scholarly journals An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

2020 ◽  
pp. 63-76
Author(s):  
G. Tunde, Monogbe ◽  
J. Emeka, Okereke ◽  
P. Ebele, Ifionu
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign  portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively  related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

Attracting foreign capital as a factor in ensuring the country's economic growth

2020 ◽  
pp. 34-41
Author(s):  
Taras Malyshivskyi ◽  
Volodymyr Stefinin
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Low Income ◽  
Direct Investment ◽  
Foreign Capital ◽  
Local Level ◽  
Current Trend ◽  
Raw Material ◽  
Foreign Capital Inflows

The article examines the relationship between attracting foreign capital in the form of foreign direct investment and ensuring economic development. In particular, the analysis of the current structure of the economy is indicated, its raw material character is pointed out and, based on other researches, the necessity of its reform is substantiated, as Ukraine will remain a low-income country if the current trend continues. This is due to the fact that countries with a raw material structure of the economy are characterized by a low level of economic complexity, and therefore are not able to generate high levels of income in society. As a result, the expediency of stimulating the attraction of investment resources into the country’s economy, in particular in the form of foreign direct investment, is substantiated. The dynamics of attracting foreign direct investment to Ukraine and a number of other countries for the period from 1991 to 2019 is analyzed and the key negative factors that deter foreign investors from investing in the economy of Ukraine are indicated. As a result of the analysis, divergent trends in the economic development of Ukraine and other analyzed countries (Poland, Czech Republic, Slovakia, Turkey, Romania, Hungary) were identified, which contributed to economic stagnation and restrained economic growth and development. Taking into account the analysis, as well as based on the concept of investment and innovation growth, it is proposed to use the experience of Israel to improve the country’s investment attractiveness and stimulate foreign capital inflows by adapting the Yozma program to Ukrainian realities. According to our estimates, the adaptation of this program to the Ukrainian economy will attract about $ 350 million over a five-year period of venture capital alone. In addition, programs such as YOSMA can also be implemented at the regional or even local level. We believe that the use of this tool will improve the investment attractiveness of the country, as well as provide sufficient financial resources to modernize the domestic economy and ensure rapid economic growth.

scholarly journals Foreign Capital Inflows and Growth of Employment In India: An Empirical Evidence from Public and Private Sector

2016 ◽  
Vol 8 (2) ◽  
pp. 189
Author(s):  
Narender Khatodia ◽  
Raj S. Dhankar
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Direct Investment ◽  
Foreign Capital ◽  
Positive Impact ◽  
Capital Inflows ◽  
Public And Private ◽  
Indian Economy ◽  
Foreign Capital Inflows ◽  
Public And Private Sector

The role of foreign capital in economic growth has been a burning topic of debate in countries world over including India. It is not possible for a developing country like India to grow without sufficient foreign capital inflow, technology and employment generation. The Indian government has taken many initiatives to attract foreign investment to boost the Indian economy since the liberalization process started in 1991. As a result, India has received Foreign Direct Investment (FDI) to the tune of US $ 380215 million by the end of June 2015. This study has assessed the growth of employment in public and private sector by the flow of foreign capital, comprising of Foreign Direct Investment, Foreign Portfolio Investment (FPI), External Commercial Borrowings (ECBs), and NRI Deposits in India during the period 1991 to 2012. The study has also analyzed the trends of employment in public and private sectors of Indian economy. We find that overall foreign capital inflows, except for the FPI and NRI deposits, have a significant positive impact on the growth of private sector employment.

scholarly journals Capital flows and political conflicts: Evidence from Thailand

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Pongsak Luangaram ◽  
Yuthana Sethapramote
Keyword(s):  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Military Coup ◽  
Portfolio Investment ◽  
Martial Law ◽  
Foreign Portfolio Investment ◽  
Political Conflicts ◽  
Different Types ◽  
Negative Effect

