Foreign Direct Investment and Export Decisions of Vietnamese Enterprises

2021 ◽  
Vol 37 (1) ◽  
Author(s):  
Pham The Anh
Keyword(s):  
Foreign Direct Investment ◽  
Selection Bias ◽  
Direct Investment ◽  
Positive Impact ◽  
Sample Selection ◽  
Sample Selection Bias ◽  
Heckman Model ◽  
Insignificant Effect ◽  
Export Decisions ◽  
The Impact

This research quantifies the impact of foreign direct investment (FDI) on the export  decisions of Vietnamese  enterprises. To control the problem of sample selection bias, this study employs the Heckman model (1979) estimated for two equations on export participation and rate. Unlike previous researches, which mainly rely on one single proxy of FDI, this research adopts sensititivy analysis through the estimation of a model with two representative variables for FDI. It is indicated that FDI has a positive impact on the export decisions of Vietnamese enterprises. Nonetheless, FDI has an insignificant effect on the export rate of Vietnamese enterprises.

scholarly journals International Trade and Foreign Direct Investment as Innovation Factors of the U.S. Economy

2014 ◽  
Vol 41 (1) ◽  
pp. 60-75
Author(s):  
Tomasz M. Napiórkowski
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Positive Impact ◽  
The United States ◽  
Annual Data ◽  
Main Portion ◽  
The Impact ◽  
Total Impact ◽  
The U.S

Abstract The aim of this research is to asses the hypothesis that foreign direct investment (FDI) and international trade have had a positive impact on innovation in one of the most significant economies in the world, the United States (U.S.). To do so, the author used annual data from 1995 to 2010 to build a set of econometric models. In each model, 11 in total) the number of patent applications by U.S. residents is regressed on inward FDI stock, exports and imports of the economy as a collective, and in each of the 10 SITC groups separately. Although the topic of FDI is widely covered in the literature, there are still disagreements when it comes to the impact of foreign direct investment on the host economy [McGrattan, 2011]. To partially address this gap, this research approaches the host economy not only as an aggregate, but also as a sum of its components (i.e., SITC groups), which to the knowledge of this author has not yet been done on the innovation-FDI-trade plane, especially for the U.S. Unfortunately, the study suffers from the lack of available data. For example, the number of patents and other used variables is reported in the aggregate and not for each SITC groups (e.g., trade). As a result, our conclusions regarding exports and imports in a specific SITC category (and the total) impact innovation in the U.S. is reported in the aggregate. General notions found in the literature are first shown and discussed. Second, the dynamics of innovation, trade and inward FDI stock in the U.S. are presented. Third, the main portion of the work, i.e. the econometric study, takes place, leading to several policy applications and conclusions.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

scholarly journals THE IMPACT OF INNOVATION ON ECONOMIC GROWTH: THE SPILLOVER EFFECT OF FOREIGN DIRECT INVESTMENT

2020 ◽  
Vol 8 (2) ◽  
pp. 708-714
Author(s):  
Nguyen Tran Thai Ha ◽  
Sobar M. Johari ◽  
Trinh Thi Huyen Thuong ◽  
Nguyen Thi Minh Phuong ◽  
Le Thi Hong Anh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Research And Development ◽  
Direct Investment ◽  
Positive Impact ◽  
Spillover Effect ◽  
Empirical Method ◽  
Convincing Evidence ◽  
Positive Contribution ◽  
The Impact

Purpose of the study: Innovation is seen as the key to improving quality and productivity, thereby promoting competition and economic growth. This study analyzes the impact of innovation on economic growth through various measures, such as research and development spending, the number of researchers, number of patents as well as trademark registrations. Research results are evidence to recommend policies for intellectual-based economic growth. Methodology: Literature review and empirical analysis conducted in the study. The empirical method is a two-step System Generalize Methods of Moments (GMM), aiming at reliable results. Accessing the World Bank Database, research data from 64 developed and developing countries are collected from 2006 to 2014. Main Findings: The empirical findings show that innovation plays a crucial contribution in promoting economic growth, similar to national openness and government spending on education. This study also finds a positive impact on foreign investment flows and their spillover role in enhancing the correlation between innovation and economic growth. Applications of this study: The findings of this study focus on the contributions of innovation, foreign direct investment inflows, and other macro factors that can be enforced to improve economic growth by policymakers. Novelty/Originality of this study: The study uses different measures of innovation, including inputs such as the number of researchers, research and development expenditure, and outputs as the number of patents and number of trademark registrations. Empirical findings are found consistently, thus confirming that innovation is very important for economic growth. The study also shows convincing evidence confirming the positive contribution of foreign direct investment as well as its spillover effect on innovation and economic growth.

scholarly journals Reforming the IMF to Increase FDI Led Economic Growth: The Case of Latin American and Caribbean Countries

2018 ◽  
Vol 04 (S1) ◽  
pp. 81
Author(s):  
Ashraf Mahate ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Latin American ◽  
Host Country ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
The Impact ◽  
Latin American And Caribbean ◽  
The Imf

