scholarly journals External and Internal Factors of Cross-Border Capital Flows in Russia

2019 ◽  
Vol 13 (4) ◽  
pp. 41-50 ◽  
Author(s):  
M. Yu. Golovnin ◽  
G. R. Oganesian
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Interest Rates ◽  
Capital Flows ◽  
Direct Investment ◽  
Portfolio Investment ◽  
Financial Assets ◽  
Internal Factors ◽  
Factors Affecting ◽  
Cross Border

The literature on the assessment of factors affecting cross-border capital flows is usually characterised by distinguishing of external and internal factors. The former as a rule include international indices of the global economic growth rate, interest rates and other indicators of profitability (for certain types of financial assets). The latter include domestic indices of the growth rate of the national economy, interest rates and the profitability of financial instruments, sovereign credit ratings. Since the beginning of the 21st century, cross-border capital flows in Russia have followed the same trends as capital flows in other emerging markets. A distinguishing feature of Russia was the negative impact of sanctions on the level of its financial openness. We estimated regressions, designed to evaluate the factors affecting the individual components of cross-border capital flows in Russia. Regressions for the three types of flows (liabilities of direct investment and portfolio investment liabilities, and assets) demonstrate good results. Among external factors, the dynamics of oil prices turned out to be significant, as well as the global stock index (for portfolio investment assets). Among internal factors, an increase in aggregate demand helps to attract foreign direct investment, and an increase in the yield of Russian financial assets (stocks and bonds) — to attract portfolio investments. The difference in interest rates is the determinant of all analysed capital flows. Our estimations confirmed the significance of the “round-tripping” movement of foreign direct investment in Russia.

scholarly journals ANALISIS SIMULTAN ANTARA ALIRAN MODAL, NILAI TUKAR DAN INFLASI DI INDONESIA PERIODE 2000.01 – 2012.09

Media Ekonomi ◽  
2017 ◽  
Vol 21 (1) ◽  
pp. 42
Author(s):  
Mardiansyah . ◽  
Dian Octaviani, ME
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rates ◽  
Capital Flows ◽  
Direct Investment ◽  
Simultaneous Equation ◽  
Short Term ◽  
Factors Affecting ◽  
High Inflation ◽  
The Exchange Rate

<p>Globalization and the open economic enchanced the integration of financial market and the economic condition in several countries. The effects of such integration shows in the movement of capital flows between countries. The potential risks of the capital flows, such as sudden reversal, the pressure on the exchange rate and high inflation and the susceptibility on financial sector, might be be arised. The goal of this research is to analyze the relationship between capital flows, exchange rates and inflation in Indonesia period 2000.01 – 2012.09. The method used in this research is simultaneous equations method. The model equations in this study are divided into two, which are a short-term investments are proxied from portfolio investment and long-term investments proxied from foreign direct investment. The results of the first model estimates the short-term investments shows that the exchange rate and inflation does not significant affecting short-term investments, but the ratio of domestic interest rates to foreign interest has a positive and significant impact on short-term investments. While, a short-term investments has negative and significant impact on exchange rate IDR per USD and inflation positive and significant effect on exchange rate. Factors affecting the rate of inflation is SBI interest rate and the money supply. One the other hand, the results of the second model estimation shows that the exchange rate and inflation has positive and significant impact on the flow of foreign direct investment. Inflation rate does not alter the terms of the investor’s decision in investing in Indonesia, because it was followed by the improvement in economic conditions in Indonesia.<br />Keywords: Capital Flows, Exchange Rate, Inflation, Simultaneous Equation</p>

scholarly journals An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

2020 ◽  
pp. 63-76
Author(s):  
G. Tunde, Monogbe ◽  
J. Emeka, Okereke ◽  
P. Ebele, Ifionu
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign  portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively  related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

scholarly journals Capital flows and political conflicts: Evidence from Thailand

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Pongsak Luangaram ◽  
Yuthana Sethapramote
Keyword(s):  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Military Coup ◽  
Portfolio Investment ◽  
Martial Law ◽  
Foreign Portfolio Investment ◽  
Political Conflicts ◽  
Different Types ◽  
Negative Effect

