Foreign Direct Investment (FDI) in Agriculture Implication into Emerging Country Change and Socio-Economic Development

2019 ◽  
pp. 28-38
Keyword(s):  
Foreign Direct Investment ◽  
Poverty Alleviation ◽  
Direct Investment ◽  
Job Creation ◽  
Strong Impact ◽  
Transfer Of Knowledge ◽  
Face To Face ◽  
Economy Growth ◽  
Agriculture Development

Foreign direct investment (FDI) has been used as a strategy in emerging countries which made a tremendous change in their economy. However, lack of study have been undertaken to know how these change can have contributed the country poverty alleviation and economy growth. Therefore, looking to fulfil the research gap, this paper aimed to seek how FDI implication in agriculture development through as job creation, taxes payment, transfer of knowledge and technology contribute the country poverty alleviation. The Lao People's Democratic Republic was used as a case study and a sample of 450 respondents were collected through a survey questionnaire by self-administrated (face to face with interaction with the participant). The results shown that FDI implication in agriculture development through FDI job creation, FDI taxes payment have a strong impact on poverty alleviation but with weak effect at long-term, however, FDI transfer of knowledge and technology have a weak impact on poverty alleviation though with greater significance at long term. Transfer of knowledge and technology is the significant asset needed for emerging economy from FDI to boost change and contribute to their economy growth.

Foreign Direct Investment (FDI) in Agriculture Implication into Emerging Country Change and Socio-Economic Development

2019 ◽  
Vol 2 (1) ◽  
pp. 28-38
Author(s):  
Vilaikham Douansouvanh ◽  
Liu Qijun ◽  
Bienmali Kombate
Keyword(s):  
Foreign Direct Investment ◽  
Poverty Alleviation ◽  
Direct Investment ◽  
Job Creation ◽  
Strong Impact ◽  
Transfer Of Knowledge ◽  
Face To Face ◽  
Economy Growth ◽  
Agriculture Development

Foreign direct investment (FDI) has been used as a strategy in emerging countries which made a tremendous change in their economy. However, lack of study have been undertaken to know how these change can have contributed the country poverty alleviation and economy growth. Therefore, looking to fulfil the research gap, this paper aimed to seek how FDI implication in agriculture development through as job creation, taxes payment, transfer of knowledge and technology contribute the country poverty alleviation. The Lao People's Democratic Republic was used as a case study and a sample of 450 respondents were collected through a survey questionnaire by self-administrated (face to face with interaction with the participant). The results shown that FDI implication in agriculture development through FDI job creation, FDI taxes payment have a strong impact on poverty alleviation but with weak effect at long-term, however, FDI transfer of knowledge and technology have a weak impact on poverty alleviation though with greater significance at long term. Transfer of knowledge and technology is the significant asset needed for emerging economy from FDI to boost change and contribute to their economy growth.

scholarly journals IMPACT OF ROAD INFRASTRUCTURE, EDUCATION, HEALTH AND FOREIGN DIRECT INVESTMENT TOWARDS INDONESIA’S ECONOMIC GROWTH: LEVEL OF 33 PROVINCES

2019 ◽  
Vol 3 (02) ◽  
pp. 35
Author(s):  
Muryani Muryani ◽  
Agna Amalia
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Regression Method ◽  
Regression Estimation ◽  
Road Infrastructure ◽  
Economy Growth ◽  
Panel Data Regression ◽  
Data Regression

<p><em>Economic growth is the most important factor to gain successful long-term development. The economy growth factors are road infrastructure, education, health, and foreign direct investment. This study analyzes the influence of road infrastructure, education, health and foreign direct investment on economic growth of 33 provinces in Indonesia in 2010-2016. This study uses panel data regression method and uses STATA 14 software. The regression estimation results showed that simultaneously road infrastructure, education, health, and foreign direct investment had an effect on economic growth of 33 provinces in Indonesia, while partially (individually) foreign direct investment doesn’t have significant effect.</em><em></em></p><pre><strong><em>JEL Classdification: </em></strong><em>H51, H52, H54</em></pre><pre><strong><em>Keywords</em></strong><strong><em>: </em></strong><em>Economic Growth, Education, Foreign Direct Investment, Health, Road Infrastructure</em></pre>

FOREIGN DIRECT INVESMENT OUTFLOWS AND ENVIRONMENTAL POLLUTION: HIDDEN COINTEGRATION ANALYSIS FOR TURKEY

2021 ◽  
Vol 6 (11) ◽  
pp. 165-182
Author(s):  
Ahmet Emrah TAYYAR
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Environmental Quality ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Causality Relationship ◽  
Cointegration Relationship

