The Effect of Regulatory Quality on Foreign Direct Investment (FDI) Inflows in Asia Using Dynamic Panel Data Method: The Initial Stage Policy Response to Covid-19

2020 ◽  
Vol 24 (5) ◽  
pp. 2554-2559
Author(s):  
Intan Maizura Abd Rashid
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Dynamic Panel Data ◽  
Policy Response ◽  
Dynamic Panel ◽  
Fdi Inflows ◽  
Regulatory Quality ◽  
Initial Stage

Carbon Dioxide Emission in the Middle East and North African (MENA) Region: A Dynamic Panel Data Study

2014 ◽  
Vol 2 (3) ◽  
pp. 5 ◽  
Author(s):  
Siti Ayu Jalil
Keyword(s):  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Panel Data ◽  
Direct Investment ◽  
Fossil Fuel ◽  
Dynamic Panel Data ◽  
North African ◽  
Capita Gross Domestic Product ◽  
Dynamic Panel ◽  
Per Capita

This empirical study investigates the determinants of CO2 emission in 18 countries of the Middle East and North African region covering the period from 1971 to 2009. The analysis is based on a dynamic panel data model employing the Generalized Method of Moments (GMM) technique. The potential determinants of carbon emissions identified are per capita gross domestic product, energy usage, energy consumption from fossil fuel, foreign direct investment, urbanization, industrial production, agricultural production and education level. The results show per capita gross domestic product, energy consumption based on fossil fuel, foreign direct investment and agriculture production have significant impact on the growth of carbon emissions in the region.

Determinants of Bank Foreign Direct Investment Inflow in India: A Dynamic Panel Data Approach

2016 ◽  
Vol 6 (1) ◽  
pp. 13-22
Author(s):  
Ajay B. Massand ◽  
Gopalakrishna B.V.
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Foreign Banks ◽  
Dynamic Panel ◽  
Public Sector Banks ◽  
Private And Public

India received highest foreign direct investment (FDI) in the world during the first half of 2015, leaving bigger economies like the US and China behind. In the process of globalization, India has liberalized all its sectors and invited FDI in most of the sectors, albeit with a sectoral cap. Internationalization of banks is perhaps the best example of India’s globalization. There are 44 foreign banks with 300 branches operating in India having a cap of 74 per cent and 20 per cent foreign investment in private and public sector banks, respectively. The present study aims to determine the motives behind bank FDI inflow into India. To accomplish that, a county-wise panel was constructed and bank FDI data from 2001 to 2013 was analyzed through generalized method of moments, a dynamic panel data model. The result of the study shows that bank FDI follows overall FDI, indicating that foreign banks follow their clients from their home country to serve them in the host country. However, locational advantages offer them profit-making opportunities and thus play a limited role in drawing bank FDI, which contribute to the development of the Indian economy. The argument that bank FDI inflow increases during a period of crisis is not relevant in the Indian context. The study suggests increasing the FDI cap in banking sector to attract more FDI and further relax the current restrictive policy on entry of foreign banks in India.

scholarly journals The Economic Determinants of Foreign Direct Investment in Developing Countries and Transition Economies

2008 ◽  
Vol 47 (3) ◽  
pp. 285-299
Author(s):  
İSmail ÇEviŞ ◽  
Burak ÇAmurdan
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Transition Economies ◽  
Direct Investment ◽  
Inflation Rate ◽  
Host Countries ◽  
Fdi Inflows ◽  
Economic Determinants ◽  
Determinants Of Fdi

The economic growth rates have dramatically increased in developing economies, such as in Latin American, Asian, and Eastern European countries, following the financial liberalisation attempt, especially during the 1990s. Foreign direct investment (FDI) has become an increasingly important element for economic development and integration of developing countries and transition economies in this period with the world economy. The main purpose of this study is to develop an empirical framework to estimate the economic determinants of FDI inflows by employing a panel data set of 17 developing countries and transition economies for the period of 1989:01-2006:04. In our model there are seven explanatory economic variables. They are, respectively, the previous period FDI (the pull factor for new FDI), GDP growth (measures market size), Wage (unit labour costs), Trade Rate (measures the openness of countries), the real interest rates (measures macroeconomic policy), inflation rate (as country risk and macroeconomic policy), and domestic investment (Business Climate). Hence, throughout the paper, only the economic determinants (being separated and apart from the other studies in the literature) of FDI inflows to developing countries and transition economies are studied. It is found out that the previous period FDI which is directly related to the host countries’ economic resources is important as an economic determinant. Besides, it is also understood that the main determinants of FDI inflows are the inflation rate, the interest rate, the growth rate, and the trade (openness) rate and FDI inflows give power to the economies of host countries. JEL classification: F21, R19, C23 Keywords: Foreign Direct Investment, the Determinants of FDI, the Developing Countries, Transition Economies, Panel Data Analysis

scholarly journals Foreign Direct Investment and World Pandemic Uncertainty Index: Do Health Pandemics Matter?

