WorldWideScience

Sample records for direct foreign investment

  1. Spillovers from Foreign Direct Investment

    DEFF Research Database (Denmark)

    Meyer, Klaus E.; Sinani, Evis

    2005-01-01

    The extensive empirical literature analyzing productivity spillovers from foreign direct investment to local firms provides inconclusive results. Some studies find that foreign presence has a positive impact on the productivity of domestic firms, while others find no evidence or a negative effect...... for industrialized countries in the 1990s. Transition economies may experience spillovers, but these have been declining in recent years. Keywords: developing countries, transition economies, spillovers, foreign direct investment, technology transfer, meta-analysis...

  2. Spillovers from Foreign Direct Investment

    DEFF Research Database (Denmark)

    Meyer, Klaus E.; Sinani, Evis

    2005-01-01

    The extensive empirical literature analyzing productivity spillovers from foreign direct investment to local firms provides inconclusive results. Some studies find that foreign presence has a positive impact on the productivity of domestic firms, while others find no evidence or a negative effect...... for industrialized countries in the 1990s. Transition economies may experience spillovers, but these have been declining in recent years. Keywords: developing countries, transition economies, spillovers, foreign direct investment, technology transfer, meta-analysis......The extensive empirical literature analyzing productivity spillovers from foreign direct investment to local firms provides inconclusive results. Some studies find that foreign presence has a positive impact on the productivity of domestic firms, while others find no evidence or a negative effect...... data analysis. We conduct a meta-analysis to investigate reasons for these conflicting results, and provide a revised interpretation of earlier research and its policy implications, and new priorities for future research. Our analysis suggests that the hypothesized spillovers are not confirmed...

  3. Does Foreign Aid Increase Foreign Direct Investment?

    DEFF Research Database (Denmark)

    Selaya, Pablo; Sunesen, Eva Rytter

      The notion that foreign aid and foreign direct investment (FDI) are complementary sources of capital is conventional among governments and international cooperation agencies. This paper argues that the notion is incomplete. Within the framework of an open economy Solow model we show that the th......  The notion that foreign aid and foreign direct investment (FDI) are complementary sources of capital is conventional among governments and international cooperation agencies. This paper argues that the notion is incomplete. Within the framework of an open economy Solow model we show...... that the theoretical relationship between foreign aid and FDI is indeterminate. Aid may raise the marginal productivity of capital by financing complementary inputs, such as public infrastructure projects and human capital investment. However, aid may also crowd out productive private investments if it comes...

  4. Trends in foreign direct investment inflows

    OpenAIRE

    Australian Treasury

    1997-01-01

    This article briefly examines recent trends in foreign direct investment in Australia, both in the context of the longer-term perspective and relative to the experience of other countries. It also discusses the role of foreign direct investment within Australia’s overall investment requirements, and outlines characteristics of foreign direct investment in relation to sector and type of asset acquired.

  5. GLOBALIZATION AND FOREIGN DIRECT INVESTMENTS

    Directory of Open Access Journals (Sweden)

    Elena Chirilă – Donciu

    2013-07-01

    Full Text Available Mobilizing financial resources to cover investment needs is a concern of all countries, developed or developing ones, of consolidated market economies or emerging ones. A distinctive characteristic of Global Economy over the last few decades has been the rising rate and impressive increase in Foreign Direct Investment (FDI. The purpose of this research is to analyse global FDI inflows in Europe and in Romania. The results of the research support the idea that the balance of economic power is changing in the world economy and the countries that own a stable and solid industrial base are at an advantage. The new trends determined by the economic crisis in the field of FDI refer to the growing percentage of developing and emerging countries in the global flows of FDI.

  6. Foreign Direct Investment versus Portfolio Investment : A Global Games Approach

    OpenAIRE

    Yamin Ahmad; Pietro Cova; Rodrigo Harrison

    2004-01-01

    We present a model of investment under uncertainty about fundamentals, using a global games approach. Goldstein & Razin (2003) show that there is an information based trade-off between foreign direct investment (FDI) and portfolio investment (PI) which rationalizes some well known stylised facts in the literature - the relative volatility and reversibility of foreign direct investment versus portfolio investment. We extend their result and show that uncertainty about fundamentals does not imp...

  7. Reaping the Rewards of Foreign Direct Investment

    DEFF Research Database (Denmark)

    Hansen, Michael W.

    After a decade of steadily growing foreign direct investment (FDI) in extractives, Tanzania is now facing a virtual ‘take off ’ in extractive FDI. One of the concerns related to these investments is whether the foreign investors are linking up sufficiently with local firms through localized supply...

  8. FOREIGN DIRECT INVESTMENTS DURING FINANCIAL CRISES

    Directory of Open Access Journals (Sweden)

    VINTILA DENISIA MARIANA

    2011-12-01

    Full Text Available The fundamental idea of International capital flows is that short-term flows can be easily reversed, while flows on a longer time horizon are more stable. Crises are associated with withdrawals of short-term capital flows and growth of the foreign direct investment flows. The current crisis has meant a major decline of international capital flows, also of the foreign direct investment. The analysis in this article tries to establish if and under which conditions foreign direct investments can bring greater stability during the crisis, comparing the evolution of foreign direct investments in the current crisis with their response in previous crises. We show that during previous crises foreign direct investments were stable, behaving differently from other types of capital. Yet, during the current crisis, foreign direct investments have proven to be not so stable and all the components declined, raising questions about the resumption of the positive trend. The stability of foreign direct investments in the past was given by the increase of mergers and acquisitions during the crisis, reflecting fire-sale FDI. This feature is not found in the current crisis as mergers and acquisitions were severe affected by the crises and recorded a major decline. The current paper is realized in the doctoral program entitled PhD in economics at the standards of European knowledge- DoEsEc, scientific coordinator Prof. PhD Rodica Zaharia, institution The Academy of Economic Studies Bucharest, Faculty of International Business, period of research 2009-2012.

