scholarly journals Innovative Approach to Measuring the Impact of FDI on Some Macroeconomic Indicators in B&H

ECONOMICS ◽  
2018 ◽  
Vol 6 (1) ◽  
pp. 7-15
Author(s):  
Slobodan Subotić ◽  
Živko Erceg ◽  
Vladimir Marković ◽  
Goran Mitrović

SUMMARY The necessity of economic life and economic development of every economy is the free movement of capital. The international movement of capital has its balance of payment when capital export represents economic surplus in relation to consumption of the national economy and the import of capital represents an increase of consumption in regard to the output of a national economy. Analysis of the influence of foreign direct investment (FDI) on economic growth of the host country, among other things, is emphasized in the function of the achieved phase of its economic development. Taking all this into consideration, the aim of this paper refers to an attempt to indicate the significance and the role of FDI as well as the importance of attracting foreign direct investment in B&H and the determination of the effects of FDI on the economy of B&H. In this regard, we will try to determine the level of FDI’s impact on some macroeconomic indicators in B&H (GDP, import, export, unemployment) by using contemporary SPSS statistical analysis program (model) and applying the methods (calculating coefficients) of correlation and regression analysis. In other words, we will determine the analytical expression used to describe a statistical relationship of these macroeconomic categories.

2016 ◽  
Vol 4 (1) ◽  
pp. 50 ◽  
Author(s):  
Xhavit Islami ◽  
Enis Mulolli ◽  
Nagip Skenderi

This study treats the relationship of foreign direct investment (FDI) and economic development in Kosovo. FDI is considered as an important factor of economic growth of places in development, so rightly the question is asked: “Which is the impact of FDI inflow on economic growth of Kosovo?” This study shows the relationship in between FDI inflow and five macroeconomic indicators that have an important role in economic development of Kosovo such as: GDP, GDP per capita, GNI, Exports, and Balance Trade. The data were taken from World Bank and the statistic agency of Kosovo for 2005 to 2014 period. Pearson Correlation technique was used for empirical analysis that is realized with SPSS v. 21.0 statistical program, the results showed that there is a positive relationship in between FDI inflow and GDP growth, whereas there is a negative relationship of FDI inflow and trade balance of Kosovo. This study arguments what is necessary to be done in leading policies to attract foreign direct investment in Kosovo.


Author(s):  
Goran Radisavljević ◽  
Goran Milovanović ◽  
Saša Bjeletić

The aim of the paper is to analyze the effects of selected sources of financing on the economic development of the Republic of Serbia in the period from 2012 to 2016 on the basis of systematized statistical data. First, the theoretical framework of domestic and foreign sources of financing and the impacts of these sources on economic development are presented from the perspective of contemporary theory. This is followed by the analysis of the impact of domestic sources of financing (domestic savings, state and private sector) on the economic development of the Republic of Serbia. Finally, the paper examines the relevance of foreign direct investment (FDI) for encouraging restructuring, competitiveness, growth, and development of the economy of the Republic of Serbia.


2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.


2021 ◽  
Vol 5 (2, special issue) ◽  
pp. 135-144
Author(s):  
Bashkim Bellaqa ◽  
Qazim Tmava ◽  
Arif Krasniqi

The improvement of the labor market, the management, the expansion of foreign direct investment, etc., all play a key role in the economic development of the Western Balkans. The main purpose of this study is to analyze and compare trends in employment, unemployment, gross domestic product (GDP), foreign direct investment (FDI), labor market management and to study the effects of foreign direct investment on employment in the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia) between 2015 and 2019. However, evidence for FDI’s impact is mixed (Navaretti & Venables, 2004). In terms of methodology, comparative and empirical analyses of the strength of the correlation between the dependent variable of employment and the independent variable of FDI for the countries of the Western Balkans have been conducted. Based on analyses, the employment rate in the six Western Balkan countries in 2019 has improved when compared to 2018, except in Montenegro, where it has declined. This study will contribute to enhance understanding of the labor market and the impact of FDI on employment in the Western Balkan countries


Author(s):  
Wajiha Manzoor ◽  
Nabeel Safdar

This study focused on the relationship of environment, energy used and foreign direct investment inflows on exports of selective SAARC countries including Pakistan , Bangladesh , India , Sri Lanka and Nepal from 1980-2018. The results revealed that environment has significant positive impact on exports. Energy has also positive impact on exports except Pakistan and Nepal where results showed negative relationship. The FDI inflow in India and Sri Lanka has not significant impact on exports while other three countries has significant impact on exports of those countries. Overall environment, energy used and foreign direct investment inflows have positive impact on export while controlling the impact of inflation, GDP growth, reserves and domestic credit to private sector in SAARC countries.


