scholarly journals DYNAMICS OF AUSTRIAN FOREIGN DIRECT INVESTMENT AND THEIR INFLUENCE ON THE NATIONAL ECONOMY

2019 ◽  
Vol 4 (5) ◽  
pp. 167 ◽  
Author(s):  
Iryna Lomachynska ◽  
Serhii Yakubovskiy ◽  
Ivan Plets
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
National Economy ◽  
Direct Investment ◽  
Gdp Per Capita ◽  
Foreign Direct Investments ◽  
Independent Variables ◽  
Per Capita ◽  
Main Components ◽  
The Relationship

The purpose of the paper is to analyse the dynamics of Austrian foreign direct investments (FDI) and its role in the development of the national economy. The subject of research is the main components of Austrian foreign direct investments 2005–2017 and their impact on the national economic development. Methodology. Methods of comparative and statistical analysis were used to study the dynamics, structure, and economic impact of Austria’s FDI. Special attention was given to the dynamics of FDI inflows and outflows, accumulated investments, cross-border mergers and acquisitions, “Greenfield Investments”, the impact of FDI on the balance of payments and international investment position of Austria. The method of mathematical modelling in economics, in particular, regression analysis, based on annual data for the period from 2005 to 2015, was applied to assess the relationship between the main components of foreign direct investments and the indicator of the country’s economic growth – the gross domestic product (GDP) per capita. The following indicators were selected as independent variables: FDI liabilities, assets of FDI funds, as well as the balance of primary incomes. The dependent variable was the GDP per capita. It should be noted that such indicators as FDI assets and liabilities of FDI funds were not represented in the final model because of the high correlation between independent variables, and the relationship between GDP per capita and net foreign assets was insignificant. The assets of foreign direct investment funds have the greatest impact on the economy of the country, and the relationship between these indicators is direct. A slightly weaker relationship is observed between the balance of primary incomes and GDP per capita. The relationship between them is also direct. Liabilities of FDI have the least impact on the dependent variable in comparison with the other two. Findings. The growth of foreign direct investments of Austria, as a result of liberalization of the world and European economy, as a whole has a positive impact on its GDP. Thus, activities that are aimed at stimulating investments are fully justified and understandable. The paper determines important factors of Austria’s investment activity and attractiveness, as well as the main factors that influence the dynamics of FDI. The most important among them are: the level of education, the internal coefficient of investment, political stability, the terms of trade, the state of the financial sector. The results of the analysis show that Austria has a high level of business activity; the government conducts activities to stimulate investment in R&D and in high-tech enterprises, to create new jobs, to protect the environment etc. The results of the study allow forecasting a gradual improvement in the balance of the country’s primary incomes, which will contribute to the further growth of the current account surplus and will strengthen the positive influence of Austria on the development of the European and global financial systems. Practical implications. The results of the study will help to increase: the effectiveness of the investment policy of Austria to stimulate the country’s economic growth; the international competitiveness of national companies on European and world markets; the level of stability of Austria’s financial system to external shocks.

scholarly journals Economic Growth and Investment Activity as Basic Elements and Indicators of Economic Security and Their Relationship with National and International Security

2018 ◽  
Vol 24 (2) ◽  
pp. 76-81
Author(s):  
Elitsa Petrova
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Security ◽  
Gdp Per Capita ◽  
The European Union ◽  
Investment Activity ◽  
Per Capita ◽  
The Republic

Abstract The economic potential of a country is directly related to a policy of creating new jobs, increasing labour productivity, balancing energy and materials consumption, technological innovation, refurbishing the production base, and taking action to create an environment for attracting investment and stimulating domestic consumption, as well as increasing exports of goods and services. A key feature of the economic system, that determines its ability to maintain normal living and working conditions for the population, is to guarantee and protect the sustainable development of the economy and the realisation of national economic interests. This article is addressed to two main economic security indicators - economic growth and investment activity of the state. It presents a specific comparison of real GDP per capita and growth rate in the European Union, the Eurozone and the Republic of Bulgaria and GDP per capita in purchasing power standards in the European Union, the Eurozone and the Republic of Bulgaria. The flow of foreign direct investment by economic sectors in the Republic of Bulgaria is been considered, including annual data, foreign direct investment flows by countries and the international position of the Republic of Bulgaria in this process

scholarly journals Natural disasters, information/communication technologies, foreign direct investment and economic growth in developed countries

