scholarly journals Does the Inflow of FDI Boost the Health of the Population in SAARC Countries Evidence from a Panel Data Analysis

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Ayesha Saleem ◽  
Abdul Farooq ◽  
Ahmad Nawaz ◽  
Muhammad Masood Anwar
Keyword(s):  
Foreign Direct Investment ◽  
Population Health ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Health It ◽  
Healthy Life ◽  
Fdi Inflows ◽  
The People ◽  
Job Opportunities ◽  
Effect Technique

Purpose:The relationship between foreign direct investment and population health has been the focus of research among researchers in recent years. One of the basic individual rights is a healthy life and decent living conditions, but the SAARC countries are lagging behind in this respect.The goal of this study is to evaluate the effect of foreign direct investment inflows on population health by integrating growth, foreign aid, and human capital into the model for selected SAARC countries. Design/Methodology/Approach:The fixed effect technique based on the Hausman test was implemented through the period of 1996-2018 because of the Panel nature of the data. Findings:Our empirical results indicate that FDI inflows have a positive and significant effect on population health. Increase in FDI inflows in the host country raises the income of the people, as better job opportunities are available to them. Implications/Originality/Value:This research is a crucial step in observing the complicated relationship between Foreign Direct Investment and Population Health. It is expected that this research motivates the debate and enhance the knowledge further in this line of research.Government should provide incentives to the foreign investors by providing concessions in taxes, and better facilities in terms of improved infrastructure.

scholarly journals An Impact Assessment of Expected Future Turmoil Risk on FDI: A Panel Data Analysis of Developing Countries

2014 ◽  
Vol 19 (2) ◽  
pp. 101-128 ◽  
Author(s):  
Mahvish Faran
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Data Analysis ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Gdp Per Capita ◽  
Democratic Accountability ◽  
Fdi Inflows ◽  
Per Capita ◽  
Very High

This paper uses foreign direct investment (FDI) data from 39 developing countries for the period 2002–11 to explore whether the expected future turmoil risk of a country plays a significant role in determining FDI. It concludes that countries for which the expected future turmoil risk is very high are likely to have lower FDI inflows than countries for which the expected future turmoil risk is low, keeping all other factors constant. The results also illustrate that GDP per capita, democratic accountability, religious tension, and FDI inflows in the previous period are important determinants of FDI in developing countries.

Does state fragility matter for foreign direct investment? Evidence from Southern and Eastern Mediterranean countries

2018 ◽  
Vol 56 (8) ◽  
pp. 1787-1803 ◽  
Author(s):  
Anna Dimitrova ◽  
Dora Triki
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Eastern Mediterranean ◽  
Panel Data Analysis ◽  
Mena Region ◽  
Fdi Inflows ◽  
Content Type ◽  
Mena Countries ◽  
State Fragility ◽  
The Impact

Purpose Following the Arab Spring turmoil, Middle East and North African (MENA) countries’ overall instability has significantly increased which resulted in the decrease of foreign direct investment (FDI) flows. The purpose of this paper is to contribute to the research on determinants of FDI inflows to the MENA region by examining the relationship between state fragility and FDI. Design/methodology/approach A panel data analysis was conducted to study the impact of Fragile States Index (FSI) and its components, namely economic, social and political/military state fragility, on FDI inflows to seven MENA countries situated in the Southern and Eastern Mediterranean (SEMED) region over the period 2006-2016. Findings The results show that the increase of political state fragility deters FDI inflows to SEMED countries. By contrast, their economic and social state fragilities are insignificant for FDI. This could be explained by the fact that investors are usually attracted by government stability and a strong investment profile. Research limitations/implications Given the fact that previous research has not yet validated FSI as a new FDI determinant, the results should be interpreted with some caution. It may also be worth examining the impact of FSI on FDI by industry sector in future studies. Practical implications The results reveal that FSI could help MNEs investing in the MENA region assess and better manage the economic, social and political/military risks they face. Originality/value This study introduces a new FDI determinant and stresses the importance of state fragility in attracting FDI.

