scholarly journals Nexus between FDI, Infrastructure Investment, Tourism Revenues, and Economic Growth: Mega Event Evidence

2021 ◽  
Vol 5 (6) ◽  
pp. 953-963
Author(s):  
Mustafa Mohammad Alalawneh ◽  
Jeyhun Mammadov ◽  
Ameen Alqasem
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Square ◽  
Ordinary Least Square ◽  
Mega Events ◽  
Long Run ◽  
Equilibrium Relationships ◽  
Macro Variables ◽  
Mega Event

The object of this study is to examine the response of economic growth in Germany to 2006 FIFA World Cup hosting (represented by the heavily influenced variables of this huge event: Growth of Infrastructure Spending, Tourism Revenues, and Foreign Direct investment) during the period (2000 – 2017). The study employed Dynamic Ordinary Least Square (DOLS) approach to estimate the long-run equilibrium relationships amongst the variables. The results indicate that there is a co-integrating long-run relationship among the studied variables and provide empirical evidence showing that an increase in the growth of infrastructure spending (GINFR) 1 unit leads to an increase in the growth of GDP (GGDP) by 0.374 unit, an increase in the tourism revenues (TR) 1 unit leads to increase in the growth of GDP (GGDP) by 0.155 unit, and an increase in foreign direct investment (FDI) 1 unit leads to an increase in the growth of GDP (GGDP) by 0.055 unit. What distinguishes this paper is that it is one of the rare studies that went beyond the short effect of mega-events on the host country and investigated the long-term economic impact of the most important macro variables associated with mega-events on economic growth. Doi: 10.28991/esj-2021-01323 Full Text: PDF

Foreign Direct Investment and Growth Nexus: Further Evidence from Africa’s Largest Economy

2021 ◽  
Vol 13 (1) ◽  
pp. 65-78
Author(s):  
Anthony Orji ◽  
Godson Umunna Nwagu ◽  
Jonathan E. Ogbuabor ◽  
Onyinye I. Anthony-Orji
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Labour Force ◽  
Jel Classification ◽  
Least Square ◽  
Ordinary Least Square ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run

The study investigated the effect of foreign direct investment (FDI) on economic growth in Nigeria, which is currently Africa’s largest economy, and also determined the long-run relationship between FDI and economic growth in Nigeria from 1981 to 2017. The study adopted the autoregressive distributed lag modelling approach and ordinary least square in the analysis. The empirical results revealed that FDI has a positive and significant relationship with economic growth in Nigeria within the period under review. The study concluded and recommended that Nigerian Government should formulate policies that will attract more FDI in all sectors of the economy especially in the service and manufacturing sectors, so as to improve the infrastructural facilities and production of goods in the country and also expand its labour force. Finally, there is need to improve the educational policy of the country in order to raise the stock of human capital in the country that will make useful policies for the attraction for productive FDIs in the country. JEL Classification: E22, F21, F23, F43

scholarly journals Empirical Analysis of Determinants of Economic Growth: Evidence from SAARC Countries

2011 ◽  
Vol 3 (2) ◽  
pp. 115-121
Author(s):  
Muhammad Akram ◽  
Syed Shabihul Hassan . ◽  
Muhammad Farhan . ◽  
Hassan Mobeen Alam .
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
South Asian ◽  
Direct Investment ◽  
Regional Cooperation ◽  
Least Square ◽  
Domestic Investment ◽  
Ordinary Least Square ◽  
Total Debt ◽  
Determinants Of Economic Growth

This study investigates the factors that determine and enhance economic growth. The factors to determine the economic growth of South Asian Association for Regional Cooperation (SAARC) countries are foreign direct investment, total debt, gross domestic investment and inflation. Simple ordinary least square is applied to analyze the determinates of economic growth with the help of panel data for 39 years with annual frequency from 1971 to 2009. The economic growth may gain boost by the factors not only by these but also many others. In this study foreign direct investment and inflation are found having inverse relationship with economic growth while gross domestic investment and total debt are found positively associated with economic growth. This study may prove useful contribution for policy making for South Asian countries.

scholarly journals ANALISIS PENGARUH INVESTASI ASING LANGSUNG (FDI) DAN INVESTASI DALAM NEGERI TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2017 ◽  
Vol 2 (1) ◽  
pp. 54-68
Author(s):  
Firdaus Jufrida ◽  
Mohd. Nur Syechalad ◽  
Muhammad Nasir
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Multiple Regression Model ◽  
Least Square ◽  
Series Data ◽  
Domestic Investment ◽  
Ordinary Least Square

