scholarly journals Linking FDI and Sustainable Environment in EU Countries

2021 ◽  
Vol 14 (1) ◽  
pp. 196
Author(s):  
Adina Dornean ◽  
Irina Chiriac ◽  
Valentina Diana Rusu
Keyword(s):  
Developed Countries ◽  
Ordinary Least Squares ◽  
Business Environment ◽  
Foreign Direct Investments ◽  
Host Countries ◽  
Eu Countries ◽  
Developed Economies ◽  
Sustainable Environment ◽  
Innovation And Technology ◽  
Ease Of Doing Business

The aim of this study is to emphasize the link between the foreign direct investments (FDIs) and the sustainable environment in EU countries. We also focus on investigating the influence of other factors related to business environment on FDIs, considering the investors’ sustainable choice for the host countries, grouped according to FTSE Russell criteria. Using panel methodology and applying Ordinary Least Squares (OLS) method of data analysis, the authors reached the conclusion that a better-rated business environment, with concern for sustainability, has more of a chance to attract larger sums of FDIs, mostly in the case of developed economies. This fact proves that the main advantage considered by a foreign investor in developed EU countries is represented by CO2 emissions (sustainable environment) and a good ease of doing business environment. The study highlights the factors that influence the decision of investing in developed countries, rather than in emerging and frontier ones. This paper contributes to the existing literature by identifying the group of countries which need a more sustainable approach to attract a large amount of FDIs, given that the inflow of FDIs is a crucial factor of economic growth, a possible source of innovation and technology, and a way to reduce poverty.

scholarly journals Foreign Direct Investment in Transition Economies: Is It Related to Export Expansion or Import Substitution?

2014 ◽  
Author(s):  
Cevat Gerni ◽  
Selahattin Sarı ◽  
Ömer Selçuk Emsen ◽  
Burhan Kabadayı
Keyword(s):  
Panel Data Analysis ◽  
Import Substitution ◽  
Developed Countries ◽  
Economic Consequences ◽  
Market Potential ◽  
Foreign Direct Investments ◽  
Data Set ◽  
Foreign Investors ◽  
Explanatory Variables ◽  
Developed Economies

It is propounded that there are two motivations behind foreign direct investments (FDI). One of them is to invest in foreign countries because of trade barrier to export. In this case foreign investors operate in import substitution industries (ISI). The second fact to invest in another country away from homeland is to get benefit from cost advantages such as cheap labor and inputs, positioning closed to developed countries. With this aspect foreign investors operate in export oriented sectors (EOS). The economic consequences were discussed lighting on study’s aim examining the FDI to Transitions Countries whether are ISI or EOS. The foreign direct investments to Transitions Countries were investigated by panel data analysis. First and second generation unit root tests and cross section dependency tests were applied. Long and short term regressions were realized. The data set were obtained from Word Bank Data Base and annually data were collected between 1993 and 2012. Theoretically and statistically expected coefficients and coefficient’s sign for explanatory variables have been obtained. It is as a result observed that the countries have higher internal market potential to take foreign direct investments to import substitution industries. The countries close to developed economies have been drawing foreign direct investments to export oriented sectors.

Chinese multinationals’ FDI motivations: suggestion for a new theory

2019 ◽  
Vol 14 (1) ◽  
pp. 70-90 ◽  
Author(s):  
Byung Il Park ◽  
Taewoo Roh
Keyword(s):  
Mergers And Acquisitions ◽  
Multinational Corporations ◽  
Emerging Market ◽  
Developed Countries ◽  
Future Research ◽  
Foreign Direct Investments ◽  
Data Set ◽  
Content Type ◽  
Developed Economies ◽  
Chinese Mncs

