Foreign Direct Investment in India Opportunities and Challenges

2018 ◽  
Vol 9 (4) ◽  
pp. 1-20 ◽  
Author(s):  
Suranjan Bhattacheryay
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Business Environment ◽  
Financial Knowledge ◽  
Policy Management ◽  
Host Countries ◽  
Strategic Resources ◽  
The Government

Foreign Direct Investment (FDI) is the dispersal and optimisation of resource packages like human, financial, knowledge, physical and reputational resources. The motivational factors such as natural resources, market resources, strategic resources, efficiency resources, locational advantages, etc., influenced Multinational Enterprises (MNEs) to perform various activities in the host countries. MNEs internationalise business mainly to acquire intangible assets and for balancing resources which they do not possess. India is in receipt of continuous capital flow due to favourable policy management and a strong business environment. Globally, Indian corporations continually display significantly better equity earnings over other countries both developed and emerging. The Government of India is very keen in simplifying FDI rules with an ultimate aim to attract more investors with zero hazards.

Foreign Direct Investment in India Opportunities and Challenges

2020 ◽  
pp. 937-959
Author(s):  
Suranjan Bhattacheryay
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Business Environment ◽  
Financial Knowledge ◽  
Policy Management ◽  
Host Countries ◽  
Strategic Resources ◽  
The Government

Foreign Direct Investment (FDI) is the dispersal and optimisation of resource packages like human, financial, knowledge, physical and reputational resources. The motivational factors such as natural resources, market resources, strategic resources, efficiency resources, locational advantages, etc., influenced Multinational Enterprises (MNEs) to perform various activities in the host countries. MNEs internationalise business mainly to acquire intangible assets and for balancing resources which they do not possess. India is in receipt of continuous capital flow due to favourable policy management and a strong business environment. Globally, Indian corporations continually display significantly better equity earnings over other countries both developed and emerging. The Government of India is very keen in simplifying FDI rules with an ultimate aim to attract more investors with zero hazards.

Effect of Infrastructure and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa

2019 ◽  
Vol 11 (3) ◽  
pp. 183-201 ◽  
Author(s):  
Edward Nketiah-Amponsah ◽  
Bernard Sarpong
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Generalized Method Of Moments ◽  
Business Environment ◽  
Transport Infrastructure ◽  
Sub Saharan Africa ◽  
Economic Infrastructure ◽  
Sub Saharan

This article investigates the effect of infrastructure and foreign direct investment (FDI) on economic growth in Sub-Saharan Africa (SSA) using panel data on 46 countries covering the period 2003–2017. The data were analyzed using fixed effects, random effects, and system generalized method of moments (GMM) estimation techniques. Based on the system GMM estimates, the results indicate that a 1 percent improvement in electricity and transport infrastructure induces growth by 0.09 percent and 0.06 percent, respectively. Additionally, FDI proved to be growth enhancing only when interacted with infrastructure. The interactive effect of FDI and infrastructure improves economic growth by 0.016 percent. The results suggest that public provision of economic infrastructure reduces the cost of production for multinational enterprises, thus providing an incentive to increase investment in the domestic economy to sustain economic growth. The results also suggest that the impact of FDI on economic growth is maximized when some level of economic infrastructure is available. Our findings thus provide ample justification on the need for a significant government investment in infrastructure to provide a less costly business environment for both local and multinational enterprises to improve economic growth.

scholarly journals Growth of Foreign Direct Investment in Indian Textile Sector

2019 ◽  
Vol 8 (2S10) ◽  
pp. 222-227
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Business Environment ◽  
Stock Exchanges ◽  
Policy Regime ◽  
Oil Refineries ◽  
Foreign Companies ◽  
Tax Exemptions ◽  
The Government ◽  
Textile Sector

Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of India. Foreign companies invest in India to take advantage of relatively lower wages, special investment privileges such as tax exemptions, etc. For a country where foreign investments are being made, it also means achieving technical know-how and generating employment. The Indian government’s favorable policy regime and robust business environment have ensured that foreign capital keeps flowing into the country. The government has taken many initiatives in recent years such as relaxing FDI norms across sectors such as defence, PSU oil refineries, telecom, power exchanges, and stock exchanges, among others. The proposed paper deals with the structure and growth in FDI in Indian Textiles sector during the post reforms periods in India.

scholarly journals Climbing the Rungs of the Quality Ladder: FDI and Domestic Exporters in Romania

2020 ◽  
Vol 130 (628) ◽  
pp. 937-955
Author(s):  
Matej Bajgar ◽  
Beata Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Positive Relationship ◽  
Host Countries ◽  
Firm Level ◽  
Level Information ◽  
Quality Ladder ◽  
Quality Of Products

Abstract This article argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005–11, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013).

scholarly journals Inward FDI spillovers and emerging multinationals’ outward FDI in two directions

2021 ◽  
Author(s):  
Renfei Gao
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
State Ownership ◽  
Outward Fdi ◽  
Host Countries ◽  
Industry Competition ◽  
The Face ◽  
Emerging Multinationals

AbstractInward foreign direct investment (IFDI) carries critical implications for emerging market multinational enterprises’ (EMNEs’) outward foreign direct investment (OFDI). While extant research provides evidence for the positive linkage between IFDI and EMNEs’ OFDI, less is known about the directionality of such OFDI—where to go. This study aims to extend the IFDI-OFDI linkage by differentiating EMNEs’ upward and downward OFDI (i.e., OFDI projects in more and less advanced host countries than their home markets). Using panel data on 1334 Chinese multinationals, I find that IFDI promotes EMNEs’ upward OFDI, but this effect is weakened by state ownership and industry competition. Moreover, my findings show that although IFDI is not related to EMNEs’ downward OFDI in general, their linkage becomes positive in the conditions of higher state ownership or weaker industry competition. This study advances our understanding of the directionality (i.e., where to go) of EMNEs’ OFDI in the face of IFDI spillovers.