This study aims to analyze the effect of foreign direct investment (FDI) and domestic investment on Indonesian economic growth. The data used was time series data on Indonesian economy from year. Furthermore, the analysis was conducted with quantitative method using Ordinary Least Square (OLS) regression method with multiple regression model. The result shows that Foreign Direct Investment (FDI) has a positive but not significantly affected Indonesia economic growth, while Domestic Investment has a positive significant effect on Indonesian economic growth. Based on the research results, it is recommended that the Indonesia government has to maintain the stability of economic variables that can stimulate foreign and domestic investment in order to achieve sustainable economic growth.Penelitian ini bertujuan untuk menganalisis pengaruh investasi asing langsung (FDI) dan investasi domestik pada pertumbuhan ekonomi Indonesia. Data yang digunakan adalah data time series pada perekonomian Indonesia dari tahun. Selanjutnya, analisis dilakukan dengan metode kuantitatif dengan menggunakan metode regresi Ordinary Least Square (OLS) dengan model regresi berganda. Hasil penelitian menunjukkan bahwa Foreign Direct Investment (FDI) memiliki positif tetapi tidak pertumbuhan ekonomi secara signifikan mempengaruhi Indonesia, sedangkan PMDN memiliki efek positif yang signifikan terhadap pertumbuhan ekonomi Indonesia. Berdasarkan hasil penelitian, disarankan agar pemerintah Indonesia harus menjaga stabilitas variabel ekonomi yang dapat merangsang investasi asing dan domestik dalam rangka mencapai pertumbuhan ekonomi yang berkelanjutan.

scholarly journals Foreign direct investment and pollution havens: evidence from African countries

2020 ◽  
Vol 7 (12) ◽  
pp. 244-252
Author(s):  
SAID GHARNIT ◽  
Mohamed Bouzahzah ◽  
Jihad Ait Soussane
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Least Square ◽  
Pollution Haven Hypothesis ◽  
African Countries ◽  
Fdi Inflows ◽  
Ordinary Least Square ◽  
Long Run

This study examines the relationship between foreign direct investment (FDI) inflows and carbon dioxide emissions (CE) in order to investigate the validity of the pollution haven hypothesis for 54 African countries, using cointegration approach with dynamic panel data over the period 1960-2018. Based on the panel cointegration analysis, it was concluded that the variables are cointegrated. Moreover, the Dynamic Ordinary Least Square (DOLS) and Fully Modified Ordinary Least Square (FMOLS) results showed that foreign direct investment inflows have a long-run positive relationship with carbon dioxide emissions. Furthermore, according to Granger-Engle causality test results, FDI inflows and carbon dioxide emissions have a positive causal relationship, for both short-run and long-run. Thus, the results of this study validate the pollution haven hypothesis in the African countries. Nevertheless, it is recommended to keep attracting foreign direct investment inflows alongside of implementing mechanisms and instruments for reducing the CO2 emissions under strong environmental policies.

Analysis of Foreign Direct Investment and Economic Growth in Nigeria: Application of Spatial Econometrics and Fully Modified Ordinary Least Square (FMOLS)

2019 ◽  
Vol 54 (3) ◽  
pp. 159-176 ◽  
Author(s):  
Olabode Philip Olofin ◽  
Oluwole Oladipo Aiyegbusi ◽  
Abayomi Ayinla Adebayo
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Formation ◽  
Least Square ◽  
Income Growth ◽  
Tax Revenue ◽  
Ordinary Least Square ◽  
Determinants Of Fdi

Based on the controversy surrounding the determinants of foreign direct investment (FDI) inflow from one country to another and the suggestion that inflow of FDI might be a result of countries’ locations, this study therefore revisits the determinants of FDI and economic growth by testing for the roles of country’s location in the determination of the inflow of FDI to Nigeria. Unlike other studies, this study finds that countries’ locations do not play any significant role in determining FDI inflow to Nigeria. The study, therefore, employs fully modified ordinary least square (FMOLS) to examine the determinants of FDI in Nigeria. The FMOLS results show that FDI, manufacturing sector, tax revenue, financial development, health expenditure, net trade and human capital have a positive relationship with income growth. These results were statistically significant except for tax revenue, net trade and human capital. These results support the argument that these variables are important determinants of economic growth. The article also finds a negative and statistically significant relationship among FDI, income growth, import and capital formation. These results are in conformity with economic theory in the sense that import of goods and services constitutes a leakage in the economy. Negative impact of capital formation and security could be associated with the prevailing high level of corruption, sharing of security votes and misappropriation of funds among the public officials in Nigeria. JEL Codes: F23, F26, F21, H24

scholarly journals Stock Market Development And Economic Growth: Evidence From Pakistan

2021 ◽  
Vol 4 (2) ◽  
pp. 9-26
Author(s):  
MUHAMMAD KAMRAN ◽  
DR. MUHAMMAD ZAHID ◽  
SAID WALI ◽  
KAMRAN RIZWAN
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Trade Openness ◽  
Least Square ◽  
Market Development ◽  
Stock Market Development ◽  
Ordinary Least Square ◽  
The Government

