scholarly journals Foreign direct investment to Africa: trends, dynamics and challenges

2012 ◽  
Vol 15 (2) ◽  
pp. 128-141 ◽  
Author(s):  
Elsabe Loots ◽  
Alain Kabundi
Keyword(s):  
Descriptive Analysis ◽  
Trade Openness ◽  
Substantial Contribution ◽  
Fdi Inflows ◽  
Explanatory Variables ◽  
Global Context ◽  
The Past ◽  
Current Trends ◽  
The Impact ◽  
Petroleum Oil

The FDI debate is often characterised by generalities about the importance of these flows within the global context.  This article aims to unpack the African-specific FDI issues in order to get a clearer and more substantiated understanding of the current trends, dynamics and challenges, with emphasis on the period since 2000.  The research concludes that nominal flows to the continent are on the increase, with exponential increases over the past decade.  The descriptive analysis indicates that flows to the continent are unevenly spread and are concentrated in the largest economies and/or in petroleum-/oil-exporting countries.  The impact of FDI on growth and investment in particularly smaller economies indicates that FDI inflows are making a substantial contribution to these economies and illustrates the importance of this source of investment.  The econometric analysis reveals that oil exporters and the size of the economy are powerful explanatory variables in explaining FDI flows to Africa, with trade openness a positive, but less powerful variable.

scholarly journals Effects of Institutional Quality on FDI in Provinces of Vietnam: Empirical Evidence Based on Differenced Panel GMM

2015 ◽  
Vol 22 (03) ◽  
pp. 26-45
Author(s):  
Bon Nguyen Van
Keyword(s):  
World Economy ◽  
Institutional Quality ◽  
Total Sample ◽  
Developed Countries ◽  
Evidence Based ◽  
Fdi Inflows ◽  
Positive Effects ◽  
The Past ◽  
The Impact ◽  
Developing And Developed Countries

Foreign direct investment (FDI) has been strongly affecting the world economy during the past years and is a critical topic for both developing and developed countries. Most countries, particularly developing ones, always attempt to adjust and modify appropriate policies and institutions to attract FDI inflows. In the context of Vietnam, does the institutional quality have any effect on attracting FDI inflows in provinces? To answer clearly and exactly this question, the impact of institutional quality on attracting FDI inflows is empirically investigated in a sample of 43 provinces of Vietnam over the period of 2005–2012 via the estimation technique of difference panel GMM. Estimated results indicate that in the total sample of all provinces the institutional quality has significantly positive effects on the FDI flows. However, in the sub-sample of provinces the impact of the institutional quality on attracting FDI inflows in Northern and Southern regions are statistically significant while that in Central region is not.

Determinants of Foreign Direct Investment in India’s Service Sector

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Niti Bhasin
Keyword(s):  
Trade Openness ◽  
Ordinary Least Squares ◽  
Gdp Per Capita ◽  
Annual Data ◽  
Fdi Inflows ◽  
Skilled Labour ◽  
Services Sector ◽  
Lagged Dependent Variable ◽  
Per Capita ◽  
The Impact

With the ever-growing importance of services sector in India’s economy, this paper seeks to identify the determinants of FDI in the services sector. The study uses ordinary least squares regression analysis and examines the impact of GDP, GDP per capita, trade openness, FDI openness, and labour cost on FDI inflows. We also use another specification to include the lagged dependent variable as an explanatory variable. Using annual data for the period 1991 to 2010, we find that FDI inflows in the services sector in India are significantly determined by national income, GDP per capita, trade openness, FDI openness and skilled labour availability. This confirms the view that FDI in the services sector is efficiency-seeking and greater availability of skilled labour in India leads to greater inflows of FDI in services sector.

scholarly journals Employment Creation through Credit: A Glimpse from Credit Program for Ultra-poor Households in Bangladesh

2021 ◽  
Vol 6 (6) ◽  
pp. 139-148
Author(s):  
Md. Abdul Khaleque ◽  
Mehadi Hasan ◽  
Farah Muneer
Keyword(s):  
Descriptive Analysis ◽  
Program Participation ◽  
Explanatory Variables ◽  
Program Participant ◽  
Credit Program ◽  
Self Employment ◽  
Poor Households ◽  
Wage Employment ◽  
Northwest Region ◽  
The Impact

This paper examined the impact on employment of a credit plus program designed for ultra-poor households in the Northwest region of Bangladesh. Both descriptive and econometric techniques were used, and four regression models were estimated for each of the dependent variables with linear and log-lin specifications: one is a simple model considering only time effect and program effect, and the others were the extended models which included various characteristics of the households and the regions. The descriptive analysis showed that most of the beneficiary households had shifted from single earning members to multiple earning members. Women had started to contribute to household earnings. The results showed that the participant ultra-poor households had gained around 21.1% additional employment days due to the program participation opportunities within 2008-2013, with an annual rate of 4.2% gain. The extra earning days included wage-employment days and self-employment days and the results showed that due to the program, the wage-employment days had increased by 2.6% annually and the self-employment days increased by 6.6% annually holding the effects of other explanatory variables constant. The working days of non-participants had increased but at a lower rate than that of the program participant households. The results confirmed that the credit program for ultra-poor households had a significantly positive effect on the creation of employment days and employment opportunities.

