scholarly journals Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality

2020 ◽  
Vol V (II) ◽  
pp. 29-46
Author(s):  
Muneza Munir ◽  
Ambreen Fatima
Keyword(s):  
Foreign Direct Investment ◽  
Significant Role ◽  
Direct Investment ◽  
Empirical Investigation ◽  
Institutional Quality ◽  
Inclusive Growth ◽  
Middle Income ◽  
Medium Level ◽  
Tremendous Amount

Countries need a tremendous amount of investment to utilize existing resources and enhance productivity in order to ensure inclusive growth in the economy. Foreign Direct Investment (FDI) by providing the required investment can fulfil the saving-investment gap. The paper makes an empirical investigation of the effectiveness of FDI as a financing tool for inclusive growth. The study also examines how the effectiveness of FDI varies across economies with varying level of institutional quality. The results suggest that FDI plays a significant role in achieving inclusive growth, especially in economies with a low and medium level of institutional Quality. A deep underpinning of our inclusive growth variable brought thoughtful insights such as low and middle-income economies, which mostly belong to the low and medium level of institutional quality cluster. They should adopt policies that enhance the existing spectrum of opportunities. Whereas equity should be the top-most priority for high-income economies.

scholarly journals INVESTASI ASING LANGSUNG DAN PERTUMBUHAN EKONOMI DI WILAYAH ASEAN PERIODE 2004-2016

2019 ◽  
Vol 23 (2) ◽  
pp. 57-66
Author(s):  
Aditya Febriananta Putra ◽  
Suyanto . ◽  
Irzameingindra Putri Radjamin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Significant Role ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Accelerate Development ◽  
Fixed Capital Formation

Exertions to accelerate development carried out by developing countries in general are oriented towards improving or improving people’s lives. Developing countries are characterized as countries that lack capital, savings and investment. The role of Labor has a significant effect but has a negative impact on economic growth. Agriculture and Service also performance a significant role, despite having a positive impact on economic growth. While other variables, namely Fixed Capital Formation, Foreign Direct Investment, Export, Manufacture, and Fertility showed insignificant results on economic growth.

scholarly journals Does FDI Caused Profit Repatriation: Exploring the Moderating Role of Governance Institutions

2020 ◽  
Vol 10 (2) ◽  
pp. 134
Author(s):  
Ghalib Bin Faheem ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Quality ◽  
Developed Countries ◽  
Doing Business ◽  
Governance Institutions ◽  
The Cost ◽  
The Impact ◽  
Moderating Role

This paper investigates the impact of foreign direct investment, institutional quality on profit repatriation and net primary income taken as a proxy of profit repatriation. Inflation and GDP per capital were taken as controls. Data sample of 54 countries (developing) has been used for the first model of this research. And data sample of 100 countries (developed and developing both) has been used for the second model. The sample period is from 2008-2017. Finding of this study indicate that institutions quality is negatively impacting profit repatriation and net primary income. It also reveals foreign direct investment is negatively affecting profit repatriation but positively impacting net primary income. Results reveal that investors are unwilling to invest in countries where institutions encourage corruption, because these factors increase the cost of doing business. Developing countries have weaker institutions than developed countries and so, investors will be taking their profit back and not willing to re-invest in that particular country.

scholarly journals The Influence of Political and Social Globalisation on Foreign Direct Investment Inflow in Developing Countries: The Role of Financial Development as a Moderating Factor

2021 ◽  
Vol 16 (1) ◽  
pp. 297-322
Author(s):  
Marhamah Mohd Rafidi ◽  
◽  
Jamaliah Said ◽  
Naila Erum ◽  
Farha Abdol Ghapar ◽  
...  
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Cross Sectional ◽  
Middle Income ◽  
Middle Income Countries ◽  
Cross Sectional Dependence ◽  
The Impact

This study presents the effect of political and social globalisation on Foreign Direct Investment (FDI) inflow in developing countries. The eminence of decomposed globalisation element in the FDI area is argued here. New insights into empirical evidence are offered by dropping economic globalisation as one of the decomposed components. A panel data of 42 developing countries from 1984 until 2016 was used by applying the CSARDL approach. The study is also on the impact of political and social globalisation in developing countries by splitting them into two income stratification: Upper Middle-income Countries and Lower Middle-Income Countries by incorporating financial development as a moderating variable. It documents that political globalisation postulates a U-shaped relationship after addressing the Cross-Sectional Dependence (CD) problem, while social globalisation reverses the U-shaped relationship. It was found that political globalisation and social globalisation are conditional to the level of income rather than the overall developing countries’ stream. Besides, the prominent role of financial development in promoting FDI inflow, especially to income level, was observed. We suggest that developing countries should increase the capacity to absorb political and social globalisation in promoting FDI. Keywords: FDI inflow, globalisation, political globalisation, social globalisation, financial development, CS-ARDL

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