scholarly journals What determines foreign direct investment in Russia?

2020 ◽  
Vol 6 (53) ◽  
pp. 311-322
Author(s):  
Oleg Gurshev
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Local Development ◽  
Statistical Significance ◽  
Labour Productivity ◽  
Arima Model ◽  
Historical Context ◽  
Market Size ◽  
Open Market ◽  
Positive Effects

AbstractThis article focuses on the determinants of inward foreign direct investment (FDI) in Russia. The article briefly describes the historical context of foreign investment policymaking in Russia since the beginning of the economic transition to an open market economy after the dissolution of the Soviet Union. When compared to other developing countries, Russia's FDI stocks continue to lag despite a set of proactive measures undertaken by the national government. Following the literature review, the most commonly cited determinants explaining inward FDI in Russia include market size, labour productivity, trade and investment barriers, domestic exchange rate, rule of law and institutional framework.This article aims to contribute empirically to the study of determinants of inward FDI in Russia.This article uses the Pseudo-Poisson Maximum Likelihood (PPML) estimation technique, the robustness of the PPML estimation is then verified using a standard autoregressive integrated moving average (ARIMA) model with the Durbin–Watson autocorrelation test.Our benchmark results suggest the efficiency-seeking motive of FDI over a market seeking and horizontal motive as a main reason for inward FDI in Russia. The ARIMA regression indicates the absence of statistical significance of economic openness and variables of labour productivity. Overall, the market size and tax rate variables have the most positive effects on the inward FDI, while barriers to trade and sanctions have the most negative effects. The results confirm that for transitional economies, integration into the world economy, proactive local development and tax cuts for outside investors remain to be critical when it comes to attracting FDI.

DETERMINAN PENANAMAN MODAL ASING LANGSUNG DI ASEAN

2012 ◽  
Vol 7 (1) ◽  
pp. 75
Author(s):  
Joko Susanto
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Data Model ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Statistical Data ◽  
Regression Equation ◽  
Panel Data Model ◽  
Market Size ◽  
Research Analysis

This research analysis the factors’ that determine the foreign directinvestment (FDI) in ASEAN’s countries especially Indonesia, Malaysia, Philippine and Thailand during 1990-2009. Multinational Enterprises’ (MNE) must decideto choose a locationfor relocating its’ factory by market seeking dan resources seeking strategy. Based on this statement, it can be obtained the regression equation with foreign direct investment is a function of market size, worker’s productivity and infrastructure of road. Statistical data of UNESCAP was used in this research. The regression was base on the panel data model, while the estimation was based on common effects model. This results showthat the market size, worker’s productivity and availability of infrastructure road could be an importance consideration for MNE’s in their choice for FDI.Keywords: foreign direct investment, market size, worker’s productivity, infrastructure of road

scholarly journals Allocation of foreign direct investment across brazilian states

2013 ◽  
Vol 43 (2) ◽  
pp. 241-269 ◽  
Author(s):  
Maurício Mesquita Bortoluzzo ◽  
Sergio Naruhiko Sakurai ◽  
Adriana Bruscato Bortoluzzo
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Foreign Investment ◽  
Direct Investment ◽  
Transport Infrastructure ◽  
Market Size ◽  
Consumer Market ◽  
Determining Factors ◽  
Econometric Study

Foreign direct investment (FDI) has become increasingly important for the Brazilian economy: the ratio of FDI inflow to the country's gross domestic product (GDP) increased from a 0.6% average in the 1980's to 2.5% from 2001 to 2010, according to data from UNCTAD. However, there is great inequality in the distribution of this investment among Brazilian federation units. This study aims at investigating the determining factors for the location of foreign direct investment across Brazilian states, based on an econometric study with panel data for the years 1995, 2000 and 2005. The results showed that foreign investment responded positively to consumer market size, quality of labor and transport infrastructure, but negatively to cost of labor and tax burden.