How do domestic political conflicts affect capital flows into Thailand? This article advances the current understanding in two ways. First, it adopts a new method for measuring political uncertainty using Thai-language newspapers over the past 20 years. Given that the nature of political conflicts is multi-faceted, these measures cover the various key components of Thai political tensions—both within and outside of parliament. Second, how different types of tensions affect capital flows are examined using a quantile regression framework—allowing an examination of effects upon the overall distribution of capital flows. The empirical results indicate that Thai political conflicts significantly and adversely affect both foreign direct investment and foreign portfolio investment at the left tails of their distribution. The results also highlight how different types of political conflicts affect capital flows in different ways. For example, uncertainty about a military coup and government measures regarding martial law or emergency decrees have a strong negative effect upon foreign direct investment flows; whereas heightened political protest and news about constitutional reform play a significant role in explaining the risk reversal of foreign portfolio investment flows. 

scholarly journals FOREIGN DIRECT INVESTMENT AND EXPORT PERFORMANCE OF THE PAKISTAN COINTEGRATION AND CAUSALITY APPORACH

2015 ◽  
Vol 11 (1) ◽  
Author(s):  
Abdur Rahman Aleemi ◽  
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Export Performance ◽  
Gdp Growth ◽  
Local Market ◽  
Long Run ◽  
Gdp Growth Rate

FDI is a bridge between the world markets and local market and works as a way to increase the capabilities of the host country through investments that help in transfer of technology and creation of employment opportunities. The aim of this paper was to investigate the nexus of Foreign Direct Investment and the Export performance in the economic settings of Pakistan along in the presence of explanatory variables, based on well-established economic theory and long standing relationships. Supplementing the variables into a linear regression model, tested under the OLS and checked for the assumptions of normally and identically distributed errors, it was found that exports are positively affected by FDI and CPI whereas negatively affected by the interest rates in the case of Pakistan. Furthermore the long run relationship between the variables has been tested under the Johensen Cointegration test, which suggest that a long run relationship exist between the variables. Finally the direction of causality has been investigated with the help of Granger Causality test, indicating a bidirectional causality between CPI and interest rate, exports and interest rate, unidirectional causality from exports to CPI, CPI to GDP growth rate, interest rate to GDP growth rate, exports to FDI and exports to GDP growth rate.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI PENANAMAN MODAL ASING (PMA) LANGSUNG DI PURBALINGGA

2018 ◽  
Vol 16 (2) ◽  
pp. 103-123
Author(s):  
Soffi Setyoningrum
Keyword(s):  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Interest Rates ◽  
Direct Investment ◽  
Analysis Tool ◽  
Labor Costs ◽  
Factors Affecting ◽  
Factors Analysis ◽  
Increase Productivity

This study entittled "FACTORS AFFECTING FOREIGN DIRECT INVESTMENT(FDI) IN PURBALINGGA". The purpose of this study was to analyze some factorsaffecting foreign direct investment in Purbalingga. The study used independentvariables, including GDP, interest rates, inflation, labor costs,and infrastructureroads. The analysis tool used the classification assumptions and hypothesis testing.Data were used from 2001 to 2015. From the results of regression analysis, showedthat GDP, road 6infrastructure have a positive and significant impact. Interest ratesand labor costs have a negative and significant impact, while inflation wasseen not to have significant impact on foreign direct investment inflows. Theimplication of this study are goverment should increase productivity so the addedvalue generated can be increased, improving the quality of the workforce so asto create employment opportunities more widely to reduce unemployment, improvethe quality of development more adequate infrastructure of the whole area evenlyPurbalingga.Keywords: FDI, factors analysis, regression analysis.  

scholarly journals FOREIGN DIRECT INVESTMENT AND EXPORT PERFORMANCE OF THE PAKISTAN COINTEGRATION AND CAUSALITY APPORACH

2015 ◽  
Vol 11 (1) ◽  
Author(s):  
Abdur Rahman Aleemi ◽  
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Export Performance ◽  
Gdp Growth ◽  
Local Market ◽  
Long Run ◽  
Gdp Growth Rate