  9. DETERMINANTS OF FOREIGN DIRECT INVESTMENTS IN ROMANIA

    Directory of Open Access Journals (Sweden)

    Lenuta CARP (CEKA

    2014-11-01

    Full Text Available Foreign direct investments have known an increased importance in the worldwide economy. Theoretical approaches highlight the positive externalities foreign direct investments generate in the beneficiary economy though different channels. The aim of this paper is to emphasize, based on an econometric analysis using data for Romania, the fundamental determinants of foreign direct investments attractiveness. The analysis will be followed by the recommendations for increasing the inflows in our country and measures to enhance their effect in the national economy. Further analysis will be developed focusing on the emerging countries from Europe using a panel technique.

  10. Analysis of foreign direct investment in the Czech Republic

    OpenAIRE

    Marcela Domesová

    2011-01-01

    The foreign direct investments are joined with the process of world globalisation. Foreign direct investments are carried out especially by multinational companies. The basic forms of the foreign direct investments are “greenfield” investments and “brownfield“ investments in the form of the privatization. The Czech Republic has shown mass inflow of foreign direct investments since 1998. The aim of the paper is to evaluate the inflow of foreign direct investments in the context of the balance ...

  11. Smallish foreign direct investment, sluggish growth: Can ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Edgard Rodriguez. GGP One-pager series. Since the 1990s, foreign direct investment (FDI) has been on the rise worldwide. By 2008, the world's FDI flows amounted to about $1.7 trillion (although they are expected to go below $1.2 trillion in 2009 during the economic downturn). Some key characteristics of this investment ...

  12. Technology Transfer, Foreign Direct Investment and Economic ...

    African Journals Online (AJOL)

    2015-05-29

    May 29, 2015 ... Awosusi and Awolusi: Foreign Direct Investment and Economic Growth in Nigeria development ... (Saggi 2002) of international technology transfer, domestic investment, and growth is imperative, hence, the .... developing countries to draw upon the stock of knowledge created by their innovations. Contrary ...

  13. Foreign Direct Investment For Sale

    OpenAIRE

    Onur Koska

    2009-01-01

    This study examines the choice of a multinational firm between two alternative entry modes, a greenfield investment and a joint venture, under incomplete information. The joint venture partner is selected by an auction, which distinguishes this study from other studies in the literature. A private values auction allows a multinational firm to increase its share of the joint venture profit so that a joint venture is always preferable to greenfield investment. The model also examines the nation...

  14. Foreign direct investment, economic growth and environmental ...

    African Journals Online (AJOL)

    It seeks to examine the environmental implications of the inflow of foreign direct investment and economic growth of the countries in the sub-region. The dynamic interaction was examined through Panel Vector Autoregressive (PVAR) and Panel Vector Error Correction (PVEC) methodologies on a sample of thirty-three SSA ...

  15. RISK AND FOREIGN DIRECT INVESTMENT IN ROMANIA

    Directory of Open Access Journals (Sweden)

    Catalin Drob

    2014-07-01

    Full Text Available This paper tries to present the main categories (types of risks that affect the inflows of foreign direct investment (FDI in Romania, such as: country risk, political risk, economic risks, sovereign risks and so on. FDI is an important factor contributing to the economic development and to the economic growth of a country. In order to recuperate its economic handicap as compared to the other countries in the EU, Romania needs a massive inflow of foreign capital, especially in the form of direct investment. The paper also presents the evolution of FDI inflows in Romania and how they were influenced by the main factors affecting the FDI. In principle, between risk and the level of FDI inflows there is a direct dependency relationship: the higher the risk is in a country, the lower the level of FDI inflows is in that country. This is demonstrated by the empirical studies regarding FDI. These studies show that countries with high risk have major difficulties in attracting foreign investment. Therefore, it is important to identify very precisely the main risks that may affect the level of FDI inflows in Romania, in order to propose and implement strategies to mitigate these risks and to attract more foreign direct investment in Romania.

  16. The Location Choice of Foreign Direct Investments

    DEFF Research Database (Denmark)

    Nielsen, Bo Bernhard; Geisler Asmussen, Christian; Weatherall, Cecilie Dohlmann

    2017-01-01

    The choice of location of foreign direct investments (FDI) by multinational enterprises (MNEs) has been the subject of intense scrutiny for decades and continues to be so. Yet, the vast diversity in methodological approaches, levels of analysis, and empirical evidence precludes a comprehensive...

  17. Foreign Direct Investment, Competition and Industry Performance

    DEFF Research Database (Denmark)

    Bitzer, Jürgen; Görg, Holger

    2009-01-01

    This paper investigates the productivity effects of inward and outward foreign direct investment using industry- and country-level data for 17 OECD countries over the period 1973 to 2001. Controlling for national and international knowledge spillovers we argue that the effects of FDI work through...

  18. Considering foreign direct investment in Denmark

    DEFF Research Database (Denmark)

    Gjerding, Allan Næs

    2005-01-01

    The present paper examines the aspect of relational assets and relates it to the strategic decision on undertaking foreign direct investment (FDI). The point of departure is the increasing importance of FDI globally as well as in the Danish economy, and the observation that even though Denmark...

