scholarly journals Impact of Infrastructure on Foreign Direct Investment in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach

2019 ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach

scholarly journals DETERMINANTS OF THE INFLOW OF FOREIGN DIRECT INVESTMENT: EMPIRICAL EVIDENCE FROM PAKISTAN

2020 ◽  
Vol 3 (01) ◽  
pp. 65-77
Author(s):  
Muhammad Saad ◽  
Iing Lukman
Keyword(s):  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Data Series ◽  
Explanatory Variables ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach ◽  
Augmented Dickey Fuller ◽  
The Government

This study aims to investigate empirically the various factors which affect the inflow of Foreign Direct Investment (FDI) in Pakistan over the period of 1980 to 2018 and used in this study are population, GDP per capita represent market size, energy consumption, inflation rate and financial development as explanatory variables. The Augmented Dickey Fuller and Philips Perron tests were used to check stationarity level of the data series; the Autoregressive Distributed Lag (ARDL) approach was employed. The empirical results show that GDP, Inflation, Energy and population growth have positive and significant effect on FDI, while the financial development have negative and significant effect on FDI. Findings of the study suggest that the government should make suitable policies to attract more FDI into Pakistan in order to improve economic growth and thereby society welfare.

China’s outward foreign direct investment and exports diversification: an asymmetric analysis

2020 ◽  
Vol 13 (2) ◽  
pp. 45-69 ◽  
Author(s):  
Faheem Ur Rehman ◽  
Yibing Ding ◽  
Abul Ala Noman ◽  
Muhammad Asif Khan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Vital Role ◽  
Outward Foreign Direct Investment ◽  
Asymmetric Effect ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Chinese Export

Purpose Over the past two decades, China’s outward foreign direct investment (OFDI) has risen remarkably. Whether such an increase affects the Chinese export diversification (ED) is a significant issue that has surprisingly remained unaddressed. This study aims to explain this issue that how OFDI plays a vital role in symmetric and asymmetric effects on its ED. Design/methodology/approach The authors introduce a robust nonlinear autoregressive distributed lag (NARDL) model. Ironically, the purpose of this study is to analyze the symmetric and asymmetric effect of OFDI on ED. Findings The authors propose that growing OFDI would be more advantageous to China, rather than the policies of contraction. Therefore, the study provides valuable policy insights to consider the long-run asymmetric momentum given to ED by China’s OFDI. Originality/value The results of this study may seem to be an important newsletter for further policy discussion on how China can catch up on the benefits of ED through OFDI.

scholarly journals Market concentration and foreign direct investment in the financial leasing sector of the Republic of Serbia

Skola biznisa ◽  
2020 ◽  
pp. 1-19
Author(s):  
Marija Radulović
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Relationship ◽  
Market Concentration ◽  
Financial Leasing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Republic

The financial leasing market in previous years is characterised by a growth that is also expected in the coming period. Besides, developing countries are striving to attract as much foreign direct investment (FDI) as possible to accelerate economic growth and achieve macroeconomic stability. The aim of this paper is to determine whether there is a relationship between FDI and the level of market concentration in the financial leasing sector of the Republic of Serbia and to determine whether this relationship is long-term or short-term. Quarterly data from the first quarter of 2006 to the first quarter of 2019 were used. Autoregressive Distributed Lag approach (ARDL) and bounds test were used for data analysis. The results showed that there is a negative relationship between FDI and the level of market concentration in the financial leasing sector of the Republic of Serbia in the long run, while there is no statistically significant relationship between FDI and the level of market concentration in the short run.

scholarly journals The Short and Long Run Determinants of Foreign Direct Investment in Nigeria

2020 ◽  
Vol 2 (4) ◽  
pp. 45-65
Author(s):  
Oludayo Elijah Adekunle
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Capital Expenditure ◽  
Trade Openness ◽  
Foreign Direct Investment Inflow ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run

What determines foreign direct investment inflows has been a subject of controversies among scholars. As a result of the highlighted gap discussed in this study, the short and long run determinants of foreign direct investment and their effects on foreign direct investment inflow in Nigeria was investigated from 1986 to 2018. Data were analyzed with Augmented Dickey-Fuller and Philip Perron unit root test, Autoregressive Distributed Lag and Pairwise Granger Causality techniques. Evidence of long run dynamic equilibrium relationship was established between foreign direct investment and its determinants. The short and long run coefficients revealed that government capital expenditure and inflation impede the inflow of foreign direct investment both in the short and long run while exchange rate serve as bane to foreign direct investment in the long run. However, gross domestic product and trade openness were found to stimulate the inflow of foreign direct investment in the short and long run. The Pairwise causality result revealed that government capital expenditure, exchange rate and trade openness had independent causality with foreign direct investment while gross domestic product and inflation rate had unidirectional causality with foreign direct investment. Thus, government should allocate more funds for the provision of enabling and investment enhancing environment to promote foreign direct investment inflow. The study added value to previous studies by estimating the short and long run determinants of foreign direct investment using more dynamic and robust technique of Autoregressive Distributed Lag developed by Peseran and Shin (1999). JEL Codes: C32, F21.