There is a strong body of literature that finds a direct connection between inward foreign direct investment and economic growth in the host country. At the same time, economic growth in the host country attracts additional Foreign Direct Investment (FDI). This bidirectional relationship can be supported by the IMF through its lending program to countries to assist in dealing with short-term shocks as well as managing more long-term structural issues. In fact, the IMF programs in theory should provide an indicator to potential investors that the country is committed to making a change and opening its economy, which are typical requirements under IMF conditions. IMF intervention should lead to a positive impact on inward FDI. This study examines the impact of IMF-support programs on inward FDI for a sample of Latin American and Caribbean Countries. The results from this study reveal that being on an IMF borrowing program has a negative impact on inward FDI in the second and third year. We argue that being on an IMF borrowing program does not provide inward FDI with the seal of approval that it requires in making an investment.

scholarly journals Impact of Foreign Direct Investment on Employment and Unemployment Rate in Nigeria: Application of Vector Autoregression(VAR) Models (1960-2014)

2019 ◽  
pp. 1-15
Author(s):  
Ajayi, Abdulhakeem ◽  
Rafiu Olayinka Akano ◽  
Samuel Olorunfemi Adams
Keyword(s):  
Foreign Direct Investment ◽  
World Bank ◽  
Unemployment Rate ◽  
Direct Investment ◽  
Vector Autoregression ◽  
Positive Impact ◽  
National Bureau ◽  
Var Models ◽  
The Impact

Unemployment is one of the major problem affecting Nigeria’s economy and its’ society, the rate of unemployment have increased over the years. This study’s aim is to investigate the impact of Foreign Direct Investment (FDI) on the employment and unemployment rate in Nigeria. The study useyearly data on employment and unemployment rate collected from CBN Statistical Bulletin, National Bureau of Statistics and World Bank Indicators for the period 1960 – 2014 to achieve its objective and all analysis were done with E-view 9.5. The study employ Vector Autoregression (VAR) to model the employment and unemployment rate in Nigeria. The findings of the study suggested that FDI had a significant and positive impact on employment, FDI Granger-cause employment, employment Granger-cause FDI, unemployment Granger-cause employment and employment also Granger-cause unemployment. Also unemployment Granger-cause FDI and FDI Granger-cause unemployment.This implied that FDI has a significant role on employment rate in Nigeria and this should not be minimized. The study therefore recommended that policies should be formulated to exploit the role of FDI on employment in Nigeria, in an attempt to reduce the unemployment rate.

scholarly journals Impact of Foreign Direct Investment on the Financial Performance of Listed Deposit Banks in Nigeria

2020 ◽  
Vol 11 (2) ◽  
pp. 323 ◽  
Author(s):  
Tony Ikechukwu Nwanji ◽  
Kerry E. Howell ◽  
Sainey Faye ◽  
Adegbola Olubukola Otekunrin ◽  
Damilola Felix Eluyela ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Financial Performance ◽  
Direct Investment ◽  
Positive Impact ◽  
Profit Maximization ◽  
Secondary Data ◽  
Equity Capital ◽  
Annual Reports ◽  
Outward Fdi ◽  
The Impact

In this study, we examine the impact of foreign direct investment (FDI) on the financial performance of Nigerian listed deposit banks. We collected secondary data from the annual reports and accounts of 14 banks between 2010 and 2017. We employed the Tobin Q quantitative method for the analysis. We adopted the theoretical framework of pecking order theory since the analysis of the impact of FDI on the financial performance of these banks are both inward and outward FDI. The Tobin Q method was used as the dependent variable and FDI as an independent variable. Board size, firm size, equity capital and reinvested earnings were all financial performance indicators employed to test the impact of FDI on the financial performance of the banks on understudy in Nigeria. The result of the data analysis and findings showed that FDI had contributed positively to the development and performance of the deposit banks over the period under consideration. Our theoretical findings suggest a positive relationship between FDI and profit maximization. This support the FDI theory that banks or organisations are financed partly with debt-equity, both used by the banks to balance the cost and benefit financing decisions by the management. In the case of the empirical findings, the results of hypothesis testing show a significant effect on the banks’ financial performances. Given these results, we conclude that FDI has made a positive impact on the development and financial performances of the listed deposit banks under study which resulted in some of the banks’ growth from local banks in Nigeria into some of the leading international banks in Africa.

scholarly journals FOREIGN DIRECT INVESTMENT, WORKERS’ REMITTANCES AND PRIVATE SAVING IN PAKISTAN: AN ARDL BOUND TESTING APPROACH

2015 ◽  
Vol 16 (6) ◽  
pp. 1216-1234 ◽  
Author(s):  
Syed Ali Raza
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Unique Contribution ◽  
Domestic Investment ◽  
Causality Test ◽  
Private Savings ◽  
The Impact