Purpose The purpose of this paper is to complement the conventional international business (IB) theory, the OLI perspective, which is good at explaining the foreign direct investments (FDIs) undertaken by developed market multinational corporations (DMNCs). This study also suggests a new theoretical framework, namely, the OILL paradigm, that is able to encompass FDIs from emerging market multinational corporations (EMNCs) toward developed economies. Design/methodology/approach The data comprising 206 Chinese MNCs, which completed international mergers and acquisitions (IMAs), were obtained from Zephyr. By using these data, logical regressions are conducted to statistically confirm that we should not omit the learning motivation if we want to adequately understand the FDI phenomenon by encompassing investment flow from developing (or emerging) to developed countries. Findings The results based on this data set indicate that EMNCs often try to enter developed economies with the motivation to seek sophisticated foreign host knowledge that is not available internally. In particular, they tend to use IMA strategies when they want to learn from heterogeneity (i.e. inter-industry mergers and acquisitions) and absorb advanced technologies from DMNCs. Research limitations/implications By shedding light on the recent new trend in FDI (i.e. FDI from emerging countries to developed economies), the study provides useful theoretical implications, as well as suggesting scholarly contributions. However, we should acknowledge that there are some limitations to this study. First, the study explores only Chinese MNCs. Second, learning motivations need to be minutely and precisely measured by other studies. Third, this study argues that FDI from EMNCs to DMNCs is triggered by the former’s motivation concerning knowledge acquisition. However, the type of knowledge should be considered, and this is perhaps another avenue for future research. Practical implications Conventional IB theories, such as the OLI paradigm and internalization theory, have long sought to answer the question of why DMNCs go for foreign markets, in spite of the presence of the liabilities of foreignness, and focused on their main investment motivations (i.e. market-seeking, efficiency-seeking and resource-seeking motivations). For this reason, these theories do not adequately capture the primary FDI motivations of EMNCs, and consequently, they are unable to see the big picture when it comes to the FDI phenomenon. Based on this idea, the authors complement the well-known triad motivations (i.e. market-seeking, efficiency-seeking and resource-seeking motivations) by adding the knowledge-seeking motive and contribute to the evolution of IB theories by suggesting a new theory, which is the OILL paradigm. Originality/value The study contributes to the extant literature in the field of IB in two key ways. First, it examines EMNCs’ central motivations in conducting FDI where empirical research is sparse. By doing this, this paper attempts to solve the query indicated above (i.e. why MNCs choose FDI in spite of the presence of the liabilities of foreignness), and it offers a new theory (i.e. the OILL paradigm).

scholarly journals Comparative analysis of the factors of attractiveness for foreign direct investments in the developing and developed countries

2020 ◽  
pp. 38-52
Author(s):  
Evgenii Aleksandrovich Vasiukov
Keyword(s):  
Developed Countries ◽  
Business Environment ◽  
Foreign Direct Investments ◽  
Investment Activity ◽  
Internal Sources ◽  
Labor Resources ◽  
Additional Support ◽  
High Level ◽  
National Economies ◽  
Developing And Developed Countries

With the cooling of global economic and exhaustion of internal sources of finance, the countries need to attract foreign investment in form of foreign direct investments (FDI) to stimulate economic growth. The subject of this research is the factors defining the inflow of foreign direct investments into national economies, as well as comparison of the factors impacting attracting of foreign capital into developing and developed countries. For comparison of the inflow of FDI, the work utilizes the following factors: openness of trade, wages, size of the market, development of infrastructure, and tax policy. In the next few years, developing countries will continue to maintain an edge in size of wages, but due to drastic difference in the quality of labor resources, developed countries will be more preferable from the investment perspective. In absence of the necessary infrastructure and without additional support or stimulus of the receiving state, decisions on investments will lean towards the more accessible markets of developed countries. As a result of limited business environment, high level of expenses for starting a company, and inefficiency of the market, the state needs to provide clear communication regarding the vector of government policy in the area of investments and refrain from inconsistency in passing measures. If companies would not be certain in the future of the political course, their profit expectations would rise significantly, while investment activity would drop.

THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN R&D: DIFFERENT INDUCEMENT EFFECTS OF PRIVATE AND PUBLIC R&D IN DEVELOPED AND DEVELOPING HOST COUNTRIES

2020 ◽  
pp. 1-29
Author(s):  
JUN-KI PARK ◽  
DONG JOON LEE ◽  
KEUN LEE
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Developed Countries ◽  
Host Countries ◽  
Developed Economies ◽  
Local Product ◽  
Private And Public ◽  
D Investment

In this paper, we identify the different determinants of the location of research and development (R&D) on foreign direct investment (FDI) in both developed and developing countries. In the case of host developed countries, we find that private R&D investment is positively associated with attracting R&D on FDI. In contrast, in the case of host developing countries, we find that private R&D investment is not significantly associated with attracting R&D FDI, but public R&D induces it. These findings imply that the objective of R&D FDI in developed economies is to advance multinational corporations’ (MNCs) technology further by targeting the local technology market. In contrast, the R&D FDI of MNCs in developing countries is attracted toward localities where the R&D infrastructure is better developed due to public R&D investment. MNCs in developing countries do not direct considerable attention to the R&D activities of the local private sector because their goal is to modify their own technology or products for the local product or export markets in the host countries. Therefore, although one obvious policy implication is the importance of conducting local R&D to attract foreign R&D, the more important factors are to stimulate private R&D further in the case of developed countries and to initiate public R&D first in the case of developing countries.

