scholarly journals FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN ASIA: ANALYSIS FOR ADVANCED ECONOMIES, EMERGING MARKETS & DEVELOPING ECONOMIES

2018 ◽  
Vol 4 (2) ◽  
pp. 162-167
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Emerging Markets ◽  
Direct Investment ◽  
Developing Economies ◽  
Advanced Economies

Foreign Direct Investment and Growth Symbiosis: A Semiparametric System of Simultaneous Equations Analysis

2017 ◽  
Vol 7 (1) ◽  
Author(s):  
Nadine McCloud ◽  
Michael S. Delgado ◽  
Subal C. Kumbhakar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Developing Economies ◽  
Institutional Quality ◽  
Simultaneous Equations ◽  
Asymptotically Normal ◽  
Methodological Tool

AbstractWe characterize the types of interactions between foreign direct investment (FDI) and economic growth, and analyze the effect of institutional quality on such interactions. To do this analysis, we develop a class of instrument-based semiparametric system of simultaneous equations estimators for panel data and prove that our estimators are consistent and asymptotically normal. Our new methodological tool suggests that across developed and developing economies, causal, heterogeneous symbiosis and commensalism are the most dominant types of interactions between FDI and economic growth. Higher institutional quality facilitates, impedes or has no effect on the interactions between FDI and economic growth.

scholarly journals Causal Relationship between Foreign Direct Investment and Economic Growth in Nigeria: 1970-2013

2015 ◽  
Vol 7 (11) ◽  
pp. 230 ◽  
Author(s):  
Uwazie I. U. ◽  
Igwemma A. A. ◽  
Nnabu Bernard Eze
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Unit Root ◽  
Direct Investment ◽  
Developing Economies ◽  
Unit Root Test ◽  
Annual Data ◽  
Policy Reforms ◽  
Causality Test ◽  
Long Run

Foreign direct investment is presumed to play immense role in economic growth in both developed and developing economies. This assumption has motivated the army of studies to actually determine the nexus between foreign direct investment and economic growth in Nigeria. But these studies were not unified on the direction of the causation, hence the need for the study. To effectively analyze the result, the study employs vector error correction model method of causality to analyze the annual data for the periods of 1970 to 2013. The Augmented Dickey-Fuller (ADF) unit root test show presence of unit root at level but stationary after first difference. The Johansen cointegration test confirms that the variables are cointegrated while the granger causality test affirms that foreign direct investment and economic growth reinforce each other in the short run in Nigeria. Also, it is reported that foreign direct investment granger cause economic growth both in the short and long run in Nigeria. Based on these findings, the study advocates the adoption of aggressive policy reforms to boost investors’ confidence and promotion of qualitative human capital development to lure FDI into the country. It also suggests the introduction of selective openness to allow only the inflow of FDI that have the capacity to spillover to the economy. These will attract FDI and boost economic growth in Nigeria.

scholarly journals Foreign Direct Investment For Developing Financing: Teaching Market-Related Aspects Through Cases

2009 ◽  
Vol 5 (4) ◽  
pp. 51-66
Author(s):  
Richard J. Hunter ◽  
Hector R. Lozada
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Markets ◽  
Direct Investment ◽  
Developing Economies

This article presents two cases that have been used to supplement the teaching of how market-related aspects impact decisions, policies and tasks associated with attracting foreign direct investment into emerging markets and developing economies. The authors share their experiences in workshops and in the classroom and provide discussion strategies and teaching notes for each case.

scholarly journals Foreign investment & growth in emerging economies: panel ARDL analysis

2019 ◽  
Vol 22 (2) ◽  
Author(s):  
Michael Appiah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Positive Impact ◽  
Trade Openness ◽  
Positive Sign ◽  
Panel Ardl ◽  
Employment Conditions

The contributory role of foreign investment on growth in Africa recent years has received much consideration by researchers and policy makers. Studies on this area available are not clear. In most recent studies, foreign direct investment has emerged as a determining factor of economic growth. In light of this fact, the current study is an attempt to investigate the contributions of foreign direct investment on economic growth in developing economies of Africa. This study uses yearly panel data for the period 1995-2015 for 5 developing economies of Africa. The results of Panel ARDL indicate that foreign direct investment has positive impact on economic growth as well as a positive sign of trade openness, inflation and labor. The study stresses that for increasing economic growth there is a need to seek more foreign investments, increase trade openness and inflation at the same time improve upon employment conditions in selected African developing countries.

scholarly journals Quest for Sustainable Growth, Does Foreign Direct Investment Still Matter? Evidence in Africa

2019 ◽  
Vol 7 (4) ◽  
pp. 397-409
Author(s):  
Adewosi, O. Adegoke ◽  
Manu Donga ◽  
Adamu Idi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Negative Impact ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Sustainable Growth ◽  
Domestic Investment ◽  
African Countries

