An Analysis of The Relation Between Foreign Direct Investment and Sociopolitical Variables in MENA Countries by Panel Regression

Author(s):  
Betül Gür

Foreign direct investment (FDI) plays the role of an accelerator for the economic growth in host countries. Countries that provide the suitable environment economically and politically get ahead in this race. Over the last five years, the weighted importance of sociopolitical variables in the decision-making process has increased. The countries of the Middle East and North Africa (MENA) region, although they have a potential to develop, are regarded as country groups that have not yet fully achieved this. This article reveals and interprets the relationship between FDI and sociopolitical variables such as political risk, human development index, terrorism risk index, multidimensional poverty index, the rule of law, regulatory quality, and control of corruption, utilizing panel regression analysis. In the analysis of the MENA countries covering the years 2010-2016, it was concluded that all independent variables except the human development index and multidimensional poverty index were statistically significant and effective on FDI.

2022 ◽  
pp. 8-32
Author(s):  
Mikail Kar

This study discusses the inadequacy of GDP alone as a measure of welfare in the global economic age and examines alternative welfare indicators and measurement methods. This study, which discusses the human development index (HDI), the inequality adjusted human development index (I-HDI), the gender inequality index (GII), the multidimensional poverty index (MPI), the social progress index (SPI), the happy planet index (HPI), the better life index (BLI), the Legatum prosperity index(LPI), the human capital index (HCI), and the ecological footprint (EF) methods, shares the country rankings of these methods and reveals the differences in the results depending on the method. It also draws attention to the differences between the economic size and welfare level by sharing the rankings of the world's 10 largest economies in alternative methods. In addition, the study examines the obstacles to the inability to establish a complete, precise, and generally accepted method of measuring welfare.


2018 ◽  
Vol 9 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Korhan K. Gökmenoğlu ◽  
Martins Olugbenga Apinran ◽  
Nigar Taşpınar

Author(s):  
Emmanuel Uzoma Makwe ◽  
Augustus N. Gbosi ◽  
Clever A. Gbanador

This study examined Capital Flight and human development index in Nigerian. Capital Flight was proxied by foreign direct investment abroad, external debt servicing, external reserves and capital and financial account deficits. Based on the study objectives, relevant literature were reviewed and evaluated. Relevant data were extracted from the annual Statistical Bulletin of the Central Bank of Nigeria and the National Bureau of Statistics. Unit root test was conducted using Augmented Dickey Fuller method which revealed that the variables were integrated at level and first difference: necessitating the use of autoregressive distributive lag/bonds test to explore the long run relationship existing among the variables in the model and the result showed that the variables in the model were co-integrated thus we proceeded in evaluating the long run as well as the co-integrating form in the model. From the result of the various tests, it was revealed that capital and financial account deficit, external debt servicing and external reserve were positively related to human development index while foreign direct investment outflows was negatively related to human development index. Also, capital and financial account deficit, external reserve and foreign direct investment outflow were significant while external debt servicing was not significant. Based on the findings from the analysis, the study recommended amongst others, that external debt acquired should be judiciously used for infrastructural development that would encourage investments which would ultimately bring about economic growth as well as enhance human development in Nigeria.


2019 ◽  
Vol 1 (2) ◽  
pp. 73-83
Author(s):  
Budya Pryanto Putra ◽  
Aleknaek Martua Nababan

Foreign Direct Investment (FDI) is one of the economic indicators that is currently getting special attention from the government. This is because the presence of Foreign Direct Investment has a direct and indirect influence on economic performance in a country. The purpose of this analysis is to find out how big the role of indicators of ease of doing business, especially the starting a business and dealing with construction permits, which was initiated by the World Bank in influencing Foreign Direct Investment on APEC member countries. The method of this study is a causal relationship with multiple linear regression analysis using the Generalized Method of Moments to estimate the parameter. The results obtained from this analysis are that the starting a business has a considerable role in foreign direct investment in addition to the economic control variables in the form of Real GDP, Labor Force, and Human Development Index. The conclusion of this study is starting a business and the Human Development Index has a very vital role in the development of investment for the Asia Pacific region.


2018 ◽  
Vol 52 (3) ◽  
pp. 386-416
Author(s):  
Murilo Fahel ◽  
Leticia Ribeiro Teles

Abstract The multidimensional poverty index (MPI) was developed by the Oxford Poverty & Human Development Initiative (Ophi) in 2010. The MPI is established on indicators of health, education and standard of living. The concept of multidimensionality is anchored on the theory of poverty and human development elaborated by the indian economist Amartya Sen in the 1980s. The methodology used for the modeling of this study is based on Alkire and Foster - AF (2011) and analyzes the incidence and intensity of poverty. The purpose of this paper focuses on the application of the MPI in the state of Minas Gerais, Brazil and uses the Household Sample Survey produced by João Pinheiro Foundation (FJP) in 2009, 2011 and 2013. The results indicate that the MPI is relativaly low, 0.0329 (2009), 0.0226 (2011) and 0.0155 (2013), indicating there is a tendency for decreasing along the years.


2017 ◽  
Vol 8 (4-1) ◽  
pp. 173-182
Author(s):  
Munir Hasan ◽  
Mohd Nayyer Rahman ◽  
Badar Alam Iqbal

Abstract Foreign Direct Investment (FDI) is considered to be influenced not only by quantitative factors but also by qualitative factors. However, the present literature related to FDI focus more on quantitative factors rather than qualitative factors. One reason is that FDI is itself based on a quantitative benchmark (10% or more investment in equity). The qualitative factors that are related to FDI are governance, democracy, human development index etc. In the present study an endeavor is made to understand that how corruption influence FDI decision. FDI is taken in terms of percentage of GDP and Corruption is represented by Corruption Perception Index. The sample period of the study is from 1995 to 2014.


2021 ◽  
Vol 2106 (1) ◽  
pp. 012004
Author(s):  
M Istiqhomah ◽  
N Salam ◽  
A S Lestia

Abstract Human development is a paradigm and becomes the focus and target of all development activities. Development is a way to improve welfare and a better quality of life. The Human Development Index (HDI) is one indicator to measure the success of a development. The purpose of this research is to describe the factors that are thought to influence HDI in South Kalimantan Province, estimate the parameters of the HDI panel regression model, and determine the best model. The data of this research is sourced from the Central Statistics Agency (BPS) of South Kalimantan Province with a period from 2015-2018. Based on the results of data analysis it can be concluded that the Fixed Effect Model with the time effect is the best model of the HDI panel regression in South Kalimantan Province with an R-Squared value of 99,81.


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