FOREIGN DIRECT INVESTMENT: A PANACEA FOR NIGERIA ECONOMIC GROWTH

2020 ◽  
Vol 10 (2) ◽  
pp. 28-39
Author(s):  
Ademola Adeniran ◽  
◽  
Kehinde Ogunmodede
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
High Rate ◽  
Fdi Inflows ◽  
Job Opportunities ◽  
Tax Holidays ◽  
Unemployed Youth ◽  
The Unemployed

This paper critically examined the role of foreign direct investment (FDI) on Nigeria economy, with specific focus on past researches. This paper is based on empirical evidence from past researchers. The study found out that FDI positively influence Nigeria Economy system, that FDI funds can be used for long term development goal and therefore recommends that to promote growth and development in the economy, government should give priority to policies that could promote FDI inflows into the country such as tax holidays, infrastructural development, consistent power supply and good security outlet to address the issues of Boko Haram and their random bombing in some part of the country, kidnapping and militancy. This will go along way in creating job opportunities for the unemployed youth band help in checkmating the high rate of poverty in the country thereby reducing the gap between rich and the poor.

A Panel Data Analysis of Foreign Direct Investment Inflows into India Since 1991 to 2015

2017 ◽  
Vol 65 (1-4) ◽  
pp. 27-36
Author(s):  
Roohi Javed ◽  
Farheen Javed
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Economic Reforms ◽  
Fdi Inflows ◽  
Tax Haven ◽  
The Government ◽  
The One ◽  
Definition Of ◽  
The Impact

At the outset, this study dwells on the ambiguities surrounding the definition of foreign direct investment (FDI) and the non-adherence to international norms in measuring the FDI inflows by India. The study finds that portfolio investors and round-tripping investments have been important contributors to India’s reported FDI inflows, thus, blurring the distinction between direct and portfolio investors on the one hand and foreign and domestic investors on the other. These investors were also the ones who have exploited the tax haven route the most. These observations acquire added significance in the context of the substantial fall in the inflows seen during 1991–1992 to April 2015–December 2015. FDI as a strategic component of investment is needed by India for achieving the economic reforms and maintaining the pace of growth and development of the economy. The government should design the FDI policy in such a way where FDI inflow can be utilised as a means of enhancing domestic production, savings and exports through the equitable distribution among states by providing much freedom to states, so that they can attract FDI inflows at their own level. The impact of FDI inflows into India in recent years is highly significant. JEL: C40, C82, E44, F210, G15

Economic and legal instruments for the realization of foreign direct investment in infrastructure sectors of the economy

2020 ◽  
pp. 47-55
Author(s):  
Orshanska Marіana
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
High Growth ◽  
Well Being ◽  
Gradual Improvement ◽  
Fdi Inflows ◽  
Investment Projects ◽  
Analysis And Synthesis ◽  
High Level ◽  
Fdi Attraction

The purpose of the article is to determine the nature, characteristics and keyproblems of the main types of economic and legal instruments for the realizationof foreign direct investment (FDI). the methodological basis of the study is asystematic approach to the processing and compilation of statistics and indicators,as well as methods for their comparison, analysis and synthesis and a method offorecasting decisions on the use of investment potential to increase the attractivenessand volume of FDI attraction. The scientific novelty of the research lies in theanalysis of greenfield and brownfield strategies as the main forms of FDIimplementation, the disclosure of the content and interpretation of data on thereal state of FDI attraction, the search for opportunities to improve the investmentclimate and effective mechanisms for attracting foreign investors. conclusions. Itis confirmed that the investment attractiveness and rating of the country in theinternational market are the main factors for attracting investors. Inaccessibleinfrastructure, inefficient judicial system, high level of corruption and imperfectlegislation are the main obstacles that need to be overcome in order to attractforeign investors’ funds, providing a full package of assistance and support ateach stage of the implementation of investment projects. Greenfield and brownfield(M&A) are the most effective forms of FDI in order to achieve high growth ratesof the domestic economy, improve the level of population well-being andinternationally enter Ukraine. An analysis of the statistics on the effectiveness ofinnovative enterprise development projects, the characteristics of economic andlegal instruments indicate the gradual improvement of the investment climate andthe promotion of FDI inflows into the region’s economy through the implementationof greenfield and brownfield strategies. Examples of effective implementation ofthese strategies in the creation of new enterprises, companies of foreignrepresentation, which are expanding their capacity and entering new domesticmarkets are given. Examples of the brownfield strategy have been analyzed torestart existing and high-quality structural and organizational changes in inefficiententerprises, which have given impetus to improving the economic environment,investment attractiveness of the economy of the region and the country as a whole.

