scholarly journals Effect of Corruption on Foreign Direct Investment Inflows in Nigeria

2019 ◽  
Vol 29 (2) ◽  
pp. 54-66
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Squares Method ◽  
Positive Impact ◽  
Legal Framework ◽  
Ordinary Least Squares ◽  
Negative Influence ◽  
Positive Influence ◽  
Young Generation ◽  
Foreign Direct Investment Inflows

Abstract This study investigates the effect of corruption on foreign direct investment inflows in Nigeria, by using some control variables. The study covers a period from 1996 to 2017 and employs Ordinary Least Squares method to perform the multiple regression analysis with the aid of SPSS version 20. The findings indicate that corruption has a significant positive influence on FDI. Though the influence of inflation is significantly negative but exchange rate and Nigeria’s corruption ranking position have insignificant positive impact on FDI. The implication is that the poor legal framework and institutional qualities in Nigeria are helping corruption to thrive in all areas of Nigeria’s economy and might ruin the young generation if nothing is done urgently. The study finds support for helping hand theory of corruption and FDI and also establishes that inflation has a significant negative influence on FDI inflows in the country. Therefore, the study recommends establishment of strong institutional and legal system to curtail the prevailing situation in order to save the future of the country.

scholarly journals THE RELEVANCE OF REMITTANCES IN FOSTERING ECONOMIC GROWTH IN THE WEST BALKAN COUNTRIES

Ekonomika ◽  
2017 ◽  
Vol 96 (2) ◽  
pp. 28-42 ◽  
Author(s):  
Rahmije Mustafa Topxhiu ◽  
Florentina Xhelili Krasniqi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Squares Method ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Capital Formation ◽  
The West ◽  
Balkan Countries ◽  
Communist Countries

The remittances of diaspora workers, resulting from international migration, have attracted the attention of academics and policymakers for their role and importance in macroeconomic variables in their countries of origin. The purpose of the paper is to explore the effects of remittances and other variables, such as exports, capital formation, foreign direct investment, and labor force on economic growth in the six former Western Balkan communist countries (Albania, Kosovo, Macedonia, Montenegro, Bosnia and Herzegovina and Serbia). This study utilizes a strongly balanced panel data over the 2005-2015 period for the six Western Balkan countries using the ordinary least squares method (OLS), i.e., the Pooled Regression Model, to evaluate the parameters. According to the regression results, we can conclude that remittances have a positive impact on economic growth in the West Balkan countries, so remittances can foster economic growth in those countries. Also, we find a statistically significant positive relationship between economic growth and other variables included in the model, such as exports, capital formation, and labor. The relationship between economic growth and foreign direct investment has turned out to be statistically insignificant and negatively related.

scholarly journals Impact of Exchange Rate on Economic Growth of Bangladesh

2021 ◽  
Vol 6 (3) ◽  
pp. 173-175
Author(s):  
Md. Fazlul Huq Khan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Least Squares Method ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
The Impact

This paper investigates the impact of inflation, nominal exchange rate, foreign direct investment, and unexpected event shock on the economic growth of Bangladesh by using the time series data from 1990 through 2020. Augmented Dickey-Fuller and Phillips-Perron Unit Root Test used to identify unit-roots existence and check the stationary of variables. The Ordinary Least Squares method is applied to determine the relationship between the dependent variable and independent variables. The results revealed that the exchange rate and foreign direct investment have significantly affected the country's economic growth. Inflation, FDI, and exchange rate positive impact, whereas unexpected events like Covid-19, natural disasters, etc., negatively affect the economic development of Bangladesh. The study can be helpful for the policy makers to identify, formulate and implement the effect policies for the economic growth of the country.

Trade Liberalization, Foreign Direct Investment Inflows, Environmental Quality and Economic Growth Nexus: A Comparative Analysis of Pakistan and China

2019 ◽  
Vol 2 (1) ◽  
pp. 17-26
Author(s):  
Sumaira Alvi ◽  
Imran Sharif Chaudhry ◽  
Fatima Farooq ◽  
Noreen Safdar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Trade Liberalization ◽  
Environmental Quality ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
Bounds Testing ◽  
Foreign Direct Investment Inflows

The present research endeavors to evaluate whether trade liberalization, foreign direct investment inflows and environmental quality affect the economic growth in Pakistan and China. These have crucial role in the economies and pragmatic for formulating economic growth policies. The secondary data is used for all the variables. The ARDL bounds testing approach to cointegration is applied to evaluate the determinants included in the model for both countries. The results of the research conclude that trade liberalization and foreign direct investment both have positive impact on economic growth while environmental pollution has negative impact on economic growth in long-run.

scholarly journals Application of Causal Inference Analysis Economic Growth on Labor Production from Foreign Direct Investment

