scholarly journals RISK AND FOREIGN DIRECT INVESTMENT IN ROMANIA

2014 ◽  
Author(s):  
Catalin Drob
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Empirical Studies ◽  
Country Risk ◽  
Fdi Inflows ◽  
Factors Affecting ◽  
Dependency Relationship ◽  
Direct Dependency ◽  
The Eu

This paper tries to present the main categories (types) of risks that affect the inflows of foreign direct investment (FDI) in Romania, such as: country risk, political risk, economic risks, sovereign risks and so on. FDI is an important factor contributing to the economic development and to the economic growth of a country. In order to recuperate its economic handicap as compared to the other countries in the EU, Romania needs a massive inflow of foreign capital, especially in the form of direct investment. The paper also presents the evolution of FDI inflows in Romania and how they were influenced by the main factors affecting the FDI. In principle, between risk and the level of FDI inflows there is a direct dependency relationship: the higher the risk is in a country, the lower the level of FDI inflows is in that country. This is demonstrated by the empirical studies regarding FDI. These studies show that countries with high risk have major difficulties in attracting foreign investment. Therefore, it is important to identify very precisely the main risks that may affect the level of FDI inflows in Romania, in order to propose and implement strategies to mitigate these risks and to attract more foreign direct investment in Romania.

scholarly journals Romanian immigrants and the inflows of foreign direct investment towards Romania

2018 ◽  
Vol 13 (4) ◽  
pp. 1226-1241
Author(s):  
Monica Roman ◽  
Vasile Alecsandru Strat
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Methodological Approach ◽  
Foreign Investments ◽  
Fdi Inflows ◽  
Eu Countries ◽  
Several Variables ◽  
Romanian Immigrants ◽  
The Eu

Abstract The answer to the following question summarizes the research presented in this manuscript: “Are Romanian immigrants in the EU countries enhancing the foreign direct investment (FDI) inflows towards Romania?”, and as a consequence it makes the results of the paper a useful tool for all Romanian authorities dealing with one of the two topics: migration and foreign investments. To our knowledge, the paper provides the initial evidence supporting the hypothesis that Romanian immigrants in the EU countries can be regarded as “ambassadors” of the Romanian economy in attracting FDI (to Romania) from their adoption countries. The methodological approach relies on econometric modelling which reveals a positive and statistically significant relationship between the stock of immigrants and the number of FDI firms located in Romania and sourced from 15 EU economies, when controlling for several variables. The results could be useful both for companies and for Romanian policymakers that should target as source for potential foreign capital the economies which attract important flows of Romanian immigrants.

scholarly journals Factors affecting the attraction of foreign direct investment: A study in northwest of Vietnam

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1257-1264
Author(s):  
Phuong Tran Hoa ◽  
Ha Nguyen Thi Thu ◽  
Duong Nguyen Duc
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
New Technologies ◽  
Empirical Studies ◽  
Economic Restructuring ◽  
Developed Countries ◽  
Policy Implications ◽  
Fdi Inflows ◽  
Factors Affecting

Foreign direct investment (FDI) plays an important role in economic growth for developing countries where there is always a shortage of investment capital. Its role is manifested through promoting economic restructuring, expanding markets, promoting exports, developing human resources and providing new technologies for development. Therefore, FDI has always been addressed as the top concern of governments in developing countries. However, FDI inflows often fluctuate because of many factors related to the competitive environment, such as market size, economic openness, competition in labor resources, etc. There are many empirical studies related to FDI inflows. However, most of these studies are carried out in developed countries. Meanwhile, in developing countries, there is not as much as this kind of study. On the other hand, the empirical research results are not consistent. This article will analyze the factors affecting FDI in the Northwest region of Vietnam in the context of global economic integration in the period of 2000 - 2019, from which we draw out the policy implications that can be applied to Vietnam.

scholarly journals Foreign Direct Investment and the Transfer of Technologies to Angola's Energy Sector