The key motive of this research is to explore the role of stock markets in economic growth in Pakistan for the span of 2000 to 2017 by using the Ordinary Least Square (OLS) and fully Modified Ordinary Least Square approach (FMOLS). The research explored the stock market development and economic growth association by employing the two significant measures of the stock market development, that is the size (DSIZE) and liquidity (DLIQ) of the market accompanied with Foreign Direct Investment (DFDI) and Stock Market Capitalization (DSMC). The outcomes reveal that the included independent variables have a positive effect on the dependent variable i. e. DGDP except for liquidity which has no significant effect on DGDP. It is expected that the findings of the investigation can be utilized by the government for destined follow-up and reassessment of economic development programs in Pakistan. The influential policy suggestion was the attraction of the Foreign Direct Investment and trade openness by exploring their major determinants and also focus on the positive relationship variables

scholarly journals Institutional Quality, School Enrolment and Mobile Subscribers in Economic Community of West African States (ECOWAS-5): Impact on FDI using Panel Data

2018 ◽  
Vol 4 (1) ◽  
pp. 39-49
Author(s):  
Zulaiha A Zubair ◽  
Hussin ah Abdull
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Panel Cointegration ◽  
West African ◽  
Least Square ◽  
Economic Community ◽  
Ordinary Least Square ◽  
Long Run

Basically, the quality of institution, human capital (schoolenrolment) and infrastructure (mobile subscribers) are significant determinants of foreign direct investment (FDI). With exception of few studies on corruption, however, empirical research on  the link between infrastructure, human capital and FDI remain limited. Particularly in the context of Economic Community of West African States (ECOWAS). This paper aims to examine the linkage between infrastructure (mobile subscribers, corruption, schoolenrolment), and Foreign Direct Investment (FDI) among selected ECOWAS countries using panel data techniques for the period of 1990-2015. The methodology carried out to achieve this objective involves the panel unit root, panel cointegration and fully modified ordinary least square (FMOLS). The result indicates that, there is long run relationship among the series. Corruption and infrastructure are negatively significantly related with FDI at the long run in the selected ECOWAS countries. The empirical evidence indicates that feeble level of institutions (corruption) and infrastructure impedes FDI inflows in the selected ECOWAS countries. The results confirm that FDI enhancement through role of institution, schoolenrolment  and infrastructure (mobile subscribers) exist not only in the transition nation but also in the selected ECOWAS countries.

ECONOMIC GROWTH ANALYSIS: A STUDY ON MALAYSIAN MARKET

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Suhaily Maizan Abdul Manaf ◽  
Shuhada Mohamed Hamidi ◽  
Nur Shafini Mohd Said ◽  
Siti Rapidah Omar Ali ◽  
Nur Dalila Adenan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Correlation Method ◽  
Research Direction ◽  
Least Square ◽  
Future Research ◽  
Internal And External Factors

Economic performance of a country is mostly determined by the growth and any other internal and external factors. In this study, researchers purposely focused on Malaysian market by examining the relationship between export, inflation rate, government expenditure and foreign direct investment towards economic growth in Malaysia by applying the yearly data of 47 years from 1970 to 2016 using descriptive statistics, regression model and correlation method analysis. By applying Ordinary Least Square (OLS) method, the result suggests that export, government expenditure and foreign direct investment are positively and significantly correlated with the economic growth. However, inflation rate has negative and insignificant relationship with the economic growth. The outcome of the study is suggested to be useful in providing the future research direction towards the economic growth in Malaysia. Keywords: economic growth; export; inflation rate; government expenditure

scholarly journals Does Foreign Direct Investment Influence Renewable Energy Consumption? Empirical Evidence from South Asian Countries

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3470
Author(s):  
Xueqing Kang ◽  
Farman Ullah Khan ◽  
Raza Ullah ◽  
Muhammad Arif ◽  
Shams Ur Rehman ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Sri Lanka ◽  
South Asian ◽  
Environmental Sustainability ◽  
Direct Investment ◽  
Least Square ◽  
Asian Countries ◽  
Ordinary Least Square ◽  
The Relationship

In selected South Asian countries, the study intends to investigate the relationship between urban population (UP), carbon dioxide (CO2), trade openness (TO), gross domestic product (GDP), foreign direct investment (FDI), and renewable energy (RE). Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models for estimation were used in the study, which covered yearly data from 1990 to 2019. We used Levin–Lin–Chu, Im–Pesaran–Shin, and Fisher PP tests for the stationarity of the variables. The outcomes of the panel cointegration approach looked at whether there was a long-run equilibrium nexus between selected variables in Pakistan, Bangladesh, India, and Sri Lanka. The FMOLS approach was also used to assess the relationship, and the results suggest that there is a significant and negative nexus between FDI and renewable energy in south Asian nations. The study’s findings reveal a strong and favorable relationship between GDP and renewable energy use. In South Asian nations (Sri Lanka, Pakistan, India, and Bangladesh), the FMOLS and DOLS findings are nearly identical, but the authors used the DOLS model for robustification. According to the findings, policymakers in South Asian economies (Sri Lanka, Pakistan, India, and Bangladesh) should view GDP and FDI as fundamental policy instruments for environmental sustainability. To reduce reliance on hazardous energy sources, the government should also reassure financial sectors to participate in renewable energy.

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