scholarly journals Foreign Direct Investment and Economic Growth relationships: The moderation role of institutional quality

2021 ◽  
Vol 17 ◽  
pp. 41-54
Author(s):  
Vu Tuan Anh ◽  
Tran Ngoc Khanh Linh
Keyword(s):  
Economic Growth ◽  
Quantitative Methods ◽  
Institutional Quality ◽  
Secondary Data ◽  
The State ◽  
Asian Countries ◽  
Effect Model ◽  
The Impact

Most studies on the effect of the role of institutional quality on the relationship between foreign investment and economic growth have been carried out in Western countries. Very few studies on the above-mentioned relationships have been done in Asian countries during. This paper will be conducted in Asian countries using the following three models: Pooled OLS, Fixed effect model, and Random effect model. This paper uses secondary data from 10 Asian countries from 2011 to 2018. The empirical results show that (1): FDI has a positive effect on the economies of the countries. Asia between 2002 and 2018 (2) The quality of the state strengthens the impact of FDI on the economies of Asian countries between 2011 and 2018. These findings imply that if improving the quality of institutions, the state will attract more FDI and economic development The research paper is based on the scientific approach of quantitative methods to solve the problems posed, practical and effective service for the completion of the research purpose. The secondary data collected from the worldbank.org to create asymmetric data tables will be processed on STATA software.

scholarly journals Role of institutional quality in economic development: A case study of Asian countries

2021 ◽  
Vol 19 (2) ◽  
pp. 357-369
Author(s):  
Oanh Kim Thi Tran ◽  
Hac Dinh Le ◽  
Anh Hong Viet Nguyen
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Trade Openness ◽  
Institutional Quality ◽  
Policy Implications ◽  
Asian Countries ◽  
Regression Methods ◽  
Key Factor ◽  
The Impact

The paper investigates the impact of institutional quality on economic growth by taking 48 countries in Asia between 2005 and 2018. By using the quantile regression methods with panel data, institutional quality is found to be a key factor of economic development. However, in the lower-income Asian countries, the institution with better quality appears to promote the growth more effectively than in the higher-income ones. Moreover, the paper also finds out a nonlinear relationship between institutions and economic growth. The results show that there is an institutional threshold for economic growth to reach its highest level. If the institution indicator exceeds the threshold, it causes the reverse effect on the growth. Moreover, the economic growth of Asian countries is also affected by inflation (INF), labor force (LABO), trade openness (OPEN), and infrastructure (TELE). From that, the study suggests some policy implications for Asian countries and Vietnam, in particular, in order to improve institutions contributing to economic growth.

Farmland transfer and agricultural economic growth nexus in China: agricultural TFP intermediary effect perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuan-pei Kuang ◽  
Jia-li Yang ◽  
Meseret-Chanie Abate
Keyword(s):  
Economic Growth ◽  
Agricultural Economic ◽  
Test Model ◽  
Promoting Effect ◽  
Content Type ◽  
Effect Model ◽  
Intermediary Role ◽  
Multidimensional Effects ◽  
The Impact

PurposeThe multidimensional effects of farmland transfer in China have been profoundly unstudied. The purpose of this paper is to provide insights on the effects of the intermediary role of agricultural total factor productivity (TFP) of farmland transfer on agricultural economic growth in China.Design/methodology/approachBased on the agricultural data of 30 provinces in China over the period 2005–2018, this paper uses the intermediary effect model to test the relationship between farmland transfer, agricultural TFP and agricultural economic growth. This paper employed an intermediary effect test model to investigate the intermediary role of agricultural TFP in the influence of farmland transfer on agricultural economic growth.FindingsThe findings indicated that farmland transfer has a significant effect on promoting agricultural economic growth. There is a significant “inverted U-shaped” relationship between farmland transfer and agricultural TFP. The sample value of 84.3% of farmland transfers in China is still within the TFP promoting effect range. In addition, farmland transfer has an indirect impact on agricultural economic growth through the channel of agricultural TFP. Agricultural TFP plays a significant intermediary role, but the effect is relatively lowOriginality/valueThis paper is the first to provide fundamental evidence on the impact of farmland transfers on agricultural economic growth in China, driven by agricultural TFP as an intermediary factor. Agricultural TFP can reduce the involution effect of farmland transfer and promote an indirect effect on agricultural economic growth.

scholarly journals Effects of foreign direct investment on economic growth in Ghana: the role of institutions

2021 ◽  
Vol 20 (1) ◽  
pp. 23-34
Author(s):  
Evans Kulu ◽  
Samuel Mensah ◽  
Prince Mike Sena
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Secondary Data ◽  
Output Growth ◽  
Data Series ◽  
Development Indicators ◽  
Distributed Lag ◽  
The Impact

