The Effect of Foreign Direct Investment on the Economic Development of Mongolia

2018 ◽  
Vol 16 (3) ◽  
pp. 12-21 ◽  
Author(s):  
Erdenebat Mungunzul ◽  
Taikoo Chang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Panel Data ◽  
Direct Investment ◽  
Fixed Effects ◽  
Trade Openness ◽  
Fixed Effects Models ◽  
Study Results ◽  
The World

This article describes how foreign direct investment in Mongolia has reached 3.9 billion US$ mainly in the mining sector that amounted approximately 40% of the year's GDP. Even though FDI into Mongolia has been grown along with the country's economic development with trade openness to the world, a few studies have used regression analysis to analyze determinant factors of FDI. This article has estimated the determinants attracting FDI inflow into Mongolia by using two methods: applying single country (Mongolia) data using the determinants attracting FDI inflow into Mongolia from 1995-2014, and applying the determinants attracting FDI from the top investment countries using panel data, using random and fixed effects models from 2005-2013. The study results showed that GDP of Mongolia has a positive and significant effect on the FDI inflow. It was also revealed that the partner countries located either too far away from or too close to Mongolia pay little attention to and play a small investment role in Mongolian FDI.

The Effect of Foreign Direct Investment on the Economic Development of Mongolia

2020 ◽  
pp. 1064-1075
Author(s):  
Erdenebat Mungunzul ◽  
Taikoo Chang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Panel Data ◽  
Direct Investment ◽  
Fixed Effects ◽  
Trade Openness ◽  
Fixed Effects Models ◽  
Study Results ◽  
The World

This article describes how foreign direct investment in Mongolia has reached 3.9 billion US$ mainly in the mining sector that amounted approximately 40% of the year's GDP. Even though FDI into Mongolia has been grown along with the country's economic development with trade openness to the world, a few studies have used regression analysis to analyze determinant factors of FDI. This article has estimated the determinants attracting FDI inflow into Mongolia by using two methods: applying single country (Mongolia) data using the determinants attracting FDI inflow into Mongolia from 1995-2014, and applying the determinants attracting FDI from the top investment countries using panel data, using random and fixed effects models from 2005-2013. The study results showed that GDP of Mongolia has a positive and significant effect on the FDI inflow. It was also revealed that the partner countries located either too far away from or too close to Mongolia pay little attention to and play a small investment role in Mongolian FDI.

scholarly journals The Dynamics of Foreign Direct Investment in BRICS Countries

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 101-112
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Fixed Effects ◽  
Trade Openness ◽  
Human Capital Development ◽  
Brics Countries ◽  
Capital Development

Recent studies which investigated the determinants of foreign direct investment (FDI) in BRICS include Hsin-Hong and Shou-Ronne (2012), Nandi (2012), Jadhav (2012), Darzini and Amirmojahedi (2013), Nischith (2013), Ho et al. (2013), Kaur et al. (2013) and Priya and Archana (2014). The findings from these studies shows lack of consensus and confirm that a list of agreeable determinants of FDI in BRICS countries is still an unsettled matter. This paper was therefore initiated in order to contribute to the debate on the discourse on FDI determinants in BRICS countries.This paper deviates from earlier similar studies in five ways: (1) uses most recent data, (2) is the first to investigate whether a combination of financial development, trade openness, human capital, economic growth and inflation influence FDI in BRICS countries, (3) uses different proxies of the variables that affect FDI, (4) employed both fixed effects and pooled ordinary least squares (OLS) approaches and (5) used a stacked data approach.The results of the study showed that economic growth, trade openness and exchange rate stability positively impacted on FDI, financial development positively influenced FDI under fixed effects, FDI was positively influenced by human capital development using the pooled OLS and inflation negatively affected FDI in line with literature. Taking into account these findings, this study urges BRICS to implement policies that increase financial sector efficiency and economic growth, maintain stable exchange rates, keep inflation rates at lower levels, enhance trade openness and human capital development in order to increase FDI inflows.