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-7
Author(s):  
Po Sheng Ko ◽  
Kuo Chih Lu ◽  
Cheng Chung Wu ◽  
Tiantong Yuan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Impact ◽  
Transportation Network ◽  
Yangtze River Delta ◽  
Negative Influence ◽  
Yangtze River Delta Region ◽  
Strength Based ◽  
Employment Quality ◽  
China’S Economy

In recent four decades, policy reform has integrated China’s economy into global. Since 1981, foreign direct investment (FDI) has been gradually flowing into the Yangtze River Delta region. As a result, this region has enjoyed strong economic strength based on abundant human resources and convenient transportation network. Shanghai, the key city, has become one of the major cites attracting FDI; meanwhile, FDI also has had a tremendous impact on Shanghai’s economic development, including employment. To sum up, Shanghai has been chosen as the research object in this paper. This research is organized by four parts: firstly, a theoretical analysis of employment effects of FDI is presented; secondly, after combining the actual utilization of FDI and employment in Shanghai, an empirical analysis of the effects of FDI on employment quantity and employment quality is carried out by data and regression models; thirdly, this research found FDI has exerted a negative influence on employment quantity in Shanghai; moreover, FDI also has shown a positive impact on the employment quality; and finally, the paper has proposed some suggestions to FDI’s utility in the future.

scholarly journals THE EFFECT OF FOREIGN DIRECT INVESTMENT SPILLOVER ON THE LEVEL OF TECHNICAL EFFICIENCY IN LARGE AND MEDIUM MANUFACTURING INDUSTRY IN EAST JAVA

2020 ◽  
Vol 5 (1) ◽  
pp. 6
Author(s):  
Ahmad Oktabri Widyananda ◽  
Dyah Wulan Sari
Keyword(s):  
Foreign Direct Investment ◽  
Technical Efficiency ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Positive Influence ◽  
Foreign Firms ◽  
Stochastic Frontier Approach ◽  
Firm Level

Foreign Direct Investment (FDI) takes an important role in the development process, especially in developing countries. The purpose of this study is to examine and analyze FDI spillover on the level of technical efficiency in the large and medium manufacturing industry in East Java. This study uses a time-varying stochastic frontier approach for firm-level panel data of the East Java manufacturing industry. The results show that all factors in this study affect the level of technical efficiency of large and medium industries in East Java. Variable foreign share, FDI horizontal spillover, and firm size have a positive influence on the technical efficiency of the industry. Whereas the variable FDI backward spillover, FDI forward spillover and the level of market concentration negatively affect the level of technical efficiency of the industry. Finally, it’s needed to build synergies and sustainable relationships between products produced by domestic and foreign firms. Thus, the presence of foreign firms in East Java could have a positive impact on improving the technical efficiency of the domestic industry both at the upstream and downstream levels. Keywords: Foreign Direct Investment Spillover, Technical Efficiency, East Java IndustryJEL Classification: F21, L60, D24

scholarly journals The impact of financial sector reforms on foreign direct investment in an emerging economy: empirical evidence from Ghana

2020 ◽  
Vol 2 (4) ◽  
pp. 271-284
Author(s):  
Kofi Kamasa ◽  
Isaac Mochiah ◽  
Andrews Kingsley Doku ◽  
Priscilla Forson
Keyword(s):  
Foreign Direct Investment ◽  
Empirical Evidence ◽  
Direct Investment ◽  
Least Squares Method ◽  
Financial Sector ◽  
Ordinary Least Squares ◽  
Sector Reform ◽  
Content Type ◽  
Financial Sector Reform ◽  
The Impact

Purpose This paper aims to empirically investigate the impact that financial sector reforms have on foreign direct investment (FDI) in Ghana. Design/methodology/approach Composite financial sector reform index was constructed, which was made up of various forms of reform policies that were implemented from 1987 to 2016. The auto regressive distributed lag bounds test was used to establish cointegration between variables. Having controlled for other covariates that affect FDI such as trade openness, exchange rate, gross domestic product per capita, inflation and by using the fully modified ordinary least squares method, the estimations are robust as it uses a semi-parametric correction to avoid for any possible issues of endogeneity and serial correlation. Findings Results from the paper reveal that financial sector reform deepening boost FDI with a 2.167% increase in FDI following from a unit percentage improvement of the financial sector reforms. Considering the various categories of reforms, the results reveal that competitive reforms have the highest impact on FDI followed by privatization reforms with positive and significant elasticity coefficients of 2.174% and 0.726%, respectively. Behavioral reforms revealed a positive effect on FDI, albeit insignificant. Originality/value The paper contributes to policy by providing empirical evidence on the effect of financial sector reform on FDI inflows in Ghana. As far as the review of literature is concerned, this paper provides the foremost empirical evidence on the subject with sole emphasis on Ghana. Thus, this paper suggests the deepening of the financial sector reforms, improving competition and maintaining macroeconomic stability.

