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

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.

scholarly journals Environmental Pollution a Negative Externality from China Pakistan Economic Corridor (CPEC): Policy implications for Pakistan

2020 ◽  
Vol 11 (3) ◽  
pp. 5-8
Author(s):  
Rehmat Karim ◽  
Faqeer Muhammad ◽  
Javed Akhter Qureshi ◽  
Naveed Razzaq ◽  
Akber Ali
Keyword(s):  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Environmental Pollution ◽  
South Asia ◽  
Direct Investment ◽  
Global Economy ◽  
Middle Eastern ◽  
Trade Openness ◽  
Policy Implications ◽  
The Impact

The China-Pakistan Economic Corridor (CPEC) isconsidered as the ‘flagship’ project of China’s Belt andRoad Initiative (BRI) and has been widely acclaimedby both Chinese and Pakistani officials often terming itas ‘game-changer’ to overcome Pakistan’s lingeringissues of energy and economic crisis. Within theframework of CPEC, China is investing more than 56billion US dollars as Foreign Direct Investment (FDI)in various energy and infrastructure projects includinga vast network of railways, highways, economic zonesand gas pipelines. While much has been debated andwritten about various projects under CPEC in theexisting academic discourses, vis-à-vis threats to thebiodiversity (Nabi et al., 2017), its potentialimplications to environmental hazards (Ali, 2018) andto overcome energy shortfall of Pakistan (Kugelman,2017). However, scientific study to reinforce the issuesof environmental pollution, particularly related toCEPEC coal-based energy projects have been stilllacking.The pertained literature on CPEC consisted qualitativestudies to inspect and judge different aspects such asimportance of CPEC for both countries and its effectson geo political of South Asia. Challenges for CPEC inPakistan, South Asia and foreign policy betweenChina-Pakistan), as Nan, (2015) explained that thisproject is not only valuable for Pakistan and China, butit is also beneficial for the global economy byincluding several other countries. Furthermore, Li andSun, (2015) and Irshad, etal, (2015) reported theimportance of CPEC and it long and short-termbenefits for both countries. Further, Hussain and Khan(2017) also stated that it will enhance the cooperationbetween two countries and advantageous for Chinese,Middle Eastern and South Asian people (Ali, 2016).Further, Wolf, (2017) explained the insights, potentialsand challenges concerning CPEC and domestic levelcooperation between China and Pakistan.In addition, quantitative studies focused to shed a lighton the impact of China Pakistan Economic Corridor(CPEC) (Such as, impact on gdp, socio-economy,trade, stock market, energy sector and infrastructure).CPEC will build rails and roads infrastructure andinfrastructure development may decrease the povertyand increases the agriculture development in Pakistan(Ahmed & Mustafa, 2016). Most recent articleexamined the impact of CPEC impact on energy(energy consumption and energy saving potential) inthe prospect of Pakistan (Mirza, Fatima, Ullah, 2019).A latest study surveyed in Pakistan and their researchresults shows that entrepreneur’s attitude andintentions to China and Pakistan Economic Corridor(CPEC) development is positive, it means CPECproject also designing an entrepreneurial environment(Kanwal et al., 2019).A large number of studies (Begum, etal., 2015; Ozturk,and Acaravci, 2010) have discussed various elementsand causes of CO2 emissions. Similarly, manyresearches (Khurshid, etal., 2018; Hadi, etal., 2018;Hussain, 2017; Hussain, 2015) on Pakistan-Chinarelations in the context of economy, society andgeopolitical point of view. Present study is aimed toinvestigate the CPEC development effects i.e. grossdomestic product (gdp), foreign direct investment (fdi),trade openness (top), energy consumption (enguse) onenvironmental pollution (CO2) in Pakistan usingFMOLS and DOLS methods.

