The Impact of Foreign Direct Investment on Economic Growth in Malaysia

Purpose: This paper estimates the impact of trade openness and economic growth in Pakistan by using time series data from period of 1975-2014. Econometric method was applied to estimate the impact of trade openness on economic growth. Gross fixed capital formation (proxy of investment), Foreign direct investment, Imports, Exports & trade openness (proxy of trade openness to check the volume of trade of a country) is used as explanatory variables while gross domestic product is treated as dependent variable in this study. Johansson co. integration approach developed by Johannes & Jeslius (1988) is used to evaluate the long run relationship among variables in this study. The results suggest that trade openness, imports, exports and foreign direct investment cast have positive impact on economic growth while on the other hand; gross fixed capital formation &labor force has negative impact on economic growth.

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Foreign Direct Investment, Financial Development, and Economic Growth Nexus in Bangladesh

The American Economist ◽

10.1177/0569434520938673 ◽

2020 ◽

pp. 056943452093867

Author(s):

Md. Noman Siddikee ◽

Mohammad Mafizur Rahman

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Financial Development ◽

Direct Investment ◽

Banking Sector ◽

Negative Impact ◽

Capital Formation ◽

Long Run ◽

Short Run ◽

The Impact

This article aims to explore the short- and long-run impact of foreign direct investment (FDI), financial development (FD), capital formation, and the labor forces on the economic growth of Bangladesh. We applied the Granger causality test and Vector Error Correction Model (VECM) for this study. The World Bank data for the period of 1990–2018 are taken into account for the analysis. Our findings suggest, in the long run, capital formation has a positive impact, and in the short run, it has a negative impact on gross domestic product (GDP) implying a lack of higher efficiency is persisting in capital management. Similarly, labor forces have an insignificant impact in the short run and a negative impact in the long run on GDP, which confirms the presence of a huge number of unskilled laborers in the economy with inefficient allocation. The impact of FD is found tiny positive in the short run but large negative in the long run on GDP indicating vulnerability of banking sector. These also confirm fraudulence and inefficient use of the domestic credit supplied to the private sector. The impact of FDI is approximately null both in the short and long run, indicating Bangladesh fails to achieve the long-term benefits of FDI. Finally, this study suggests using FDI more in the capital intensive project of the public–private partnership venture than infrastructural development only and also improving the credit management policy of the banking sector. JEL Classifications: F21, F43, J21

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The Influences of FDI, GFCF, OPEN on Vietnamese Economic Growth

International Journal of Asian Business and Information Management ◽

10.4018/ijabim.20210701.oa26 ◽

2021 ◽

Vol 12 (3) ◽

pp. 1-13

Author(s):

Toan Duc Le ◽

Phu Huu Nguyen ◽

Yen Thi Phi Ho ◽

Thuyen Ngoc Nguyen

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

World Bank ◽

Direct Investment ◽

Trade Openness ◽

Capital Formation ◽

Fixed Capital ◽

Annual Data ◽

Fixed Capital Formation ◽

Short Run

The aim of study is to research the influences of Foreign Direct Investment (FDI), Gross Fixed Capital Formation (GFCF), Trade Openness of the Economy (OPEN) on Vietnam economic growth. This study uses the annual data for the period 1986 to 2019, obtained from World Bank and Vietnam General Statistics Office. The study shows that FDI, GFCF and OPEN together influence to Vietnam economic growth in the period 1986 – 2019 at significant level of 5%; in which the FDI and GFCF determinants have influenced greatly. In the short–run, the results indicate that there are bidirectional causality relationships running between FDI and GDP, OPEN and GDP, OPEN and GFCF, and there are undirectional causality relationships running from GDP to GFCF, from GFCF to FDI, from FDI to OPEN. The study’s results confirm that FDI as more reliable and less violate source of capital and can extend the Vietnam economic growth. According to the study’s results, the authors suggest some recommendations to increase the Vietnam economic growth.

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Relationship between Trade Openness, Financial Development and Economic Growth of Nepal: Evidence from a Developing Country

Quest Journal of Management and Social Sciences ◽

10.3126/qjmss.v2i2.33270 ◽

2020 ◽

Vol 2 (2) ◽

pp. 206-224

Author(s):

Shreezal G.C.

