scholarly journals Nexus between Foreign Direct Investment and Poverty Reduction: A case of Pakistan

2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Hummera Saleem ◽  
Malik Shahzad Shabbir ◽  
Syed Ali Raza Shah ◽  
Jalal Shah
Keyword(s):  
Foreign Direct Investment ◽  
Data Analysis ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Developing Economies ◽  
Causal Effects ◽  
Annual Data ◽  
Causal Association ◽  
Data Set

The key objective of this paper is to examine the direct and causal association between foreign direct investment (FDI) and the reduction of poverty in Pakistan. Poverty reduction is the fundamental task and issue for developing economies like Pakistan. This study uses annual data set from 1987 to 2018 and implies the ARDL method for data analysis. The data has been taken from economic surveys of the Federal statistics house (FSH) of Pakistan. The finding shows the bidirectional causality between poverty and FDI. The outcome of this study also reveals that the causal effects of FDI on reducing poverty are stronger than poverty reduction effects on FDI.

scholarly journals Causal Relationship between Foreign Direct Investment and Economic Growth in Nigeria: 1970-2013

2015 ◽  
Vol 7 (11) ◽  
pp. 230 ◽  
Author(s):  
Uwazie I. U. ◽  
Igwemma A. A. ◽  
Nnabu Bernard Eze
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Unit Root ◽  
Direct Investment ◽  
Developing Economies ◽  
Unit Root Test ◽  
Annual Data ◽  
Policy Reforms ◽  
Causality Test ◽  
Long Run

Foreign direct investment is presumed to play immense role in economic growth in both developed and developing economies. This assumption has motivated the army of studies to actually determine the nexus between foreign direct investment and economic growth in Nigeria. But these studies were not unified on the direction of the causation, hence the need for the study. To effectively analyze the result, the study employs vector error correction model method of causality to analyze the annual data for the periods of 1970 to 2013. The Augmented Dickey-Fuller (ADF) unit root test show presence of unit root at level but stationary after first difference. The Johansen cointegration test confirms that the variables are cointegrated while the granger causality test affirms that foreign direct investment and economic growth reinforce each other in the short run in Nigeria. Also, it is reported that foreign direct investment granger cause economic growth both in the short and long run in Nigeria. Based on these findings, the study advocates the adoption of aggressive policy reforms to boost investors’ confidence and promotion of qualitative human capital development to lure FDI into the country. It also suggests the introduction of selective openness to allow only the inflow of FDI that have the capacity to spillover to the economy. These will attract FDI and boost economic growth in Nigeria.

POVERTY REDUCING IMPACT OF FOREIGN DIRECT INVESTMENT IN NIGERIA

2021 ◽  
Vol 9 (1) ◽  
pp. 118-134
Author(s):  
Adigun Oladele ◽  
◽  
Oke Funmilayo ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Least Square ◽  
Data Series ◽  
Regression Result ◽  
Data Set ◽  
Correlation Relationship ◽  
Oil Sector

The study examines the poverty reducing impact of foreign direct investment (FDI) in Nigeria between 1992 and 2016, sectoral inflow of FDI, as well as the factors preventing the inflow of FDI into the economy making it difficult to achieve economic growth and development. Secondary data was sourced from World Development Indicator (WDI). The regression analysis of ordinary least square (OLS) was adopted to examine the poverty reducing impact of foreign direct investment. Augmented Dickey Fuller Test (ADF) unit root test was used to test for stationarity of the data series and ARDL was thereafter adopted because of the level of stationarity of the variables. The regression result revealed that there is little correlation relationship between foreign direct investment and poverty reduction and the ADF result showed the presence of stationarity among the variables data set, while the ARDL result confirmed the existence of foreign direct investment (FDI) has a significant negative effect on poverty reduction in the short run at 5% level of significance. The study established that foreign direct investment as an engine of economic growth and also key in alleviating poverty has often been directed to sectors with low impact on poverty reduction. The study recommends that government should intensify efforts to encourage the inflow of foreign direct investment to sectors that has very high capacity for poverty reduction, formulate favourable policies and increase the ease of doing business in the country. FDI inflows should be diversified from oil sector to non -oil sector to ensure it generate more employment opportunities for poverty reduction.

