scholarly journals IMPACT OF TRANSFER PRICING ON FOREIGN DIRECT INVESTMENT IN ROMANIA

2021 ◽  
Vol 14(63) (2) ◽  
pp. 141-150
Author(s):  
Ileana Tache ◽  
◽  
Mihaela Paraschiva Luca ◽  

The purpose of the study presented in this paper is to analyse the impact of transfer pricing on foreign direct investment (FDI) in Romania. For attaining this goal, we performed a simple linear regression by the least squares method to study the impact of adjustments of tax obligations in the field of transfer pricing on foreign direct investment in the period 2011-2019.We have proved, from a statistical point of view, that there is a relationship between foreign direct investment and adjustments to tax liabilities resulting from transfer pricing

2020 ◽  
Vol 2 (4) ◽  
pp. 271-284
Author(s):  
Kofi Kamasa ◽  
Isaac Mochiah ◽  
Andrews Kingsley Doku ◽  
Priscilla Forson

Purpose This paper aims to empirically investigate the impact that financial sector reforms have on foreign direct investment (FDI) in Ghana. Design/methodology/approach Composite financial sector reform index was constructed, which was made up of various forms of reform policies that were implemented from 1987 to 2016. The auto regressive distributed lag bounds test was used to establish cointegration between variables. Having controlled for other covariates that affect FDI such as trade openness, exchange rate, gross domestic product per capita, inflation and by using the fully modified ordinary least squares method, the estimations are robust as it uses a semi-parametric correction to avoid for any possible issues of endogeneity and serial correlation. Findings Results from the paper reveal that financial sector reform deepening boost FDI with a 2.167% increase in FDI following from a unit percentage improvement of the financial sector reforms. Considering the various categories of reforms, the results reveal that competitive reforms have the highest impact on FDI followed by privatization reforms with positive and significant elasticity coefficients of 2.174% and 0.726%, respectively. Behavioral reforms revealed a positive effect on FDI, albeit insignificant. Originality/value The paper contributes to policy by providing empirical evidence on the effect of financial sector reform on FDI inflows in Ghana. As far as the review of literature is concerned, this paper provides the foremost empirical evidence on the subject with sole emphasis on Ghana. Thus, this paper suggests the deepening of the financial sector reforms, improving competition and maintaining macroeconomic stability.


Author(s):  
Yuanbing Zhu ◽  
Xueying Chen ◽  
Gang Wang ◽  
Zuchang Zhong ◽  
Meier Zhuang

From the practice of developed countries, countries with higher patent applications and PCT patent applications (such as the United States, China, Japan, the United Kingdom, Germany, etc.) have relatively higher outward foreign direct investment, and the actual data of provinces in China also show that with the improvement of the patent level in various provinces and cities, the intensity of outward foreign direct investment in each province and city has also increased. At present, there are relatively few research data and the research method is relatively single. Therefore, collecting panel data on China’s 31 provinces from 2003 to 2016, this paper conducts an empirical analysis on the influence of patent level on outward foreign direct investment via analytical method of equal part linear regression and Grey Computing. By comparing analysis results with the model and the results with conventional linear regression model, the difference of different regression models is observed. Furthermore, the impact of China’s patent level on China’s inter-provincial outward foreign direct investment is further analyzed.


Author(s):  
Anh Hoang To ◽  
Dao Thi-Thieu Ha ◽  
Ha Minh Nguyen ◽  
Duc Hong Vo

This study is conducted to examine the concerns of the foreign direct investment (FDI) causing environment degradation and also to test the validity of the traditional Environmental Kuznets Curve (EKC) in the context of emerging markets in the Asian region. Data of these countries from 1980–2016 are utilised. This study employs panel cointegration Fully Modified Ordinary Least Squares (FMOLS), which treats the endogeneity problem, and its estimators are adjusted for serial correlation. Moreover, this study also uses panel Dynamic Ordinary Least Squares (DOLS), which includes contemporaneous value, leads and, lags of the first difference of the regressors to correct endogeneity problems and serial correlations. Findings from this study indicate that the pollution heaven hypothesis and the EKC curve are generally valid in the region. In addition, FDI has a strong impact on the environment.


2018 ◽  
Vol 10 (10) ◽  
pp. 145
Author(s):  
Abdullah Ali Al-Masaeed ◽  
Evgeny Tsaregorodtsev

The present study examined the impact of fiscal policy measured by (Government expenditure, Government revenues, internal public debt, external public debt) in addition to exports and inflation factors on the Jordanian GDP growth for the period 1990-2010. The study used multiple linear regression and least squares method (OLS) to test the study hypotheses. The study found that government expenditure, exports and government revenues has a positive and significant impact on the Jordanian GDP growth, and negative and significant impact on the Jordanian GDP growth. The study found that external public debt has a negative but not significant impact on the Jordanian GDP growth.