scholarly journals La importancia de la inversión extranjera directa en México

2017 ◽  
Vol 3 (5) ◽  
Author(s):  
U. De la Garza
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Trade ◽  
Trade Balance ◽  
Direct Investment ◽  
National Development ◽  
Negative Consequences ◽  
Positive Effects ◽  
Manufacturing Productivity

Abstract: The Foreign Direct Investment (FDI) has had important consequences in the Mexican economy, along the positive effects at the same time can be indicated the contributions in manufacturing, productivity, wages, employment and foreign trade; also some negative consequences have appeared, between the displacement of the internal savings and the deterioration in trade balance are one among the most important. Nevertheless, the general conclusion reflects the positive effects are enough to promote the hosting to new investments inthe national territory.Key words: Foreign Direct Investment, national development, Foreign Direct investment consequencesResumen: La inversión extranjera directa ha tenido importantes consecuencias en la economía mexicana, entre los efectos positivos de la misma se pueden señalar las contribuciones en la producción, productividad, salarios, empleo y el comercio exterior, pero también se han presentado algunas consecuencias negativas, entre las cuales el desplazamiento del ahorro interno y el deterioro en la balanza comercial son las más importantes. Sin embargo, el balancegeneral muestra que los efectos positivos son lo suficientemente satisfactorios para promover la llegada de nuevas inversiones al territorio nacional.Palabras clave: Inversión Extranjera Directa, desarrollo nacional, consecuencias de la Inversión Extranjera Directa

scholarly journals Analisis Ekspansi Gojek di Singapura Tahun 2018 Melalui Foreign Direct Investment (FDI)

2020 ◽  
Vol 3 (3) ◽  
pp. 262
Author(s):  
Al Dina Maulidya ◽  
Bagas Prasetyo ◽  
Marsha Salsabilla ◽  
Rizal Alif Prakasya
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Market Size

Gojek melakukan ekspansi ke sejumlah negara di kawasan Asia Tenggara pada tahun 2018. Salah satu negara tersebut ialah Singapura, ekspansi ini dinilai cukup berani. Singapura merupakan satu-satunya negara maju di Asia Tenggara, sekaligus sebagai negara asal raksasa ride hailing saingan Gojek, yakni Grab. Untuk itu, penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi ekspansi Gojek di Singapura tahun 2018. Penelitian ini merupakan penelitian deskriptif dengan teknis analisa kualitatif, dan mengumpulkan data menggunakan studi kepustakaan. Penelitian ini menggunakan konsep Foreign Direct investment (FDI), untuk menetapkan enam faktor penentu yang mempengaruhi ekspansi Gojek di Singapura. Hasil dari penelitian ini menunjukkan, jika setidaknya terdapat enam faktor penentu ekspansi Gojek di Singapura. Enam faktor tersebut ialah, pertumbuhan market size di Singapura, keterbukaan negara Singapura, rendahnya tingkat inflasi di Singapura, tingkat korupsi yang cenderung rendah di Singapura, adanya kebijakan pemerintah yang mendukung penanaman modal asing di Singapura, serta stabilitas politik yang tinggi di Singapura.

scholarly journals Using Pooled Model, Random Model And Fixed Model Multiple Regression To Measure Foreign Direct Investment In Taiwan

2011 ◽  
Vol 4 (12) ◽  
Author(s):  
Thomas Hiestand
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Random Effect ◽  
Labor Cost ◽  
Random Model ◽  
Market Size ◽  
Fe Model ◽  
Literacy Rate ◽  
Cost Distance ◽  
Fixed Model

Through out the paper, two questions will be answered. The first question is, which are the countries that contribute largely to Taiwan FDI? The second question the paper is going to explore is what are the factors that draw FDI into Taiwan. According to the current literature on FDI in other countries, the determinants of FDI are relative market size, relative labor cost, distance and literacy rate. Three versions of the empirical model were estimated. They are Pooled regression model, Fixed Effect (FE) model, and Random Effect (RE) model. Throughout the three models, the relative market size hypothesis was consistently proved to be a key determinant of FDI in Taiwan.