  19. Institutional Field for Outward Foreign Direct Investment:

    DEFF Research Database (Denmark)

    Marinova, Svetla Trifonova; Child, John; Marinov, Marin Alexandrov

    2012-01-01

    The paper AU :3 explores the stages of development of an outward foreign direct investment (OFDI) institutional field during periods of major system change in big emerging economies. The state and its agencies appear to be the principal institutional entrepreneurs in developing the OFDI...

  20. Evaluating Foreign Direct Investment and Africa's Development ...

    African Journals Online (AJOL)

    The question of Africa's development has continued to occupy the front burner from the social and economic discussions by scholars of various divides. But Africa's development through foreign direct investment has become a recent challenge to the African continent. African social critics and commentators as well as ...

  1. Foreign direct investment in Hungary

    NARCIS (Netherlands)

    Hastenberg, Johannes Josephus Wilhelmus van

    1999-01-01

    Effecten op de modernisering van de industrie en de vraag naar arbeid Na de val van de Berlijnse muur in 1989 en het verdwijnen van het socialisme werd Hongarije een aantrekkelijke bestemming voor buitenlandse directe investeringen (FDI). De combinatie van marktpotentie, lage loonkosten en een

  2. Does Foreign Aid increase Foreign Direct Investment?

    DEFF Research Database (Denmark)

    Selaya, Pablo; Sunesen, Eva Rytter

    2012-01-01

    We examine the idea that aid and FDI are complementary sources of foreign capital. We argue that the relationship between aid and FDI is theoretically ambiguous: aid raises the marginal productivity of capital when used to finance complementary inputs (like public infrastructure and human capital...

  3. POLAND`S OUTWARD FOREIGN DIRECT INVESTMENT

    Directory of Open Access Journals (Sweden)

    Buczkowski Bogdan

    2013-07-01

    Full Text Available The paper contributes to the discussion of motives, determinants and effects of outward FDI of companies from emerging economies. We analyze the the scale, structure, geographical location and effects of Polish foreign direct investments as well as we prioritize their determinants. The interest of Polish companies in investing abroad has increased sharply over the last decade, due to the need to broaden the scale of business operations and geographical scope of their economic activities after the Poland`s accession to the European Union.

  4. MULTINATIONAL COMPANIES AND FOREIGN DIRECT INVESTMENT

    OpenAIRE

    Lucia P. BLĂJUȚ

    2014-01-01

    This paper highlights the significant share of multinational companies in international trade that are a factor of developing global economies. In the context of economic globalization the activity of multinational companies and their foreign direct investment have a strong impact on the host country which presents advantages and disadvantages for them. The main objective of this article is the review of the important role played by multinationals in economic development, especially in develo...

  5. Institutions and Outward Foreign Direct Investment2

    Directory of Open Access Journals (Sweden)

    Klimek Artur

    2015-06-01

    Full Text Available This paper explores the influence of the quality of a host country’s institutional environment on outflows from that country of foreign direct investment. The main finding of this paper is that such quality does play an important role, particularly with respect to governance quality and political stability. This implies that better institutional conditions may reduce undesirable outflows of capital, and the quality of those institutions may impact FDI effectiveness in host countries.

  6. Determinants of Foreign Direct Investment Inflows in Kenya

    African Journals Online (AJOL)

    Nneka Umera-Okeke

    DISCIPLINARY ... Key Words: Foreign Direct Investments, Determinants, Inflows, Kenya. Introduction. Foreign Direct Investments .... Previous FDI inflows are also expected to influence current FDI inflows hence the need to include them in the model.

  7. Reaping the Rewards of Foreign Direct Investment

    DEFF Research Database (Denmark)

    Hansen, Michael W.

    After a decade of steadily growing foreign direct investment (FDI) in extractives, Tanzania is now facing a virtual ‘take off ’ in extractive FDI. One of the concerns related to these investments is whether the foreign investors are linking up sufficiently with local firms through localized supply...... and that those that do exists are typically shallow and confined to simple, low value added tasks. The reason for the lack of linkages is mainly that the technology gap between MNCs and local firms is too big to bridge and that a toxic Tanzanian business environment makes contractual partnerships between local...... firms and MNCs difficult. The lack of linkages amplifies already widespread concerns that extractive FDI leaves too few development benefits for Tanzanian society. As a consequence, pressure is mounting on the government to force MNCs into localizing their value chains though mandatory local content...

  8. Patterns of Foreign Direct Investment in Transylvania

    Directory of Open Access Journals (Sweden)

    Aniela Raluca DANCIU

    2016-03-01

    Full Text Available Foreign direct investment (FDI has gained significant importance over the past decade as a tool for accelerating growth and development of transition economies. It is widely believed that the advantages that FDI brings to the standard of living and prospects for economic growth of the host nation largely outweigh its disadvantages. Despite the growing interest in the subject, to our knowledge, there is still no satisfactory empirical work which can explain the determinants of the spatial distribution of FDI flows into the separate regions of Romania, one of the largest new EU-member states. Thus, this research attempts to fill this gap by using a primary data from a questionnaire that covers the entire transition period. The main goal of this study is to identify the main determinants of the direct foreign investments in Central, West and North West Romanian regions. Basically, the study is constructed so, that it will provide a list of the main strengths and weaknesses of Center, West and North West regions, that would influence a foreign investor to choose the proper location for a future investment when developing his strategy.

  9. Chinese Foreign Direct Investment in Indonesia

    DEFF Research Database (Denmark)

    Gammeltoft, Peter; Tarmidi, Lepi T.

