scholarly journals CROSS-SECTIONAL ANALYSIS OF EXCHANGE RATE AND INTERNAL DEPRECIATION ELASTICITY ON EXTERNAL TRADE BALANCE AND FOREIGN DIRECT INVESTMENT INFLOW IN CROATIA AND HUNGARY FROM 2010 TO 2017

2018 ◽  
Vol 4 (1) ◽  
pp. 87-100
Author(s):  
Darko Karić ◽  
◽  
Đuro Horvat ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Trade Balance ◽  
Direct Investment ◽  
Foreign Direct Investment Inflow ◽  
External Trade ◽  
Cross Sectional ◽  
Cross Sectional Analysis ◽  
Sectional Analysis

scholarly journals Effects of Exchange Rate on Foreign Direct Investment Inflow in Nigeria

2019 ◽  
pp. 1-12
Author(s):  
Chukwurah, Josephine Chikwue
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Unit Root ◽  
Direct Investment ◽  
Foreign Direct Investment Inflow ◽  
Bounds Testing ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
The Impact

Aims: This study examined the place of exchange rate in determining foreign direct investment inflow into the Nigerian economy using time series data from 1980 to 2017. Study Design:  Historical research design method was adopted for the study, it uses secondary sources and a variety of primary documentary evidence. Place and Duration of Study: Department of economics, faculty of social sciences, Nnamdi Azikiwe University, between September 2010 and May 2018. Methodology: The method adopted for this study was the Autoregressive Distributed Lag (ARDL) estimation approach and error correction mechanism within the framework of dynamic OLS (DOLS) estimation. The analysis began with a verification of the unit root properties of the variables. The Augmented Dickey Fuller (ADF) and Philips-Perron (PP) unit root procedures were employed and both tests indicate that the variables were integrated of either order I(0) or order I(1). This warranted the use of Bounds testing approach in determining the cointegration among the variables in the various equations in the selected countries. Analysis using the Bounds testing approach to cointegration confirmed the existence of long run relation among the variables of the models. In determining the impact of exchange rate on foreign direct investment inflow in Nigeria, we estimated an ARDL model. Results: The results indicate that exchange rate affects FDI in both the long and short run. The result also reveals that the impact of exchange rate on FDI in the short run continuous up to three periods after the initial disturbance. Conclusion: This study concluded that exchange rate appreciation will lead to increases in foreign direct investment inflow. The study therefore recommended, amongst others, that government should apply exchange rate regime that is competitive at the international market so as to attract more FDI inflow to the Nigeria economy.

Influence of Economic Factor of Speculative Currency Risk on International Outsourcing

2020 ◽  
Vol 9 (1) ◽  
pp. 27-37
Author(s):  
Sergey Komarov
Keyword(s):  
Foreign Direct Investment ◽  
Trade Balance ◽  
Direct Investment ◽  
Foreign Capital ◽  
Economic Factor ◽  
High Amplitude ◽  
Graphical Analysis ◽  
External Trade ◽  
Investment Activity ◽  
The Us

The paper presents the results of elementary mathematical and graphical analysis of the indicators characterizing financial conditions of investment activity, as well as analysis of foreign direct investment, external trade balance of Russia for the period from 2006 to 2016, as well as analysis of key performance indicators of organizations with foreign capital participation over the period from 2006 to 2014. Features of coincidence in fluctuations of various indicators are considered. The author draws conclusions about the coincidence in the dynamics of foreign direct investment, the dynamics of the dollar, the foreign trade balance of Russia and the turnover of organizations with foreign capital. The author points out that in the period between 2008 and 2014 there was a crisis period for companies with foreign capital from 2011 to 2012 due to the high amplitude of fluctuations in the us dollar on the Russian market.

scholarly journals The Short and Long Run Determinants of Foreign Direct Investment in Nigeria

2020 ◽  
Vol 2 (4) ◽  
pp. 45-65
Author(s):  
Oludayo Elijah Adekunle
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Capital Expenditure ◽  
Trade Openness ◽  
Foreign Direct Investment Inflow ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run