Inward and Outward Foreign Investments of the Asian Economies in Transition and India

2020 ◽  
pp. 694-719
Author(s):  
Ishita Ghosh ◽  
Sukalpa Chakrabarti
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Literature Review ◽  
Direct Investment ◽  
Secondary Data ◽  
Foreign Investments ◽  
Economies In Transition ◽  
The World Bank ◽  
The World ◽  
Empirical Significance

This chapter is divided into two parts. The first part examines panel data evidence concerning empirical significance of the determinants of Foreign Direct Investment (FDI) in CLMV countries. Theoretical and empirical findings and outcomes on FDI have been considered to test the model for the aforementioned nations. The data has been taken from the World Bank through 2005-2014. Findings accept the four proposed hypotheses and the results are significant. The second part explores the trade and FDI situation in CLMV through secondary data, and establishes that India has potential to augment bi-lateral ties through this route. Literature review for this section also corroborates with the findings of the first part.

scholarly journals ANALISIS INVESTASI ASING LANGSUNG (FDI) DI NEGARA ASEAN TAHUN 2000-2017

2019 ◽  
Vol 3 (3) ◽  
pp. 397-409
Author(s):  
Futuhatul Barorah ◽  
Nazaruddin Malik ◽  
Zainal Arifin
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Interest Rate ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Direct Investment ◽  
Trade Openness ◽  
Analytical Tool ◽  
Gdp Growth ◽  
Testing Hypotheses

The aim of this research is nalyze foreign direct investment (FDI) from 2000 to 2017. The analytical tool used was multiple linear regression with panel data method by testing hypotheses namely F test, t-test, and Determination Coefficient R2. The software used in the analysis of this study was Eviews 9. The finding of the study denotes that all of influence of GDP growth, Trade Openness, Interest Rate and Inflation gave influence toward on Foreign Direct Invesment with a probability value of 0,0000. While individually, The country of Myanmar has the highest intercept inversely proportional to Malaysia which has the smallest intercept. While individually GDP growth and Trade Openness has a positive and significant effect on Foreugn Direct Invesment, Interest Rate and inflation has a negative and significant effect on Forign Direct Invesment.

scholarly journals Revisiting the Role of Fiscal Policy, Financial Development, and Foreign Direct Investment in Reducing Environmental Pollution during Globalization Mode: Evidence from Linear and Nonlinear Panel Data Approaches

Energies ◽  
2021 ◽  
Vol 14 (21) ◽  
pp. 6968
Author(s):  
Mustafa Kamal ◽  
Muhammad Usman ◽  
Atif Jahanger ◽  
Daniel Balsalobre-Lorente
Keyword(s):  
Foreign Direct Investment ◽  
Fiscal Policy ◽  
Panel Data ◽  
Financial Development ◽  
Direct Investment ◽  
Urban Population ◽  
Labour Force ◽  
Trade Openness ◽  
Linear And Nonlinear ◽  
Panel Threshold Regression

Fiscal policy is a crucial government tool for influencing and managing the national economy and creating a strong incentive for low carbon investment. Previous literature has reputable evidence that improving fiscal policy enhances environmental quality. However, the literature fails to classify the exact turning level (threshold point) below/above which the association may be negative or positive. In this regard, this research investigates the nexus between fiscal policy, foreign direct investment, financial development, trade openness, urban population, gross capital formation, labour force, and CO2 emissions in the era of globalization. The panel data set contained 105 countries over the period from 1990 to 2016. The empirical findings are estimated through linear and nonlinear panel data approaches such as fully modified ordinary least square and panel threshold regression. The subsequent findings are established: first, fiscal policy and globalization significantly increase environmental pollution. Second, the empirical results confirm the existence of the pollution haven hypothesis (PHV). Third, financial development and gross fixed capital formation are also considered some of the most crucial indicators to increase pollution levels. Fourth, trade openness, urban population, and labour force improve environmental quality. Fifth, panel threshold regression discovers that countries maintain a minimum level of fiscal policy at −1.2889. Based on these empirical findings, this study suggests that policymakers and governments of these countries should take steps to restructure their industrial sector and design macroeconomic-level carbon-free policies to support the implementation of low-energy-intensive and lower carbon production technologies.

