scholarly journals Assessment And Management Of Negative Impacts Of Foreign Direct Investment For Economies Of Central Asia

2021 ◽  
Vol 03 (01) ◽  
pp. 142-150
Author(s):  
Javohir Juraev ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Central Asia ◽  
Capital Flows ◽  
Direct Investment ◽  
Asian Crisis ◽  
Fdi Inflows ◽  
Central Asian ◽  
Central Asian Countries ◽  
Negative Impacts ◽  
Proper Balance

Uzbekistan has only begun to make independent steps in global economic processes. Along with Central Asian countries, Kazakhstan, Kyrgyzstan, Turkmenistan and Tajikistan, Uzbekistan’s economy and economic structure is pretty young, thus vulnerable to any unseen exogenous repercussions. We have already seen that how the Mexican Tequila crisis in 1994, the Asian crisis in 1997-98, the Russian crisis (even it was the leftover contagion from the Asian crisis) in 1998 and recent Kazakhstan real-estate crisis in summer of 2007 happened. It easy to see if we look behind capital flows. Capital flows have been heartache and headache for an economy for the last two decades. They are so mobile and volatile that can bear vicious ebbs and flow in no time at all. However, it is necessary to remember, that today it is difficult to speak of the economy of any country as about of separate island. Foreign Direct Investment is very necessary somehow, at least theoretically, to boost the economies of Central Asia. But there should be proper balance and policies to make the most of FDI inflows. An enchanted economy by enormous FDI inflows is exposed to very huge risk which might end up even with crisis!

scholarly journals Investment Climate and Foreign Direct Investment Trends in the South Caucasus and Central Asia

2007 ◽  
Vol 2 (1) ◽  
pp. 31-40
Author(s):  
Slavica Penev
Keyword(s):  
Foreign Direct Investment ◽  
Central Asia ◽  
Direct Investment ◽  
Transition Process ◽  
Investment Climate ◽  
Long Term Effects ◽  
The South ◽  
South Caucasus ◽  
Central Asian

Investment Climate and Foreign Direct Investment Trends in the South Caucasus and Central AsiaThis paper analyzes and compares investment climates and trends in the South Caucasus and Central Asia. The analyses and comparisons were conducted in view of the impacts of transitional progress, economic development, and the energy reserves from these regions on the inflow of foreign direct investment. Improvement of the investment climate by accelerating the transition process and reducing investment risks can be seen as the most important determinants of FDI inflows into the countries of these two regions. Structural diversification of South Caucasian and Central Asian natural resource-based economies would be essential in ending dependence on the energy and mining sectors and would have positive long-term effects on economic growth and the investment climate, and attract other, additional types of FDI.

scholarly journals The determinants of foreign direct investment in Central Asian region: A case study of Tajikistan, Kazakhstan, Kyrgyzstan, Turkmenistan and Uzbekistan (A quantitative analysis using GMM)

2020 ◽  
Vol 6 (2) ◽  
pp. 162-176
Author(s):  
Sharofiddin Ashurov ◽  
Anwar Hasan Abdullah Othman ◽  
Romzie Bin Rosman ◽  
Razali Bin Haron
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Labor Force ◽  
Direct Investment ◽  
Trade Openness ◽  
Capital Inflows ◽  
Asian Countries ◽  
Economic Opportunities ◽  
Central Asian ◽  
Central Asian Countries

Foreign direct investment (FDI) is viewed as one of the most crucial forms of capital inflows and significant drivers of economic growth in numerous countries. In particular, developing countries, emerging economies and countries engaged in the process of development have recognized the crucial importance of FDI as a critical contributor to their economic progress and increasing economic opportunities. The following research investigated and identified the determinants of FDI in the Central Asian countries, specifically Tajikistan, Kazakhstan, Kyrgyzstan, Turkmenistan and Uzbekistan, between 2000 and 2017. The methodology employed in the first part included comparative analysis of the foreign investment trends and gross domestic product (GDP), as well as an endogenous growth model. The result showed that five variables are robustly significant of FDI determinants: FDI (previous year), GDP, labor force, trade openness and tax. Additionally, this paper demonstrates that among the most significant FDI contributors are China, Russia and Japan as well as European countries because of the economic opportunities available; however, the USA is considered by Central Asian countries to offer the most opportunities for security control considerations rather than economic opportunities. Furthermore, the results suggest that the authorities in the Central Asia region should enhance the stability of their economic growth, labor force, trade openness and tax regulations to attract more FDI to the region.

