scholarly journals Investment Opportunities and Challenges in Tamil Nadu for Industrial Development- An Assessment

In recent years, significant of Foreign Direct Investment has been increasing especially in the developing countries. These countries are trying their level best to attract more and more FDI. Foreign Direct Investment takes place when a company invests directly in the production or marketing of a product in a foreign country.FDI is defined as an investment involving a long term relationship that reflects the long term interest and control of a resident entity in the host country. Industrial investment plays a significant role in the development of a country. Broadly there are two types of foreign investment viz., foreign direct investment and portfolio investment. The developments are easily possible through Foreign Direct Investment (FDI) because it helps to bring close the different economies of the world by investing capital in a country. Capital formation is an important determinant of economic growth. While domestic investments add to the capital stock in an economy, FDI plays a complementary role in overall capital formation and filling up the gap between domestic savings and investment. Foreign investment plays an important role in the long term economic development by augmenting availability of capital, enhancing competitiveness domestic economy through transfer of technology, strengthening infrastructure, raising productivity, generating new employment opportunities and boosting exports. The Government has implemented several reforms in recent years to attract more FDIs. These include improving infrastructure, revising the law on the land acquisition, reforming labour law and rationalizing the process of obtaining environmental clearances. In this article researcher focused on industrial opportunities and challenges in Tamil Nadu for industrial development of the state.

2014 ◽  
Vol 19 (Special Edition) ◽  
pp. 267-281
Author(s):  
Khalil Hamdani

This paper makes the case for a vigorous policy thrust to support investment-led growth. Pakistan’s economy has not maintained a sufficient level of capital formation to sustain growth over the long term. Two thirds of current growth is driven by consumption and not investment: this needs to be turned around. The government needs to put in place an investment regime that motivates and induces industry to invest, innovate, and reinvest. Foreign direct investment can play an important role in strengthening the country’s investment rates. There is also need for deliberate polices to boost technological capabilities in the enterprise sector. In this context, East Asia – which successfully created a dynamic process of capital formation and technological learning that upgraded its productive capacity and underpinned export success – holds important lessons for Pakistan.


2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.


2018 ◽  
Vol 17 (2) ◽  
pp. 73-78
Author(s):  
Veronica Roberts

The UK Government has recently published a White Paper proposing the creation of a new foreign investment regime, under which the Government would have powers to review a very broad range of transactions if they give rise to a national security risk. This article reviews the key provisions of the Government's proposal and also highlights the broader global context, with a number of other countries also expanding their own foreign investment regimes.


Subject The fall in foreign investment last year. Significance The government has launched a new Foreign Investment Promotion Agency (APIE) to buck a sharp drop in foreign direct investment (FDI) last year. Breaking with the country's long-standing sector-agnostic approach, the agency will seek to attract investment to specific sectors, including energy, public infrastructure and the food industry. Impacts A more business-friendly administration in Argentina could potentially divert FDI from Chile. Critics of the new FDI regulation maintain that it will dampen inflows. Efforts to attract investment in food and mining services represent a bid to diversify from mineral exports.


2020 ◽  
Vol 18 (1) ◽  
pp. 80
Author(s):  
Dina Eka Anggraini ◽  
Wahyu Hidayat Riyanto ◽  
Muhammad Sri Wahyudi Suliswanto

This studied aims to explained the effect of the variables of inflation, consumption expenditure, capital formation, foreign direct investment, and trade openness on gross domestic product ASEAN countries from 1996 – 2018. This research used a panel regression analyzed method to test the data in getting decisions. The t-statistic test results showed that consumption expenditure, capital formation, foreign direct investment, and trade openness significantly influence the direction of a positive relationship to gross domestic product. However, inflation showed a negative direction and had a significant effect on the gross domestic product so that if there is increased inflation it will reduce gross domestic product. The government can formula a single-digit policy so that there is no decline in the gross domestic product of ASEAN countries.


2020 ◽  
Vol 5 (1) ◽  
pp. 32-38
Author(s):  
Dr. A. Muthusamy ◽  
Raghuveer Negi