What determines foreign direct investment inflows has been a subject of controversies among scholars. As a result of the highlighted gap discussed in this study, the short and long run determinants of foreign direct investment and their effects on foreign direct investment inflow in Nigeria was investigated from 1986 to 2018. Data were analyzed with Augmented Dickey-Fuller and Philip Perron unit root test, Autoregressive Distributed Lag and Pairwise Granger Causality techniques. Evidence of long run dynamic equilibrium relationship was established between foreign direct investment and its determinants. The short and long run coefficients revealed that government capital expenditure and inflation impede the inflow of foreign direct investment both in the short and long run while exchange rate serve as bane to foreign direct investment in the long run. However, gross domestic product and trade openness were found to stimulate the inflow of foreign direct investment in the short and long run. The Pairwise causality result revealed that government capital expenditure, exchange rate and trade openness had independent causality with foreign direct investment while gross domestic product and inflation rate had unidirectional causality with foreign direct investment. Thus, government should allocate more funds for the provision of enabling and investment enhancing environment to promote foreign direct investment inflow. The study added value to previous studies by estimating the short and long run determinants of foreign direct investment using more dynamic and robust technique of Autoregressive Distributed Lag developed by Peseran and Shin (1999). JEL Codes: C32, F21.

scholarly journals The Determinants of FDI in Sub-Saharan Economies: A Study of Data from 1990–2017

2019 ◽  
Vol 7 (3) ◽  
pp. 43 ◽  
Author(s):  
Prince Jaiblai ◽  
Vijay Shenai
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Developing Economies ◽  
National Income ◽  
Extensive Literature ◽  
Cross Sectional ◽  
Income Levels ◽  
Sub Saharan ◽  
Determinants Of Fdi

Foreign Direct Investment (FDI) can bring in much needed capital, particularly to developing countries, help improve manufacturing and trade sectors, bring in more efficient technologies, increase local production and exports, create jobs and develop local skills, and bring about improvements in infrastructure and overall be a contributor to sustainable economic growth. With all these desirable features, it becomes relevant to ascertain the factors which attract FDI to an economy or a group of adjacent economies. This paper explores the determinants of FDI in ten sub-Saharan economies: Liberia, Sierra Leone, Ivory Coast, Ghana, Nigeria, Mali, Mauritania, Niger, Cameroun, and Senegal. After an extensive literature review of theories and empirical research, using a set of cross-sectional data over the period 1990–2017, two econometric models are estimated with FDI/GDP (the ratio of Foreign Direct Investment to Gross Domestic Product) as the dependent variable, and with inflation, exchange rate changes, openness, economy size (GDP), income levels (GNI/capita (Gross National Income) per capita), and infrastructure as the independent variables. Over the period, higher inflows of FDI in relation to GDP appear to be have been attracted to the markets with better infrastructure, smaller markets, and lower income levels, with higher openness and depreciation in the exchange rate, though the coefficients of the last two variables are not significant. These results show the type of FDI attracted to investments in this region and are evaluated from theoretical and practical viewpoints. FDI is an important source of finance for developing economies. On average, between 2013 and 2017, FDI accounted for 39 percent of external finance for developing economies. Policy guidelines are formulated for the enhancement of FDI inflows and further economic development in this region. Such a study of this region has not been made in the recent past.

THE ENVIRONMENTAL KUZNETS CURVE FOR CARBON DIOXIDE EMISSIONS AND TRADE ON BELT AND ROAD INITIATIVE COUNTRIES: A SPATIAL PANEL DATA APPROACH

2019 ◽  
Vol 65 (04) ◽  
pp. 1099-1126 ◽  
Author(s):  
YASIR KHAN ◽  
QIU BIN
Keyword(s):  
Foreign Direct Investment ◽  
Carbon Emissions ◽  
Direct Investment ◽  
Homogeneity Test ◽  
Foreign Direct Investment Inflow ◽  
Belt And Road Initiative ◽  
Cross Sectional ◽  
Cross Sectional Dependence ◽  
Belt And Road ◽  
Spatial Panel Data

This paper empirically examines the nexus between CO2 emissions and international trade for the 65 Belt and Road Initiative (BRI) economies over the period of 1985–2017. We first consider the cross-sectional dependence and slope homogeneity test in the panel, and we observed from the results that there is substantial heterogeneity and cross-sectional dependence. We employed the results of the common correlated effects mean group (CCEMG) estimator and determined that for all 65 BRI economies, foreign direct investment inflow, gross domestic product (GDP) squared and urbanization had a positive and significant impact on carbon emissions (CO2). Moreover, this study found that foreign direct investment inflow led to an increase in carbon emissions in BRI countries across South Asia, Southeast Asia, East Asia and Europe. Finally, on the basis of the panel causality test, we found evidence of various causality associations among the selected variables across the regions. These findings are significant for the related policymakers in BRI countries, as they can assist in developing appropriate carbon emission, trade and energy policies with the goal of reducing carbon emissions.

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