scholarly journals Impact of foreign direct investment on economic growth in the world during 1975–2015

2018 ◽  
Vol 20 (91) ◽  
pp. 28-32
Author(s):  
B. B. Brychka
Keyword(s):  
Economic Growth ◽  
Literature Review ◽  
Regression Models ◽  
Trade Openness ◽  
Positive Influence ◽  
Linear Regression Models ◽  
Average Value ◽  
Gdp Growth Rate ◽  
The World ◽  
The Impact

The study is concentrated on examination the impact of FDI on economic growth in the World during 1975–2015. The study consists of four consecutive parts, including introduction, literature review, model and methodology, data, empirical results and conclusion. Each part of the study is focused on its own goals. According to the results of the literature review, there is positive influence of FDI on economic growth in various countries. Economic growth is one of the most important goals of any country. The country image on the international level is dependent on its economic power. Economic growth provides an opportunity to improve the living standards in the country. Most researchers conclude that there is a positive influence of FDI on the countries’ economic growth. However, the impact of FDI is strong in developing countries. Moreover, this relationship is stronger in countries with higher educational and technological level, trade openness and development of the countries’ stock markets. Economists often build regression models to estimate the relationship between the variables. In order to find the impact of FDI on economic growth, we are going to apply linear regression models. We take two variables as indicators of the countries’ economic growth, including current GDP expressed in U.S dollars, and annual GDP growth rate. Taking into account that the World’s GDP in current U.S dollar is a factor variable with the mentioned resulting variables, the regression equation looks as follows: The R-squared of the built model is 0.99, indicating that roughly 100% of changes in the World’s GDP is caused by the chosen factors. As it is seen from the SAS output, the residuals of dependent variable and factors variables are distributed normally among its average value. Thus, non-normality is not observed in the model. Taking into account the coefficients of the factor variables, the log GDP is most sensitive to the changes in trade as a percent of GDP. The log GDP is not quite sensitive to the changes in FDI, since the coefficient of 0.000128 means that increasing of FDI by one unit increase the logarithmic value of GDP by $ 0.000128.

scholarly journals Global FDI Inflow and Its Implication across Economic Income Groups

2020 ◽  
Vol 13 (11) ◽  
pp. 291
Author(s):  
Udi Joshua ◽  
Mathew Ekundayo Rotimi ◽  
Samuel Asumadu Sarkodie
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Income Group ◽  
Ordinary Least Squares ◽  
Business Environment ◽  
Positive Influence ◽  
Panel Estimation ◽  
The Impact

Foreign direct investment (FDI) as a driver of growth is important in today’s globalized economy. It is extremely difficult for economies to grow sustainably without economic interactions outside their borders. However, there has been a debate on the impact of FDI inflow on economic expansion. Hence, this study investigated the influence of FDI on economic growth for a selection of 200 economies around the world for the period 1990–2018. We subdivided the sample into World Bank income group clusters to aid comparison across income blocs. The study employed panel estimation techniques including pooled ordinary least squares (POLS), dynamic panel estimation with fixed-effects and random-effects and generalized method of moments (GMM). The study found that FDI, debt stock and official development assistance are promoters of growth in the selected countries—although debt stock weakly impacts economic growth. In contrast, trade openness and exchange rates had a mixed (negative and positive) influence on economic growth. The study suggests that the creation of a conducive business environment and economic policies will attract FDI inflows. Additionally, borrowing from external sources could be minimized despite its perceived positive influence on growth to achieve financial independence.

scholarly journals The Impact of Trade Openness and Export Expansion Grants in Nigerian Economy (1986-2019): New Evidence from Quantile Regression.

2021 ◽  
Author(s):  
Behiye Cavusoglu ◽  
Mohammed A. M Usman
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Quantile Regression ◽  
Granger Causality ◽  
Trade Openness ◽  
Gdp Growth ◽  
Annual Data ◽  
Gdp Growth Rate ◽  
Export Expansion ◽  
The Impact