    China‟s increasing integration with the world economy is met with much anticipation and much anxiety in the Southeast Asian region. In Indonesia, there is intense interest in Chinese foreign direct investment (FDI), not only among academics but also among policy makers, industrialists...... conducted in 2008 among Chinese invested enterprises supplemented with available official statistics and secondary data, the study finds that Chinese FDI in Indonesia is performed by mixed entities: some are owned by central government, some by regional government and some are private firms. In the case...... of joint ventures, their local partners are mostly local Chinese, except in the infrastructure, mining and energy sector where their local partners are Indonesian state-owned enterprises. Where the local developmental effects are concerned, a picture emerges where Chinese investments, at this early period...

  10. Effectiveness Of Foreign Direct Investment Policy In Nigeria (1986 ...

    African Journals Online (AJOL)

    The paper dwells on an investigation of the effectiveness of foreign direct investment policy in Nigeria. Employing the ordinary least square regression technique, the null hypothesis of no significant relationship between foreign direct investment policy measures and foreign direct investment was tested. The null hypothesis ...

  11. An Information-Based Trade Off between Foreign Direct Investment and Foreign Portfolio Investment

    OpenAIRE

    Itay Goldstein; Assaf Razin

    2005-01-01

    The paper develops a model of foreign direct investments (FDI) and foreign portfolio investments (FPI).The model describes an information-based trade off between direct investments and portfolio investments. Direct investors are more informed about the fundamentals of their projects. This information enables them to manage their projects more efficiently. However, it also creates an asymmetric-information problem in case they need to sell their projects prematurely, and reduces the price they...

  12. MULTINATIONAL COMPANIES AND FOREIGN DIRECT INVESTMENT

    Directory of Open Access Journals (Sweden)

    Lucia P. BLĂJUȚ

    2014-11-01

    Full Text Available This paper highlights the significant share of multinational companies in international trade that are a factor of developing global economies. In the context of economic globalization the activity of multinational companies and their foreign direct investment have a strong impact on the host country which presents advantages and disadvantages for them. The main objective of this article is the review of the important role played by multinationals in economic development, especially in developed economies. In the economies in which they operate, they bring capital, technology transfer, improve the national reputation and influence the other companies to invest in this countries, they provide a substantial source of revenue for the government and always improve the balance of payments in the host country.

  13. Analysis of foreign direct investment in the Czech Republic

    Directory of Open Access Journals (Sweden)

    Marcela Domesová

    2011-01-01

    Full Text Available The foreign direct investments are joined with the process of world globalisation. Foreign direct investments are carried out especially by multinational companies. The basic forms of the foreign direct investments are “greenfield” investments and “brownfield“ investments in the form of the privatization. The Czech Republic has shown mass inflow of foreign direct investments since 1998. The aim of the paper is to evaluate the inflow of foreign direct investments in the context of the balance of payments and the evaluation their impact on the outside economic equilibrium and gross value added in the Czech Republic. The subject of the analysis is the identification of the most important factors of foreign direct investments inflow and the classification of foreign direct investments inflow from the point of view of branches and technological intensity of production as well. The aim is fulfilled by analysis of selected indicators of the balance of payments, analysis of gross value added and international comparison of foreign direct investments inflow in countries of Visegrad Group. The results show the part of privatization in foreign capital inflow, increasing import intensity and export efficiency linked with foreign direct investments. The results are subject of research focused on the process of world globalisation and regional development.

  14. Do democratic institutions and foreign direct investment affect ...

    African Journals Online (AJOL)

    A reciprocally re-enforcing relationship exists between institutions, foreign direct investment and economic growth. The importance of sound democratic institutional structures and foreign direct investment for enhancing economic growth is well documentedin literature. Sound institutional framework which supports foreign ...

  15. Foreign Direct Investment in Central and Eastern Europe

    DEFF Research Database (Denmark)

    Marinov, Marin Alexandrov; Marinova, Svetla Trifonova

    facilities there. These processes result in intensive penetration of companies through foreign direct investment into the CEE region. Simultaneously, the foreign investing companies face the specific context of a region that poses new requirements to their investment strategies, approaches and practices....... Covering a diverse range of CEE countries, as well as referring to the characteristics of the region as a whole, this book examines the inflow and outflow of foreign direct investment from both home and host company and country perspectives. By analyzing foreign direct investment in terms of process......, content and context, the book provides a holist approach towards foreign direct investment in the transitional context of CEE. The book includes a comprehensive study of the motives of multi-national companies for investing in Central and Eastern Europe through various investment modes and the degree...

  16. Direct foreign investments in food industry and their conditions

    Directory of Open Access Journals (Sweden)

    Ewelina Łucek

    2016-07-01

    Full Text Available The article presents the formation of foreign direct investment in Poland and in the world. Based on a query of literature it has been built empirical part, through which can be made the diagnosis of inflows and outflows of foreign direct investment in Poland and foreign direct investment in the form of a greenfield in the world. With the included data on foreign greenfield investment is clearly visible the dominant position of East and South - East Asia. In the study was also presented the cumulative level of investment in Poland and Polish investment abroad through which can be seen, that Poland is country which adopts much more foreign capital, than investing abroad itself. Research has shown that the main regions attractive for foreign investors in the food industry are voivodeships: Wielkopolskie, Mazowieckie, Dolnośląskie, Łódzkie i Opolskie. In their area located manufacturing plants over 30 leading international food manufacturers.

