FOREIGN DIRECT INVESTMENT: A PANACEA FOR NIGERIA ECONOMIC GROWTH

2020 ◽  
Vol 10 (2) ◽  
pp. 28-39
Author(s):  
Ademola Adeniran ◽  
◽  
Kehinde Ogunmodede
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
High Rate ◽  
Fdi Inflows ◽  
Job Opportunities ◽  
Tax Holidays ◽  
Unemployed Youth ◽  
The Unemployed

This paper critically examined the role of foreign direct investment (FDI) on Nigeria economy, with specific focus on past researches. This paper is based on empirical evidence from past researchers. The study found out that FDI positively influence Nigeria Economy system, that FDI funds can be used for long term development goal and therefore recommends that to promote growth and development in the economy, government should give priority to policies that could promote FDI inflows into the country such as tax holidays, infrastructural development, consistent power supply and good security outlet to address the issues of Boko Haram and their random bombing in some part of the country, kidnapping and militancy. This will go along way in creating job opportunities for the unemployed youth band help in checkmating the high rate of poverty in the country thereby reducing the gap between rich and the poor.

scholarly journals Optimization of the Activities of Institutions Promoting Investment in the sustainable Economic Growth of Russia

2021 ◽  
Vol 25 (4) ◽  
pp. 110-120
Author(s):  
E. A. Zvonova ◽  
V. Ya. Pishchik ◽  
P. V. Alekseevc
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
The State ◽  
Russian Economy ◽  
Socio Economic Development ◽  
Development Institutions ◽  
Investment Process

The article examines and assesses the problem of the investment deficit in the Russian economy, which has acquired particular relevance due to the coronavirus crisis caused by the pandemic. The study aims to develop practical recommendations for Russian state bodies to stimulate the investment process in the Russian economy and improve the efficiency of measures taken by the state to ensure the country’s socio-economic development. The objectives of this paper are to analyze the directions of optimization and prioritization of investment of resources during the economic recession caused by the coronavirus crisis using investment lending and project financing instruments, as well as to analyze and assess the ongoing reform of development institutions based on the state corporation “VEB.RF”. The research methodology includes an analysis of the regulatory legal framework, statistical information, official reports of state bodies, development institutions, scientific monographs and publications of Russian scientists, periodicals. The authors analyzed the trends and problems of the investment process in the Russian economy, including in the field of attracting foreign direct investment. Attention is paid to the ongoing reform of development institutions aimed at enhancing the role of the state development corporation “VEB.RF” in stimulating investment. The authors conclude that it is necessary to take a set of functional, instrumental, and institutional measures aimed at stimulating investment and ensuring sustainable socio-economic development of Russia. In particular, in the context of a shortage of domestic sources of financing for long-term investments, it is important to provide regulatory macroeconomic support for the inflow of foreign direct investment into the Russian economy. In this regard, the authors propose to change the monetary policy strategy to increase the stimulating role of refinancing of credit institutions and the projected exchange rate in attracting domestic and foreign long-term investments and ensuring sustainable development of the Russian economy. The authors also propose to increase the role of foreign exchange regulation and foreign exchange control in stimulating investment and ensuring sustainable socio-economic development of Russia.

scholarly journals Does the Inflow of FDI Boost the Health of the Population in SAARC Countries Evidence from a Panel Data Analysis

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Ayesha Saleem ◽  
Abdul Farooq ◽  
Ahmad Nawaz ◽  
Muhammad Masood Anwar
Keyword(s):  
Foreign Direct Investment ◽  
Population Health ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Health It ◽  
Healthy Life ◽  
Fdi Inflows ◽  
The People ◽  
Job Opportunities ◽  
Effect Technique

Purpose:The relationship between foreign direct investment and population health has been the focus of research among researchers in recent years. One of the basic individual rights is a healthy life and decent living conditions, but the SAARC countries are lagging behind in this respect.The goal of this study is to evaluate the effect of foreign direct investment inflows on population health by integrating growth, foreign aid, and human capital into the model for selected SAARC countries. Design/Methodology/Approach:The fixed effect technique based on the Hausman test was implemented through the period of 1996-2018 because of the Panel nature of the data. Findings:Our empirical results indicate that FDI inflows have a positive and significant effect on population health. Increase in FDI inflows in the host country raises the income of the people, as better job opportunities are available to them. Implications/Originality/Value:This research is a crucial step in observing the complicated relationship between Foreign Direct Investment and Population Health. It is expected that this research motivates the debate and enhance the knowledge further in this line of research.Government should provide incentives to the foreign investors by providing concessions in taxes, and better facilities in terms of improved infrastructure.