The relationship between foreign direct investment, which is a type of cross-border and long-term investment, and environmental quality is a current issue that is heavily debated. Foreign direct invesments can ensure economic growth and development of countries, while also causing a change in environmental quality. In the research conducted, it is seen that changes in carbon dioxide emissions with foreign direct capital inflows are mainly investigated from the point of view of the host countries. However, foreign direct invesment outflows may have an impact on the environmental quality of the home country. Because foreign direct invesment outflows can enable the transfer of more environmentally friendly techonogies to the country and strengthen management skills. The impact of foreign direct investment outflows on the home country's environmental pollution is shaped by many factors (scale, technique, and composition effects). In addition to these effects, it is necessary to pay attention to the regional and sectoral distribution of capital outflows. The main aim of this study is to examine the links between Turkey's foreign direct invesment outflows and carbon dioxide emissions for the period 1990-2018. For this reason, a unit root test was applied to variables whose natural logarithm was taken. Tests showed that all series are stable of the same degree. Engle&Granger(1987) and Granger&Yoon(2002) tests were used to determine the cointegration relationship between variables. The crouching error correction model(CECM) was applied to determine the causality relationship. According to the results of the analysis; i) In terms of the Engle&Granger(1987) test, there was no long-term relationship between variables. ii) According to the Granger&Yoon(2002) test, it was determined that there is a bidirectional hidden cointegration relationship between the positive shocks of carbon dioxide emissions and negative shocks of foreign direct invesment outflows. iii) There is a bidirectional asymmetric causality relationship between the positive shocks of carbon dioxide emissions and the negative shocks of foreign direct invesment outflows. iv) It is observed that 1% negative shocks in foreign direct invesment outflows reduce positive shocks in carbon dioxide emissions by 0,26%. As a result, since negative situations in foreign direct invesment outflows have an effect on improving the quality of the environment, the environmental dimension should be taken into account in the policies to be made.

India’s vaccine diplomacy brings money and influence

2021 ◽  
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
The United States ◽  
Active Pharmaceutical Ingredients ◽  
Content Type ◽  
Pharmaceutical Ingredients ◽  
The World

Significance Last week, its partners in the ‘Quad’ grouping -- the United States, Japan and Australia -- agreed to help increase its vaccine manufacturing and exporting capacity. Each of the Quad members is wary of China, which like India is gifting and selling coronavirus jabs around the world. Impacts India’s manufacturing sector will attract more foreign direct investment. Greater cooperation over supply chains will help strengthen India-Australia ties. Indian pharma will in the long term aim to ease dependence on imports of active pharmaceutical ingredients from China.

scholarly journals Foreign Direct Investment Led Growth Hypothesis and Economic Development in Nigeria

2021 ◽  
Vol 2 (4) ◽  
pp. 376-393
Author(s):  
Ubong Edem Effiong ◽  
Nora Francis Inyang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Unit Root Test ◽  
Secondary Data ◽  
Short Term ◽  
Causality Test ◽  
Bounds Test ◽  
Growth Hypothesis

This study was an inquiry into the nexus of the foreign-direct investment (FDI) led growth hypothesis, and how it translates into the development of the Nigerian economy as of 1970 – 2018. The study utilized secondary data from the ‘World Development Indicators’ which were analysed using the Bounds test for cointegration and the ‘autoregressive distributed lag (ARDL) approach to divulge both the short-term cum the long-term influence of foreign direct investment net inflow on ‘economic development’ of Nigeria. The Bounds test was conducted after the unit root test revealed that the variables were stationary at mixed order of level and first difference. The outcome of the ARDL Bounds test supported confirmation of long-term association among the variables. The ARDL short-run error correction showed that 14.62% of the instability in the model was corrected yearly. In the short-term, it was discovered that FDI wielded a deleterious and substantial weight on ‘economic development of Nigeria. Meanwhile, the long-term estimates indicated that FDI influenced economic development positively, though not in a significant manner. The Granger causality test supported the fact that FDI causes ‘economic development’ in Nigeria. Given this potential of FDI exerting a positive effect on ‘economic development’, the paper recommended that bottlenecks inherent in FDI influxes in the country should be removed so as to reap the fullest benefits of such inflows in Nigeria.

scholarly journals Macroeconomic Variables and Foreign Direct Investment Inflows in Turkey

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Saliha Meftah ◽  
Abdelkader Nassour
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Short Term ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Macroeconomic Variables ◽  
Vector Error ◽  
Causality Relationship

Foreign direct investment (FDI) is an essential factor in the development of a country. This study aims to examine what factors influence foreign direct investment. By using the vector error correction model, the research shows that there is a long-term causality relationship between exchange rates and inflation with FDI. However, in the short term, there are no variables that affect FDI. Besides, the Granger causality test shows causality in the direction of GDP and FDI, while other variables do not have causality. This research has implications for policymakers to pay attention to macroeconomic variables in increasing the flow of foreign direct investment.

scholarly journals A time series analysis of determinants of FDI in Afghanistan: Which one matters the most, security or economic growth?

