FOREIGN DIRECT INVESTMENTS AND MANUFACTURING SECTOR PERFORMANCE IN NIGERIA, (1970-2009)

2013 ◽  
Vol 03 (04) ◽  
pp. 39-56
Author(s):  
Adejumo Akintoye Victor
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Value Added ◽  
Foreign Direct Investments ◽  
Long Run ◽  
Negative Effect ◽  
Sector Performance ◽  
The Relationship

The study examined the relationship between foreign direct investment and the value added to the manufacturing industry in Nigeria, between the period 1970 and 2009. In view of the development and industrialising desires of Nigeria, as well as the foreign aid received in form of private investments, it is pertinent to examine the effect the presence of multinationals has had in shaping the Nigerian manufacturing industry. Using the autoregressive lag distribution technique to determine the relationship between foreign direct investment and manufacturing value added, it was discovered that in the long-run, foreign direct investments have had a negative effect on the manufacturing sub-sector in Nigeria.

scholarly journals Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia

2019 ◽  
Vol 7 (2) ◽  
pp. 153-164
Author(s):  
Saparuddin Mukhtar ◽  
Dicky Iranto ◽  
Riana Raudha Adni
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Long Term Effects ◽  
Short Term ◽  
Long Run ◽  
Negative Effect

This research was conducted to determine the short-term and long-term effects between Gross Domestic Product, Interest Rates, and Inflation on Foreign Direct Investment in the manufacturing sector for the period 2004-2017. Study applied VECM (Vector Error Correction Model), secondary data obtained from Bank Indonesia, BPS, and Bappenas. Based on the statistical results it can be concluded that: first, GDP has a positive and not significant effect in the short term, then in the long run, it has a negative effect toward FDI. Second, in the short term interest rates have a negative and not significant while in the long term interest rates have a negative and significant effect on FDI in the manufacturing sector. Lastly, inflation has a negative and insignificant effect, while, in the long-run inflation has a positive and significant effect on FDI in the manufacturing sector.

scholarly journals Causal Links between Trade Openness and Foreign Direct Investment in Romania

2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Test Procedure ◽  
Real Effective Exchange Rate ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

scholarly journals Vertical spillovers from multinational enterprises: Does technological gap matter?

2016 ◽  
Vol 63 (3) ◽  
pp. 313-323 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Empirical Literature ◽  
Foreign Investors ◽  
Technological Gap ◽  
Local Companies ◽  
The Relationship

Foreign direct investment (FDI) from Multinational enterprises (MNEs) can augment the productivity of domestic firms insofar as knowledge ?spills over? from foreign investors to local producers. The capacity of local companies to exploit knowledge from MNEs can be affected by the technology gap between foreign and local enterprises at both horizontal (in the same industry) and vertical (in different industries) level. Whereas most of the empirical literature has focused exclusively on the analysis of horizontal and backward spillovers (i.e. between MNEs and local suppliers), the present paper also examines the relationship between FDI-related spillovers and technological gap in the Italian manufacturing sector at forward level (i.e. between MNEs and local buyers). Results suggest that at both intra-industry and forward level, the technological gap is of considerable importance for the spillover effect, particularly in the case of low-medium gap.

The Causal Links Between Foreign Direct Investment And Economic Growth In Pakistan

2012 ◽  
Vol 6 ◽  
Author(s):  
Najid Ahmad ◽  
Muhammad Farhat Hayat ◽  
Muhammad Luqman ◽  
Shafqat Ullah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Domestic Product ◽  
Correction Model ◽  
Economic Progress ◽  
Long Run ◽  
Domestic Capital ◽  
The Relationship

This paper investigates the relationship between foreign direct investment and economic growth in Pakistan. The co-integration and error correction model is used to show the relationship between foreign direct investment and gross domestic product in Pakistan. Gross domestic product is taken as dependent variable while foreign direct investment, labor force and domestic capital as independent variables. The results suggest that there is a positive relation between foreign direct investment and gross domestic product in short as well as long run. If we want to make economic progress then there is a need to invite foreign investors because foreign direct investment increases GDP that is economic growth.

scholarly journals Modeling Long-Run and Short-Run Dynamics of Foreign Direct Investment on the Manufacturing Sector Growth in Nigeria: The ARDL Bound Testing Approach

2017 ◽  
Vol 9 (11) ◽  
pp. 128
Author(s):  
Nseabasi Imoh Etukafia ◽  
Ntiedo Bassey Ekpo ◽  
Ikenna Elias Asogwa
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Output Growth ◽  
Explanatory Variables ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
Bound Test

This paper econometrically examines the long run and the short run dynamics of foreign direct investment (FDI) on the manufacturing sector growth in Nigeria between the period 1981 and 2015. Data used in this study were obtained from the Central Bank of Nigeria statistical bulletin published in 2016. The econometric methodology adopted was the bound test and auto regressive distributive lag (ARDL) approach to estimate cointegrating relationship as well as short run and long run dynamics of the FDI and other explanatory variables on output growth in the manufacturing sector. Results of the long run behaviour and short run dynamics (error correction model) indicate that economic liberalization is significant in influencing changes in manufacturing output growth. However, FDI has no significant effect in both the short run and the long run episode. Therefore, it is recommended that policies aimed at encouraging increased participation of private domestic investors in collaboration with multinational corporations in the manufacturing sector be crafted.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals A Review of Foreign Direct Investment and Manufacturing Sector of Pakistan