A STUDY ON FOREIGN DIRECT INVESTMENT IN SERVICE SECTOR IN INDIA

2021 ◽  
Vol 9 (47) ◽  
pp. 11469-11476
Author(s):  
R. P. Meena ◽  
Sajjan Kumar
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Service Sector ◽  
Foreign Currency ◽  
Positive Response ◽  
International Capital ◽  
Fdi Inflows ◽  
Increasing Trend ◽  
The Relationship

FDI offers a bundle of benefits such as financial and non-financial. FDI is one such source of long term international capital. Service sector is a largest sector of India economy. Since 1991, FDI inflows in India is on an increasing trend. The FDI Inflows in service sector increased from Rs.14803.91 crores during 1991-2000 to Rs.63909.44 crores in 2018-19. It showed positive response. The easiest and cheapest way to increase the capital is foreign direct investment. There is also increase in foreign currency resources. This paper discusses about the trends of FDI equity inflows in service sector in India, to study and analyze the trend of FDI equity inflows in sub-sector of service sector in India and to examine and analysis the relationship between total FDI equity inflows and FDI equity inflows in service sector in India during 2009-10 to 2018-19.

Aid for Trade, Export Product Diversification and Foreign Direct Investment

2020 ◽  
Author(s):  
Sèna Kimm GNANGNON
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Product Diversification ◽  
Product Concentration ◽  
Fdi Inflows ◽  
Aid For Trade ◽  
High Level ◽  
Positive Effect ◽  
Export Product

Abstract The few existing studies on the relationship between Aid for Trade (AfT) flows and Foreign Direct Investment (FDI) inflows tend to report a positive effect of total AfT flows, in particular of Aid flows for building economic infrastructure, on FDI inflows. The present article aims to complement these works by investigating whether the effect of AfT flows on inward FDI stock depends on recipient-countries' level of export product concentration. The empirical analysis has shown that AfT flows exert a strong positive effect on inward FDI stock in countries that experience a high level of export product concentration. These findings are relevant for developing countries in light of the concentration of their export products on primary commodities, and given the strong role of FDI flows for employment generation, economic growth and development in these countries.

scholarly journals Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Lan Tan ◽  
Yifan Xu ◽  
Alemayehu Gashaw
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Close Association ◽  
Causality Test ◽  
Fdi Inflows ◽  
The Exchange Rate

Although it is widely recognized that Foreign Direct Investment (FDI) inflows have a dominant effect on economic growth of host countries, the determinants of FDI inflows are still unclear. Especially, about the effect of exchange rate on FDI inflow, the results reached by scholars vary across countries or regions. It is of great practical and theoretical significance to explore the influencing effects of exchange rate on FDI inflow and identify the mechanisms that underlie them in close association with regional economic characters so as to help local government implement targeted government policies to achieve sustainable FDI inflow and sustainable economic growth. For this purpose, the influencing effects and the influencing mechanisms of the exchange rate on FDI inflows are investigated for Zhejiang province, China, over 1985–2019 by employing the co-integration tests, vector error correction models, Granger causality tests, and impulse response tests. Empirical results indicate that there are long-term stable and unidirectional causal relationship between the exchange rate and FDI inflow. Continuous appreciation of RMB against USD discourages FDI inflow. The mechanism which underlies the long-term relationship is the wealth effect, rather than the cost effect or the demand effect. By contrast, in the short run, neither the exchange rate nor the three influencing mechanism has a significant impact on FDI inflow. These results suggest policy recommendations for improving FDI by accumulating human capital and improving infrastructure. These findings are also applicable for other countries or regions with similar economic characters.

scholarly journals Role of Education and Financial Market Development in Attracting Foreign Direct Investment Inflows in Pakistan

TEM Journal ◽  
2021 ◽  
pp. 1184-1189
Author(s):  
Haider Mahmood ◽  
Muhammad Tanveer
Keyword(s):  
Foreign Direct Investment ◽  
Financial Market ◽  
Direct Investment ◽  
Market Development ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Financial Market Development ◽  
Positive Effect

This paper has investigated the role of education and Financial Market Development (FMD) on the Foreign Direct Investment (FDI) inflows in Pakistan from 1970-2019. In the short run, education has a positive effect on FDI inflows. 1% increasing of government's spending on education would increase 0.361% of FDI inflows in Pakistan. Moreover, the FMD has a positive effect on FDI inflows in the short run. 1% increasing FMD may increase 0.0496% of FDI in the short run. Both education and FMD are supporting the FDI inflows in the short run. Comparatively, education shows a larger effect on FDI than that of FMD in the short run. However, FMD and government spending on education could not affect the FDI inflows in the long run. This paper recommends supporting education and financial markets to attract FDI inflows in Pakistan.