Author(s):  
Florina Popa

Foreign Direct Investment are among the mobilizing factors of the economic development of a country, alongside the domestic investments, being a basic support in the achievement of the development and modernization strategies. The study presents, briefly, the effects of intervening Foreign Direct Investment flows on the economy of a country, able, by the advanced experience brought, to generate a better capitalization of resources, a contribution to growth. The directions of manifesting the mechanisms of influence of Foreign Direct Investment, as well as the role that they hold for their impact, the economic environment of the host country and the policies practiced in relation to Foreign Direct Investment are taken into account. The purpose of the paper was to point out some aspects regarding the favourable impact that foreign investments could have on an economy, by the contribution to new technologies and the contribution to the productivity increase. The conclusions point to the potential of the impact of Foreign Direct Investment on development and the need for the host countries, to support some properly oriented policies, by maintaining a correlation between the volume of foreign investment flows and the development potential of a country. The research method used to carry out the study was the documentation from the foreign and domestic specialized literature, the synthesis and processing of the relevant ideas, by capturing the impact of Foreign Direct Investment in economic development.


2020 ◽  
Vol 5 (2) ◽  
pp. 137
Author(s):  
Manoj Kumar Chaudhary ◽  
Rudra Prasad Ghimire ◽  
Dinesh Mani Ghimire

Foreign Direct Investment (FDI) is an essential source of economic development. It has a broad relationship with different dimensions of the mixed economies. Like other development assistance, FDI also needs the best economic environment. This investigation aims to find the impact of Covid -19 on FDI inflow and other barriers to receiving FDI commitment in Nepal. This study is descriptive and analytical. Secondary data are used in the study. Foreign direct investment can be obtained as the government prioritized agriculture, tourism, energy, IT, infrastructure, etc., considering rapid economic Development. The government of Nepal is accepting and implementing foreign investment proposals of donor commitments. However, the Covid -19 pandemic has reduced FDI commitments funds as envisioned. Pandemic is not the only barrier of investment commitment. Still, there are also investment barriers are like, Business environment, poor infrastructure, lack of human resource skills, political transitions, weak governance, natural calamities, diverse and complex geography, tax slab, red tape, and climate change are critical in Nepal. Though the FDI in Nepal till 2019 was an upward trajectory, the 2020 pandemic has reduced it as Nepal's primary economic development source. South Asian environment can create FDI friendly environment in Nepal. Finally, this paper is a new one and full authority for future researchers. Keywords: Covid-19 pandemic, Foreign Direct Investment, Commitment, Business Environment, NepalJEL Classification: F23, I1, M0


2021 ◽  
Vol 15 (2) ◽  
pp. 240-255
Author(s):  
Kristina Garskaite-Milvydiene ◽  
Raimonda Martinkute-Kauliene

Derivative financial instruments play a major role in financial markets. However, there are rather contradictory views regarding this issue. Their impact on the financial markets, their stability and the economy have not been thoroughly examined. The aim of this paper is to analyse derivatives and the economic situation in the country and to investigate the relationship between the derivatives and the macroeconomic factors which have the greatest impact on the volume of the derivatives. The paper analyses derivatives statistics and macroeconomic indicators in Lithuania. As a result, the relationship between the derivatives and the country’s macroeconomic indicators is examined by identifying the most significant factors, as the structure and volume of derivatives in different markets may be determined by different macroeconomic factors. The performed analysis and estimation have shown that foreign direct investment has the largest impact on the derivatives, their volume and structure, and average earnings have the least impact.


Author(s):  
К. Буневич ◽  
K. Bunevich ◽  
О. Иванова ◽  
O. Ivanova

One of the indicators of the country’s involvement in the global economy is the export of goods and its structure. The degree and nature of changes in export groups of goods may indicate changes in the structure of the economy under the influence of foreign direct investment, which makes it possible to evaluate the positive or negative effects of them. Recently, more and more countries are involved in the process of international capital movement, both as an exporter and as an importer. There are many reasons for the desire of domestic economic entities to export their capital abroad. The subject of this study is economic relations caused by the relationship of foreign direct investment with the structure of Russian exports. The article considers the dynamics of foreign direct investment in the domestic economy. The attractiveness of the Russian economy from the point of view of international ratings of countries is analyzed. An attempt is made to determine the relationship of foreign direct investment with the macroeconomic indicators of the Russian Federation, as well as the structure of foreign direct investment with the structure of Russian exports. The degree of influence of indicators of attracted foreign direct investment and payments for new technologies on changes in the structure of export is determined The impact of FDI on the host economy is different. On the one hand, FDI brings financial resources to the economy with the new technologies that the economy needs. On the other hand, a direct investor invests his money in those sectors of the economy that have a high rate of return, which in turn does not help to solve the problems of the economy and the uneven development of the country’s industries.


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