2018 ◽  
Vol 9 (2) ◽  
pp. 80-87 ◽  
Author(s):  
Nadia Benali ◽  
Rochdi Feki
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Natural Disasters ◽  
Natural Disaster ◽  
Information And Communication Technologies ◽  
Direct Investment ◽  
Communication Technologies ◽  
Developed Countries ◽  
Gdp Per Capita ◽  
Per Capita

This paper investigates the causal relationship between natural disasters (DMS), information and communication technologies (ICT), foreign direct investment (FDI) and economic growth (GDP per capita) for 10 developed countries over the period 1990 to 2016. Panel DOLS and FMOLS results show that there is a positive relationship running from ICT to natural disasters and to foreign direct investment. In addition, ICT have a positive effect on GDP per capita. VECM Granger causality analysis results reveal a unidirectional causality in the short and long term from ICT to natural disaster and to FDI at the 5% and 10% levels. Therefore, one may note that there is a unidirectional relationship running from natural disaster to GDP and a bidirectional relationship between FDI and GDP.

scholarly journals Empirical Research on the Relationship amongst Renewable Energy Consumption, Economic Growth and Foreign Direct Investment in Kazakhstan and Uzbekistan

Energies ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 332
Author(s):  
Janusz Grabara ◽  
Arsen Tleppayev ◽  
Malika Dabylova ◽  
Leonardus W. W. Mihardjo ◽  
Zdzisława Dacko-Pikiewicz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Direct Investment ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Renewable Energy Consumption ◽  
Integration Test ◽  
The Relationship

In this contemporary era, environmental problems spread at different levels in all countries of the world. Economic growth does not just depend on prioritizing the environment or improving the environmental situation. If the foreign direct investment is directed to the polluting industries, they will increase pollution and damage the environment. The purpose of the study is to consider the relationship between foreign direct investment in Kazakhstan and Uzbekistan and economic growth and renewable energy consumption. The study is based on data obtained from 1992 to 2018. The results show that there is a two-way link between foreign direct investment and renewable energy consumption in the considered two countries. The Granger causality test approach is applied to explore the causal relationship between the variables. The Johansen co-integration test approach is also employed to test for a relationship. The empirical results verify the existence of co-integration between the series. The main factors influencing renewable energy are economic growth and electricity consumption. To reduce dependence on fuel-based energy sources, Kazakhstan and Uzbekistan need to attract energy to renewable energy sources and implement energy efficiency based on rapid progress. This is because renewable energy sources play the role of an engine that stimulates the production process in the economy for all countries.

The relationship between energy consumption and economic growth: New evidence from Greece

2021 ◽  
pp. 131-153
Author(s):  
Antonia Gkergki
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Gdp Per Capita ◽  
Short Term ◽  
Vector Error Correction ◽  
Per Capita ◽  
Econometric Tests ◽  
The Government ◽  
New Research ◽  
The Relationship

This paper examines the relationship between the energy consumption and economic growth from 1968 to 2019 in Greece, by employing the vector error-correction model estimation. A series of econometric tests are employed concerning the stationary of the data, and the co-integration and the relationship among the variables during the long- and short-term. The em-pirical results suggest that there is no bidirectional relationship between economic growth and energy consumption. More specifically, GDP per capita does not affect the energy consump-tion of the three primary sources either in the long-term or the short-term. In other words, the economic crisis and its implications for GDP do not affect energy consumption, and they are not responsible for the considerable decrease in energy sources' consumption. On the other hand, the energy consumption of oil and coal negatively affect the GDP per capita. These re-sults are different from previous studies' conclusions for Greece; this is because the never been experienced before. These findings raise new research questions and also show the limi-tations of the Greek market, as it is regulated and controlled by the government.