Economic and legal instruments for the realization of foreign direct investment in infrastructure sectors of the economy

2020 ◽  
pp. 47-55
Author(s):  
Orshanska Marіana
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
High Growth ◽  
Well Being ◽  
Gradual Improvement ◽  
Fdi Inflows ◽  
Investment Projects ◽  
Analysis And Synthesis ◽  
High Level ◽  
Fdi Attraction

The purpose of the article is to determine the nature, characteristics and keyproblems of the main types of economic and legal instruments for the realizationof foreign direct investment (FDI). the methodological basis of the study is asystematic approach to the processing and compilation of statistics and indicators,as well as methods for their comparison, analysis and synthesis and a method offorecasting decisions on the use of investment potential to increase the attractivenessand volume of FDI attraction. The scientific novelty of the research lies in theanalysis of greenfield and brownfield strategies as the main forms of FDIimplementation, the disclosure of the content and interpretation of data on thereal state of FDI attraction, the search for opportunities to improve the investmentclimate and effective mechanisms for attracting foreign investors. conclusions. Itis confirmed that the investment attractiveness and rating of the country in theinternational market are the main factors for attracting investors. Inaccessibleinfrastructure, inefficient judicial system, high level of corruption and imperfectlegislation are the main obstacles that need to be overcome in order to attractforeign investors’ funds, providing a full package of assistance and support ateach stage of the implementation of investment projects. Greenfield and brownfield(M&A) are the most effective forms of FDI in order to achieve high growth ratesof the domestic economy, improve the level of population well-being andinternationally enter Ukraine. An analysis of the statistics on the effectiveness ofinnovative enterprise development projects, the characteristics of economic andlegal instruments indicate the gradual improvement of the investment climate andthe promotion of FDI inflows into the region’s economy through the implementationof greenfield and brownfield strategies. Examples of effective implementation ofthese strategies in the creation of new enterprises, companies of foreignrepresentation, which are expanding their capacity and entering new domesticmarkets are given. Examples of the brownfield strategy have been analyzed torestart existing and high-quality structural and organizational changes in inefficiententerprises, which have given impetus to improving the economic environment,investment attractiveness of the economy of the region and the country as a whole.

New European Union strategy for Central Asia

2020 ◽  
pp. 72-79
Author(s):  
S. Gavrilova
Keyword(s):  
European Union ◽  
Central Asia ◽  
Economic Cooperation ◽  
The European Union ◽  
Asian Countries ◽  
Energy Potential ◽  
High Importance ◽  
Central Asian ◽  
New Strategy ◽  
Central Asian Countries

For several decades, the European Union has been steadily increasing its presence in Central Asian countries. The EU's interests in the region are due to a number of reasons, including the desire to expand its influence in the Central Asian countries, the high importance of the region as a transit corridor between Europe and China, the prospects for economic cooperation, and the importance of the region's energy potential. In May 2019 The European Union has presented a new Strategy for Central Asia, designed to intensify cooperation in a number of areas of interaction. The new strategy is aimed at both implementing these interests and expanding cooperation in a number of other areas.

An Empirical Investigation of India’s Outward Foreign Direct Investment: A Macro Perspective