An empirical analysis among foreign direct investment, trade openness and economic growth: evidence from the Indian economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reenu Kumari ◽  
Malik Shahzad Shabbir ◽  
Sharjeel Saleem ◽  
Ghulam Yahya Khan ◽  
Bilal Ahmed Abbasi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Fdi Inflows ◽  
Content Type ◽  
Study Results

PurposeThis study examines the long-term and causal relationship among foreign direct investment (FDI) inflows, trade openness and economic growth from India.Design/methodology/approachThis study has used annual time series data from the period 1985–2018 and applied the Johansen cointegration and vector autoregression (VAR) model.FindingsThe results of Johansen's cointegration confirm no long-term relationship among all the above three variables. Further, the results of VAR Granger causality indicate that FDI causes economic growth and economic growth causes FDI, which confirms the bi-directional causality. In contrast, this study found that there is no bi-directional causality between trade openness and economic growth.Social implicationsThrough this study, the government could take the decisions related to foreign investment after adopting more trade openness because the study results revealed that if India follows more trade openness, then how FDI will flow (upward and downward). With impulse analysis, researchers, government and policymakers take the decision-related FDI inflows for the forthcoming ten years after 2018.Originality/valueThis study has found the most exciting results from the impulse functions of FDI inflows, trade openness and economic growth, which showed the situation of these three variables as increase and decrease in the forthcoming ten years.

The Evolution of Foreign Direct Investment in Brazil

2018 ◽  
Author(s):  
Breno Augusto da Silva e Silva
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
International Division ◽  
Commodity Production ◽  
Technological Level ◽  
Key Drivers ◽  
The Government ◽  
Statistical Summary

This chapter analyzes the evolution of inward foreign direct investment (FDI) over the long term in Brazil. It identifies the key drivers of flows and provides a statistical summary of key trends. Importantly, the chapter highlights the role of inward flows in reinforcing the trend toward Brazil’s increased relative reliance on primary commodity production in the international division of labor. Much of the FDI arriving in Brazil has cleaved to the country’s natural comparative advantage in the primary sector, since the government has not directed investment to sectors with a higher technological level, and has been unable to provide more qualified labor, or an environment apt to attract investment to more dynamic sectors.

scholarly journals Foreign direct investment and its role in economic development lraq as a model

2020 ◽  
pp. 127-145
Author(s):  
سعدية هلال حسن
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
New Production ◽  
Job Opportunities ◽  
Quality Of Products ◽  
Production Capacities ◽  
The Cost ◽  
High Degree ◽  
The Unemployed

The importance of this research comes through its handling of one of the most important economic issues, as foreign direct investment is one of the sources of external financing for economic development as well as being one of the channels through which the country gets technology and management expertise, as it leads to finding new production capacities or achieving an increase In the existing production capacities, creating new job opportunities for the unemployed, improving the quality of products and reducing the cost of production to reach a high degree of competition in the local and global markets, especially in countries that suffer from investment and technological gaps

scholarly journals FOREIGN DIRECT INVESTMENT AND GROWTH OF INDIA: DOES FINANCIAL SECTOR DEVELOPMENT HELP IN IMPROVING ABSORPTIVE CAPACITY?

2017 ◽  
Vol 18 (1) ◽  
Author(s):  
T. K. Jayaraman ◽  
Chee -Keong Choong ◽  
Cheong -Fatt Ng
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Studies ◽  
Financial Sector ◽  
Threshold Level ◽  
Financial Sector Development ◽  
Gradual Introduction ◽  
Contingent Factor

This paper investigates whether there exists a long term relationship between foreign direct investment (FDI) and economic growth in India with special reference to the role of financial sector development (FSD), which is now considered as a critical contingent factor as borne out by recent empirical studies elsewhere. A 35 -year period (1979-2013), which is covered by this paper, witnessed gradual introduction of economic reforms picking up speed from early 1990s. The doors were opened to FDI. Undertaking an empirical study on FDI’s contribution to growth of Indian economy by taking into account the role of financial sector development (FSD) as a contingent factor, this paper concludes that FDI and FSD have contributed to growth. It is also confirmed that the interaction term between FDI and financial development indicates a complementary relationship between the two. Keywords: India; FDI; FSD; Growth; Threshold Level; Interaction Effect.

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