The debate on the role of Foreign Direct Investment in promoting rapid growth and development of the developing economies remain inconclusive. This paper examined whether FDI still matters in African Countries over the period of 1990 to 2017, with the proper utilization of panel data estimation technique on the annual country data that were sourced from world Governance and Development Indicators. Using random and fixed effect model, the results reveal that some important variables such as coefficient of trade openness, rule of law, political stability, capital formation and population positively determined economic growth in Africa countries, account for about 2, 1, 65, 170, and 396.7 percent increase in economic growth. While, FDI and inflation were found to have negative impact on economic growth accounting for 21.4 and 2 percent fall in economic growth over the study period. The study then recommends amongst others formulation and implementation of policies that encourage domestic investment in the continents.

Modeling the Impact of Foreign Equity, Foreign Debt and FDI on Indian Economic Growth Through VECM Approach

2019 ◽  
Vol 9 (2) ◽  
pp. 273
Author(s):  
Amar Singh ◽  
Arvind Mohan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Unit Root ◽  
Direct Investment ◽  
Developing Economies ◽  
Spline Interpolation ◽  
Series Data ◽  
Testing Time ◽  
Integration Test ◽  
The Impact

Foreign portfolio investment and foreign direct investment are the backbone of any economy as well as contributing to the growth of all developing economies. Herein, it motivated to do the study by investigating the causality between foreign investment and economic growth in India. To find out the exact causation effectively, we have employed a vector error correction model method of causality. The testing time series data period is from 1993 to 2017. Here, in this study, we converted annual gross domestic product and foreign direct investment data into monthly figures. For this we used econometric disaggregation techniques know as linear spline interpolation method for monthly data conversion. ADF unit root test confirms the presence of unit root at level and stationary at first difference. Johansen co-integration test is done after achieving the stationarity and it shows those variables are co-integrated. Whereas Granger causality test results show no-causality exists between (i) FDI and GDP (ii) GDP and FDI (iii) FE and GDP (iv) FD and GDP (v) FE and FDI (vi) FD and FDI (vii) FE and FD and uni-directional causality exist between GDP and FE (ii) GDP and FD (ii) FDI and FE (iv) FDI and FD (v) FD and FE. The results advocates that FDI, FE, FD boost the economic growth of India.

scholarly journals Foreign Direct Investment Spillovers and Economic Growth: Evidence from Asian Emerging Countries

2021 ◽  
Vol 16 (1) ◽  
pp. 49
Author(s):  
Lodi Bagus Rismawan ◽  
Tri Haryanto ◽  
Rossanto Dwi Handoyo
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Emerging Markets ◽  
Direct Investment ◽  
Spillover Effect ◽  
Absorption Capacity ◽  
Dynamic Panel Regression ◽  
Asian Emerging Markets

Research on FDI in promoting economic growth has been the focus of recent decades, especially in developing countries. Foreign direct investment can be one of the main objectives in increasing economic growth. FDI is assumed to indirectly contribute to economic growth through a spillover effect on the absorption capacity of a country by increasing the stock of human capital and the quality of institutions. This study aims to analyze the spillover effect of FDI on economic growth in Asian emerging markets. The data were analyzed using dynamic panel regression (GMM) during 2008-2017 period with STATA 14 software.The results in this study strongly indicate that the spillovers of FDI is proven to be able to drive economic growth through human capital and institutions in Asian emerging markets.

scholarly journals The impact of currency crises on economic growth and foreign direct investment: The analysis of emerging and developing economies

2019 ◽  
Vol 5 (3) ◽  
pp. 220-250
Author(s):  
Nurilla Abdushukurov
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Currency Crises ◽  
Developing Economies ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Common Belief ◽  
Emerging And Developing Countries ◽  
The Impact

In this paper, the discussion centers on the possible effects of currency crises on different economic indicators, with special attention to economic growth and foreign direct investment. There is insufficient research on this topic to draw any firm conclusions about the associations between currency crises and aforementioned variables. In fact, it appears that the impact of currency crises on economic growth and foreign direct investment is negative respectively. However, this study indicates that foreign direct investment can be positively correlated with currency crises as contrary to the common belief. The current study analyzes these relationships through dynamic panel models. The annual panel data for 71 emerging and developing countries are extracted from reliable databases for the time period of 2005–2014. Generalized method of moments estimators are used to obtain efficient and consistent results so as to reach necessary conclusions. The majority of estimated coefficients are significant and unbiased statistically, and also consistent with the economic theories proposed. The main results indicate that the presence of a currency crisis in a particular economy has a negative impact on economic growth, while its effect on foreign investment inflows is most likely positive. Robustness tests demonstrate that used models in the study are both economically and econometrically robust and valid.

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