Keyword(s):

Economic Growth ◽

Human Capital ◽

Developing Country ◽

Financial Development ◽

Capital Formation ◽

Fixed Capital ◽

Technological Factors ◽

Long Run ◽

Fixed Capital Formation ◽

The Impact

Background: Capital investment, financial and technological developments are essential drivers for the economic growth of developing countries like Nepal. These factors, directly and indirectly, contribute to the growth of the country. Technological factors such as FDI and trade allow technology and knowledge transfers to Nepal along with foreign investments, goods and services. The financial sector encourages investors by providing loans that further generates investment in the country. Similarly, the development of human capital further increases labor productivity. Nepal, being a developing country, lacks advanced infrastructure and technology, that are vital for pushing the economic growth in the country. Objective: This paper examined the effect of capital, labor, foreign direct investment, financial development and trade on the economic growth of Nepal using the endogenous growth model. Methods: The study employedthe ARDLboundstesting approach to test the long-run relationships introducing an error correction model to estimate both short and long-term relationships among the variables.The TY non-granger causality test was used to ensure robustness and check the direction of causality. Results: The results showed that gross fixed capital formation, population and financial development were significant and inducedpositive economic growth in the long run at a 1% level of significance whereas, the impact of FDI on economic growth was negative and significant at 1%. Conclusions: The study concludes that an increase in gross fixed capital formation, population and broad money supply positively impacts the economic growth of Nepal. However, technological factors such as FDI and trade do not adequately explain the economic growth due to low FDI inflows, political instability, poor infrastructure and import dependency. Implications: The study emphasized domestic investment and financial development of the country as they were found to be highly significant in the long run. Also, the human capital of the country should be developed by providing education and training as the population was found to be highly significant. The study also indicated that Nepal should push export as its share in the trade is very less. Moreover, policies such as legal reforms, incentives to foreign investors and infrastructural development to attract FDIs in Nepal should be formulated.

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The Influences of FDI, GFCF, OPEN on Vietnam Economic Growth

International Journal of Asian Business and Information Management ◽

10.4018/ijabim.20210701oa31 ◽

2021 ◽

Vol 12 (3) ◽

pp. 0-0

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

World Bank ◽

Direct Investment ◽

Trade Openness ◽

Capital Formation ◽

Fixed Capital ◽

Annual Data ◽

Fixed Capital Formation ◽

Short Run

The aim of study is to research the influences of Foreign Direct Investment (FDI), Gross Fixed Capital Formation (GFCF), Trade Openness of the Economy (OPEN) on Vietnam economic growth. This study uses the annual data for the period 1986 to 2019, obtained from World Bank and Vietnam General Statistics Office. The study shows that FDI, GFCF and OPEN together influence to Vietnam economic growth in the period 1986 – 2019 at significant level of 5%; in which the FDI and GFCF determinants have influenced greatly. In the short–run, the results indicate that there are bidirectional causality relationships running between FDI and GDP, OPEN and GDP, OPEN and GFCF, and there are undirectional causality relationships running from GDP to GFCF, from GFCF to FDI, from FDI to OPEN. The study’s results confirm that FDI as more reliable and less violate source of capital and can extend the Vietnam economic growth. According to the study’s results, the authors suggest some recommendations to increase the Vietnam economic growth.

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DETERMINASI PERTUMBUHAN EKONOMI DI ASEAN

Media Ekonomi ◽

10.25105/me.v23i3.3522 ◽

2015 ◽

Vol 23 (3) ◽

pp. 199

Author(s):

Taufiq Rahman ◽

Jakaria ,

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Direct Investment ◽

Trade Openness ◽

Capital Formation ◽

The State ◽

Fixed Capital ◽

Fixed Capital Formation ◽

Asean Countries ◽

The Relationship

This study aims to determine the relationship between Foreign Direct Invesment, Gross Fixed Capital Formation, Trade Openness to economic growth in nine ASEAN countries, and to compare the factors that determinae the movement and economic growth ini nine countries ASEAN. The variables used invlude foreign direct investment, gross fixed capital formation, trade openness and Growth of Gross Domestic Product of each country. The method used in this thesis is the regression method Panel . Results of the study showed an overall variable Foreign Direct Investment and Gross Fixed Capital Formation had significant results . If seen from the results of the model for pernegara Foreign Direct Investment have the significant results in the state of Singapore . Gross Fixed Capital Formation have the significant results in the state of Singapore, Thailand, Philippines and Cambodia. To have the variable Trade Openness significant results at the state of Indonesia, Malaysia, Thailand, Philippines, and Cambodia.