scholarly journals Investigating The Impact of Sensory Experience on Budget Hotel Rooms to Maximize Guests Satisfaction

2021 ◽  
Vol 7 (1) ◽  
pp. 171
Author(s):  
Reiza Miftah Wirakusuma ◽  
Anak Agung Anom Samudra ◽  
Ni Kadek Sumartini
Keyword(s):  
Hospitality Industry ◽  
Descriptive Analysis ◽  
Sensory Experience ◽  
West Java ◽  
The Past ◽  
Qualitative Descriptive ◽  
Unique Experience ◽  
Guest Satisfaction ◽  
Five Senses ◽  
The Impact

This study aims to investigate the sensory experience from guests who have stayed at a budget hotel in Bandung, West Java Province. Although only offers low prices, simple facilities, and less spacious room, yet a budget hotel has been able to maximize comfort and satisfaction for their guests. Subsequently, the number of budget hotels increase significantly in the past few decades and create different themes for hospitality industry. These themes create unique experience and they are felt by five senses of guests during their visits. The experience is divided into visual, tactile, gustatory, auditory, and olfactory. The method used in this research is a qualitative descriptive analysis from 145 questionnaires which were collected on the field. The results showed that the sensory experience had a dominant impact on guest satisfaction in staying at a budget hotel, especially in tactile and visual.

scholarly journals The Use of Auto-Regressive Distributed Lag Method in Investigating The Impact of Interest Rate on Foreign Direct Investment in Yemen for the Period 1990-2018

2020 ◽  
Vol 26 (123) ◽  
pp. 145-157
Author(s):  
Saif Sallam Alhakimi
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Inflation Rate ◽  
Trade Openness ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Auto Regressive ◽  
The Impact

 Foreign direct investment has seen increasing interest worldwide, especially in developing economies. However, statistics have shown that Yemen received fluctuating FDI inflows during the period under study. Against this background, this research seeks to determine the relationship and impact of interest rates on FDI flows. The study also found other determinants that greatly affected FDI inflows in Yemen for the period 1990-2018. Study data collected from the World Bank and International Monetary Fund databases. It also ensured that the time series were made balanced and interconnected, and then the Auto Regressive Distributed Lag method used in the analysis. The results showed that the interest rates and inflation rate harmed FDI flows and, therefore, could not be used for policymaking purposes. The research also discovered that GDP growth and trade openness are the main determinants of foreign direct investment in Yemen. Trade openness policies should be encouraged, and GDP growth facilitated if the economy is to achieve long-term FDI flows. Purpose –The purpose of the paper is to discover the impact of interest rate on foreign direct investment with a combination of the exchange rate, inflation, gross domestic product, and trade openness. Design/methodology/approach – The paper implements the Auto Regressive Distributed Lag (ARDL)-Bounds testing approach to analyze maintaining the time series properties in terms of stationarity. Findings – The results indicate that there is a long-run equilibrium between the Foreign Direct Investment and the explanatory variables. Furthermore, the significant factors influencing, positively, FDI in Yemen are Growth domestic product, Exchange rate, and Trade openness. In contrast, both the Interest rate and Inflation rate have a substantial negative impact on Foreign Direct Investment. Practical implications – Policymakers in Yemen advised reconsidering many of the general state policies, including investment policies, financial and administrative governance, and monetary policy that focuses on maintaining an adequate interest rate and reduce the rate of inflation. Originality/value – As for the case of Yemen, this the first study empirically explores the impact of interest rate and the foreign direct investment using the Auto Regressive Distributed Lag method aiming for more reliable results.

scholarly journals Institutions and Foreign Direct Investment: Evidence from Sub-Saharan Africa Regions

2016 ◽  
Vol 9 (4) ◽  
pp. 11
Author(s):  
John Mayanja Bbale ◽  
John Bosco Nnyanzi
Keyword(s):  
Financial Development ◽  
Fixed Effects ◽  
Trade Openness ◽  
Institutional Quality ◽  
The Other ◽  
Sub Saharan Africa ◽  
Capital Account ◽  
Infrastructure Development ◽  
Fdi Inflows ◽  
The Impact

<p>The paper set out to investigate the nexus between institutional quality and inward FDI and how the presence of liberalization and financial development influence this linkage. We build on Dunning’s eclectic paradigm that focuses on locational advantages. A fixed effects approach is employed and the estimation results confirm the crucial role of institutional quality in attracting FDI inflows. However the impact varies with the particular group. In particular, apart from SADC, institutional quality seems to matter significantly in all the other groups especially in EAC and ECOWAS. Additional findings reveal a mixed impact regarding the presence of financial development and liberalization in the institution-FDI nexus: While Trade liberalization policies seem to be at the forefront in ECOWAS and SADC groups, it is credit depth and capital account openness that appear to matter most in EAC. We confirm the resilience of inward FDI during the global crisis and document a positive significant relationship between FDI inflows on the one hand and host market size and infrastructure development on the other. While a one-size-fits-all-policy should be discouraged due to the heterogeneous nature of SSA countries, overall, a comprehensive set of policies designed with caution to improve the institutional quality, the financial system, trade openness and capital account liberalization would be valuable for attracting FDI inflows to SSA.</p>