2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Economic Factors ◽  
Market Economic ◽  
The Government ◽  
The Relationship

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.

scholarly journals DETERMINAN ALIRAN FOREIGN DIRECT INVESTMENT DI INDONESIA (PENDEKATAN MODEL DUNNING)

Media Trend ◽  
2016 ◽  
Vol 11 (2) ◽  
pp. 141
Author(s):  
Claudia TeziaJanuarita Putri ◽  
Regina Niken Wilantari
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Descriptive Analysis ◽  
Capital Inflow ◽  
Economic Shocks ◽  
Short Term ◽  
Economic Openness ◽  
Correction Model ◽  
Investment Opportunities

<p><em>Traffic capital across countries is one of  investment opportunities from domestic and abroad to stimulate the economic growth  of developing countries</em><em>. Compared to other forms of capital, Foreign Direct Investment is the flow of capital is long-term and relatively not as vulnerable to economic shocks. The aim of this study is to see the performance of FDI movement as a capital inflow in Indonesia and to explores whether factors that affect FDI using Dunning’s ecletic model. </em><em>This study focused on two basic analysis, descriptive analysis and quantitative analysis using the Error Correction Model (ECM). </em><em>The results of short-term ECM estimate shows that FDI is influenced by inflation and the degree of economic openness. Furthermore, the result in the long term ECM estimate show that only variable that infrastructure does not significantly affect the movement of FDI in Indonesia. </em></p>

scholarly journals Bootstrap ARDL Test on the Relationship among Trade, FDI and CO2 Emissions: Based on the Experience of BRICS Countries

2019 ◽  
Author(s):  
Fumei He ◽  
Ke-Chiun Chang ◽  
Min Li ◽  
Xueping Li ◽  
Fangjhy Li
Keyword(s):  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Co2 Emissions ◽  
Direct Investment ◽  
Export Trade ◽  
Short Term ◽  
Brics Countries ◽  
The Relationship ◽  
Cointegration Relationship

We used the Bootstrap ARDL method to test the relationship between the export trades, FDI and CO2 emissions of the BRICS countries. We found that China's foreign direct investment and the lag one period of CO2 emissions have a cointegration on exports. South Africa's foreign direct investment and CO2 emissions have a cointegration relationship with the lag one period of exports, and South Africa's the lag one period of exports and foreign direct investment have a cointegration relationship with the lag one period of CO2 emissions. But whether it is China or South Africa, these three variables have no causal relationship in the long-term. Among the variables of other BRICS countries, Russia is the only country showed degenerate case #1 in McNown et al. mentioned in their paper. When we examined short-term causality, we found that CO2 emissions and export trade showed a reverse causal relationship, while FDI and carbon emissions were not so obvious. Export trade has a positive causal relationship with FDI. Those variables are different from different situations and different countries.

scholarly journals Dynamic of Foreign Direct Investment (FDI) Relationship, Macroeconomic Stability and Return of Shares Index in Four Asen Countries

2021 ◽  
Vol 9 (1) ◽  
pp. 38-55
Author(s):  
Fisit Suharti ◽  
M. Zidny Nafi' Hasbi
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Capital Market ◽  
Direct Investment ◽  
Market Integration ◽  
Stock Index ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Asean Countries

Southeast Asian countries are looking forward to capital market integration. The presence of this momentum requires stable economic conditions in each country and an attractive capital market. This momentum is also an opportunity for the Islamic capital market to be further developed in this region. This study aims to examine the effects of Foreign Direct Investment (FDI) and macroeconomic variables, namely economic growth, inflation, reference interest rates and exchange rates on the return of the Islamic stock index in four ASEAN countries, namely Indonesia, Malaysia, Thailand and Singapore. The research period since four quarter of 2006 until the first quarter of 2020. The method used in empirical evidence in this study is the Autoregressive Distributed Lag Bounds Testing Approach (ARDL). This study found a long-term co-integration relationship in all research object countries. In terms of long-term relationships and short-term dynamics, this study finds variations in yield and direction coefficients in 4 ASEAN countries. The speed of readjustment of balance in case of shocks, respectively, is 44.7%, 65.4%, 43.5% and 50.0% per month.

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