Abstract Trade openness and export promotion policies such as export expansion grants are the furthermost competent yardstick for measuring growth and development, approved by various countries since 1970s. Looking at the Nigeria economy whose depends almost largely on external trade is inclusive. Therefore, this analysis explores the effects of trade openness and export expansion grants on Nigerian economy using annual data from 1986-2019. This analysis makes use of coefficient covariance metrics, stability leverage plots and pairwise granger causality and quantile regression to portray the impact of trade openness and export expansion grants on Nigerian economic growth. The outcomes confirm that, there was a positive relationship between trade openness (TOPN) and economic growth (GDPR) in the first and last quantiles (seventh) quantile while the remaining quantiles has negative effect on GDP growth rate of Nigeria and were statistically insignificant during the study era. While the coefficients of export expansion grants (EEXG) have positive effect on GDP growth rate of Nigeria in all quantiles but statistically significant only in sixth as well seventh quantile. Also, the result of pairwise granger causality showed strong bi-directional causality between trade openness and GDPR at 5% level of significance as well as uni-directional causality running from GDPR to export expansion grants. Therefore, it recommended that, Nigerian government should adjust the structure of its trade through concentrating on high value-added products instead of exporting semi-finished goods as well by given more support to domestic industries (such as subsidies, tax holiday, more export expansion grants) to compete internationally. Also, government should maintain stable exchange rate as well policies through effective monetary policies that would reduce inflation rate in the economy in order to attain Nigeria's Economic Recovery and Growth Plan which is in line with SDGs goal of 2023 in Nigeria.

scholarly journals The Impact of Migration and Remittances on Employment in Agriculture in the Gambia

2020 ◽  
Vol 3 (2) ◽  
pp. 1-16
Author(s):  
Ebrima K. Ceesay
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Regression Models ◽  
African Country ◽  
Positive Impact ◽  
The Gambia ◽  
Linear Regression Models ◽  
Capital Theory ◽  
The Impact ◽  
Unskilled Employment

For economic growth and development in any WE African country the GDP progress is depending on the key push-pull factors as migration, personal remittances received, bilateral aids and, absolutely, employment in agriculture which is about 1/3 of the population and not a predominant and protected minority as happens in the industrialized EU and North America. In order to represent the framework of the reciprocal dependencies the present study used the statistics of Gambia from WDI covering the periods from 1960 to 2017 by applying linear regression models. The results confirmed that migration and remittances have significant positive impact on employment in agriculture because new investment in agriculture created new skilled and unskilled employment. The results also found out that employment in agriculture has negative and significant impacts on foreign aids: 10% increase in migration, increases foreign aid by 50.3%. Increasing 10% of remittance, increase economic growth by 0.14% but 10% increases in employment in agriculture, decrease economic growth by 0.04%. To face globalization the economy of the Gambia should use the foreign aid to improve agriculture production and productivity thereby increase economic growth through human capital theory of migration, skilled migration, export and food security, the study recommends.

scholarly journals The Impact of Foreign Direct Investment on the Economic Growth of South Caucasus Countries

2021 ◽  
Vol 17 (35) ◽  
pp. 38
Author(s):  
Lela Scholer-Iordanashvil
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
South Caucasus ◽  
Gdp Growth Rate ◽  
Using Data ◽  
Classical Linear Regression ◽  
The Impact

This paper focuses on the effects of foreign direct investment inflows on the economic growth in a panel of three South Caucasus countries using data from 1996-2019 periods. In this study, we applied the following control variables; trade openness, investment, real exchange rate, and population growth. Classical linear regression model was employed in this paper. Ordinary least squares methods are used for estimation. Empirical results revealed that there is no significant effect of FDI inflows on economic growth. The results show that inward FDI stock-to-GDP ratio and real GDP growth rate are positively correlated.

FAKTOR DETERMINAN PENYALURAN KREDIT BANK PERSERO

2018 ◽  
Vol 23 (1) ◽  
pp. 60-71
Author(s):  
Wigiyanti Masodah
Keyword(s):  
Interest Rate ◽  
Linear Regression ◽  
Interest Rates ◽  
Regression Models ◽  
Linear Regression Models ◽  
Negative Impacts ◽  
Main Activity ◽  
The Impact ◽  
The Given ◽  
Multiple Linear Regression Models

Offering credit is the main activity of a Bank. There are some considerations when a bank offers credit, that includes Interest Rates, Inflation, and NPL. This study aims to find out the impact of Variable Interest Rates, Inflation variables and NPL variables on credit disbursed. The object in this study is state-owned banks. The method of analysis in this study uses multiple linear regression models. The results of the study have shown that Interest Rates and NPL gave some negative impacts on the given credit. Meanwhile, Inflation variable does not have a significant effect on credit given. Keywords: Interest Rate, Inflation, NPL, offered Credit.