An Empirical Investigation of India’s Outward Foreign Direct Investment: A Macro Perspective

2019 ◽  
Vol 5 (2) ◽  
pp. 79-88
Author(s):  
Dikshita Kakoti
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Real Effective Exchange Rate ◽  
Outward Foreign Direct Investment ◽  
Fdi Inflows ◽  
Long Run ◽  
Increasing Trend ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Since 1990, globalization of Indian economy led to a speedy growth of foreign direct investment (FDI) inflows and simultaneously outward foreign direct investment (OFDI) also shows an increasing trend. However, India’s OFDI has attracted a little attention from the researchers and they have considered the OFDI in terms of commitments or approved equities. The motivation of this article is to investigate the India’s macro factors influencing actual OFDI flows from India by empirically recognizing four factors, namely gross domestic product, inward FDI, real effective exchange rate, and real interest rate over the period 1980–2016. The study has used Augmented Dicky-Fuller (ADF) and Phillips–Perron (PP) Unit root tests for checking the stationarity of the variable of the model. Later on, autoregressive distributive lag (ARDL) model and error correction mechanism is used for testing the long-run as well as short-run dynamics of the model. The result shows that all the selected variables have positive and significant influence on India’s outward investment flows.

scholarly journals Causal Links between Trade Openness and Foreign Direct Investment in Romania

2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Test Procedure ◽  
Real Effective Exchange Rate ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

scholarly journals Is Russia successful in attracting foreign direct investment? Evidence based on gravity model estimation

2016 ◽  
Vol 16 (3) ◽  
pp. 245-267 ◽  
Author(s):  
Oleg Mariev ◽  
Igor Drapkin ◽  
Kristina Chukavina
Keyword(s):  
Foreign Direct Investment ◽  
Gravity Model ◽  
Host Country ◽  
Direct Investment ◽  
Recipient Country ◽  
Developed Countries ◽  
Likelihood Method ◽  
Empirical Estimation ◽  
Fdi Inflows ◽  
Russian Economy

Abstract The aim of this paper is twofold. First, it is to answer the question of whether Russia is successful in attracting foreign direct investment (FDI). Second, it is to identify partner countries that “overinvest” and “underinvest” in the Russian economy. We do this by calculating potential FDI inflows to Russia and comparing them with actual values. This research is associated with the empirical estimation of factors explaining FDI flows between countries. The methodological foundation used for the research is the gravity model of foreign direct investment. In discussing the pros and cons of different econometric methods of the estimation gravity equation, we conclude that the Poisson pseudo maximum likelihood method with instrumental variables (IV PPML) is one of the best options in our case. Using a database covering about 70% of FDI flows for the period of 2001-2011, we discover the following factors that explain the variance of bilateral FDI flows in the world economy: GDP value of investing country, GDP value of recipient country, distance between countries, remoteness of investor country, remoteness of recipient country, level of institutions development in host country, wage level in host country, membership of two countries in a regional economic union, common official language, common border and colonial relationships between countries in the past. The potential values of FDI inflows are calculated using coefficients of regressors from the econometric model. We discover that the Russian economy performs very well in attracting FDI: the actual FDI inflows exceed potential values by 1.72 times. Large developed countries (France, Germany, UK, Italy) overinvest in the Russian economy, while smaller and less developed countries (Czech Republic, Belarus, Denmark, Ukraine) underinvest in Russia. Countries of Southeast Asia (China, South Korea, Japan) also underinvest in the Russian economy.

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