THE IMPACT OF TRADE OPENNESS IN LATIN AMERICA ON ECONOMIC GROWTH

2010 ◽  
Vol 1 (2) ◽  
pp. 150
Author(s):  
Fanny Wigeborn
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Trade Openness ◽  
Common View ◽  
Single Measure ◽  
Explanatory Variables ◽  
Before And After ◽  
Goods Market ◽  
The Common ◽  
The Impact

This paper investigates empirically the notion that enhanced levels of foreign trade as a result of the deregulation in international goods market would have spurred economic development and demonstrates that it is not obvious. We shed light on how this relationship applies to the special case of Latin America before and after “La Apertura”, the trade liberalization that took place in the late 80s and early 90s. Results show that openness solely is not a determinant of economic growth for the observed countries which stand in contrast to the general findings of existing literature on the topic. Using a single measure of trade openness togetherwith other explanatory variables, this paper fail to confirm the common view that openness is associated with growth.

scholarly journals Trade openness and foreign direct investment in Africa

2014 ◽  
Vol 9 (3) ◽  
pp. 355-370 ◽  
Author(s):  
T Kandiero ◽  
M Chitiga
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Empirical Work ◽  
African Countries ◽  
Fdi Inflows ◽  
Services Sector ◽  
Openness To Trade ◽  
The Impact ◽  
Poor Infrastructure

Africa’s share of foreign direct investment (FDI) has lagged behind other regions in the world, despite a sharp increase in FDI inflows to the region in 2001. Factors contributing to this circumstance include perceptions of high corruption, weak governance and poor infrastructure. The motivation of this paper is to investigate the impact of openness to trade on the FDI inflow to Africa. In addition to economy-wide trade openness, we also analyse the impact on FDI of openness in manufactured goods, primary commodities and services. The empirical work uses cross-country data from selected African countries observed over four periods: 1980-1985, 1985-1990, 1990- 1995 and 1995-2001. We find that the FDI to GDP ratio responds well to increased openness in the whole economy and in the services sector in particular.

scholarly journals Integrated Model to Measure the Impact of Terrorism and Political Stability on FDI Inflows: Empirical Study of Pakistan

2016 ◽  
Vol 8 (4) ◽  
pp. 1 ◽  
Author(s):  
Sundas Rauf ◽  
Rashid Mehmood ◽  
Aisha Rauf ◽  
Shafaqat Mehmood
Keyword(s):  
Time Series Data ◽  
Trade Openness ◽  
Political Stability ◽  
Negative Influence ◽  
Least Square ◽  
Series Data ◽  
Host Countries ◽  
Fdi Inflows ◽  
Gdp Growth Rate ◽  
The Impact

<p>To condense saving-investment gap, transformation of technology, creation of employment opportunities and more importantly, increasing economic development of host countries, Foreign Direct Investment (FDI) is proven to be a significant source of investment predominantly for developing countries. Numerous standing studies have scrutinized the economic impact of terrorism and political stability by referring to decrease in FDI. This study empirically enlightens the determinants of FDI for Pakistan over the period 1970 to 2013, by using annual secondary time series data. Adopting the optimistic approach, in this study, variables in the combination of terrorism, political stability, trade openness and GDP have been analyzed applying Ordinary Least Square (OLS) method. As expected, the projected results confirm that GDP, trade openness and political stability have positive and significant impact whilst terrorism has negative influence on FDI inflows in Pakistan. Because of the political stability along with stable GDP growth rate, inverse impact of terrorism has been found statistically insignificant.</p>

scholarly journals Investigating the Institutional Determinants of Financial Development: Empirical Evidence From SAARC Countries

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110060
Author(s):  
Nazima Ellahi ◽  
Adiqa Kausar Kiani ◽  
Muhammad Awais ◽  
Hina Affandi ◽  
Rabia Saghir ◽  
...  
Keyword(s):  
Regional Cooperation ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Institutional Factors ◽  
Financial Industry ◽  
Legal Origin ◽  
Current Trends ◽  
Institutional Determinants ◽  
Financial Depth ◽  
The Impact

A more regulated and better working financial sector contributes toward achieving monetary growth based on proficient resource allocation and reducing information asymmetries. Current trends in research highlight the significance of factors determining the financial sector’s development; therefore, this study explores the institutional drivers, which are indispensable for developing the financial industry in the South Asian Association of Regional Cooperation (SAARC) region. Specifically, it examines the impact of institutional factors, trade openness, real output, legal origin, and inflation on the financial sector’s development. By employing the panel data method of generalized method of moments (GMM), the study concluded that trade openness, institutional factors, legal origin, and real gross domestic product (GDP) have a positive and significant impact on financial depth. However, the inflation rate has been found to affect it negatively. Finally, the study presents policy recommendations based on empirical findings.

Sign in / Sign up

Export Citation Format

Share Document