The future of foreign portfolio investment in Southeast Asia: Nick J. Freeman

Purpose – This paper aims to uncover potential contemporaneous relationship between foreign portfolio investment (FPI) and another popular type of cross-border investment outflow, namely, foreign direct investment (FDI). Design/methodology/approach – The relationship between FPI and FDI are modeled using simultaneous equations approach to take potential endogeneity in to account. In a panel of 45 countries over the period of 2001-2009, FPI and FDI are found to be strategically complimentary to each other. Findings – The two-stage least square estimates suggest existence of both statistically and economically significant relationship between these two types of outflows. In particular, the FDI outflow has empirically significant predictive power in explaining the FPI outflow. Similarly, the FPI outflow also has significant explanatory power for the observed level of FDI outflow. Second, the FPI has greater explanatory power for FDI outflow than the FDI for the FPI outflow. Originality/value – The authors believe that the paper would contribute to the relevant literature in terms of its originality and scope. The empirical findings of the paper have valuable policy implications.

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Sailing Together or Ships Passing in the Night? India and the U.S. in Southeast Asia

10.31235/osf.io/xe2v3 ◽

2019 ◽

Author(s):

Walter Ladwig ◽

Anit Mukherjee

Keyword(s):

Foreign Policy ◽

Southeast Asia ◽

Security Architecture ◽

Political Leaders ◽

The Future ◽

The U.S

Political leaders and analysts have described U.S.-India relations as a globalpartnership with the potential to shape the future security architecture of theIndo-Pacific. As is widely acknowledged, the two countries’ extraregional interestsalign most closely in Southeast Asia. Accordingly, this article examines thepotential for and limitations of U.S. and Indian cooperation in the region to achieveshared aims. It argues that extensive diplomatic consultations between the twocountries have led to a significant convergence in their positions on regionalsecurity challenges. Active cooperation, however, remains constrained by anumber of factors, including India’s need to prioritize foreign policy challengescloser to home, concerns about provoking China, and a discomfort among countriesin Southeast Asia regarding the idea of a joint U.S.-India approach toward theregion. Due to these limitations, U.S.-India policies in Southeast Asia are expectedto operate in parallel instead of becoming a joint endeavor.

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An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2020/v14i230192 ◽

2020 ◽

pp. 63-76

Author(s):

G. Tunde, Monogbe ◽

J. Emeka, Okereke ◽

P. Ebele, Ifionu

Keyword(s):

Economic Development ◽

Foreign Direct Investment ◽

Capital Flows ◽

Direct Investment ◽

Foreign Capital ◽

Capital Inflows ◽

Portfolio Investment ◽

Foreign Portfolio Investment ◽

Foreign Capital Flows ◽

Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

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Effectiveness of controlling foreign portfolio investment inflows using macroeconomic policy instruments and institutional strengthening (case study in Indonesia and Thailand)

Jurnal Penelitan Ekonomi dan Bisnis ◽

10.33633/jpeb.v6i2.4446 ◽

2021 ◽

Vol 6 (2) ◽

pp. 121-134

Author(s):

Zainuri Zainuri

Keyword(s):

Inflation Rate ◽

Policy Instruments ◽

Least Square ◽

Portfolio Investment ◽

Institutional Variables ◽

Foreign Portfolio Investment ◽

Vector Error Correction ◽

Asean Countries ◽

Analytical Tools

This study analyzed the influence of macroeconomic and institutional variables on foreign portfolio investment inflows in two ASEAN countries, Namely Indonesia and Thailand, in 2005 – 2019. The analytical tools used in this research are Panel Vector Error Correction Model (PVECM) and Panel Ordinary Least Square (POLS). The estimation results show that the macroeconomic variables that are proxied using inflation and openness economy and institutional variables that are proxied using the variable level of corruption and quality of regulation have a significant effect. In the long term, the inflation rate, the openness economy, and the quality of regulation variables significantly affect foreign portfolio investment. Meanwhile, in a short time, only the inflation rate variable and the openness ratio have a significant effect on foreign portfolio investment. The two analytical tools used found that macroeconomic and institutional variables consistently affect foreign portfolio investment.

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