2016 ◽  
Vol 51 (1) ◽  
pp. 55-83 ◽  
Author(s):  
Albert Edgar Manyuchi
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Studies ◽  
Energy Sector ◽  
Technology Infrastructure ◽  
Fdi Inflows ◽  
Transfer Of Technology ◽  
Production And Distribution ◽  
Human Skills ◽  
The Relationship

The relationship between foreign direct investment (FDI) and the transfer of technology is undergoing a great deal of academic scrutiny and policy analysis. A growing body of literature shows that FDI can be a channel by which to transfer and/or acquire technology; however, there is a paucity of empirical studies on this as it relates to African economies. This article seeks to fill some of that gap by focusing on how FDI inflows are contributing to the transfer of technologies specifically into Angola's energy sector. The analysis is based on qualitative research conducted in Angola in 2014 and reveals that energy production and distribution-technology infrastructure, including machinery and human skills, have been developed largely through FDI inflows. There is, however, no evidence that this FDI has enlarged Angola's endogenous scientific and technological research capabilities in the energy sector; therefore, policies that promote these capabilities, especially manufacturing capabilities, should be introduced.

The Effect of Sanctions on U.S. Foreign Direct Investment

2011 ◽  
Vol 65 (3) ◽  
pp. 531-551 ◽  
Author(s):  
Glen Biglaiser ◽  
David Lektzian
Keyword(s):  
Decision Making ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Economic Sanctions ◽  
The United States ◽  
Fdi Inflows ◽  
Pull Out ◽  
Important Concern ◽  
The Relationship

AbstractFor years, the United States has imposed economic sanctions to compel countries to alter their behavior. An important concern is whether government sanctions influence private foreign direct investment (FDI) decisions, the largest source of foreign capital. In the first study to assess empirically the relationship between economic sanctions and FDI, we consider whether U.S. sanctions influence U.S. FDI inflows into targeted countries. Using panel data for 171 countries from 1965 to 2000, we find strong evidence that U.S investors pull out of countries targeted for U.S sanctions prior to their imposition. This disinvestment is not permanent and investment tends to return after the sanctions are imposed. The results provide support for FDI studies that show the effect of risk on investor decision making.

scholarly journals International Capital and Subnational Politics: Partisanship and Foreign Direct Investment in Mexican States

2021 ◽  
pp. 106591292110303
Author(s):  
Ana Carolina Garriga
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Political Competition ◽  
State Level ◽  
International Investment ◽  
Left Wing ◽  
Host Countries ◽  
Main Hypothesis ◽  
Fdi Inflows ◽  
Factors Affecting

Do foreign investors have subnational political preferences? The political economy of foreign direct investment (FDI) involves not only choosing among host countries, but also the subnational location of the assets. However, factors affecting investors’ decisions about subnational location likely differ from the ones affecting international investment. This paper studies the effect of state-level partisanship on new FDI inflows to Mexican states. I argue that investors prefer states ruled by left-wing governors because they are more likely to invest in human capital. Statistical analyses using new data on subnational allocation of FDI in Mexican states between 1999 and 2017 support the main hypothesis. Given the persistence of authoritarian enclaves in Mexico, I also disentangle the effects of partisanship from subnational democratization. The partisan effect is independent from party turnover and political competition at the subnational level, and it is robust to different model specifications and estimation strategies. Additional evidence supports the plausibility of the argued mechanism.

Does economic freedom in host countries lead to increased foreign direct investment?

2015 ◽  
Vol 25 (1) ◽  
pp. 2-24 ◽  
Author(s):  
Rakesh B Sambharya ◽  
Abdul A Rasheed
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Freedom ◽  
Empirical Studies ◽  
State Intervention ◽  
Political Freedom ◽  
Economic Management ◽  
Host Countries ◽  
Fdi Inflows ◽  
Content Type