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The Validity of Okun’s Law: An Empirical Evidence for Nigeria

American International Journal of Social Science Research ◽

10.46281/aijssr.v4i2.376 ◽

2019 ◽

Vol 4 (2) ◽

pp. 136-144

Author(s):

Divine Ndubuisi Obodoechi ◽

Charles Uchenna Onuoha

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Population Growth ◽

Direct Investment ◽

Industrial Output ◽

Okun’S Law ◽

Net Foreign Assets ◽

The Government ◽

The Impact ◽

Foreign Assets

This paper empirically investigates the relationship between economic growth and unemployment in Nigeria under the Okun’s Law framework. The Auto Regressive Distributed Lag model approach, the ARDL Bounds Test and Cointegration Test were employed in this paper. Economic Growth was also regressed on unemployment, log of industrial output, log of net foreign assets, log of foreign direct investment and population growth so as to know the impact of these variables on output. The research findings indicated that high the Okun’s specification does not hold in the Nigeria, the impact of economic growth on unemployment is negative and insignificant. We did however find that there is a positive impact of unemployment on economic growth, meaning that the phenomena of jobless growth may be in play in the economy. The Johansen Co-integration test failed to establish evidence of long run relationship between GDP, industrial output, unemployment, foreign direct investment net foreign assets and population growth. The ECM could not be employed because the variables were integrated of different orders. It was however found there exist a significant positive relationship between the aforementioned variables and GDP except for population growth. The government should consider the Industrial Sector as a priority sector in a bid for better economic growth and development. Population control measures should also be put in play to ensure that the population does not exceed the economic carrying capacity. The government should also play an important role in abating unemployment in the economy using direct and indirect schemes and strategies.

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The Impact of Total Factor Productivity on Economic Growth for Developed and Emerging Countries: A Second-generation Panel Data Analysis

Margin The Journal of Applied Economic Research ◽

10.1177/0973801017722266 ◽

2017 ◽

Vol 11 (4) ◽

pp. 404-417 ◽

Cited By ~ 1

Author(s):

Ömer Yalçınkaya ◽

İbrahim Hüseyni ◽

Ali Kemal Çelik

Keyword(s):

Economic Growth ◽

Panel Data ◽

Total Factor Productivity ◽

Second Generation ◽

Capital Formation ◽

Emerging Countries ◽

Fixed Capital ◽

Factor Productivity ◽

Fixed Capital Formation ◽

The Impact

This article investigates the determinants of economic growth and also seeks to determine whether or not the impact of total factor productivity (TFP) changes with respect to the level of development for selected countries. In this manner, the present study examines the impact of gross fixed capital formation, employed labour and the TFP of G-7, G-12 and G-20 countries on real GDP per capita using second-generation panel data analyses over the period 1992–2014. The results reveal that TFP has a greater impact on economic growth than fixed capital formation and employed labour for all country groups. Furthermore, the impact of TFP on economic growth was found to be greater for developed countries than for emerging countries. JEL Classification: C21, C22, C23

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Examining the impact of Exports and Exchange rate on Economic Growth of Turkey

10.21203/rs.3.rs-57469/v1 ◽

2020 ◽

Author(s):