2019 ◽  
Vol 5 (2) ◽  
pp. 79-88
Author(s):  
Dikshita Kakoti
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Real Effective Exchange Rate ◽  
Outward Foreign Direct Investment ◽  
Fdi Inflows ◽  
Long Run ◽  
Increasing Trend ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Since 1990, globalization of Indian economy led to a speedy growth of foreign direct investment (FDI) inflows and simultaneously outward foreign direct investment (OFDI) also shows an increasing trend. However, India’s OFDI has attracted a little attention from the researchers and they have considered the OFDI in terms of commitments or approved equities. The motivation of this article is to investigate the India’s macro factors influencing actual OFDI flows from India by empirically recognizing four factors, namely gross domestic product, inward FDI, real effective exchange rate, and real interest rate over the period 1980–2016. The study has used Augmented Dicky-Fuller (ADF) and Phillips–Perron (PP) Unit root tests for checking the stationarity of the variable of the model. Later on, autoregressive distributive lag (ARDL) model and error correction mechanism is used for testing the long-run as well as short-run dynamics of the model. The result shows that all the selected variables have positive and significant influence on India’s outward investment flows.

scholarly journals Causal Links between Trade Openness and Foreign Direct Investment in Romania

2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Test Procedure ◽  
Real Effective Exchange Rate ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

scholarly journals Is Russia successful in attracting foreign direct investment? Evidence based on gravity model estimation

2016 ◽  
Vol 16 (3) ◽  
pp. 245-267 ◽  
Author(s):  
Oleg Mariev ◽  
Igor Drapkin ◽  
Kristina Chukavina
Keyword(s):  
Foreign Direct Investment ◽  
Gravity Model ◽  
Host Country ◽  
Direct Investment ◽  
Recipient Country ◽  
Developed Countries ◽  
Likelihood Method ◽  
Empirical Estimation ◽  
Fdi Inflows ◽  
Russian Economy

Abstract The aim of this paper is twofold. First, it is to answer the question of whether Russia is successful in attracting foreign direct investment (FDI). Second, it is to identify partner countries that “overinvest” and “underinvest” in the Russian economy. We do this by calculating potential FDI inflows to Russia and comparing them with actual values. This research is associated with the empirical estimation of factors explaining FDI flows between countries. The methodological foundation used for the research is the gravity model of foreign direct investment. In discussing the pros and cons of different econometric methods of the estimation gravity equation, we conclude that the Poisson pseudo maximum likelihood method with instrumental variables (IV PPML) is one of the best options in our case. Using a database covering about 70% of FDI flows for the period of 2001-2011, we discover the following factors that explain the variance of bilateral FDI flows in the world economy: GDP value of investing country, GDP value of recipient country, distance between countries, remoteness of investor country, remoteness of recipient country, level of institutions development in host country, wage level in host country, membership of two countries in a regional economic union, common official language, common border and colonial relationships between countries in the past. The potential values of FDI inflows are calculated using coefficients of regressors from the econometric model. We discover that the Russian economy performs very well in attracting FDI: the actual FDI inflows exceed potential values by 1.72 times. Large developed countries (France, Germany, UK, Italy) overinvest in the Russian economy, while smaller and less developed countries (Czech Republic, Belarus, Denmark, Ukraine) underinvest in Russia. Countries of Southeast Asia (China, South Korea, Japan) also underinvest in the Russian economy.

KAZAKHSTAN’S POSITION IN THE ECONOMIC COOPERATION WITH OTHER COUNTRIES OF CENTRAL ASIA

2021 ◽  
Vol 22 (2) ◽  
pp. 110-121
Author(s):  
Karlygash MUKHTAROVA ◽  
Yermukhambet KONUSPAYEV ◽  
Klara MAKASHEVA ◽  
Karim SHAKIROV
Keyword(s):  
Central Asia ◽  
Economic Model ◽  
Raw Materials ◽  
Economic Cooperation ◽  
Asian Countries ◽  
Regional Economic ◽  
Economic Relations ◽  
Central Asian ◽  
Central Asian Countries ◽  
Economic Ties