Purpose – This study aims to examine the effect of the various dimensions of economic freedom and political freedom in host countries on the foreign direct investment (FDI) inflows over a six-year period from 1995 to 2000 in 95 countries. Design/methodology/approach – The sample consists of 95 countries and relates to the time period from 1995 to 2000. The sample is of a longitudinal or panel nature. Findings – Results indicate that better economic management (monetary policy, fiscal burden and banking and finance), less government participation in the economy, less state intervention (strong property rights, less regulation, low prevalence of informal markets and less corruption), absence of wage and price controls and higher levels of political freedom lead to higher FDI inflows after controlling for FDI stock. Research limitations/implications – Most empirical studies using indices such as the Index of Economic freedom are subject to certain methodological limitations such as model selection, parameter heterogeneity and outliers and moral hazard. Practical implications – Empirical findings suggest that the role played by governments in national economies have significant influence over FDI decisions. Social implications – From a policy perspective, our results imply that to attract FDI, governments will need to improve the institutional environments of their countries. More specifically, improving the levels of economic and political freedoms can greatly facilitate the inflow of FDI. Originality/value – One of the main contributions of the present study to the international business literature is that it is one of the first that explicitly relates the ten components that constitute “economic freedom” to FDI.

FACTORS AFFECTING FOREIGN DIRECT INVESTMENT IN MALAYSIA'S MANUFACTURING SECTOR: AN ANALYSIS ACROSS STATES

2012 ◽  
Vol 57 (04) ◽  
pp. 1250015 ◽  
Author(s):  
NOOR AL-HUDA ABDUL KARIM ◽  
EUAN FLEMING
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Labor Productivity ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Market Demand ◽  
Fdi Inflows ◽  
Factors Affecting ◽  
Industrial Estates ◽  
Socio Economic Development

This paper examines the effects of market demand, labor productivity, socio-economic development and provision of industrial estates on foreign direct investment (FDI) across 13 states and 1 federal territory in Malaysia. The analysis uses FDI data of the manufacturing sector and data on independent variables for the years 1990, 1995, 2000 and 2005. Results indicate positive relationships between these factors and FDI inflows in the manufacturing sector. FDI inflows are found to be most sensitive to labor productivity and GDP. The significance of socio-economic development for FDI is viewed in a long-term perspective.

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.

Attracting foreign capital as a factor in ensuring the country's economic growth

2020 ◽  
pp. 34-41
Author(s):  
Taras Malyshivskyi ◽  
Volodymyr Stefinin
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Low Income ◽  
Direct Investment ◽  
Foreign Capital ◽  
Local Level ◽  
Current Trend ◽  
Raw Material ◽  
Foreign Capital Inflows

The article examines the relationship between attracting foreign capital in the form of foreign direct investment and ensuring economic development. In particular, the analysis of the current structure of the economy is indicated, its raw material character is pointed out and, based on other researches, the necessity of its reform is substantiated, as Ukraine will remain a low-income country if the current trend continues. This is due to the fact that countries with a raw material structure of the economy are characterized by a low level of economic complexity, and therefore are not able to generate high levels of income in society. As a result, the expediency of stimulating the attraction of investment resources into the country’s economy, in particular in the form of foreign direct investment, is substantiated. The dynamics of attracting foreign direct investment to Ukraine and a number of other countries for the period from 1991 to 2019 is analyzed and the key negative factors that deter foreign investors from investing in the economy of Ukraine are indicated. As a result of the analysis, divergent trends in the economic development of Ukraine and other analyzed countries (Poland, Czech Republic, Slovakia, Turkey, Romania, Hungary) were identified, which contributed to economic stagnation and restrained economic growth and development. Taking into account the analysis, as well as based on the concept of investment and innovation growth, it is proposed to use the experience of Israel to improve the country’s investment attractiveness and stimulate foreign capital inflows by adapting the Yozma program to Ukrainian realities. According to our estimates, the adaptation of this program to the Ukrainian economy will attract about $ 350 million over a five-year period of venture capital alone. In addition, programs such as YOSMA can also be implemented at the regional or even local level. We believe that the use of this tool will improve the investment attractiveness of the country, as well as provide sufficient financial resources to modernize the domestic economy and ensure rapid economic growth.

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