Iftikhar Muhammad ◽

Malik Shahzad Shabbir

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Exchange Rate ◽

Granger Causality ◽

Direct Investment ◽

Economic Policies ◽

Long Run ◽

Short Run ◽

Auto Regressive ◽

The Impact

Abstract Purpose This study intends to analyze the long-run and short-run relationships along with the identification of causal links between exports, economic growth, and exchange rate in Turkey. Data/Design: This study uses auto-regressive distributed lags (ARDL) and Granger causality over time series monthly data from the year 2010–2018. The results indicate that exports are significantly positively related to economic growth while the exchange rate is found to be negatively related to economic growth. Findings: Moreover, findings from the test of Granger causality indicate that a unidirectional causal association is found from exports to foreign direct investment and economic growth and from economic growth to foreign direct investment. The Granger causality results indicate that an increase in exports accelerates the economic growth of Turkey and a change in growth rate and exchange rate leads to a change in foreign direct investment. Originality of work: The overall findings suggest that exports should be promoted along with the liberal-investment economic policies to boost the overall economic growth in Turkey.

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E. ANALISIS PEMBENTUKAN MODAL TETAP BRUTO, INVESTASI ASING LANGSUNG, DAN EKSPOR TERHADAP PENDAPATAN NASIONAL PERKAPITA INDONESIA (DALAM MENGHINDARI MIDDLE INCOME TRAP)

Inovasi Manajemen dan Kebijakan Publik ◽

10.54980/imkp.v4i1.118 ◽

2021 ◽

Vol 4 (1) ◽

pp. 47

Author(s):

Mega Zahira Virtyani ◽

Dr. Ignatia Martha Hendrati,S.E.,M.E. ◽

Kiki Asmara,S.E.,MM

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

National Income ◽

Capital Formation ◽

Fixed Capital ◽

Middle Income ◽

Goods And Services ◽

Fixed Capital Formation ◽

Per Capita ◽

Middle Income Trap

Abstrak Pendapatan Nasional Per Kapita merupakan pendapatan rata-rata semua penduduk di suatu negara. Penelitian ini bertujuan untuk menganalisis pengaruh Pembentukan Modal Tetap Bruto, Investasi Asing Langsung, dan Ekspor Barang dan Jasa terhadap Pendapatan Nasional Per Kapita Indonesia dalam menghindari Middle Income Trap. Metode yang digunakan dalam penelitian ini adalah metode regresi linier berganda dengan menggunakan data Indonesia periode tahun 2008-2019. Hasil penelitian menunjukkan secara bersama-sama variabel Pembentukan Modal Tetap Bruto, Investasi Asing Langsung, dan Ekspor Barang dan Jasa berpengaruh secara signifikan. Tetapi secara parsial, hanya Pembentukan Modal Tetap Bruto yang memiliki tingkat signifikan. Sedangkan, Ekspor Barang dan Jasa dan Investasi Asing langsung tidak berpengaruh secara signifikan. Upaya yang dapat dilakukan dalam menghindari Middle Income Trap yaitu Pembentukan Modal Tetap Bruto, Investasi Asing Langsung, dan Ekspor Barang dan Jasa meningkat secara bersama-sama agar dapat memberikan nilai tambah produktivitas terhadap Pendapatan Nasional Indonesia. Kata Kunci : Pembentukan Modal Tetap Bruto, Investasi Asing Langsung, Ekspor, Pendapatan Nasional Per Kapita, Jebakan Pendapatan Menengah. Abstract National Income Per Capita is the average income of all residents in a country. The purposes of this research are determine the effect of Gross Fixed Capital Formation, Foreign Direct Investment, and Exports of Goods and Services on Indonesia's National Income Per Capita in avoiding Middle Income Trap. The method that used in this research is multiple linear regression method using Indonesian data for 2008-2019. The results of this research show that the variables of Gross Fixed Capital Formation, Foreign Direct Investment, and Exports of Goods and Services have a significant effect at the same time. Partially, only Gross Fixed Capital Formation has a significant level. Meanwhile, Exports of Goods and Services and Foreign Direct Investment do not have a significant effect. The efforts that can be made to avoid Middle Income Traps, are Gross Fixed Capital Formation, Exports of Goods and Services, and Foreign Direct Investment can be increase at the same time to give extra value for the productivity to Indonesia's National Income. Key Word : Gross Fixed Capital Formation, Foreign Diret Investment, Gross National Income Per Capita, Middle Incom Trap.

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