scholarly journals Globalisation, Trade Openness and Foreign Direct Investment in Romania

2016 ◽  
Vol 26 (4) ◽  
pp. 41-53 ◽  
Author(s):  
Stela Dima
Keyword(s):  
Foreign Direct Investment ◽  
Regression Analysis ◽  
World Bank ◽  
Direct Investment ◽  
Multivariate Regression ◽  
Trade Openness ◽  
Multivariate Regression Analysis ◽  
The Other ◽  
Foreign Direct Investments ◽  
Market Capitalisation

Abstract The paper analyses the trend of globalisation, trade openness and foreign direct investments (FDI) in Romania and the link between them in the last 25 years. Data from UNCTAD, World Bank and KOF globalisation index were used in econometrical models testing the link between globalisation, trade openness and foreign direct investment. A strong positive and statistical validated link is found between globalisation and FDI, between trade openness and FDI, and between FDI and globalisation. In the context of Romanian economy, these three phenomena are interrelated and each of them is acting to potentiate the effect of the other. Moreover, a multivariate regression analysis emphasized the dependency between globalisation index and foreign direct investment, trade openness and market capitalisation. These results can be taken into account when national policies aiming to attract FDI and stimulating export-import activities are designed.

scholarly journals Determinants Of Success In International Involvement Of Large U.S. Corporations

2011 ◽  
Vol 11 (1) ◽  
pp. 131
Author(s):  
M. Anaam Hashmi
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Operating Cost ◽  
Market Size ◽  
International Operation ◽  
The World ◽  
International Operations ◽  
Operation Results ◽  
Geographical Diversification

The findings of this study help to identify factors explaining success in international operations of large U.S. corporations. Successful foreign direct investment (FDI) and continuous involvement of large U.S. corporations is crucial for economic development of a country and social uplifting of many citizens of the world. Data were collected on selected U.S. corporations perception of the success variables in their international operation. Results indicate that large market size, geographical diversification, and low production/operating cost are the three most important success determinants of international operations.

scholarly journals The Impact of Foreign Direct Investment in the Western Balkan Countries - A Panel Data Analysis

2021 ◽  
Vol 16 (6) ◽  
pp. 1185-1190
Author(s):  
Nexhat Shkodra ◽  
Xhevat Sopi ◽  
Florentina Xhelili Krasniqi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Random Effects ◽  
Direct Investment ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Random Effects Model ◽  
Balkan Countries ◽  
The Impact

Foreign Direct Investment (FDI) has a significant effect on the economic growth and development of host economies, but also on international economic integration through globalization. Particular aspects of this topic are being extensively addressed by scientific research in recent decades. The purpose of this paper is to determine whether globalization and through it the Foreign Direct Investment (FDI) has an impact on the economic growth (GDPgr) of the Western Balkan countries which are facing a transitional phase. The relation between FDI and economic growth has been analyzed by employing econometric models with panel data approach: linear regression with poled data, the Fixed Effects model, and the Random-Effects model (GLS). The study is based on panel data of six countries for the period between 2004-2018, obtained by the World Bank. The results of the Random Effects model (GLS) shown that lagged FDI has a significant impact on the economic growth (GDPgr) of the Western Balkans (p<0.05%), as well as gross capital formation (Cap) and government expenditure (Gov) whereas export (Ex) has been excluded from the model. The results also shown that there are significant differences in the factors influencing economic growth among countries in the region (LM Method - Breusch-Pagan test; p=0.02455 < 0.05).

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