  17. THE ROLE OF FOREIGN DIRECT INVESTMENT IN THE AUTOMOBILE

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    CEAUȘESCU IONUT

    2015-08-01

    Full Text Available Direct foreign investment consists of the placing of funds to an economic objective that works abroad, for the purpose of obtaining a certain degree of control over it. Therefore, foreign direct investments are those types of investments in which investors issuers of investment flows have the ability to control and decision on the activity of economic agents receivers of investments. Foreign direct investments have three components, namely: social capital, reinvested profit and loans inside the company. Foreign investment is at this time the engine Romania's development strategy, among the biggest investors in Romania in the country being French Renault group. The investment made, Renault has increased as a brand name, DACIA, extending over boundaries of the country even on the American continent were said so, benefited from your investment both Romanian state, as well as Renault.

  18. PROMOTING AND ATTRACTING FOREIGN DIRECT INVESTMENT

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    Elena CHIRILA DONCIU

    2014-09-01

    Full Text Available FDI is an important element of the economic development of any country and its functioning on market principles. They have a great importance for strengthening the economy of countries in transition and their integration into the world’s economy. The modernization of national economies occurs with FDI help, by implementing advanced technologies, know-how sites, the most powerful equipment and the new quality standards by switching to a higher type of growth. The purpose of this research is to identify of the policies to attract and promote FDI, adopted by host countries for foreign investors and are highlighted beneficial aspects of foreign investments flows on recipient economies. The research results show that policies aimed at ensuring access to foreign markets, those that are considering providing commercial facilities and last, but not least, policies focused on tax incentives are very important for foreign investors.

  19. Profiles of foreign direct investment in US energy, 1991

    International Nuclear Information System (INIS)

    1993-01-01

    Profiles of Foreign Direct Investment in US Energy 1991 describes the role of foreign ownership in US energy enterprises, with respect to investment, energy operations, and financial performance. Additionally, since energy investments are made in a global context, outward investment in energy is reviewed trough an examination of US-based companies' patterns of investment in foreign petroleum. The data used in this report come from the Energy Information Administration (EIA), the US Department of Commerce, company annual reports, and public disclosures of investment transactions

  20. Profiles of foreign direct investment in US energy, 1990

    International Nuclear Information System (INIS)

    1992-01-01

    Profiles of Foreign Direct Investment in US Energy 1990 describes the role of foreign ownership in US energy enterprises, with respect to investment, energy operations, and financial performance. Additionally, since energy investments are made in a global context, outward investment in energy is reviewed through an examination of US-based companies' patterns of investment in foreign petroleum. The data used in this report come from the Energy Information Administration (EIA), the US Department of Commerce, company annual reports, and public disclosures of investment transactions

  1. CORRUPTION AND FOREIGN DIRECT INVESTMENT INFLOWS IN EMERGING MARKET ECONOMIES

    Directory of Open Access Journals (Sweden)

    Yilmaz BAYAR

    2016-08-01

    Full Text Available This study investigates the interaction between corruption and foreign direct investment inflows in 23 emerging market economies during the period 2002-2014 by employing Westerlund-Durbin-Hausman (2008 cointegration test. We found that control of corruption and rule of law had no statistically significant impact on attraction of foreign direct investments in overall panel.

  2. Foreign Direct Investment And Poverty Redution In Nigeria ...

    African Journals Online (AJOL)

    The relationship between Foreign Direct Investment and growth has been realized or discovered by most economist. Foreign direct investment is a strong force which has a positive impact on growth and development through employment generation which leads to increase in income for the people, who in turn save and this ...

  3. FACTORS OF DIRECT FOREIGN INVESTMENTS INVOLVEMENT INTO RUSSIAN REGIONS

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    D.V. Nesterova

    2005-12-01

    Full Text Available The factors of direct foreign investments involvement into Russian regions are analyzed, and the classification of groups of factors forming regional comparable advantages in the process of direct foreign investments involvement is worked out in the article: economical indicators, the level of physical infrastructure development, the level of regional institutional development, regional economic policy, regional openness for the external economic relations, geographical peculiarities of the region. Ranging of factors of direct foreign investments involvement is conducted on the base of econometrical research, the recommendations for working out of economic policy on the foreign capital income to the Russian economy stimulation are given in the article.

  4. A Dynamic Growth Model for Flows of Foreign Direct Investment

    OpenAIRE

    Yi-Hui Chiang; Yiming Li; Chih-Young Hung

    2007-01-01

    In this work, we for the first time study the dynamic flows of the foreign direct investment (FDI) with a dynamic growth theory. We define the FDI flow as a process which transmits throughout a given social system by way of diverse communication channels. In model formulation, seven assumptions are thus proposed and the foreign capital policy of the host country is considered as an external influence; in addition, the investment policy of the investing country is modeled as an internal influe...

  5. Financing investment in environmentally sound technologies: Foreign direct investment versus foreign debt finance

    International Nuclear Information System (INIS)

    Anyangah, Joshua Okeyo

    2010-01-01

    This paper develops a screening model to examine the relationship between alternative sources of private capital and investment in environmentally sound technologies (ESTs). In the model, a polluter (agent) must secure investment funds from the international financial markets in order to upgrade its production and abatement technology. The requisite capital can be obtained via either market loans (debt finance) or foreign direct investment (FDI). Under debt finance, the foreign financier supplies only capital and the relationship between the two parties is more 'arms-length'. By contrast, under FDI, the investor delivers both capital and managerial skills. We use the model to derive the implications of debt finance for optimal investment decisions and compare them to those obtained under FDI. Investment incentives are more pronounced under debt finance. (author)

  6. On whether foreign direct investment catalyzes economic development in Nigeria.

    OpenAIRE

    OKPARA, GODWIN CHIGOZIE

    2012-01-01

    This paper investigated the impact of Foreign Direct Investment on some selected macro-economic variables such as real GDP, gross fixed capital formation and unemployment. Data for the variables were sourced from the Central Bank of Nigeria’s Statistical Bulletin. For the assessment of this impact, the author used co-integration and error correction model to arrive at a parsimonious result which revealed that foreign direct investment though impacts positively and significantly on the gross f...