scholarly journals Primary energy consumption in selected EU Countries compared to global trends

2021 ◽  
Vol 19 (1) ◽  
pp. 503-510
Author(s):  
Tadeusz Olkuski ◽  
Wojciech Suwała ◽  
Artur Wyrwa ◽  
Janusz Zyśk ◽  
Barbara Tora
Keyword(s):  
Energy Consumption ◽  
Developed Countries ◽  
Primary Energy ◽  
World Population ◽  
Primary Energy Consumption ◽  
Energy Carriers ◽  
Global Trends ◽  
Eu Countries ◽  
Developed Economies ◽  
The Eu

Abstract The article shows the consumption of primary energy carriers in selected European Union (EU) countries, including Poland. The trend of consumption of primary energy carriers was compared with the global trend, which is different from that observed in the EU. The consumption of primary energy sources has been increasing steadily for many decades, due to the growth of the world population and the aspirations of developing countries to raise the standard of living of their citizens. In the EU, the opposite trend, i.e., a decrease in primary energy consumption, has been observed since 2007. This article presents tables and graphs showing these phenomena. The authors tried to answer the following questions: (a) What influences the decrease in demand for primary energy in highly developed countries? (b) Why the demand in less-developed countries is constantly growing? The trends in countries, such as Germany, France, the United Kingdom, Italy, and Poland, i.e., countries with the most developed economies in the EU and the home country of the authors, were analyzed.

scholarly journals The contribution of Polish technical thought to the quality of life in developed countries

Ekonomia ◽  
2018 ◽  
Vol 23 (4) ◽  
pp. 139-149
Author(s):  
Małgorzata Wachowska
Keyword(s):  
Quality Of Life ◽  
Patent Protection ◽  
Developed Countries ◽  
The United States ◽  
Technical Solution ◽  
Host Countries ◽  
Developed Economies ◽  
Patent Applications ◽  
The Developed Countries

The contribution of Polish technical thought to the quality of life in developed countriesDue to the fact that technological progress is an important factor influencing the quality of life, the purpose of the paper is to determine what is the contribution — measured by the number of inventions — of mobile Poles to increasing the quality of life of their host countries. The paper considers two fundamental questions: 1 how many inventions, including area of technology, Poles generate for the benefit of countries which they emigrate to and 2 what part of the inventive output of the host countries, including the area of technology, are inventions created by immigrants from Poland.The paper uses the method of quantitative and qualitative analysis of patent applications made in the years 2004–2012 within the frames of international procedure by residents from developed economies of Europe, the United States and Japan a total of 9 countries, which has made it possible to: 1 separate those applications in the case of which the creator of the technical solution is an immigrant from Poland and 2 determine the number of inventions created abroad by Poles for the benefit of their countries of destination.The study involves individuals exceptionally endowed with high human capital who have especially contributed to technological changes occurring in the world, i.e. creators of inventions filed for patent protection within the frames of international procedure — The Patent Cooperation Treaty — who at the time of making the applications lived in the developed countries covered by the study and came from Poland.The analysis of over 1700 PCT patent applications has made it possible to say that in the years 2004–2012: 1 Poles to the largest extent contributed to increasing the quality of life of Americans, for whom they created a total of 828 inventions, then Germans and Britons, whose inventive output they increased by 425 and 143 inventions, respectively, while their contribution to the improvement of the quality of life of the Japanese, Swedes or Finns was very small; 2 Poles to the largest extent contributed to increasing the quality of life of the inhabitants of developed countries by generating inventions in the following areas of technology: a chemistry; metallurgy and b human necessities. Starting from 2009, the creative activity of immigrants from Poland is less and less related to the improvement of the quality of life of the inhabitants of their economies of destination.

scholarly journals Export Revenue and Remittances Sent from Migrants' Host-Countries

2019 ◽  
Vol 4 (1) ◽  
pp. 3-18
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Fixed Effects ◽  
Developed Countries ◽  
Business Environment ◽  
Policy Implications ◽  
Host Countries ◽  
Economic Growth And Development ◽  
Exporting Firms ◽  
Aggregate Amount ◽  
Export Revenue ◽  
The Empirical Analysis