Improving the forms and mechanisms of regional economic integration, deepening the mutual understanding on the formation of an economically and politically secure integrated space, expanding trade and economic relations, elaborating joint actions to maintain regional peace and stability, creating a single information space are among the key areas that have become the basis of cooperation among the Central Asian region (CAR) states. The authors reveal the positive aspects of cooperation among the CAR countries—Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan, and Tajikistan. First and foremost, these include common historical roots, linguistic and cultural similarity, convenient geographical location and established economic ties, which allow the states of Central Asia (CA) to establish a deeper and more active understanding of each other, to solve economic and political problems related to finding and realizing domestic investment potential and expanding regional trade and economic ties. The joint establishment of international transport corridors and infrastructure will help reduce the transport costs for Central Asian countries that supply export products to external markets, which is an important area of ​​cooperation in Central Asia. In addition, the economic problems that exist among the regional countries largely determine the nature of relations between them. Future solution of problems determines the subsequent viability of the Central Asian Regional Economic Cooperation (CAREC) and the regional development prospects. Based on the use of economic research tools, the authors examine the problems caused by the COVID-19 pandemic and their impact on the state of trade and economic relations between the regional states. Post-crisis plans for economic recovery in the Central Asian countries will be developed and implemented in the context of the need to solve the present-day problems associated with the gradual lifting of quarantine measures. In this regard, the quickest possible transition of economies to an upward growth trajectory should launch the expansion of trade and economic cooperation and ties among the Central Asian countries. The authors emphasize the fact that another important problem within CAREC is the fact that CAR economies are dominated by raw materials, which does not solve the problems of reducing social inequality and improving the welfare of the regional population. For this reason, Kazakhstan, like other Central Asian countries, is currently in search of a new economic model. The transformation is crucial because the country needs to overcome its excessive long-term dependence on the export of oil and raw materials. The new economic model should be focused on further industrialization and diversification of the economy, on the search for new innovative approaches and development strategies.

scholarly journals DETERMINANTS OF INNOVATIVE ACTIVITIES: EVIDENCE FROM EUROPE AND CENTRAL ASIA REGION

2015 ◽  
Vol 60 (01) ◽  
pp. 1550004 ◽  
Author(s):  
CHI KEUNG MARCO LAU ◽  
FU STEVE YANG ◽  
ZHE ZHANG ◽  
VINCENT K. K. LEUNG
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Central Asia ◽  
Direct Investment ◽  
Estimation Procedure ◽  
Corruption Index ◽  
Country Analysis ◽  
Cross Country ◽  
Shed Light ◽  
Central Asia Region

Recent studies in the innovation literature show that Foreign Direct Investment (FDI) enhances innovations in recipient countries through spill-over effects. In this paper we extend the existing literature by incorporating the corruption index in the estimation procedure. Using a cross-country analysis from the Europe and Central Asia (ECA) region, covering 57 countries over the period of 1995–2010, we find no evidence of FDI spill-over effects on innovations, when corruption is endogenously modelled in the regression. Interestingly, we find that corruption and expenditure on education sector are positively related to the number of patents applications, suggesting anti-corruption programs encourage innovations that promote economic growth. Our study shed light on the national innovations and anti-corruption programs.

Effects of Infrastructure Development on Foreign Direct Investment in Kenya

2016 ◽  
Vol 8 (2) ◽  
pp. 93-110 ◽  
Author(s):  
Carol Teresa Wekesa ◽  
Nelson H. Wawire ◽  
George Kosimbei
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Transport Infrastructure ◽  
Series Data ◽  
Infrastructure Development ◽  
Fdi Inflows ◽  
Year 2000 ◽  
Quality Infrastructure

Kenya’s foreign direct investment (FDI) inflows as a percentage of GDP have been increasing negligibly over the last 4 years, increasing from 0.4 per cent in 2010 to 0.9 per cent in 2013. And yet evidence shows that quality infrastructure lowers the cost of doing business and thus attracts FDI. Kenya has visible signs of infrastructure inadequacy and inefficiencies despite the fact that since the year 2000, there has been increased budgetary allocation to the infrastructure sector. This study, therefore, sought to determine the effects of transport, energy, communication and water and waste infrastructure development on FDI inflows in Kenya. The study used annual time series data sourced from Central Bank of Kenya, World Bank and the United Nations Conference on Trade and Development (UNCTAD). Using multiple regression analysis, it was established that improved transport infrastructure, communication infrastructure, water and waste infrastructure, exchange rate, economic growth and trade openness are important determinants of FDI inflows into Kenya. Hence, for Kenya to attract more FDI, continued infrastructural development is key since quality infrastructure affords investors a conducive investment climate in which to operate.

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