  7. Impact of Foreign Direct Investment on Nigerian Capital Market Development

    OpenAIRE

    Adaramola Anthony OlugBenga; Obisesan Oluwaseun Grace

    2015-01-01

    The fundamental objective of this research work is to assess the impact of foreign direct investment on Nigerian capital market development given the role of the later in stimulating the development of the nation’s economy. The study employed ADF unit root test and Johansen co-integration test to analyze the secondary data obtained from Central Bank of Nigeria statistical bulletin from 1970-2010. The absence of co-integration between foreign direct investment and market capitalization informe...

  8. Corporate income taxation uncertainty and foreign direct investment

    OpenAIRE

    Zagler, Martin; Zanzottera, Cristiana

    2012-01-01

    This paper analyzes the effects of legal uncertainty around corporate income taxation on foreign direct investment (FDI). Legal uncertainty can take many forms: double tax agreements, different types of legal systems and corruption. We test the effect of legal uncertainty on foreign direct investment with an international panel. We find that an increase in the ratio of the statutory corporate income tax rate of the destination relative to the source country exhibits a negati...

  9. The effect of foreign direct investment:case study Nigeria

    OpenAIRE

    Ogunleye, O. (Oyin)

    2014-01-01

    Abstract Foreign direct investment involves a business or production investment by a company to one or more countries. FDI enables host countries to achieve economic growth through investments that outweighs that of the host country’s local investment. It increases the capital formation of host countries, which in the long run lead to growth in both the private and public sectors. Host countries usually benefits from foreig...

  10. Chalenges and opportunities brought by foreign direct investments in Brazil

    Directory of Open Access Journals (Sweden)

    Eveline Barbosa Silva Carvalho

    2008-01-01

    Full Text Available This paper analyzes the challenges and opportunities brought by foreign direct investment in general and in Brazil particularly. The study is based on literature review and statistical data show that foreign direct investments have important effects on the business environment of the host country as they bring productivity improvement, formal employment and income generation, increase on the export level, establishment of firms with high innovation standards and the capacity to improve the quality of national products, with some degree of technology diffusion, increases in the network of suppliers and possible buyers, and the introduction of new strategies of business management, logistics as well as other ways of modernizing industrial structures. It concludes that the major benefits from foreign direct investments are the change on local companies strategies. The study also shows that investments are concentrated on most developed areas and that there is no specific strategy for investment attraction to the less economically favored areas of Brazil.

  11. Differences in valuing foreign location for direct investments

    Directory of Open Access Journals (Sweden)

    Duško Pavković

    2011-07-01

    Full Text Available For the last few decades a large number of countries, developed as well as developing ones, have become included in flows of foreign direct investments. Until recently the investments were directed only from developed towards less developed countries but since the end of the 20th century the developing countries have become more significant foreign investors. A certain number of countries have been more successful in attracting foreign capital in comparison to others. The question is what are the reasons and which are the most important factors that investors consider while choosing a foreign location to invest to. Results of foreign research referring to this subject are presented in this paper as well as their comparison to results of similar researches conducted by the authors in Croatia.

  12. IMPACT OF FOREIGN DIRECT INVESTMENTS ON CROATIAN FINANCIAL GROWTH

    Directory of Open Access Journals (Sweden)

    Zoran Ivanovic

    2014-12-01

    Full Text Available Foreign direct investments are for the transition and less developed countries very important source of capital. Such investments have very positive impact on country’s economy in terms of employment growth, industrial production growth, gross domestic product growth, favorable effects on the balance of payments and many other positive impacts for country economy, so it’s not strange that countries in the absence of its domestic investors, are trying to attract foreign investors. Foreign investors analyze in detail possibilities and risks of each country, and if the risks exceed the opportunities there will be no inflow of foreign capital. Therefore every country which is trying to attract foreign direct investments must take care about the policy and its economy and try to be most attractive as it can be.

  13. The Determinants of Foreign Direct Investment in a Comparative ...

    African Journals Online (AJOL)

    This paper explores the determinants of foreign direct investment in a comparative perspective and looks for evidence of a bias on the part of foreign investors against sub-Saharan Africa. The paper examines whether Africa's tiny share of world FDI flows is a consequence of inappropriate policies or a general investor bias ...

  14. CONTRIBUTION OF FOREIGN DIRECT INVESTMENT FOR THE REGION DEVELOPMENT

    Directory of Open Access Journals (Sweden)

    KATARÍNA ČULKOVÁ

    2013-02-01

    Full Text Available Foreign direct investments contribute to the important solving of the economical growth and regionaldevelopment and it presents part of the state’s effort to increase living level of the state. Slovakia government ismotivated to support any foreign investment and it competes for such investments with other transforming countries.Goal of the contribution is to provide idea about main factors that influence inflow of the foreign investments to theindividual regions of Slovakia and to evaluate their contribution through characteristics and main determinants of theforeign investments. Only through careful choice can Slovakia obtain successfully investors that would come to thecountry with production, research and development since in modern economy we cannot be competitive without suchactivities, neither in regional, nor in the international level.

  15. Pattern of Foreign Direct Investment in Developing Economies

    DEFF Research Database (Denmark)

    Patibandla, Murali

    2004-01-01

    the approach that different configurations of supply, demand and market institutional factorsexplain the type of investment flows into developing economies. The argument is illustrated througha comparative study of China and India.Key Words: Developing Economies; Foreign Direct Investment; China, and India......Qualitative information and data show significant differences in the magnitude and type of foreigndirect investment inflows among developing economies. Explanation of the differences requiresanalysis of market institutional factors as well as the supply and demand side conditions. This paperadopts...