The role of institutions in both the inflow and the impact of foreign direct investment is of great im¬portance. The quality of institutions in a country can direct investment towards improving growth. This paper analyzes the individual and combined effect of foreign direct investment and institutions on economic growth in Ghana. The paper used the Auto Regressive Distributed Lag (ARDL) tech¬nique for secondary data obtained from 1995 to 2019. All data series, except for the quality institution index, were drawn from the World Bank Development Indicators. Institutional Quality Index data was obtained from the Heritage Foundation’s Economic Freedom Index website. The results of the ARDL model indicate that foreign direct investment and a quality institutional index together have a significantly positive effect on a country’s economic growth compared to their individual effects in both the short and long run. The study recommends that government policies should be aimed at attracting foreign direct investment while strengthening institutions and regulations to enhance output growth.

scholarly journals Export Earnings, Capital Instability and Economic Growth in South Asia

2003 ◽  
Vol 8 (1) ◽  
pp. 65-89
Author(s):  
Muhammad Aslam Chaudhary ◽  
Amjad Naveed
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Foreign Capital ◽  
Developed Countries ◽  
Export Diversification ◽  
Asian Countries ◽  
The Impact ◽  
The Relationship

During the last two decades the role of international trade and flow of foreign capital have received considerable attention in the literature. Various studies have examined the impact of export instability and capital instability on economic growth in less developed countries.1 Empirical evidence supports the hypothesis of a deleterious impact of export instability on economic growth. However, some studies also indicated that the relationship was unstable but positive with economic growth.2 Yet there are no systematic empirical investigations into the implied links between export diversification and long-term economic growth, particularly in the case of South Asian countries. The major concern regarding export instability is that it retards economic growth.

scholarly journals The Impact of Institutional Quality on Social Cohesion: Evidence from Worldwide Perspective

2020 ◽  
Vol Volume 4 (Issue 3) ◽  
pp. 207-231
Author(s):  
Muhammad Nadeem ◽  
Mumtaz Anwar ◽  
Zahid Pervaiz
Keyword(s):  
Income Inequality ◽  
Social Cohesion ◽  
Ethnic Diversity ◽  
Institutional Quality ◽  
Fixed Effect Model ◽  
Effect Model ◽  
Two Factors ◽  
The Impact ◽  
Harmful Effects

Diversity and socioeconomic deprivation have been widely discussed as determinants of social cohesion. These two factors are considered to be a threat to social cohesion. The existing literature identifies the problem however the literature suggesting the solution is very limited. The most important determinant which can cure the problems of social cohesion is the better quality of institutions, however, the literature on this aspect is very scant. Current study has investigated the impact of institutional quality on social cohesion. Current study employs the fixed effect model for estimation. The analysis is conducted for 135 countries, using five-year average panel data. The results suggest that institutional quality augments social cohesion, while ethnic diversity, income inequality, and globalization are a threat to social cohesion. Gender equality and per capita income also augment social cohesion. Moreover, the threat to social cohesion is greater when there is: low institutional quality and high: ethnic diversity, and income inequality as compared to a situation where there are high institutional quality and low: ethnic diversity, and income inequality. The results further suggest that the harmful effects of ethnic diversity, globalization, and inequality can be, not only overcome by institutional quality but can also be put to use to enhance social cohesion.

scholarly journals Menimbang Daya Saing Pariwisata Indonesia (Dibandingkan Singapura, Malaysia, Dan Thailand)

2015 ◽  
Vol 2 (3) ◽  
pp. 422-442
Author(s):  
Vonny Setianda ◽  
Roos Kities Andadari
Keyword(s):  
Economic Growth ◽  
Tourism Development ◽  
Secondary Data ◽  
Development Strategies ◽  
Tourism Industry ◽  
Tourism Sector ◽  
Asean Countries

Experience from many countries shows that tourism contributes greatly to the economic growth that can improve the welfare and quality of citizens’ lives. To enhance the role of the tourism sector to improve the economy, increasing the competitiveness of this sector is the key. For Indonesia, which has great potential in the tourism sector, tourism development strategies are needed to improve the competitiveness of the tourism industry. The purpose of this study is to determine the position of competitiveness in Indonesia’s tourism sector, especially compared to some major ASEAN countries, and propose appropriate tourism development strategies. After mapping the condition of Indonesia’s tourism competitiveness compared to some other major ASEAN countries, this study uses STP (segmenting, targeting, and positioning) to find appropriate tourism development strategies. This research utilizes secondary data. The results show that compared to some other major ASEAN countries (Singapore, Malaysia and Thailand), Indonesia's tourism competitiveness in some aspects is low, although this condition has improved in recent years. However, given the demands of the dynamic tourism market, the competitiveness needs to be improved continuously. This necessitates special strategies, so that the efforts match with the target. Keywords: Indonesian tourism, competitiveness of the tourism industry, tourism development strategies

scholarly journals The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

Economies ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 53
Author(s):  
Miao Miao ◽  
Qiaoqi Lang ◽  
Dinkneh Gebre Borojo ◽  
Jiang Yushi ◽  
Xiaoyun Zhang
Keyword(s):  
Economic Growth ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
African Countries ◽  
Policy Action ◽  
Mediating Role ◽  
Theoretical Perspectives ◽  
Chinese Foreign Direct Investment