Objective – This paper argues the retrospective effect of foreign investment inflow. The FDI not only causes economic growth in the nation also it vindicate the societal development in the host nation. It is assumed that FDI does affect societal development either directly or indirectly also it can be constructive or dubious. Methodology – The societal development indicators have been taken for the study such as access to electricity, refugee population, and total natural resource on rent. The Ordinary Least Square (OLS) method used for regression analysis, Augmented Dickey-Fuller (ADF) used to analyse stationarity and Autoregressive Distributive Lag (ARDL) used for empirical results. Findings – The result shows the consistency in FDI inflows, but all the taken indicators have not experienced the positive effect of FDI on the societal development of a nation. Novelty –Also, the policies of the government and initiative related to foreign investment inflow have major impact on societal growth in the nation. Type of Paper: Empirical Keywords: Electricity; FDI; India; Natural Resources; Refugee Population; Societal Development Reference to this paper should be made as follows: Muthusamy, A; Negi, R. 2020. Does Foreign Direct Investment Induces Societal Development in India?, J. Fin. Bank. Review, 5 (1): 32 – 38 https://doi.org/10.35609/jfbr.2020.5.1(4) JEL Classification: A1; E01; M14; M16


2017 ◽  
Vol 9 (7) ◽  
pp. 222
Author(s):  
Haga Elimam

Foreign direct investment is identified as the major tool for the movement of international capital. Thus, the study has employed a review research to examine the determinants of foreign direct investment in Saudi Arabia. The results are significant as they have contributed towards determinants of foreign direct investment by comparing with previous studies. The results showed that trade openness, infrastructure availability, and market size play significant role in attracting foreign direct investment within a country. The inflow of foreign direct investment has a potential to benefit the investing entity as well as the host government. It also renders economic growth and socioeconomic transformation of the country. The flow of foreign direct investment in Saudi Arabia is affected by several factors including growth rate, GDP, exports and imports. It is the duty of the government to ensure the attractiveness of their country to maintain maximum flow of foreign direct investment, as it promotes sustained long-term economic growth by increased investment in the human capital.


1997 ◽  
Vol 36 (4I) ◽  
pp. 403-418
Author(s):  
Stephen Guisinger

Pakistan for many years maintained strict controls on foreign direct investment. However, over the past decade controls on foreign investment in manufacturing have diminished sharply, though less so for the service sector. The government continues to impose restrictions on foreign trade, which adversely affect foreign direct investors in several ways. Nonetheless, Pakistan has moved a substantial distance toward liberalising direct foreign investment. There are two obvious policy issues related to foreign investment raised by these developments. First, should Pakistan proceed further toward liberalisation and at what pace? Second, with a liberalised investment sector, should Pakistan become an active protagonist among developing countries for a multilateral agreement on investment?


2020 ◽  
Vol 1 (14) ◽  
pp. 137-145
Author(s):  
Agata Maria Gorniak

The main objective of the paper is to examine the potential factors which, according to the literature, may be impacting the structure of exports by allowing more exports from high and medium-high research and development intensive sectors. In the paper, particular emphasis is put on the foreign direct investment’s role in export advancement. Apart from foreign direct investment inflows, the research examines the impact of trade openness, gross capital formation, gross domestic savings together with research and development and human capital related factors, on the phenomenon. The research group consists of eight Central – Eastern European economies, accessed to the European Union in 2004. The statistical data utilized in the research is retrieved from commonly available statistical databases. In the study ordinary least squares panel data regression is applied. Three separate models are estimated for three varying time frames (within the years 2000 – 2018), depending on the variables data availability. Obtained results suggest a strong positive correlation between trade openness, investment factors (savings and capital formation) expressed in growth rates, and high and medium-high research and development intensive manufacturing exports. Even though foreign direct investment inflows are identified as statistically significant in two of the estimated models, the coefficient for the variable is low. The results are partially consistent with the literature on the topic. Trade openness and foreign direct investment inflows have both been identified as relevant factors in the previously conducted studies. In contrary to previous findings, the investment-related macroeconomic factors, such as gross domestic savings and gross capital formation appear as significant variables. Also, in the estimated models, factors related to research and development have no relevance.   Keywords: Foreign Direct Investment, International Business, International Trade, Exports, High Technology Exports


2019 ◽  
Vol 9 ◽  
pp. 77-89
Author(s):  
Khom Raj Kharel ◽  
Suman Kharel

 The purpose of this paper is to analyze the foreign direct investment status and environment in Nepal. There is significant contribution of foreign investment in economic development of developing countries like Nepal. Foreign investment attraction in a country like Nepal increases the foreign capital and technology transfer. Since 1990s inflow of foreign direct investment (FDI) has been increasing in Nepal due to the adoption of liberal economic policy by the government of Nepal. The Foreign Investment Technology Transfer Act (FITTA) has made better foreign investment environment in Nepal. This paper examines and analyses the contribution of FDI in Nepal. For the analysis, simple linear regression model has been applied to measure the impact of FDI on GDP and employment. Because FDI inflow has been recorded after 1990s, the impact of FDI has been analyzed in this paper over the period of 1990/91-2018/19. This study finds a positive impact of FDI on GDP and other macro variables.


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