Foreign Direct Investment and Poverty Reduction

2017 ◽  
Vol 18 (2) ◽  
pp. 135-157 ◽  
Author(s):  
Manmohan Agarwal ◽  
Pragya Atri ◽  
Srikanta Kundu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Developing Economies ◽  
Capital Controls ◽  
Capital Inflows ◽  
Capital Account Liberalization ◽  
Fdi Inflows ◽  
The Impact ◽  
Free Movement Of Capital

It is widely proclaimed that capital account liberalization would immensely benefit developing economies because once capital controls are lifted, developing economies create a potential for movement of capital. And, this free movement of capital could possibly increase growth thereby lifting millions out of poverty. India has been gradually liberalizing since the 1980s and throughout more capital inflows were observed compared to outflows. Also, the composition of capital flows has been changing since the 1980s–with Foreign Direct Investment (FDI) inflows rising steadily post-1991compared to portfolio and debt flows. However, since 2000, FDI outflows from India were also witnessed. In this paper we empirically test the impact of FDI flows on poverty in India for 1980–2011. To provide a correct perspective to India’s performance we also analyze the link between FDI flows and poverty for SAARC countries. For a better understanding of how FDI flows impact poverty, we analyze the outflows and inflows separately. The results show both similarities and contrasts in the behaviour of India in comparison with the other SAARC countries.

scholarly journals Exchange Rate Volatility and Foreign Direct Investment

2020 ◽  
Vol 12 (3) ◽  
pp. 38
Author(s):  
Samuel Erasmus Alnaa ◽  
Ferdinand Ahiakpor
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Real Exchange Rate ◽  
Direct Investment ◽  
Exchange Rate Volatility ◽  
External Factors ◽  
Conditional Heteroskedasticity ◽  
Data Set

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.

scholarly journals Impacts of Foreign Direct Investment and Industrial Structure Transformation on Haze Pollution across China

2021 ◽  
Vol 13 (10) ◽  
pp. 5439
Author(s):  
Chenggang Li ◽  
Tao Lin ◽  
Zhenci Xu ◽  
Yuzhu Chen
Keyword(s):  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Industrial Structure ◽  
Spatial Data Analysis ◽  
Annual Data ◽  
Eastern Region ◽  
Structure Transformation ◽  
Haze Pollution ◽  
The Impact

With the development of economic globalization, some local environmental pollution has become a global environmental problem through international trade and transnational investment. This paper selects the annual data of 30 provinces in China from 2000 to 2017 and adopts exploratory spatial data analysis methods to explore the spatial agglomeration characteristics of haze pollution in China’s provinces. Furthermore, this paper constructs a spatial econometric model to test the impact of foreign direct investment (FDI) and industrial structure transformation on haze pollution. The research results show that the high-high concentration area of haze pollution in China has shifted from the central and western regions to the eastern region and from inland regions to coastal regions. When FDI increases by 1%, haze pollution in local and neighboring areas will be reduced by 0.066% and 0.3538%, respectively. However, the impact of FDI on haze pollution is heterogeneous in different stages of economic development. FDI can improve the rationalization level of industrial structure, and then inhibit the haze pollution. However, FDI inhibits the upgrading level of industrial structure to a certain extent, and then aggravates the haze pollution. The research in this paper provides an important decision-making basis for coordinating the relationship between FDI and environmental pollution and realizing green development.

scholarly journals International Trade and Foreign Direct Investment as Innovation Factors of the U.S. Economy

2014 ◽  
Vol 41 (1) ◽  
pp. 60-75
Author(s):  
Tomasz M. Napiórkowski
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Direct Investment ◽  
Positive Impact ◽  
The United States ◽  
Annual Data ◽  
Main Portion ◽  
The Impact ◽  
Total Impact ◽  
The U.S

Abstract The aim of this research is to asses the hypothesis that foreign direct investment (FDI) and international trade have had a positive impact on innovation in one of the most significant economies in the world, the United States (U.S.). To do so, the author used annual data from 1995 to 2010 to build a set of econometric models. In each model, 11 in total) the number of patent applications by U.S. residents is regressed on inward FDI stock, exports and imports of the economy as a collective, and in each of the 10 SITC groups separately. Although the topic of FDI is widely covered in the literature, there are still disagreements when it comes to the impact of foreign direct investment on the host economy [McGrattan, 2011]. To partially address this gap, this research approaches the host economy not only as an aggregate, but also as a sum of its components (i.e., SITC groups), which to the knowledge of this author has not yet been done on the innovation-FDI-trade plane, especially for the U.S. Unfortunately, the study suffers from the lack of available data. For example, the number of patents and other used variables is reported in the aggregate and not for each SITC groups (e.g., trade). As a result, our conclusions regarding exports and imports in a specific SITC category (and the total) impact innovation in the U.S. is reported in the aggregate. General notions found in the literature are first shown and discussed. Second, the dynamics of innovation, trade and inward FDI stock in the U.S. are presented. Third, the main portion of the work, i.e. the econometric study, takes place, leading to several policy applications and conclusions.

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