2021 ◽  
Vol 14 (3) ◽  
pp. 107
Author(s):  
Linh Tu Ho ◽  
Christopher Gan
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Method Of Moments ◽  
Direct Investment ◽  
Dynamic Panel Data ◽  
Asia Pacific ◽  
Uncertainty Index ◽  
Method Of Moments Estimation ◽  
Generalised Method Of Moments ◽  
Stage Estimation

This paper explores the impacts of health pandemics on foreign direct investment (FDI) using the new world pandemic uncertainty index (WPUI). We investigate the effects of pandemics, including COVID-19, on FDI based on a sample of 142 economies and sub-samples (incomes and regions) from 1996 to 2019. The two-step system Generalised Method of Moments estimation of linear dynamic panel-data model (DPDGMM) is used in this study. The estimation results are robust with the results of the two-step sequential (two-stage) estimation of linear panel-data models (SELPDM) and the two-step system Generalised Method of Moments estimation (BBGMM). The results show that health pandemics have negative impacts on FDI. Significantly, the uncertainty caused by pandemics creates adverse shocks on FDI net inflows in Asia-Pacific countries and emerging economies.

scholarly journals Sustainable Use of Energy Resources, Regulatory Quality, and Foreign Direct Investment in Controlling GHGs Emissions among Selected Asian Economies

2021 ◽  
Vol 13 (3) ◽  
pp. 1123
Author(s):  
Hafiz Syed Mohsin Abbas ◽  
Xiaodong Xu ◽  
Chunxia Sun ◽  
Atta Ullah ◽  
Ghulam Nabi ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Energy Resources ◽  
Emissions Reduction ◽  
Fdi Inflows ◽  
Regional Collaboration ◽  
Regulatory Quality ◽  
Asian Economies

“United in Science” is the recent slogan of the United Nations climate summit in 2020. A collective effort of institutional governance, energy resources utilization, foreign inclusion, and regional collaboration is required for the Sustainable Development Goal (SDGs) of achieving a clean environment. In reaching this objective, this study investigates the sustainably of Regulatory Quality (RQ), Energy Consumption per capita (ECpc), Foreign Direct Investment (FDI), and their interaction in reducing the Greenhouse Gases (GHGs) Emissions. This study considered 27 Asian economies, covering the more extensively undertaken regional investigation, in the time period from 2001 to 2018. The results of the two-step system Generalized Method of Moments (GMM) show that RQ has a strong positive significant impact on GHGs emissions reduction. It further indicates that FDI inflows support the institutions to enhance their institutional capacities. Simultaneously, ECpc has negative impacts on GHGs emissions. Furthermore, RQ interaction with ECpc and FDI also have a strong significant positive impact on GHGs emissions reduction in Asia. The study concludes that the Asia region has been implementing aggressive and prudent policies towards environmental up-gradation to achieve sustainability. However, FDI inflows should be more allocated to environmental quality and energy efficacy to clean the climate and promote regional collaboration.

scholarly journals Dinamika PMA dan PMDN di Indonesia Sebagai Dampak Dari Upah Minimum, Inflasi dan PDRB Tahun 2004-2012: Pendekatan Dynamic Panel Data Model

2016 ◽  
Vol 17 (3) ◽  
pp. 119
Author(s):  
Lea Widowati Sugiharto ◽  
Akhmad Syakir Kurnia
Keyword(s):  
Panel Data ◽  
Minimum Wage ◽  
Direct Investment ◽  
Dynamic Panel Data ◽  
Wage Setting ◽  
Dynamic Panel ◽  
Explanatory Variables ◽  
Long Run ◽  
Short Run ◽  
Wage Increases

<div><em>This paper aims at investigating the behavior of foreign direct investment (FDI) and domestic direct investment (DDI) in Indonesia, which is expected to be explained by several explanatory variables including the setting of regional minimum wage, inflation, as well as regional domestic product. More specifically, the investigation is focused on the effect of annual increase in the minimum regional wage, provided that it is a sensitive issue for investors. Using 33 provincial level data in a period from 2004 to 2012, this paper uses a dynamic panel data which allows us to see the behavior of direct investment in the short run as well as in the long run. The result shows that an increase in the regional minimum wage setting reduces both DDI and FDI in the short run. However, in the long run, an increase in the regional minimum wage is likely to increase both DDI and FDI. This is likely indicating that in the long run an increase in wage is expected to be accompanied by higher productivity, eventhough in the short run higher wage increases cost of production which will undermine investment.</em></div>

Determinants of foreign direct investment inflow to the agricultural sector: a panel-data analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seyed Reza Zeytoonnejad Mousavian ◽  
Seyyed Mehdi Mirdamadi ◽  
Seyed Jamal Farajallah Hosseini ◽  
Maryam Omidi NajafAbadi
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Host Country ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Fdi Inflows ◽  
Content Type ◽  
Main Determinants ◽  
Determinants Of Fdi

PurposeForeign Direct Investment (FDI) is an important means of boosting the agricultural sectors of developing economies. The first necessary step to formulate effective public policies to encourage agricultural FDI inflow to a host country is to develop a comprehensive understanding of the main determinants of FDI inflow to the agricultural sector, which is the main objective of the present study.Design/methodology/approachIn view of this, we take a comprehensive approach to exploring the macroeconomic and institutional determinants of FDI inflow to the agricultural sector by examining a large panel data set on agricultural FDI inflows of 37 countries, investigating both groups of developed and developing countries, incorporating a large list of potentially relevant macroeconomic and institutional variables, and applying panel-data econometric models and estimation structures, including pooled, fixed-effects and random-effects regression models.FindingsThe general pattern of our findings implies that the degree of openness of an economy has a negative effect on FDI inflows to agricultural sectors, suggesting that the higher the degree of openness in an economy, the lower the level of agricultural protection against foreign trade and imports, and thus the less incentive for FDI to inflow to the agricultural sector of the economy. Additionally, our results show that economic growth (as an indicator of the rate of market-size growth in the host economy) and per-capita real GDP (as an indicator of the standard of living in the host country) are both positively related to FDI inflows to agricultural sectors. Our other results suggest that agricultural FDI tends to flow more to developing countries in general and more to those with higher standards of living and income levels in particular.Originality/valueFDI inflow has not received much attention with respect to the identification of its main determinants in the context of agricultural sectors. Additionally, there are very few panel-data studies on the determinants of FDI, and even more surprisingly, there are no such studies on the main determinants of FDI inflow to the agricultural sector. We have taken a comprehensive approach by studying FDI inflow variations across countries as well as over time.

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