2018 ◽  
Vol 6 (4) ◽  
Author(s):  
Saif Ur Rahman ◽  
Nor’Aznin Abu Bakar
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Developing Economies ◽  
Manufacturing Sector ◽  
Empirical Literature ◽  
Theoretical Methods

The objective of this study is to explore the insights of the literature on foreign direct investment (FDI) toward manufacturing industry in the context of developing economies. This paper examines and synthesizes existing theoretical and empirical literature on said issue. It first draws the overview of the FDI and manufacturing sector in Pakistan. Second, it identifies the literature based on the theoretical and empirical insights from the published literature. In addition, this article put light on theoretical methods that describes how/ why these methods work. Third, this article proposes three fruitful dimensions for further research. This paper contributes to the area of FDI and manufacturing sector growth by critically analyzing and synthesizing existing theory and research on FDI and growth of manufacturing sector.

scholarly journals The Effects of Foreign Direct Investment, Economic Growth, Industrial Structure, Renewable and Nuclear Energy, and Urbanization on Korean Greenhouse Gas Emissions

2020 ◽  
Vol 12 (4) ◽  
pp. 1625 ◽  
Author(s):  
Suyi Kim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Greenhouse Gas ◽  
Direct Investment ◽  
Nuclear Energy ◽  
Manufacturing Industry ◽  
Industrial Structure ◽  
Ghg Emissions ◽  
Long Run ◽  
Short Run

This study analyzes the effects of foreign direct investment (FDI), economic growth, industrial structure, renewable and nuclear energy, and urbanization on Korean greenhouse gas (GHG) emissions from 1981 to 2014. The cointegration relationship of the variables is examined using autoregressive distributed lag (ARDL) bounds test. The test confirmed the long-run equilibrium among the variables. After that, the short-run and long-run coefficients are estimated by an ARDL error-correction model. The result shows that in the long run, economic growth and urbanization are the main contributors to the increase of GHG emissions, while manufacturing industry share, renewable energy and nuclear energy contributed to the reduction of GHG emissions. The inflow of FDI has led to the increase of greenhouse gases, but the coefficients is negligible. In the short run, economic growth has caused an increase in GHG emissions, while renewable and nuclear energy have contributed to the reduction in GHG emissions. FDI and urbanization did not play a role in increasing of GHG emissions in the short term.

scholarly journals Impact of Foreign Direct Investment on Industrial Growth of India

2019 ◽  
Vol 8 (2S10) ◽  
pp. 165-169
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Industrial Growth ◽  
Coefficient Corrélation ◽  
The Government ◽  
The One ◽  
The Impact ◽  
The Relationship

In India the Foreign direct investment (FDI) has received a staged improvement from instigate of the Make in India scheme, according to recent survey. There was a incredible increase in FDI inflows (40%) particularly in manufacturing sector from October, 2014 to June, 2019 . The industrial sector is considered to be the one of the dominant sectors that contribute the major Indian GDP. India has been ranked fourteenth in the factory output in the world. This was because of the launch of initiative, which sought for promoting manufacturing segments and be a magnet for foreign investments. More than 56 manufacturing units are benefitted in the entire globe. In the recent times during the year 2014 to 2019 the Industrial production inclined to 3.1 per cent, mainly on account of improvement and to encourage talent augmentation towards the various sectors of the economy. This article brings out the recent efforts taken by the government for encouraging the FDI into various sectors and how it has made a pathway. In the last ten years India has shown a tremendous increase in Foreign Direct Investment into the various sectors in economy. Even though Government of India has make a pathway for attracting FDI on various sectors, this papers focuses on explaining the impact of make in India scheme on FDI. In this paper period of five years has been considered for the analysis. The Statistical Tools like Karl Pearson's Coefficient Correlation and One - Way ANOVA has been used for the analysis of data. To study the relationship between the FDI and IIP correlation is used for the analysis of data

scholarly journals Foreign Direct Investment, Export Performance and Sustainable Development in Nigeria

2019 ◽  
Vol 12 (2) ◽  
pp. 110
Author(s):  
Akintoye Victor Adejumo
Keyword(s):  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Export Performance ◽  
Fdi Inflows ◽  
Export Sector ◽  
Long Run ◽  
Short Run ◽  
Manufactured Exports

This study sets out to examine the role of manufacturing sector Foreign Direct Investment (FDI) in the quest for export sector diversification in Nigeria for sustainable development. This objective was achieved by estimating the effects of manufacturing sector FDI on manufactured goods export from Nigeria using the Autoregressive Distributed Lag estimating technique. The study discovered that FDI inflows into the country’s manufacturing sector impacted negatively on manufactured exports in the short run. The short run result nevertheless gave way to a positive and significant influence of FDI on manufactured exports in the long run, indicating that this form of foreign capital is important for manufactured export promotion in Nigeria. The resulting long run positive FDI- spillovers on export performance in Nigeria is in tandem with the neoliberal theoretical viewpoint that developing countries can rely on FDI as ladder to sustainable development. The findings suggest that sustainable development can be enhanced in Nigeria by exploiting the channel of positive spillovers from sector specific FDI inflows. The study concludes that with appropriate policy stance, one important way of pursuing the long run goal of sustainable development is to route FDI inflows in the direction of the country’s manufacturing sector.

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