scholarly journals The Relationship Between Information & Communication Technology and Foreign Direct Investment Inflow to Africa

2021 ◽  
Vol 13 (5) ◽  
pp. 22
Author(s):  
Abdisalan Salad Warsame

This paper examined the relationship between the increasing Information & Communication Technology (ICT) infrastructure in Africa and foreign direct investment inflow to Africa using panel data sourced from ITU and WDI over 17 years (1998-2014). The paper applies both the fixed-effect and difference-in-differences models. The results indicate that there is a positive correlation between FDI inflow and ICT level in the host country.  The surge in ICT infrastructure in 2009 has substantially increased the FDI inflow to Africa. This increase in FDI inflow was more in the countries that have access to the sea than the countries that have no access to the sea. In other words, the average scale change in FDI inflow to the countries with no access to the sea is smaller than the countries with the coastline.

Author(s):  
Harun Bal ◽  
Erhan İşcan ◽  
Ahmet Kardaşlar

This study examines the relation between Foreign Direct Investment (FDI) and industrialization by analysing 6 different sector groups in Turkey using panel data of 2004-2012 period. The effect of labor, domestic and foreign investment on industrial output of the 6 sector which are Agriculture, Forestry and Fisheries; Mining and Quarrying; Manufacturing Industry; Electricity; Construction; Transportation and Storage Activities, has been analysed. The results show that there is a meaningful and positive relationship between sectoral employment and FDI with sectoral production for all sectors.


2021 ◽  
Vol 44 (2) ◽  
pp. 139-152
Author(s):  
Tomas Kadiša ◽  
Mindaugas Butkus ◽  
Akvilė Aleksandravičienė

This paper examines the effect of foreign direct investment (FDI) on the growth-unemployment nexus. A review of previous contributions on Okun’s law uncovered which aspects of international relations are more prone to affect growth-unemployment nexus. It was found that inward FDI and outward FDI are most likely to affect this nexus. EU-28 panel data and interactive model with pooled OLS estimator were used to empirically test whether both inward and outward FDI moderates the relationship between growth and unemployment. The estimations showed that, as expected, FDI weakens the effect of growth on unemployment. Moreover, with an increase in FDI, the effect of growth on unemployment becomes less statistically significant.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seyed Reza Zeytoonnejad Mousavian ◽  
Seyyed Mehdi Mirdamadi ◽  
Seyed Jamal Farajallah Hosseini ◽  
Maryam Omidi NajafAbadi

PurposeForeign Direct Investment (FDI) is an important means of boosting the agricultural sectors of developing economies. The first necessary step to formulate effective public policies to encourage agricultural FDI inflow to a host country is to develop a comprehensive understanding of the main determinants of FDI inflow to the agricultural sector, which is the main objective of the present study.Design/methodology/approachIn view of this, we take a comprehensive approach to exploring the macroeconomic and institutional determinants of FDI inflow to the agricultural sector by examining a large panel data set on agricultural FDI inflows of 37 countries, investigating both groups of developed and developing countries, incorporating a large list of potentially relevant macroeconomic and institutional variables, and applying panel-data econometric models and estimation structures, including pooled, fixed-effects and random-effects regression models.FindingsThe general pattern of our findings implies that the degree of openness of an economy has a negative effect on FDI inflows to agricultural sectors, suggesting that the higher the degree of openness in an economy, the lower the level of agricultural protection against foreign trade and imports, and thus the less incentive for FDI to inflow to the agricultural sector of the economy. Additionally, our results show that economic growth (as an indicator of the rate of market-size growth in the host economy) and per-capita real GDP (as an indicator of the standard of living in the host country) are both positively related to FDI inflows to agricultural sectors. Our other results suggest that agricultural FDI tends to flow more to developing countries in general and more to those with higher standards of living and income levels in particular.Originality/valueFDI inflow has not received much attention with respect to the identification of its main determinants in the context of agricultural sectors. Additionally, there are very few panel-data studies on the determinants of FDI, and even more surprisingly, there are no such studies on the main determinants of FDI inflow to the agricultural sector. We have taken a comprehensive approach by studying FDI inflow variations across countries as well as over time.


2021 ◽  
Vol 13 (7) ◽  
pp. 98
Author(s):  
Mohammad Refakar

Corruption, defined as the misuse of public power for private gains, is a problem for many emerging and developing countries. Corruption increases the poverty and reduces growth and investment. This paper aims to analyze the relationship between corruption in the host country and the US foreign direct investment towards that country. I use two measures for corruption: The Corruption Perceptions Index and the corruption distance, which is the absolute difference of the corruption in the host and the US. Using a sample of 47 countries that receive the US foreign direct investment, I find that corruption is a strong determinant of US FDI outflows and the US investors are reluctant to invest in corrupt countries. Moreover, corruption distance has a negative effect on US FDI since as the distance in corruption increases, we observe less US FDI towards the host country.


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