How do domestic political conflicts affect capital flows into Thailand? This article advances the current understanding in two ways. First, it adopts a new method for measuring political uncertainty using Thai-language newspapers over the past 20 years. Given that the nature of political conflicts is multi-faceted, these measures cover the various key components of Thai political tensions—both within and outside of parliament. Second, how different types of tensions affect capital flows are examined using a quantile regression framework—allowing an examination of effects upon the overall distribution of capital flows. The empirical results indicate that Thai political conflicts significantly and adversely affect both foreign direct investment and foreign portfolio investment at the left tails of their distribution. The results also highlight how different types of political conflicts affect capital flows in different ways. For example, uncertainty about a military coup and government measures regarding martial law or emergency decrees have a strong negative effect upon foreign direct investment flows; whereas heightened political protest and news about constitutional reform play a significant role in explaining the risk reversal of foreign portfolio investment flows. 

scholarly journals Impact of Foreign Capital Inflows on Household Savings in Pakistan

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Muhammad Abdullah Idrees ◽  
Ayesha Khan ◽  
Muhammad Arsalan Khan ◽  
Muhammad Bilal Raees ◽  
Muniza Syed
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Household Savings ◽  
Statistical Tools ◽  
Household Saving ◽  
Foreign Capital Inflows ◽  
The Impact

This study aims to discover the impact of foreign capital inflows (FDI, RT and FA) on household savings of Pakistan. Data used in this study has been obtained from the website of State Bank of Pakistan for the period of 1981-2010. Statistical tools including multiple regressions analysis was applied for analysis. Results explain that foreign direct investment (FDI), remittances (RT) are having positive and significant impact on household saving (HS) but foreign aid (FA) is having negative and insignificant impact on household saving, so it is recommended that if a developing country like Pakistan wants to increase the household saving it should give thoughtful importance to FDI and RT than FA with respect to household savings in Pakistan.

scholarly journals FOREIGN CAPITAL FLOWS AND ECONOMIC GROWTH OF KENYA.

2018 ◽  
Vol 3 (2) ◽  
pp. 40
Author(s):  
Wiberforce Ong’ondo
Keyword(s):  
Economic Growth ◽  
Capital Flows ◽  
Foreign Capital ◽  
Secondary Data ◽  
National Bureau ◽  
Portfolio Investment ◽  
Analysis Model ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Us Dollar

The purpose of the study was to establish the effects of foreign capital flows on economic growth of Kenya. The study employed a quantitative research design. The target population of this study was Kenya since it is the Center of analysis. Considering that the population is one country, Kenya, secondary data was collected over a period of 25 years from 1993 to 2017. Therefore, the number of observations was X * 25 = 25. The research conducted a census on Kenya using secondary data from Nairobi Securities Exchange (NSE), Capital Markets Authority (CMA), Kenya National Bureau of Statistics (KNBS), Central Bank of Kenya, World Bank and United Nations Conference on Trade and Development (UNCTAD). Data over time was analyzed using a time series model and trend analysis. Model test and correlation analysis were done before conducting regression and univariate regression analysis. The study found that, when external commercial borrowing is increased by one US dollar, annual GDP will increase by 395.990% when all other factors are kept constant. The opposite also applies. But, if external commercial borrowing is zero, annual GDP will decrease by USD 8,151,662,920.94 when all other factors are kept constant. Additionally, when Foreign Portfolio investment is increased by one US dollar, annual GDP will increase by 805.37% when all other factors are kept constant. The opposite also applies. But, if Foreign Portfolio Investment is zero, annual GDP will remain to be USD 25394237979 when all other factors are kept constant. Also, when FDI is increased by one US dollar, annual GDP will increase by 3026.30% when all other factors are kept constant. The opposite also applies. But, if FDI is zero, annual GDP will still increase by USD 18493289187.3 when all other factors are kept constant. Further results revealed that when Non-Resident Kenyan Deposits are increased by one US dollar, annual GDP will increase by 3738.65% when all other factors are kept constant. The opposite also applies. But, if Non-Resident Kenyan Deposits is zero, annual GDP will remain to be USD 4869680695.47 when all other factors are kept constant. The study recommends that the Government pursues policies that will attract and favour net increases in Foreign Direct Investments, Foreign Portfolio Investments, External Commercial Borrowings and Non-Resident Kenyan deposits into the country. 