The objective of this study is to investigate the impact of foreign direct investment (FDI) and workers’ remittances on private savings of Pakistan. This study employs ARDL bound testing co-integration approach, rolling window analysis, Granger causality test, Toda and Yamamoto Modified Wald causality test and variance decomposition test. Results indicate the significant positive impact of FDI and workers’ remittances on private savings in the long and short run. Causality analyses confirm the bidirectional causal relationship of FDI and workers’ remittances with private savings. It is recommended that policy makers should form friendly policies to attract more FDI and workers’ remittances in the country which leads to increase private savings in Pakistan. This leads to increase more fund for financial intermediaries to increase domestic investment opportunities in the country. This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the impact of FDI and workers’ remittances on private savings of Pakistan by using the long annual time series data and applying more rigorous econometric techniques.

scholarly journals Country’s Brand and Corruption Level: Cointegration Analysis

2019 ◽  
pp. 366-373 ◽  
Author(s):  
Tatyana Milova ◽  
Kateryna Troshkina ◽  
Yevhenii Horlov ◽  
Jaroslaw Dobkowski
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Impact ◽  
Cointegration Analysis ◽  
Cause And Effect ◽  
Goods And Services ◽  
Country Brand ◽  
The Impact ◽  
Control Of Corruption

The paper summarized the arguments and counterarguments in the scientific debate on the impact of corruption on a country's brand. The modern approaches to the analysis of corruption’s impact on the country's macroeconomic indicators were analysed. The authors justified that increasing the corruption’s level is considered as one of the most significant deterrents to the radical political and economic changes taking place in the countries by society. The main purpose of the paper is to analyse the long-term cause-and-effect relationships between Control of Corruption and the country's brand. Four European countries (Latvia, Lithuania, Poland and Ukraine) were selected as the object of the investigation, which pursued an evolutionary policy of reforming the political and economic system after the collapse of the Soviet Union, which encouraged the practice of eliminating corruption. The research period was 2000-2018. With a purpose to check the hypothesis of the investigation the 3-stage algorithm to estimate the long-term cause-and-effect relationships between Control of Corruption and the key parameters of the country brand is developed. The developed algorithm was based on the Augmented Dicker-Fuller test and granger casualty test. It is established that for Ukraine, the interconnections between Control of Corruption and International migrant stock, Control of Corruption and Exports of goods and services, Control of Corruption and Foreign direct investment had a unidirectional character of influence of the corruption’s level on the components of the country’s brand. The findings proved that 51.73%, 43.79% and 66% of the total fluctuations of International migrant stock, Exports of goods and services, Foreign direct investment depend on changes in the level of corruption in the country. The obtained results allowed concluding that for the European Union countries (Poland, Lithuania and Latvia) it was the country brand that had a positive impact on reducing the corruption’s level. It was justified that the choice of a specific model for combating the corruption’s level in the chosen countries significantly determined the course of their political transformation and influenced the change’s rate of the social and economic development. Keywords: brand, stakeholders, competitiveness, investors, corruption.

scholarly journals Contribution of Foreign Direct Investment in Nepal

2019 ◽  
Vol 9 ◽  
pp. 77-89
Author(s):  
Khom Raj Kharel ◽  
Suman Kharel
Keyword(s):  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Foreign Investment ◽  
Direct Investment ◽  
Significant Contribution ◽  
Positive Impact ◽  
Investment Environment ◽  
The Government ◽  
Macro Variables ◽  
The Impact

 The purpose of this paper is to analyze the foreign direct investment status and environment in Nepal. There is significant contribution of foreign investment in economic development of developing countries like Nepal. Foreign investment attraction in a country like Nepal increases the foreign capital and technology transfer. Since 1990s inflow of foreign direct investment (FDI) has been increasing in Nepal due to the adoption of liberal economic policy by the government of Nepal. The Foreign Investment Technology Transfer Act (FITTA) has made better foreign investment environment in Nepal. This paper examines and analyses the contribution of FDI in Nepal. For the analysis, simple linear regression model has been applied to measure the impact of FDI on GDP and employment. Because FDI inflow has been recorded after 1990s, the impact of FDI has been analyzed in this paper over the period of 1990/91-2018/19. This study finds a positive impact of FDI on GDP and other macro variables.

scholarly journals University Choice and Students` Migration: An Application of the Heckman Model

2010 ◽  
Vol 25 (2) ◽  
pp. 65-79
Author(s):  
Park Min Soo ◽  
Koo Chan Dong ◽  
Oh Jeung Il
Keyword(s):  
High School Students ◽  
Selection Bias ◽  
Higher Education Policy ◽  
Sample Selection ◽  
Small Towns ◽  
Sample Selection Bias ◽  
Economic Policies ◽  
School Students ◽  
Heckman Model ◽  
Migration Equation

This study attempts to elucidate the migration patterns of Korean high school students choosing a university. Estimating a migration equation without considering sample-selection bias would yield incorrect results. Thus, this study used the Heckman model. We found that the sample selection bias would be serious in the case of students living in Seoul. We also found that students living in small towns had a 13.1 percent higher probability of migrating than those residing in Seoul, and an 8.2 percent higher probability than those living in other big cities. The differences in the migration probabilities can be interpreted as a preference for metropolitan areas. A simple policy that provides physical and financial resources to the universities would not be successful. A higher-education policy is likely to be effective only when it is implemented in coordination with the cultural and economic policies of the region.

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