  16. Pattern of Foreign Direct Investment in Developing Economies

    DEFF Research Database (Denmark)

    Patibandla, Murali

    2004-01-01

    Qualitative information and data show significant differences in the magnitude and type of foreigndirect investment inflows among developing economies. Explanation of the differences requiresanalysis of market institutional factors as well as the supply and demand side conditions. This paperadopts...... the approach that different configurations of supply, demand and market institutional factorsexplain the type of investment flows into developing economies. The argument is illustrated througha comparative study of China and India.Key Words: Developing Economies; Foreign Direct Investment; China, and India...

  17. Smallish foreign direct investment, sluggish growth: Can ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    2010-12-08

    Dec 8, 2010 ... Some key characteristics of this investment remain in place: Most of the investment goes to the developed world (almost 70%) with the balance going to developing countries, mainly the fast-growing economies of East Asia. In 2008, South America received less than 8% (or $91 billion) of the world's total, ...

  18. Chinese Foreign Direct Investment in Indonesia

    DEFF Research Database (Denmark)

    Gammeltoft, Peter; Tarmidi, Lepi T.

    2013-01-01

    In Indonesia, no systematic study of Chinese FDI has been undertaken to date. This paper contributes to filling this research gap and analyses the current composition as well as the historical evolution of Chinese FDI in Indonesia, relying on a survey conducted in 2008 among Chinese invested...... enterprises supplemented with key informant interviews, available official statistics and secondary data. Considering the evolution of Chinese investments in Indonesia over time, investments have evolved from being individual and isolated projects to acquiring more systemic properties. Chinese companies have...... acquired a broader sectoral presence in Indonesia and Chinese invested companies in, e.g., extractive or manufacturing activities can increasingly rely on complementary Chinese investments in logistics, travel, finance, etc. Where the local development effects are concerned, a picture emerges where Chinese...

  19. Globalisation, Trade Openness and Foreign Direct Investment in Romania

    Directory of Open Access Journals (Sweden)

    Dima Stela

    2016-11-01

    Full Text Available The paper analyses the trend of globalisation, trade openness and foreign direct investments (FDI in Romania and the link between them in the last 25 years. Data from UNCTAD, World Bank and KOF globalisation index were used in econometrical models testing the link between globalisation, trade openness and foreign direct investment. A strong positive and statistical validated link is found between globalisation and FDI, between trade openness and FDI, and between FDI and globalisation. In the context of Romanian economy, these three phenomena are interrelated and each of them is acting to potentiate the effect of the other. Moreover, a multivariate regression analysis emphasized the dependency between globalisation index and foreign direct investment, trade openness and market capitalisation. These results can be taken into account when national policies aiming to attract FDI and stimulating export-import activities are designed.

  20. The place of foreign direct investment in the global economy

    Directory of Open Access Journals (Sweden)

    Tomasz Gutowski

    2011-06-01

    Full Text Available Foreign direct investment (FDI plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organizational technologies and management skills and as such can provide a strong impetus to economic development. The sea change in trade and investment policies and the regulatory environment globally in the past decade, including trade policy and tariff liberalization, easing of restrictions on foreign investment and acquisition in many nations, and the deregulation and privitazation of many industries, has probably been been the most significant catalyst for FDI’s expanded role.

  1. The Free Movement of Capital and Foreign Direct Investment

    DEFF Research Database (Denmark)

    Hindelang, Steffen

    2009-01-01

    The scope of protection offered to foreign investors by EU law has become a matter of intense political debate. Neo-protectionist policies are on the rise within EU Member States, who are struggling to acclimatise to increasing inward direct investment from developing countries. Strict regulations...... are being implemented to control the flow of this investment, undermining the principle of free movement of capital. Are such policies permitted under EU law? What impact does EU law have on foreign direct investment? This book addresses these questions through a coherent doctrinal reconstruction of the EC...... Treaty provisions on free movement of capital in a third country context. Opening with a timely restatement of the central features of the EU law of free movement of capital, the book then asks the central question: What rights does a private market participant, engaged in cross-border direct investment...

  2. Distance to the efficiency frontier and foreign direct investment spillovers

    Czech Academy of Sciences Publication Activity Database

    Sabirianova Peter, K.; Švejnar, Jan; Terrell, K.

    2005-01-01

    Roč. 3, 2-3 (2005), s. 576-586 ISSN 1542-4766 Institutional research plan: CEZ:AV0Z70850503 Keywords : foreign direct investment * technological frontier Subject RIV: AH - Economics http://ejournals.ebsco.com/direct.asp?ArticleID=4D4281930A8929DFF628

  3. Application of GIS in foreign direct investment decision support system

    Science.gov (United States)

    Zhou, Jianlan; Sun, Koumei

    2007-06-01

    It is important to make decisions on how to attract foreign direct investment (FDI) to China and know how the inequality of FDI introduction by locational different provinces. Following background descriptions on China's FDI economic environments and FDI-related policies, this paper demonstrates the uses of geographical information system (GIS) and multi-criterion decision-making (MCDM) framework in solving a spatial multi-objective problem of evaluating and ranking China's provinces for FDI introduction. It implements a foreign direct investment decision support system, which reveals the main determinants of FDI in China and gives some results of regional geographical analysis over spatial data.