While there is a consensus on the expanding importance of the China–Africa economic relationship, there is much more debate on how to portray the relationship. Thus, this study is aimed to examine the impacts of the China–Africa trade and Chinese foreign direct investment (FDI) on the growth of African countries controlling the mediating role of institutional quality. The two-step system Generalized method of moments (GMM) model is applied using robust data for the period of 2003–2017. Drawing on complementary theoretical perspectives, this study took into account the conditional effect of China–Africa trade and Chinese FDI subject to the institutional quality of African countries and the interdependence of China–Africa trade and Chinese FDI to African countries. The benign impacts of the China–Africa trade and Chinese FDI on economic growth to African countries remain contingent upon appropriate policy action to improve the institutional quality of African countries and the synergies between the China–Africa trade and Chinese FDI to African countries.

scholarly journals Financial development and economic growth: Role of institutional quality

2009 ◽  
Vol 56 (3) ◽  
pp. 327-357 ◽  
Author(s):  
Abdelkarim Yahyaoui ◽  
Atef Rahmani
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Panel Data ◽  
Financial Development ◽  
Institutional Quality ◽  
The Real ◽  
Development Institutions

The objective of our work is to show the importance of a healthy institutional framework in the finance-growth relation. In this context, we start by presenting, a theoretical lighting on this subject while trying to define the concept of the governorship and to determine its various measurements. Then, we empirically test a model of growth of Solow increased by the human capital, treating relation between financial development, institutions and economic growth. The various estimates were made by Panel data Methods over the period of 1990 to 2006 for 22 developing countries. Following these estimates, it seems that the quality of the institutions is regarded as an important factor which must not be neglected in the study of the relation between the financial sphere and the real sphere.

scholarly journals Financial System of Russia: Approaches to Assessment of Impact on the National Economy

2020 ◽  
pp. 072-082
Author(s):  
A. V. Lebedev ◽  
◽  
E. A. Razumovskaya ◽  
Keyword(s):  
Economic Growth ◽  
National Economy ◽  
Financial System ◽  
The State ◽  
The Russian Federation ◽  
Main Factors ◽  
The Impact ◽  
Qualitative Characteristics ◽  
Qualitative Changes

An attempt is made to analyze the Russian financial system based on the existing international OECD methodology according to the Central Bank of Russia. The modern controversial views on the concepts of the impact of the financial system on economic growth, existing in the world financial science, are presented. The fundamental theories of economic growth in the format of production functions and the author’s interpretation of macroeconomic identity are presented; the role of labor and capital in economic growth, as the main factors subject to qualitative changes to the greatest extent, is noted. As an intermediate result for the analysis of the financial system of the Russian Federation, a coefficient is proposed that allows one to potentially analyze the influence of the qualitative characteristics of the state of the financial system on the socio-economic development of the national economy. The hypothesis about the influence of the financial system on the state of the national economy has been confirmed.

scholarly journals Trends in Foreign Direct Investment and Economic Growth of India with Special Reference to Tamil Nadu

2019 ◽  
Vol 8 (2S10) ◽  
pp. 159-164
Keyword(s):  
Economic Growth ◽  
Global Economy ◽  
Tamil Nadu ◽  
Positive Impact ◽  
National Income ◽  
Secondary Data ◽  
Time Frame ◽  
The State ◽  
Foreign Direct Investments ◽  
The Impact

Foreign Direct Investments (FDIs) are welcomed by various host countries with multiple objectives such as capital infusion, technological up-gradation and managerial know-how. This measure is carried out at substantial cost of offering various incentives in terms of providing land for industrial investments, supply of uninterrupted power, ensuring problem free labour relation environment etc. These measures are taken by any government on a basis which will have a specific time frame, in order to not let investment become a drain on the economy of the host country. This study intends to evaluate the impact of FDI on the economic growth of India and in the state of Tamil Nadu, the most industrialised and urbanised economy in India. With proactive governance and path breaking policy initiatives and structural reforms, the state has emerged as one of the leading industrialised states of India. The period of this study has been taken for ten years from 2008-09 to 2018-19. The data on the inflow of FDI during this period and the flow of FDI from various source countries have been collected along with the data on various economic parameters pertaining to infrastructure such Gross National Income (GNI), Net National Income (NNI) and Per Capita Net National Income (PCNI). The data collected for the study are entirely the secondary data published by both the state and central governments. The analysed results of the study reveal that the inflow of FDI into India during the study period has been consistent and been growing significantly, as the economy of the country and the dynamic transformation of global economy demanded. This inflow of FDIs has consistently created a positive impact on the economic indicators, making it an essential factor to be very attentively looked after for a sustained growth.

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