Empirical Study of the Impact of Outward Foreign Direct Investment on Water Footprint Benefit in China

How to enhance the water footprint benefit in conjunction with outward foreign direct investment (OFDI) is of great significance to reconcile the contradiction between supply and demand of water resources. This paper examines the effect of OFDI on the water footprint benefit using system GMM (Generalized Method of Moments) on a dynamic panel data. The results revealed that, in general, OFDI was not conducive to enhancing social, spatial, and environmental benefits of China’s water footprint, but was conducive for improving water footprint economic benefits. The results also showed that different types of OFDI exert differential effects on water footprint benefits. Specifically, the market-seeking and resource-seeking types of OFDI are not conducive for enhancing social and spatial benefits of China’s water footprint, but have improved (although not significantly) economic benefits of the water footprint. However, the market-seeking type of OFDI is conducive for improving environmental benefits of the water footprint, while the resource-seeking OFDI is not conducive for improving environmental benefits of the water footprint. In addition, the technology-seeking OFDI is conducive to the social, economic, spatial, and environmental benefits of China’s water footprint. Furthermore, the path-wise OFDI (investing in developing countries) is not conducive to enhancing social, spatial, and environmental benefits of China’s water footprint, but has improved (although not significantly) the economic benefits of China’s water footprint. On the other hand, the inverse OFDI (investing in developed countries) is conducive to China’s water footprint including its social, economic, spatial, and environmental benefits. The findings from this study have relevant policy implications and can help provide some policy prescriptions for an economy such as China to engage in OFDI and enhance water footprint benefits. For instance, in addition to expanding market-seeking and resource- seeking OFDI, China should actively increase the scale of technology-seeking OFDI. In addition, while continuing to expand path-wise OFDI, China should further increase the scale of inverse OFDI. By taking advantage of the complementary and synergetic effects of different types of OFDI, an economy can capture the whole effects of OFDI to reap the water footprint’s full social, economic, spatial, and environmental benefits.

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The Contribution of Outward Foreign Direct Investment, Human Well-Being, and Technology toward a Sustainable Environment

Sustainability ◽

10.3390/su132011430 ◽

2021 ◽

Vol 13 (20) ◽

pp. 11430

Author(s):

Qianxiao Zhang ◽

Syed Asif Ali Naqvi ◽

Syed Ale Raza Shah

Keyword(s):

Foreign Direct Investment ◽

Carbon Footprint ◽

Direct Investment ◽

Trade Openness ◽

Well Being ◽

The Philippines ◽

Policy Implications ◽

Outward Foreign Direct Investment ◽

Sustainable Environment ◽

The Impact

This study evaluates the impact of outward foreign direct investment (OFDI), human well-being, and other macro indicators of the public sector on carbon footprint. Empirical analysis has been carried out for newly industrialized economies that span the period 1990–2017. We used augmented mean group and bootstrap panel causality techniques to cogitate the cross-sectional dependence and country-specific heterogeneity. Based on cross-country analysis, study results show that growing OFDI reduces carbon footprint efficiently in Mexico and Turkey, human well-being decreases emissions in the Philippines, and urbanization reduces emissions in China. Further, technology reduces emissions in Malaysia and Turkey, trade openness reduces emissions in China and Malaysia, and natural resource rents reduce emissions in Indonesia and Mexico. In the case of panel analysis, the moderating role of OFDI with human well-being is contributing toward a sustainable environment. Moreover, the moderation of OFDI and urbanization has an insignificant impact on CFP. Findings depict that interaction terms of OFDI with technology and trade openness have a positive association with the environment quality. Finally, OFDI and natural resources have positive moderation on CFP. This study contributes to the existing literature by suggesting policy implications for a sustainable environment.

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Does Foreign Direct Investment Boost Innovation? The Case of the Visegrad and Baltic Countries

Quality Innovation Prosperity ◽

10.12776/qip.v24i3.1519 ◽

2020 ◽

Vol 24 (3) ◽

pp. 106

Author(s):