Foreign Capital Flows to Emerging Markets: a Test of Policy Arbitrage

2004 ◽  
Vol 5 (1) ◽  
pp. 21-32
Author(s):  
Anand Shetty ◽  
John Manley
Keyword(s):  
Emerging Markets ◽  
Capital Flows ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Economic Policies ◽  
National Economic ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows ◽  
Mexican Peso

Private capital that dominated the foreign capital inflows to emerging markets in the 1990s has been linked to recent financial crises in these markets. This linkage has raised questions about the market’s ability to discipline the flow of capital to emerging markets and the role of policy arbitrage. Policy-arbitrage hypothesis states that international capital flows will arbitrage across national economic policies in search of sound markets. This paper examines the pattern of changes in the foreign capital inflows to emerging markets in the 1990s and tests the policy-arbitrage hypothesis using 22 country-data for a period immediately following the Mexican peso crisis. The test results support the policy-arbitrage hypothesis.

scholarly journals Impact of Capital Inflows on Domestic Investment: Evidence from Panel Data

2020 ◽  
Vol V (I) ◽  
pp. 63-74
Author(s):  
Mansoor Mushtaq ◽  
Sania Shaheen ◽  
Irfan Hussain Khan
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
South Asian ◽  
Direct Investment ◽  
Foreign Capital ◽  
Private Investment ◽  
Capital Inflows ◽  
Domestic Investment ◽  
Foreign Capital Inflows

Investment significance in any country cannot be ignored for its direct and indirect influences on the growth rate of the economy. Foreign capital inflows are one of the major determinants of domestic private investment. Hence, this study analyzes the effect of two kinds of foreign capital inflows, i.e. inward foreign direct investment and inward foreign remittances on domestic investment covering a sample of five South Asian economies from 1976 to 2017. The findings of the study reveal that both types of capital inflows raise the domestic investment and the role of remaining variables on investment is also positive and significant. The study recommended that steps should be undertaken to increase these foreign capital inflows to raise the domestic investment in these countries.

scholarly journals Foreign Direct Investment and Economic Growth in Albania

ECONOMICS ◽  
2015 ◽  
Vol 3 (2) ◽  
pp. 27-32 ◽  
Author(s):  
Ylvije Kraja Boriçi ◽  
Elezi Osmani
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Positive Impact ◽  
Capital Inflows ◽  
Foreign Direct Investments ◽  
Legislative Framework ◽  
Foreign Capital Inflows

Abstract Since the 1980s, foreign direct investment inflow (FDI) has grown significantly in most developing countries while pertaining Alania, foreign direct investment has started after the 1990s. A lot of developing countries have made policies aimed at reducing FDI barriers. Foreign capital globalization, particularly FDI inflow is increased significantly in developing countries, due to the fact that FDI is the most stable and prevalent component of foreign capital inflows (Adams, 2009) Foreign direct investments are a very important factor for the development of a country and Albania has still much to be done to encourage such investments, especially in the legislative framework. The authors are trying to give the answer to the question that how does foreign direct investment in the Albania affect the nation’s economy? The authors identify that foreign direct investment improves technology and has positive impact on economic growth. Because the overall theory is that FDI inflow enhances and sustains economic growth in the host country.

scholarly journals Impact of Foreign Capital Inflows and Money Supply on Exchange Rate: A Case Study of Pakistan

2017 ◽  
Vol 3 (1) ◽  
pp. 83-90 ◽  
Author(s):  
Sajid Ali ◽  
Raima Nazar
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Foreign Aid ◽  
Money Supply ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Series Data ◽  
Foreign Capital Inflows ◽  
The Impact

The study attempts to examine the impact of foreign capital inflows and money supply on exchange rate of Pakistan. For this purpose we have undertaken time series data for the period of 1973-2016. Annual data for the period 1973-2016 is used, taken from Economic Survey of Pakistan (various issues) and International Financial Statistics (IFS). The main variables used in our analysis are exchange rate, openness, workers' remittances, foreign direct investment, foreign aid and money supply. Simple Linear Regression model with ordinary least method (OLS) is used to analyse the results. Money supply is positively and significantly related to exchange rate. Worker's remittances (WREM), foreign aid (FAID), foreign direct investment. (FDI) and openness (OPP) are negatively and significantly related to exchange rate.  The study shows that foreign capital inflows and workers' remittances significantly appreciate the exchange rate in the case of Pakistan.

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