scholarly journals Agricultural Sector FDI and Economic Growth in Saarc Countries

2019 ◽  
Vol 8 (2S10) ◽  
pp. 116-121
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
South Asians ◽  
Secondary Data ◽  
Agricultural Products ◽  
Fdi Inflows ◽  
Important Relationship ◽  
The Relationship

The study seeks to establish the relationship between foreign direct investment to Saarc region agricultural sector and economic growth with secondary data. SAARC comprises 3% of the world's area, 21% of the world's population and 3.8% (US$2.9 trillion) making up a total of 3% of the world’s area. The country has second in all over the world in terms of agriculture position. The population obliquely all of the member states is over 1.7 billion, accounting for 21% of the world’s total population. In their 42% of the agricultural operation in SAARC nations and also 51% source of livelihood of the South Asians. The study has revealed that India alone accounts for 52 per cent of the agricultural products using the SAARC region peoples. For the present study, a total of 34 groups related to the agricultural products were selected out of the total groups. The techniques employed to analyze the data include descriptive statistic, correlation and linear forecast method. The study also revealed a positive and important relationship between economic growth and foreign direct investment flow to the agricultural sector. Thus, the study recommends that policy should focus on flexible trade policies to attract more foreign direct investment (FDI) inflows to SAARC nations. i.e. Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka including India

scholarly journals A time series analysis of determinants of FDI in Afghanistan: Which one matters the most, security or economic growth?

2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Economic Factors ◽  
Market Economic ◽  
The Government ◽  
The Relationship

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.

scholarly journals An Evaluation of Relationship between Foreign Direct Investment and Economic Growth in Vietnam

2014 ◽  
Vol 220 ◽  
pp. 79-96
Author(s):  
Anh Phạm Thị Hoàng ◽  
Thu Lê Hà
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Significant Contribution ◽  
Foreign Capital ◽  
Positive Impact ◽  
National Economic ◽  
Investment Law ◽  
The Relationship

Foreign direct investment (FDI) is an essential source of capital in the gross investment conducive to national economic growth, including the case of Vietnam. Since the 1987 Foreign Investment Law, the country has attracted a large amount of foreign capital, which makes a significant contribution to economic development. This research employs a VAR model to analyze the relationship between FDI and Vietnam’s economic growth. The results suggest that FDI has a positive impact on the latter and vice versa. The research also finds that FDI stimulates export and improves the quality of human resources and technology - important prerequisites for the economic growth.

The Relationship Among Military Expenditure, High Technological Product Exports, and Economic Growth

2021 ◽  
pp. 624-645
Author(s):  
Sevgi Sezer
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Military Expenditure ◽  
Gdp Per Capita ◽  
High Tech ◽  
Industrialized Countries ◽  
G7 Countries ◽  
Causality Relationship ◽  
Per Capita ◽  
The Relationship

In this chapter, the effects of military expenditure (MEXP) on high-tech exports (HTX) and GDP per capita (GDPPC) of G7 and new industrialized countries (NIC) are analyzed for period 1988-2015 by panel data analysis. The causality relationships between the series are examined by Dumitrescu and Hurlin test. In G7 countries, one-way causality relationship from HTX to MEXP and two-way causality relationship between MEXP and GDPPC have been identified. Also, in NIC countries, two-way causality relationship between HTX and MEXP and one-way causality relationship from GDPPC to MEXP have been determined. Cointegration relations are tested by Pedroni test and the series are found to be cointegrated. It is seen that in the G7 countries, 1% increase in MEXP during the period of 1988-2015 increased HTX by 0.71% and GDPPC by 0.98%. In NIC countries, the 1% increase in MEXP increased HTX by 1.7% and GDPPC by 0.96%. The effect of MEXP on HTX is found much higher in NIC countries.

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