scholarly journals FOREIGN DIRECT INVESTMENT AND ITS COMMITMENT: IMPACT OF COVID-19 IN NEPAL WITH SOUTH ASIAN PERSPECTIVE

2020 ◽  
Vol 5 (2) ◽  
pp. 137
Author(s):  
Manoj Kumar Chaudhary ◽  
Rudra Prasad Ghimire ◽  
Dinesh Mani Ghimire
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
South Asian ◽  
Direct Investment ◽  
Secondary Data ◽  
Business Environment ◽  
Political Transitions ◽  
Red Tape ◽  
The Government ◽  
The Impact

Foreign Direct Investment (FDI) is an essential source of economic development. It has a broad relationship with different dimensions of the mixed economies. Like other development assistance, FDI also needs the best economic environment. This investigation aims to find the impact of Covid -19 on FDI inflow and other barriers to receiving FDI commitment in Nepal. This study is descriptive and analytical. Secondary data are used in the study. Foreign direct investment can be obtained as the government prioritized agriculture, tourism, energy, IT, infrastructure, etc., considering rapid economic Development. The government of Nepal is accepting and implementing foreign investment proposals of donor commitments. However, the Covid -19 pandemic has reduced FDI commitments funds as envisioned. Pandemic is not the only barrier of investment commitment. Still, there are also investment barriers are like, Business environment, poor infrastructure, lack of human resource skills, political transitions, weak governance, natural calamities, diverse and complex geography, tax slab, red tape, and climate change are critical in Nepal. Though the FDI in Nepal till 2019 was an upward trajectory, the 2020 pandemic has reduced it as Nepal's primary economic development source. South Asian environment can create FDI friendly environment in Nepal. Finally, this paper is a new one and full authority for future researchers. Keywords: Covid-19 pandemic, Foreign Direct Investment, Commitment, Business Environment, NepalJEL Classification: F23, I1, M0

Was von ausländischen Direktinvestitionen zu erwarten ist: Unbegründete Ängste in den Heimatländern, übertriebene Hoffnungen in den Gastländern?

2006 ◽  
Vol 55 (1) ◽  
Author(s):  
Peter Nunnenkamp
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Labor Market ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
External Financing ◽  
Industrialized Countries ◽  
Host Countries ◽  
High Expectations ◽  
Important Means

AbstractThe rise in foreign direct investment flowing to developing countries has created high expectations that, by drawing on this source of external financing, developing countries could initiate or accelerate processes of economic catching-up to advanced industrialized countries. By contrast, the public in advanced countries such as Germany is increasingly concerned that the relocation of production and the outsourcing of inputs by multinational enterprises add significantly to domestic labor market problems. A critical review of the literature and own empirical analyses suggest, however, that both views have to be qualified in major respects. As concerns developing host countries, it appears to be more difficult to derive macroeconomic benefits from foreign direct investment than to attract it. The labor market repercussions in advanced home countries are fairly complex. While relocation and outsourcing are important means to support the international competitiveness of domestic enterprises, the employment prospects and the relative wages of less qualified workers are likely to deteriorate.

scholarly journals Foreign Direct Investment in the United Arab Emirates: A Study on the Main Contributors

2021 ◽  
Vol 6 (1) ◽  
pp. 97-101
Author(s):  
Mariam Abdalla Alshamlan ◽  
Vania Maria Fernandez ◽  
Manuel Fernandez
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
United Arab Emirates ◽  
Direct Investment ◽  
Financial System ◽  
Political Stability ◽  
The Political ◽  
Host Countries ◽  
The Government ◽  
Relevant Factors

Foreign Direct Investment support the development of the host countries and provides opportunities for the Multinational Corporations to geographically diversify their operations into greener pastures and reap better benefits. This study focuses on a few of the most relevant factors that attract FDI into the UAE. It is observed that the inflow of FDI into the UAE is on the increase year-on-year during the last five years. The relevant factors that make the UAE FDI-attractive are the political stability, geocentric location, well-developed infrastructure, stable currency, well developed financial system, the global crowd-pulling event the Expo 2020, and the proactive and investor-friendly policies of the government.

Egypt investment efforts should pay off

2017 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Job Creation ◽  
Political Stability ◽  
Business Environment ◽  
Business Activity ◽  
Content Type ◽  
The Government ◽  
Licensing Laws

Subject Attracting investment. Significance The government passed new investment and industrial licensing laws in May and August as part of a drive to stimulate growth and job creation through increased business activity. Egypt is aiming to attract at least 10 billion dollars of foreign direct investment (FDI) annually by making improvements to the business environment. Impacts The exchange rate reform will continue to lift FDI levels. More investment would boost corporate revenue, but the benefits for the Treasury would be offset by the tax breaks included in the new law. Investment-led growth and falling unemployment may not bolster political stability if the benefits are seen to flow mainly to the elite.

Corruption Heterogeneity and Foreign Direct Investment

2020 ◽  
pp. 2150005
Author(s):  
Tuan Viet Le
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Instrumental Variables ◽  
Direct Investment ◽  
Trade Policies ◽  
Host Countries ◽  
Open Trade ◽  
The Difference ◽  
The Relationship

In this research, I study the relationship between bilateral Foreign Direct Investment (FDI) and difference in corruption between source and host countries. Using instrumental variables (IVs) approach, the results suggest that bilateral FDI between two countries might increase if the difference in corruption between them decreases. In addition, I find that firms from corrupt countries tend to invest abroad to exploit natural resources while those from less corrupt countries take advantage of relatively low local wages and open trade policies.

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