Aneta Bobenič Hintošová ◽

Michaela Bruothová ◽

Iveta Vasková

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Innovation Performance ◽

Policy Implications ◽

Outward Foreign Direct Investment ◽

Outward Fdi ◽

Baltic Countries ◽

Panel Data Regression ◽

Short Period ◽

The Impact

Purpose: The purpose of the paper is to examine the impact of inward and outward foreign direct investment on innovation performance of the Visegrad and Baltic countries.Methodology/Approach: The study follows an open-system approach to consider the determinants of national innovation performance, taking into account both inward and outward FDI. We use two-step analysis that combines panel data regression analysis with the design of two FDI – innovation performance matrixes.Findings: The results of the study provide evidence that only outward foreign direct investment of domestic firms contributes significantly to the innovation performance of these countries and that this effect is more visible in the case of the Visegrad countries.Research Limitation/Implication: The limitations of the study are associated in particular with the selection of SII as a measure of national innovation performance. The use of this indicator is also related to the relatively short period of availability of consistent data, especially in connection with changes in the methodology of SII calculation.Originality/Value of paper: The policy implications of the paper suggest the need for stronger support of domestic bearers of cross-border capital movements in an attempt to boost national innovation performance.

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Does the Impact of China’s Outward Foreign Direct Investment on Reverse Green Technology Process Differ across Countries?

Sustainability ◽

10.3390/su10113841 ◽

2018 ◽

Vol 10 (11) ◽

pp. 3841 ◽

Cited By ~ 2

Author(s):

Songping Zhu ◽

Azhong Ye

Keyword(s):

Developing Countries ◽

Human Capital ◽

Foreign Direct Investment ◽

Capital Stock ◽

Direct Investment ◽

Technological Progress ◽

Green Technology ◽

Outward Foreign Direct Investment ◽

Different Types ◽

The Impact

The reverse technology spillover effect of Outward Foreign Direct Investment (OFDI) has been widely discussed. In the context of pursuing green growth, a few scholars began to study the impact of OFDI on home country green technological progress or green total factor productivity. However, few of these papers have made a thorough analysis of how OFDI affects the home country’s green technological progress, and have not considered the impact of different types of OFDI on green technological progress. This paper extends the basic analysis framework of technological progress to green technological progress, and discusses for the first time the ways for China to invest in developed and developing countries to achieve green technological progress. Specifically, this paper combines the global Malmquist productivity concept with the directional distance function to construct the global Malmquist Luenberger (GML) index to describe green technological progress of China’s provinces, and uses panel data model from 2003 to 2016 to study the impact of China’s investment in different types of countries. The results show that: (1) China’s investment in developed countries can bring reverse green technology spillovers and promote China’s green technology progress. But this is also affected by China’s domestic human capital stock, the increase in human capital stock is conducive to the absorption of green technology. (2) OFDI flows to transition or developing countries have failed to bring about green technological progress, but domestic R&D capital stock can produce a control response. (3) Environmental regulation, import trade and domestic R&D capital stock can bring positive effects on green technology progress, while foreign direct investment, fiscal decentralization and economic growth hinder green technology progress. (4) There is regional heterogeneity in the impact of OFDI with different directions on green technological progress. Because of environmental regulation and economic development, the eastern region of China is easier to obtain reverse green technology progress than the central and western regions in the process of OFDI.

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Home Country Innovation Performance: Moderating the Local Knowledge and Inward Foreign Direct Investment

Global Business Review ◽

10.1177/0972150920920778 ◽

2020 ◽

pp. 097215092092077

Author(s):

Marco Túlio Dinali Viglioni ◽

Cristina Lelis Leal Calegario

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

Manufacturing Industry ◽

Import Substitution ◽

Generalized Method Of Moments ◽

Foreign Market ◽

Innovation Performance ◽

Policy Implications ◽

Technology Acquisition ◽

Inward Foreign Direct Investment

The inward foreign direct investment (FDI) has been emphasized in the literature, and although the benefits related to innovation are known, there is not much information about their effects on emerging economies. This study investigates how local domestic factors such as research and development (R&D), exports and foreign technology acquisition moderate with inward FDI to improve the innovation performance. The empirical findings from a generalized method of moments (GMM) estimator suggest, at short term, that the FDI has a positive effect in the Brazilian manufacturing industry. As a complementary effect, there is an interaction between FDI inflows and exports, increasing the innovation performance. However, improvements in R&D-related FDI is not observed. For this reason, the results suggest FDI-related exports could indicate a mere product adaptation to the foreign market. There is a predominance in import substitution of machines, equipment and software and no evidence of internal R&D investments or R&D-related FDI. Our results suggest managerial and policy implications, once it was observed the high-technology intensity industry sectors show better innovation performance than medium- and low-technology industries. Policymakers should implement better policies to encourage more R&D-related FDI to decrease import substitution and improve the local innovation performance to strengthen the local industry R&D investments.

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