scholarly journals ANALISIS DETERMINAN KETIMPANGAN PENDAPATAN DI INDONESIA

2020 ◽  
Vol 2 (1) ◽  
pp. 141
Author(s):  
Aufa Oksamulya ◽  
Ali Anis
Keyword(s):  
Foreign Direct Investment ◽  
Income Inequality ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Secondary Data ◽  
Negative Influence ◽  
Positive Influence ◽  
Panel Regression ◽  
Independent Variables ◽  
And Migration

The purpose of this research is to analyze the effect of education, foreign direct investment (FDI), and migration to income inequality in Indonesia. Using secondary data in the form of panel regression in 32 Indonesian provinces from 2014-2018 (sourced from the Central Statistics Agency). The independent variables in this test are Education (X1), Foreign Direct Investment (FDI) (X2), and migration (X3). Data is processed by panel data analysis, there are several tests on inductive analysis, namely: (1) Panel Regression Model (2) Classical Assumption Test (3) t test (4) f test. From the tests that have been done, the results show (1) that there is a significant and negative influence between education and income inequality in Indonesia. (2) there is no significant and negative influence between Foreign Direct Investment (FDI) and income inequality in Indonesia. (3) there is a significant and positive influence between migration and income inequality in Indonesia. Partially there is a significant influence between all independent variables namely education, foreign direct investment (FDI) and migration to income inequality in Indonesia at α = 5%.

scholarly journals IMPACT OF ENVIRONMENT, ENERGY AND FOREIGN DIRECT INVESTMENT ON EXPORTS OF SELECTIVE SAARC COUNTRIES

2020 ◽  
pp. 106-113
Author(s):  
Wajiha Manzoor ◽  
Nabeel Safdar
Keyword(s):  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Positive Impact ◽  
Negative Relationship ◽  
Domestic Credit ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Foreign Direct Investment Inflows

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.

scholarly journals THE ROLE OF POLITICAL STABILITY IN FOREIGN DIRECT INVESTMENT ATTRACTION: CROSS-COUNTRY ANALYSIS

2020 ◽  
Vol 1 ◽  
pp. 76-83
Author(s):  
Rogneda Groznykh ◽  
Oleg Mariev ◽  
Sergey Plotnikov ◽  
Maria Fominykh
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Positive Impact ◽  
Political Stability ◽  
Primary Objective ◽  
Fdi Inflows ◽  
Cross Country ◽  
The Impact ◽  
Foreign Direct Investment Inflows

This study is devoted to the evaluation and scrutiny of political stability as a determinant of foreign direct investment (FDI) inflows to different countries. The primary objective of the research is to estimate the impact and influence of various indicators of political stability on foreign direct investment inflows. The analysis is delivered based on a database on cross-country FDI inflows of 66 FDI-importer countries and 98 FDI-exporter countries, in the period between 2001-2018. This article uses the assumption that the impact of political stability might be different for both the groups of developed and developing countries. As the developed economies have higher political stability, they tend to attract larger amounts of foreign direct investment compared to developing economies, where the political situation can be less stable. Furthermore, the estimation applies the gravity approach, while the main method used for the econometric calculations is the Pseudo Poisson Maximum Likelihood (PPML) regression. The outcome revealed that in most cases the indicators of political stability had a positive impact on the foreign direct investment inflows. However, the results are not constant for all groups of countries. Therefore, if a developed country is an importer of investment, then most of the indicators of political stability become significant and have a positive influence on the foreign direct investment. At the same time, if the importer is a developing country, then for the investor-developed economy, political stability becomes a significant factor. Similarly, if the FDI-exporter is a developing economy, then determinants of political stability are insignificant. Based on these results, possible recommendations for refined government policies can be suggested.

Does Political Risk affect Foreign Direct Investment Inflows? Empirical Evidence From Selected MENA Economies

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Abdelkader Nassour ◽  
Saliha Meftah ◽  
Sajid Hussain Mirani
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Impact ◽  
Negative Relationship ◽  
Political Risk ◽  
Mena Countries ◽  
Comprehensive Picture ◽  
The Military ◽  
The Impact ◽  
Foreign Direct Investment Inflows

The current political uncertainty, economic problems, permanent religious conflicts, and crisis continue to frustrate investors and hold back potential stabilization. This paper investigates the impact of Political risk on Foreign Direct Investment inflows in three selected MENA countries (Algeria Turkey and Arabia-Saudi) during the period (1984-2017) using the Panel Data model. The Hausman Test confirms that the random effects model is a more appropriate technique for this model to explain the effect of Political Risk on FDI inflows. The results of our study show that: Democratic Accountability and Investment Profile, Law Order have a significant positive impact on FDI inflow. Besides that, another interesting finding of the research is the significant negative relationship between the Military in Politics and FDI. These results are important for policymakers to implement a strategy that would ensure the reduction of the level of political instability related by the indicators of the Corruption and the Military in Politics, in the aim to increase the inflows of FDI in these three selected countries of MENA. Furthermore, the results give a more comprehensive picture for the foreign investors that these selected countries of MENA can be the best host for their investments.

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