scholarly journals Non-Parametric Generalized Additive Models as a Tool for Evaluating Policy Interventions

Mathematics ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 299
Author(s):  
Jaime Pinilla ◽  
Miguel Negrín
Keyword(s):  
Linear Regression ◽  
Regression Models ◽  
Linear Trend ◽  
Generalized Additive Models ◽  
Additive Models ◽  
Linear Regression Models ◽  
Non Linear ◽  
Nonlinear Trends ◽  
The Impact ◽  
Non Parametric

The interrupted time series analysis is a quasi-experimental design used to evaluate the effectiveness of an intervention. Segmented linear regression models have been the most used models to carry out this analysis. However, they assume a linear trend that may not be appropriate in many situations. In this paper, we show how generalized additive models (GAMs), a non-parametric regression-based method, can be useful to accommodate nonlinear trends. An analysis with simulated data is carried out to assess the performance of both models. Data were simulated from linear and non-linear (quadratic and cubic) functions. The results of this analysis show how GAMs improve on segmented linear regression models when the trend is non-linear, but they also show a good performance when the trend is linear. A real-life application where the impact of the 2012 Spanish cost-sharing reforms on pharmaceutical prescription is also analyzed. Seasonality and an indicator variable for the stockpiling effect are included as explanatory variables. The segmented linear regression model shows good fit of the data. However, the GAM concludes that the hypothesis of linear trend is rejected. The estimated level shift is similar for both models but the cumulative absolute effect on the number of prescriptions is lower in GAM.

scholarly journals Impact of the Mobility Restrictions in the Palestinian Territory on the Population and the Environment

2021 ◽  
Vol 13 (23) ◽  
pp. 13457
Author(s):  
Hala Aburas ◽  
Isam Shahrour
Keyword(s):  
Energy Consumption ◽  
Quantitative Analysis ◽  
Literature Review ◽  
Co2 Emissions ◽  
Average Value ◽  
Diesel Vehicles ◽  
Mobility Barriers ◽  
Gasoline Vehicles ◽  
Palestinian Territory ◽  
The Impact

This paper analyzes the mobility restrictions in the Palestinian territory on the population and the environment. The literature review shows a scientific concern for this issue, with an emphasis on describing mobility barriers and the severe conditions experienced by the population due to these barriers as well as the impact of mobility restrictions on employment opportunities. On the other hand, the literature review also shows a deficit in quantitative analysis of the effects of mobility restrictions on the environment, particularly on energy consumption and greenhouse gas emissions. This paper aims to fill this gap through a quantitative analysis by including data collection about mobility restrictions, using network analysis to determine the impact of these restrictions on inter-urban mobility, and analysis of the resulting energy consumption and CO2 emissions. The results show that mobility restrictions induce a general increase in energy consumption and CO2 emissions. The average value of this increase is about 358% for diesel vehicles and 275% for gasoline vehicles.

scholarly journals Economic Growth of Asia Pacific Countries

2018 ◽  
Vol 2 (1) ◽  
pp. 52-60
Author(s):  
Nabaz T. Khayyat ◽  
Sherwan Kafoor
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Trade Openness ◽  
Government Expenditure ◽  
Asia Pacific ◽  
Tax Rate ◽  
Education And Health ◽  
Fixed Capital Formation ◽  
Main Driver ◽  
The Impact

This empirical study examines the determinant of economic growth among Asia Pacific countries. While many other studies focused on specific economies with particular determinants identified from previous studies, this study expands the boundaries of countries to examine different factors that are expected to affect the economic growth in Asia Pacific countries. Estimation results of this study are based on the analysis of a panel data for the period 1994–2011. The impact of total population, industry share of GNI, interest rate, gross fixed capital formation, and tax rate are statistically examined to be strongly significant for the whole sample. In the case of government expenditure and trade openness, they are examined to be significant to some degree. Finally, though human capital is expected to be the main driver of economic growth, the result from correlation analysis revealed that there is a high correlation between expenditure on education and health. To show the impact of human capital on economic growth in Asia Pacific countries, estimation with years of schooling may enhance the study instead of using expenditure on education and health.

scholarly journals The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 174
Author(s):  
Khalid Eltayeb Elfaki ◽  
Rossanto Dwi Handoyo ◽  
Kabiru Hannafi Ibrahim
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Least Squares ◽  
Financial Development ◽  
Correction Term ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

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