This article investigates empirically how export revenue in migrants' host-countries influences the aggregate amount of remittances sent by migrants from these countries to their home-countries. It further investigates how the volatility of export revenue in migrants' host countries affects the volatility of the amount of remittances sent by migrants. The empirical analysis has been carried out on a panel dataset comprising 23 developed countries over the period 1975-2016. Using the fixed effects estimator, it has shown that a rise in export revenues is associated with a higher amount of remittances sent by migrants to their home-countries. Furthermore, higher volatility of export revenue generates a higher volatility of the amount of remittances sent. These findings have two policy implications. First, by improving the business environment for their exporting firms, and devising domestic policies that help reduce the volatility of export revenue, policymakers in the host-countries of migrants (mainly here, developed countries) would allow higher amounts of remittances to accrue from these countries to their home-countries. These remittances are well known to be critical for the promotion of economic growth and development of the home-countries of migrants.

scholarly journals The impact of tourism growth on income inequality: Evidence from developing and developed economies

2020 ◽  
pp. 135481662093490 ◽  
Author(s):  
Jianchun Fang ◽  
Giray Gozgor ◽  
Sudharshan Reddy Paramati ◽  
Wanshan Wu
Keyword(s):  
Income Inequality ◽  
Fixed Effects ◽  
Developing Economies ◽  
Negative Impact ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Annual Data ◽  
Developed Economies ◽  
Significant Negative Impact ◽  
The Impact

In this article, we investigate the effects of tourism indicators on income inequality (IIE) in a sample of 102 countries. We divide the sample countries into 71 developing and 31 advanced economies. Using annual data from 1995 to 2014, we employ panel unit root tests, cointegration, fixed-effects, fully modified ordinary least squares, and causality techniques. Our findings show that tourism indicators have a significant negative impact on IIE in developing economies, while they have an insignificant impact in developed economies. Conversely, economic globalization increases IIE in developing economies, whereas its effect is positive but statistically insignificant in developed countries. From these findings, the study outlines detailed policy and practical implications.

scholarly journals Why hasn’t Macedonia succeeded for a long time in absorbing Foreign Direct Investment

2015 ◽  
Vol 5 (1) ◽  
pp. 9
Author(s):  
Dr.Sc. Nasir Selimi
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developed Countries ◽  
Foreign Direct Investments ◽  
Host Countries ◽  
The World ◽  
Balkan Countries ◽  
Long Time ◽  
Almost All

Recently almost all countries of the world without exception developed countries or the developing countries are attracting foreign direct investments. The reason is that there is no dilemma that benefits of foreign direct investments in the host countries as well as domestic countries are greater than the damage that can have.Western Balkan countries also follow this trend for attracting foreign direct investment. Some of them have achieved notable successes, while the others have achieved less success.  Macedonia is a country that during the last two decades ranks among the countries with smaller foreign direct investments.In the paper which I have chosen to analyze, in the start I gave a general overview of the meaning, role and importance of foreign direct investments for economic development of a country.  Later I have analyzed the trend of foreign direct investments in the region, and especially in Macedonia. At the end sought and given reasons of locking foreign direct investment in Macedonia and recommendations to overcome such a situation.

scholarly journals Systems competing for mobile factors: decision making based on hard vs. soft locational factors

2017 ◽  
Vol 12 (4) ◽  
pp. 633-651 ◽  
Author(s):  
Roxana Clodnițchi
Keyword(s):  
Institutional Design ◽  
Business Environment ◽  
The European Union ◽  
Location Factors ◽  
Developed Economies ◽  
Doing Business ◽  
Scientific Papers ◽  
Ease Of Doing Business ◽  
High Degree

Abstract The paper explores the links between capital relocation and soft locational factors addressing the quality of the business environment and the quality of life within the European Union. System competition is viewed as a competition between countries for the mobile factors capital and labour. The issue of systems competition is topical and insufficiently explored by contemporary literature. The scarcity of scientific papers describing the links between system competition theories and contemporary corporate geography theories, especially of the ones including the analysis of soft location factors, is a challenging aspect, which motivates the choice of this subject. This paper’s primary aim is to deliver an overview of the basic corporate geography conceptions, stressing the importance of soft location factors in today’s competition between systems for the mobile factors capital and labour. The paper further contains an analysis of the correlations between indicators regarding the institutional design of countries as developed by the World Bank (Ease of Doing Business), the Happiness Scale and the latest available data of FDI Stocks for the EU countries (2016). The relevance of such a study is based on the evidence that the contemporary business education relies on an extensive knowledge of the business environment. In the circumstance of similar infrastructural conditions, the main difference between locations is made by soft location factors. Since developed economies are characterised by a high degree of ubiquity of soft factors, the paper concludes that developing and emerging economies should foster the development of their soft location factors.

Sign in / Sign up

Export Citation Format

Share Document