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

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

<p><strong>Purpose:</strong> 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.</p><p><strong>Methodology/Approach:</strong> 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.</p><p><strong>Findings:</strong> 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.</p><p><strong>Research Limitation/Implication:</strong> 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.</p><strong>Originality/Value of paper:</strong> 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.

scholarly journals The Impact of Foreign Direct Investment on Financial Development: New Evidence from Panel Cointegration and Causality Analysis

2021 ◽  
Vol 13 (1) ◽  
pp. 95-112
Author(s):  
Abdul Majeed ◽  
Ping Jiang ◽  
Mahmood Ahmad ◽  
Muhammad Asif Khan ◽  
Judit Olah
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Financial Development ◽  
Direct Investment ◽  
Trade Openness ◽  
Policy Implications ◽  
Causality Analysis ◽  
Government Consumption ◽  
Causality Test ◽  
The Impact

Foreign direct investment (FDI) is seen as a prerequisite for gaining and maintaining competitiveness. Simultaneously, the relationship between FDI and financial development (FD) has important implications for the researched economy and its competitiveness. This domain has not been sufficiently investigated, with diverse and contradictory findings evident in the literature. Therefore, this study investigates the effect of FDI on FD for the selected 102 Belt and Road Initiative countries on four continents: Asia, Europe, Africa, and Latin America. Based on data from 1990 to 2017, a set of quantitative techniques, including feasible generalized least squares, and augmented mean group techniques, were used in this study. Our findings indicate that FDI, trade openness, government consumption, and inflation have a statistically significant relationship with FD. FDI, trade openness, and government consumption increased FD in Asia, Europe, and Latin America but decreased in Africa. Inflation shows a negative influence on FD in all continents. Furthermore, the Dumitrescu–Harlin panel causality test confirms a two-way causality relationship among FDI, trade openness, and FD in Asia and Europe. In contrast, a unidirectional relationship exists between FDI and FD in Latin America. The income-wise results reveal that low- and middle-income countries attract more FDI than high-income countries due to high factor costs. These empirical results provide new insights for policymakers, presenting several policy implications for FD competitiveness in the reference regions.

scholarly journals European intellectual property institutions and Chinese foreign direct investment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas
Keyword(s):  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Direct Investment ◽  
Trade Openness ◽  
Negative Relationship ◽  
Preliminary Evidence ◽  
Institutional Distance ◽  
Content Type ◽  
Chinese Foreign Direct Investment ◽  
The Impact

PurposeWe investigate the impact of the strength of intellectual property (IP) institutions on Chinese outward foreign direct investment (OFDI).Design/methodology/approachWe use two different measures of IP on a sample of 21 European countries in the period 2003–2015. Panel quantile methodology is applied to assess the relationship at several points of the conditional distribution of OFDI.FindingsWe provide novel and robust evidence revealing a highly negative relationship between OFDI and the strength of IP institutions in Europe. This relationship which is more pronounced in the median and upper-quantiles, bolsters the conventional theoretical expectation that high institutional distance between home and host countries is inversely related to OFDI. Equally important is the preliminary evidence of the non-linear impact of IP at the median and upper-quantiles as well as the impact of other controlling variables such as GDP, population, trade openness and unit labour costs on Chinese OFDI.Originality/valueThe ensuing theoretical implications are of great significance for future studies on the institutional distance and drivers of OFDI by emerging economies as well as for European policymakers in so far as the strengthening of IP institutions constitutes a gravitational point for inward investment flows from China.

Korea’s Foreign Direct Investment in the Automotive Industry in China

China Report ◽  
2018 ◽  
Vol 54 (2) ◽  
pp. 175-193 ◽  
Author(s):  
Jungmin Lee ◽  
Jai S. Mah
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Automotive Industry ◽  
Direct Investment ◽  
Policy Implications ◽  
Foreign Firms ◽  
Job Opportunities ◽  
Korean Firm ◽  
The Impact

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

scholarly journals Foreign Direct Investment and Trade Components in Context of Pakistan

2016 ◽  
Vol 12 (34) ◽  
pp. 384 ◽  
Author(s):  
Muhammad Akram Gilal ◽  
Khadim Hussain ◽  
Muhammad Ajmair ◽  
Sabahat Akram
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Annual Data ◽  
Investment Liberalization ◽  
Long Run ◽  
Short Run ◽  
The Impact

Objective of this paper was to evaluate the impact of foreign direct investment (FDI) on trade components (exports and imports) of Pakistan using annual data from 1975 to 2013. Engle and Granger two step cointegration method was used for conducting the analysis. This method was adopted because all the variables of interest were non stationary in level and stationary at first difference. Results provide evidence of long run cointegrating relationship as well as short run relationship between FDI and trade components. A rise in FDI causes both exports and imports to increase. Based on these empirical findings, we strongly recommend Government of Pakistan to focus on the strategy of investment liberalization as well as trade openness.

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