances per person is statistically highly significant at 0.026. Thus, remittances have a positive influence on a country’s prosperity when measured in gross domestic product per inhabitant. The results of the robustness analyses also confirmed the positive correlation, which remains statistically significant even if control variables are changed.

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