scholarly journals The effect of worker remittances on economic growth: An ARDL approach

2019 ◽  
Vol 30 (4) ◽  
pp. 434-441 ◽  
Author(s):  
Muhammad Kamran Khan ◽  
Jian-Zhou Teng ◽  
Muhammad Imran Khan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Direct Investment ◽  
Domestic Saving ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Financial Flow ◽  
Short Run

Worker remittances are the main source of financial flow to any economy.  This study intended to scrutinize the effect of remittance inflow on Pakistan’s economy over the period 1976- 2016 by employing autoregressive distributed lag (ARDL) technique; because this method has been recently developed and has different advantages as compared to time series methods. ARDL method was applied to scrutinize the long run and the short run effect of worker remittances on Pakistan’s economy. This study concluded that Pakistan’s economy is positively affected by remittance inflow, foreign direct investment and the gross domestic saving in the long run, while Pakistan’s economy negatively affected by inflation and consumption in the long run. Remittances received from immigrant support economic growth in Pakistan because remittances inflow is mostly utilized for investment purpose. To further improve the economic development of Pakistan’s economy, it is suggested that policy maker in Pakistan encourage and motivate migrants to send remittances through proper channels to Pakistan, so that these inflows of remittances be used in such profitable investments that help to improve economic growth.

Foreign Direct Investment and Growth Nexus: Further Evidence from Africa’s Largest Economy

2021 ◽  
Vol 13 (1) ◽  
pp. 65-78
Author(s):  
Anthony Orji ◽  
Godson Umunna Nwagu ◽  
Jonathan E. Ogbuabor ◽  
Onyinye I. Anthony-Orji
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Labour Force ◽  
Jel Classification ◽  
Least Square ◽  
Ordinary Least Square ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run

The study investigated the effect of foreign direct investment (FDI) on economic growth in Nigeria, which is currently Africa’s largest economy, and also determined the long-run relationship between FDI and economic growth in Nigeria from 1981 to 2017. The study adopted the autoregressive distributed lag modelling approach and ordinary least square in the analysis. The empirical results revealed that FDI has a positive and significant relationship with economic growth in Nigeria within the period under review. The study concluded and recommended that Nigerian Government should formulate policies that will attract more FDI in all sectors of the economy especially in the service and manufacturing sectors, so as to improve the infrastructural facilities and production of goods in the country and also expand its labour force. Finally, there is need to improve the educational policy of the country in order to raise the stock of human capital in the country that will make useful policies for the attraction for productive FDIs in the country. JEL Classification: E22, F21, F23, F43

scholarly journals Inward Foreign Direct Investment and Trade Openness in Vietnam: A Nonlinear Autoregressive Distributed Lag Approach

Economies ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 120
Author(s):  
Jen-Yao Lee ◽  
Ya-Chuan Hsiao ◽  
Ngochien Bui ◽  
Tien-Thinh Nguyen
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Inward Foreign Direct Investment ◽  
Nonlinear Autoregressive ◽  
Foreign Direct Investment Inflows

This study aims to examine the asymmetric relationship between trade openness and FDI (foreign direct investment) inflows to Vietnam by using NARDL (nonlinear autoregressive distributed lag) during the period from 1997 to 2019. Our findings show that the influence of FDI on trade openness is asymmetric in the short-run and long-run. But the influence of trade openness on FDI is symmetric in the short-run and asymmetric in the long run.

scholarly journals THE NEXUS BETWEEN FOREIGN DIRECT INVESTMENT (FDI) AND MANUFACTURED EXPORT PERFORMANCE IN TANZANIA: AN AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) APPROACH

2018 ◽  
Author(s):  
Francis - Lwesya ◽  
Kaluse Mohammed
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Export Performance ◽  
Value Added ◽  
Real Effective Exchange Rate ◽  
Correction Coefficient ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Manufactured Exports

This paper examines the nexus between Foreign Direct Investment (FDI) and Manufactured Export Performance in Tanzania using An Autoregressive Distributed Lag (ARDL) for the period of 1980-2015. Real manufactured exports were used to proxy manufactured export performance. The findings show the existence of a positive and significant relationship between real manufactured exports and lagged FDI both in the short run and long run. The estimated error correction coefficient is negative and significant at one percent level. This confirms that all the variables (Real Manufactured Exports, FDI, Openness, and Real Effective Exchange Rate) are co-integrated and the speed of adjustment towards the long run equilibrium is at 78% annually. This suggests that FDI is one of the determinants of manufactured export performance in Tanzania. Thus, to stimulate more manufactured exports, Tanzania needs to attract FDIs that target the export sector along with increasing trade openness in a bid to build a competitive and sustainable value added manufacturing sector.

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