FDI is a bridge between the world markets and local market and works as a way to increase the capabilities of the host country through investments that help in transfer of technology and creation of employment opportunities. The aim of this paper was to investigate the nexus of Foreign Direct Investment and the Export performance in the economic settings of Pakistan along in the presence of explanatory variables, based on well-established economic theory and long standing relationships. Supplementing the variables into a linear regression model, tested under the OLS and checked for the assumptions of normally and identically distributed errors, it was found that exports are positively affected by FDI and CPI whereas negatively affected by the interest rates in the case of Pakistan. Furthermore the long run relationship between the variables has been tested under the Johensen Cointegration test, which suggest that a long run relationship exist between the variables. Finally the direction of causality has been investigated with the help of Granger Causality test, indicating a bidirectional causality between CPI and interest rate, exports and interest rate, unidirectional causality from exports to CPI, CPI to GDP growth rate, interest rate to GDP growth rate, exports to FDI and exports to GDP growth rate.

World capital flows under global instability

2021 ◽  
pp. 68
Author(s):  
I. Kvashnina
Keyword(s):  
Economic Policy ◽  
Foreign Direct Investment ◽  
Economic Crisis ◽  
Capital Flows ◽  
Direct Investment ◽  
International Institutions ◽  
Global Instability ◽  
Cross Border ◽  
Role Of The State

The article examines the changes in the cross-border capital flows that have taken place in recent years, including those caused by COVID-19 pandemic and economic crisis.   Negative trends in the movement of foreign direct investment are noted and the prospects for their growth are analyzed. Considering the measures of economic policy in relation to investment, the author comes to the conclusion that the role of the state will inevitably strengthen, as well as that of  international institutions.

scholarly journals The Effect of China and the Factors Affecting Foreign Direct Investments in Asean Countries

2013 ◽  
Author(s):  
Koy Pei Wen ◽  
Mohamed Hisham Dato Hj Yahya ◽  
Roslinda Rahman ◽  
Abdul Razak Abdul Hadi
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
World Trade Organisation ◽  
Market Size ◽  
Foreign Direct Investments ◽  
Vector Autoregressive ◽  
Factors Affecting ◽  
Asean Member ◽  
Asean Countries

Foreign direct investment (FDI) plays an important role in bolstering economic growth. It acts as a pillar in supporting the industrialization and economic development of countries. The objectives of this study are to: (a) Recognise factors aff ecting FDI in countries in the Association of Southeast Asian Nations (ASEAN) region and (b) examine the eff ect of China’s entry into the World Trade Organisation (WTO) on the FDI in ASEAN countries. The Vector Autoregressive method (VAR) was applied to establish the factors that had signifi cant impacts on FDI infl ows over the period 1980–2010 for these countries. Apart from the conventional variables, such as market size, labour cost, interest rates, exchanges rates, corporate tax rates, and degree of openness, this study incorporates another variable, that is, the event of China joining the WTO. This is to determine whether the entry of China into WTO had any impact on FDI in the ASEAN region. The result reveals that, fi rstly, only market size is not a signifi cant factor in determining the FDI infl ows for all the ASEAN countries being studied (i.e. Indonesia, Malaysia, Philippines, Singapore and, Thailand). Secondly, most of the ASEAN member countries’ FDI are infl uenced by China’s entry into WTO in 2001.   Keywords: China, ASEAN, WTO, VAR, Foreign direct investment.

Foreign Direct Investment

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Financial Markets ◽  
Foreign Exchange ◽  
Direct Investment ◽  
Balance Of Payments ◽  
Productive Capacity ◽  
Cross Border ◽  
Direct Contribution ◽  
High Profit

Recent years have also seen increased openness of EDEs to foreign direct investment (FDI) in search for faster growth and greater stability. However, FDI is one of the most ambiguous and least understood concepts in international economics. Common debate is confounded by several myths regarding its nature and impact. It is often portrayed as a stable, cross-border flow of capital that adds to productive capacity and meets foreign exchange shortfalls. However, the reality is far more complex. FDI does not always involve inflows of financial or real capital. Greenfield investment, unlike mergers and acquisitions, makes a direct contribution to productive capacity, but can crowd out domestic investors. FDI can induce significant instability in currency and financial markets. Its immediate contribution to balance-of-payments may be positive, but its longer-term impact is often negative because of high-profit remittances and import contents.

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