scholarly journals Threshold Effect of Foreign Direct Investment on Economic Growth: New Evidence From a Panel Regime Switching Models

2021 ◽  
Author(s):  
Maha Kalai ◽  
HELALI Kamel
Keyword(s):  
Foreign Direct Investment ◽  
Regime Switching ◽  
Direct Investment ◽  
Threshold Effect ◽  
Jel Classification ◽  
Policy Implications ◽  
Smooth Transition ◽  
Linear Effect ◽  
Positive Effects ◽  
Smooth Transition Regression

Abstract The article contributes to the existing literature by examining the non-linear effect of foreign direct investment (FDI) on the development of the Arab Maghreb Union (AMU) countries during the period 1980-2019. These countries multiply their FDI attraction policies in order to enrich the national externalities offered to local businesses and benefit from some positive effects on their economy in terms of growth, technology, know-how, etc. Using Panel Smooth Transition Regression Model (PSTR) and Panel Smooth Transition Autoregressive Model (PSTAR) models, our findings reveal that the FDI shows opposite effects below and over the estimated threshold. This highlights the asymmetrical effect of unforeseen shocks on its volatility. Policy implications are also discussed.JEL Classification: C51; C53; F21; F21; F34; O16; O23; R11.

scholarly journals Trade Agreements and Global Value Chains: New Evidence from China’s Belt and Road Initiative

2020 ◽  
Vol 12 (4) ◽  
pp. 1353 ◽  
Author(s):  
Fei Peng ◽  
Lili Kang ◽  
Taoxiong Liu ◽  
Jia Cheng ◽  
Luxiao Ren
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Structural Equation ◽  
Spillover Effects ◽  
Trade Agreements ◽  
Global Value Chains ◽  
Equation Model ◽  
Value Chains ◽  
Positive Effects ◽  
Belt And Road

This paper investigates the relationship between China’s trade agreements (TAs) and partner countries’ upgrade in global value chains (GVCs). We focus on the experience of China and relate China’s TAs with one belt and one road (OBOR) initiative. A structural equation model (SEM) is applied on a dataset including 216 countries and regions to identify the direct and indirect effects of China’s TAs and OBOR initiative on its export, outwards foreign direct investment (OFDI) and partner economy’ GVCs upgrade over the period 2010–2015. We find that China’s TA partner countries are more likely to be included in the OBOR initiative than those non-TA partner countries. The positive effects of China’s TAs and OBOR initiative on China’s export, outwards foreign direct investment (OFDI) and partner countries’ upgrade in GVCs differ across country groups at the different locations of GVCs. Both vertical and horizontal spillover effects exist in China’s TAs. Therefore, the partner countries at low end and middle of GVCs might benefit more from TAs with China than those richer countries at the high end of GVCs.

A model of foreign direct investment flows at the municipal level in South Africa

2008 ◽  
Vol 3 (3) ◽  
pp. 249-267 ◽  
Author(s):  
Charles Okeahalam ◽  
Mark Dowdeswell
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Labour Productivity ◽  
Development Planning ◽  
Data Set ◽  
Content Type ◽  
Country Level ◽  
Level Data ◽  
Municipal Level

PurposeThe purpose of this paper is to assess the relationship between South Africa's foreign direct investment (FDI) and economic fundamentals at the municipal level.Design/methodology/approachThe paper develops a data set and an econometric model to analyze FDI flows at the municipal level in South Africa.FindingsThe empirical results derived from municipal level data support the findings in some of the established literature (which for the most part uses country‐level data) and indicates: that FDI tends to flow to areas with high factor (capital, labour and land) productivity; and that increases in higher labour productivity lead to higher investment.Research limitations/implicationsThis paper has used a cross‐section of municipalities. A further area of research would be to carry out a similar exercise with panel data.Practical implicationsThese findings indicate that FDI flows can be considered at the municipal level and this justifies the need for careful selection of the geographic basis for economic policy and development planning.Originality/valueWhereas most studies on FDI use country‐level data as standard geographic units of analysis, this paper analyzes FDI flows at the municipal level.

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