Author(s):  
К. Буневич ◽  
K. Bunevich ◽  
О. Иванова ◽  
O. Ivanova

One of the indicators of the country’s involvement in the global economy is the export of goods and its structure. The degree and nature of changes in export groups of goods may indicate changes in the structure of the economy under the influence of foreign direct investment, which makes it possible to evaluate the positive or negative effects of them. Recently, more and more countries are involved in the process of international capital movement, both as an exporter and as an importer. There are many reasons for the desire of domestic economic entities to export their capital abroad. The subject of this study is economic relations caused by the relationship of foreign direct investment with the structure of Russian exports. The article considers the dynamics of foreign direct investment in the domestic economy. The attractiveness of the Russian economy from the point of view of international ratings of countries is analyzed. An attempt is made to determine the relationship of foreign direct investment with the macroeconomic indicators of the Russian Federation, as well as the structure of foreign direct investment with the structure of Russian exports. The degree of influence of indicators of attracted foreign direct investment and payments for new technologies on changes in the structure of export is determined The impact of FDI on the host economy is different. On the one hand, FDI brings financial resources to the economy with the new technologies that the economy needs. On the other hand, a direct investor invests his money in those sectors of the economy that have a high rate of return, which in turn does not help to solve the problems of the economy and the uneven development of the country’s industries.


Author(s):  
CMA Sandip Basak ◽  
Rohan Prasad Gupta ◽  
Priyajit Kumar Ghosh

Foreign direct investment plays a vital role in the development of a nation. The present research work aims to analyse the impact of FDI inflows on annual GDP and per capita GDP, that is, to understand the impact of FDI on Indian economy since the implication of LPG policy in India. Simple linear regression models has been used for analysis purpose and based on the results, suitable implications has been drawn.


2021 ◽  
Vol 6 (3) ◽  
pp. 173-175
Author(s):  
Md. Fazlul Huq Khan

This paper investigates the impact of inflation, nominal exchange rate, foreign direct investment, and unexpected event shock on the economic growth of Bangladesh by using the time series data from 1990 through 2020. Augmented Dickey-Fuller and Phillips-Perron Unit Root Test used to identify unit-roots existence and check the stationary of variables. The Ordinary Least Squares method is applied to determine the relationship between the dependent variable and independent variables. The results revealed that the exchange rate and foreign direct investment have significantly affected the country's economic growth. Inflation, FDI, and exchange rate positive impact, whereas unexpected events like Covid-19, natural disasters, etc., negatively affect the economic development of Bangladesh. The study can be helpful for the policy makers to identify, formulate and implement the effect policies for the economic growth of the country.


2021 ◽  
Vol 10 (s1) ◽  
Author(s):  
Ban Ghanim Al-Ani

Abstract Objectives This study aimed to apply three of the most important nonlinear growth models (Gompertz, Richards, and Weibull) to study the daily cumulative number of COVID-19 cases in Iraq during the period from 13th of March, 2020 to 22nd of July, 2020. Methods Using the nonlinear least squares method, the three growth models were estimated in addition to calculating some related measures in this study using the “nonlinear regression” tool available in Minitab-17, and the initial values of the parameters were deduced from the transformation to the simple linear regression equation. Comparison of these models was made using some statistics (F-test, AIC, BIC, AICc and WIC). Results The results indicate that the Weibull model is the best adequate model for studying the cumulative daily number of COVID-19 cases in Iraq according to some criteria such as having the highest F and lowest values for RMSE, bias, MAE, AIC, BIC, AICc and WIC with no any violations of the assumptions for the model’s residuals (independent, normal distribution and homogeneity variance). The overall model test and tests of the estimated parameters showed that the Weibull model was statistically significant for describing the study data. Conclusions From the Weibull model predictions, the number of cumulative confirmed cases of novel coronavirus in Iraq will increase by a range of 101,396 (95% PI: 99,989 to 102,923) to 114,907 (95% PI: 112,251 to 117,566) in the next 24 days (23rd of July to 15th of August 15, 2020). From the inflection points in the Weibull curve, the peak date when the growth rate will be maximum, is 7th of July, 2020, and at this time the daily cumulative cases become 67,338. Using the nonlinear least squares method, the models were estimated and some related measures were calculated in this study using the “nonlinear regression” tool available in Minitab-17, and the initial values of the parameters were obtained from the transformation to the simple linear regression model.


2020 ◽  
Vol 9 (3) ◽  
pp. 696-705
Author(s):  
Abdulaziz Adel Abdulaziz Aldaarmi

oreign direct investment is currently one of the main pillars in achieving development and economic growth, due to its important position in the economies of the countries of the world. The aim of this research is to study the impact of Fiscal and monetary policy in Saudi Arabia on attracting foreign investment for the period 2010–2018. The researcher used the multiple linear regression to test the research hypothesis. Linear regression is used to investigate the impact values by each predictor variable. The study covered the period 2010–2018, the present study chose independent variables monetary policy tools in Saudi Arabia that include (Money supply (M2), Monetary cash reserve and Exchange rate), also the present study chose fiscal tools that include (taxation and government capital spending). The Dependent Variables includes (Direct Domestic Investment and Foreign Direct Investment). E-views (version 10) software package was utilized for this purpose. Multiple linear regression was performed to test models. The results show that Money supply, Monetary cash reserve, capital government spending and taxation positively affects the domestic investments, while Exchange rate negatively affects the domestic investments. It was also found that all independent variables positively affect the foreign direct investment.


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