scholarly journals Impacts of remittances on foreign direct investment in South East Asia - An empirical investigation

Author(s):  
Pham Dinh Long ◽  
Nguyen Van Duc

This study investigates the effects of remittances on attracting foreign direct investment flows to South East Asia. Using a balanced panel data set for seven countries in the 2000-2013 period, we find that remittances have a direct positive impact on attracting FDI. Significantly, the result also shows a negative correlation between remittances and FDI attraction in countries with low per capita income and small market size.

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Sri Handayani

Investment is one of important variable to increase the economic performance. Moreover it can stimulate to increase per capita income and consuming ability of the society. A well investment climate given some benefits to the society. The local government is facing some problems in facing some challenge to increase the key factors to overcome those problems. In South Sumatera, the government does some efforts to attract the investor especially foreign direct investment. In the development of South Sumatera, foreign direct Investment has the important function. It is hoped that the investment has positive impact to increase the economic growth of the district which can increase the public welfare as well in South Sumatera. Key words: Investment, foreign direct investment


TEME ◽  
2019 ◽  
pp. 1237 ◽  
Author(s):  
Jelena Andrašić ◽  
Vera Mirović ◽  
Branimir Kalaš

Foreign direct investment has a significant role in Southeastern European countries. The aim of the paper is reflected in assessing the character and nature of the relationship between macroeconomic factors and foreign direct investment in Southeastern European countries. Further, the subject of paper includes the examination of the impact of selected macroeconomic variables on foreign direct investment in six countries for the period from 2000 to 2012. The selected countries are Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, Romania and Serbia. The research includes an examination impact of market size, national competitiveness and employment on foreign direct investment. By using the Hausman test, it was confirmed that the fixed effect model is an appropriate model in panel analysis. Based on the result, it determined the positive impact of market size, while the industry's share of GDP and employment have a negative impact on this variable. Also, the results confirmed that only the market size of the countries significantly affected on the flow of foreign direct investment in Southeastern European countries.


1994 ◽  
Vol 33 (1) ◽  
pp. 41-51 ◽  
Author(s):  
Abul F. M. Shamsuddin

This study examines the economic determinants of private foreign direct investment (FDI) by using a single-equation econometric model for 36 LDCs for the year 1983. The market size of the host country as measured by per capita GDP is found to be the most important factor in attracting FDI. The other important variables which influence FDI are found to be the cost factor (such as wage cost) and the investment climate in the host country (represented by such variables as per capita debt). The inflow of per capita public aid and economic instability, proxied by the volatility of prices, are other important factors affecting the flow of FDI. While larger market size and increased inflow of public aid attract FDI, the higher wage cost, poor investment climate, and economic instability in the host countries reduce the inflow of FDI. The model used to obtain these results is found to be structurally stable across countries.


1988 ◽  
Vol 20 (5) ◽  
pp. 633-653 ◽  
Author(s):  
P Dicken

The aim in this paper is to set Japanese foreign direct investment (FDI) in Europe (including the United Kingdom) into its broader global perspective. The geographical form of Japanese FDI is the outcome of a complex interaction between economic and political forces, both internal to Japan itself and also in its external trading environment. The dominant foci of Japanese FDI are North America, and East and South East Asia. Initially, Japanese manufacturing investment was heavily concentrated in neighbouring countries of Asia but the emphasis has shifted more recently to North America. However, the organisational structure of Japanese investment tends to be substantially different in these two world regions. In East and South East Asia, in particular, a complex intrafirm division of labour has developed, whereas in North America (and in Europe) the Japanese plants tend to be directly market-oriented and established primarily in response to trading frictions. The recent massive revaluation of the yen promises to generate further substantial changes in the global geography of Japanese FDI.


2020 ◽  
Vol 13 (4) ◽  
pp. 68-81
Author(s):  
Mahnaz muhammad Ali ◽  
Mariam Abbas Soharwardi ◽  
Rozina Sadiq

Developing economies have different cultural and economic characteristics, but they often experience similar levels of corruption. At one side developing economies are facing the issue of corruption; on the other hand, they are a potential recipient of FDI. The present study used the data of 31 developing Asian economies from 2000 to 2017 to determine the impact of host country’s level of corruption on inward FDI. System GMM technique is applied for empirical investigation since the problem of endogeneity and heteroscedasticity are found in the models. Results reveal that corruption has a positive and statistically significant impact on inward FDI; corruption also has a positive impact on FDI inflows to GDP ratio for the panel countries. Hence the results of the study endorse the grease the wheel hypothesis of corruption. It is concluded countries should focus their resources to create business friendly environment instead to focus on anti-corruption policies only.   


2020 ◽  
Vol 20 (1) ◽  
pp. 73-90
Author(s):  
Devesh Singh ◽  
Zoltán Gal

AbstractThe purpose of this research is to examine the economic freedom (EF) along with its macroeconomic determinants impact on Foreign Direct Investment (FDI) inflow in South Asia, East Asia, Latin America, Middle East, and North Africa, Northern Europe, Southern Europe, Western Europe, Eastern Europe and Sub Saharan Africa. We use Heritage Foundation economic freedom index data over the period of 1999 to 2018 and employ the stepwise multi regression on variables of business freedom, government spending, tax burden, government integrity, property rights, investment freedom, trade freedom and monetary freedom. The results show that EF has a significant positive impact in South Asia, Latin America, East Asia, North Europe and West Europe. However, for the Middle East and North Africa, East European and South European economies EF has an insignificant influence on FDI inflow.


Author(s):  
Frédéric Grare

Initially aimed at funding the reforms undertaken by the Rao government in the early 1990s, the Llook East Policy rapidly evolved into a comprehensive set of instruments to deal with a fast growing China. From an initial focus on developing trade and attracting foreign direct investment from the most dynamic economies in Asia, it soon became India’s instrument to assert itself in Asia through the institutionalisation of its relations with ASEAN members and ASEAN led institutions. The success of economic performances made it indispensable for India to develop its defence relationship with its new partners as a way the to control its sea lane of communications. They also led to an expansion of the Look East reach to East Asia.


2020 ◽  
Vol 12 (3) ◽  
pp. 38
Author(s):  
Samuel Erasmus Alnaa ◽  
Ferdinand Ahiakpor

The paper seeks to determine the effect of exchange rate volatility on foreign direct investment in Ghana from 1986 to 2017. The study adopted the Generalized Autoregressive Conditional Heteroskedasticity model to fit the data set from 1986-2017. The results indicate that, previous quarter information can influence current quarter volatility in Foreign Direct Investment. Real exchange rate, gross domestic product and treasure bill rate considered as external factors, are all found to be significant. This shows that, volatility from these factors can spillover to volatility in foreign direct investment.  To ensure stable inflow of foreign direct investment, we recommend that policies should gear towards stability in the forex market and interest rate among others.


Sign in / Sign up

Export Citation Format

Share Document