  4. Taxation and foreign direct investment; a synthesis of empirical research

    OpenAIRE

    Ruud de Mooij; S. Ederveen

    2001-01-01

    This paper reviews the empirical literature on the impact of company taxes on the allocation of foreign direct investment. We make the outcomes of 25 empirical studies comparable by computing the tax rate elasticity under a uniform definition. Read also the accompanying press release . The mean value of the tax rate elasticity in the literature is around 3.3, i.e. a 1%-point reduction in the host-country tax rate raises foreign direct investment in that country by 3.3%. There exists substanti...

  5. Foreign Direct Investment Attraction in the Baltic States

    Directory of Open Access Journals (Sweden)

    Svetlana Saksonova

    2014-06-01

    Full Text Available This paper considers the importance of macroeconomic factors as well as investment climate for foreign direct invest­ ment attraction in the Baltic states. It reviews some of the indicators for measuring the investment climate and their usefulness as indicators of strength of FDI attraction and uses the results of econometric analysis to consider relative importance of various macroeconomic factors. The results suggest that perceptions of corruption and fiscal policy are some of the more important drivers of FDI attraction. The paper also considers several measures that could improve foreign direct investment attraction in the Baltic States such as expanding the protection of property rights and improving the quality of infrastructure.

  6. TRENDS IN THE EVOLUTION OF WORLDWIDE FOREIGN DIRECT INVESTMENTS

    Directory of Open Access Journals (Sweden)

    Maria Ramona Sarbu

    2014-06-01

    Full Text Available The flows of foreign direct investments constitutes a major component of the phenomena that manifest themselves in the world economy, these representing financial resources geared toward a particular investment area that allow those who invest to develop operations over which they have the control and the decision-making power. Given the fact that the world economy is characterized by the increasing interconnectedness of national states as a result of spreading the links in the spheres of economic, political, social and cultural life, following starting with 2008 a period of unusual developments, the purpose of the paper is to analyze the evolution of worldwide foreign direct investment (FDI inflows, before and after the onset of the global economic crisis.

  7. Foreign Direct Investment in China; Some Lessons for Other Countries

    OpenAIRE

    Harm Zebregs; Wanda S Tseng

    2002-01-01

    China's increasing openness to foreign direct investment (FDI) has contributed importantly to its exceptional growth performance. This paper examines China's experience with FDI and identifies some lessons for other countries. Most of the factors explaining China's success have also been important in attracting FDI to other countries: market size, labor costs, quality of infrastructure, and government policies. FDI has contributed to higher investment and productivity growth, and has created ...

  8. EU foreign direct investment policy and human rights

    OpenAIRE

    Pedro, Sérgio

    2016-01-01

    The acquisition, through the Treaty of Lisbon, of the exclusive competence in the negotiation of trade and investment agreements , binding all European Union member states, represents a significant change in the role of the European Union as a global actor. The relationship between human rights and foreign direct investment is a search for the densification of the cosmopolitan ideal of human dignity in the reality of twentyfirst century. Being regarded as an iconic figure for the defense and ...

  9. Are stricter investment rules contagious? Host country competition for foreign direct investment through international agreements

    OpenAIRE

    Neumayer, Eric; Nunnenkamp, Peter; Roy, Martin

    2014-01-01

    We argue that the trend toward international investment agreements (IIAs) with stricter investment rules is driven by competitive diffusion, namely defensive moves of developing countries concerned about foreign direct investment (FDI) diversion in favor of competing host countries. Accounting for spatial dependence in the formation of bilateral investment treaties (BITs) and preferential trade agreements (PTAs) that contain investment provisions, we find that the increase in agreements with ...

  10. Foreign Direct Investment Behaviour in Low and Middle Income ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Institution. EDGE Institute (Association incorporated under Section 21). Pays d' institution. South Africa. Site internet. http://www.the-edge.org.za ... differences in foreign direct investment (FDI) behaviour in low and middle-income countries; final technical report covering the period from 10 March 2006 to 9 January 2009.

  11. Impact of Foreign Direct Investment Flows on Poverty in Ghana ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Ghana will need considerable external assistance to achieve its Poverty Reduction Strategy II and Millennium Development Goals by 2015. At present, foreign direct investment (FDI) outstrips overseas development assistance (ODA). Moreover, North-South flows of FDI are dwindling while South-South flows are increasing.

  12. An Analysis of Chinese Foreign Direct Investment (FDI) in Sub ...

    African Journals Online (AJOL)

    user

    In line with this,. China has bilateral trade and economic cooperation with many sub-Saharan. African countries. 4.2 Trends of Chinese FDI across sectors and Countries. China has become the leading country in foreign direct investment in Africa. During the year 2011, trade between Africa and China increased a staggering.

  13. Foreign direct investment and economic growth in developing ...

    African Journals Online (AJOL)

    It has been widely claimed that foreign direct investment (FDI) stimulates economic growth. In this study, an attempt is made to verify this for ten selected Sub-Saharan African (SSA) countries using data spanning from 2008 to 2013 obtained from world development indicators. Preliminary analysis conducted indicates that ...

  14. Foreign direct investment, fiscal decentralization and land conflicts in China

    NARCIS (Netherlands)

    Wu, Yan; Heerink, Nico

    2016-01-01

    Land disputes have been an important risk to social stability in China since the turn of the century. This paper uses provincial data on illegal land uses during the period 1999-2010 as a proxy for the intensity of land conflicts to investigate the effects of foreign direct investment (FDI) and

  15. Regime on foreign direct investment within the Southern African ...

    African Journals Online (AJOL)

    It also assesses the feasibility of developing or adopting an already existing model legislation on direct foreign investment by contracting parties to the SADC treaty. It thus proves instructive not to confine this paper to Southern African countries, but rather to draw from the experiences of various other countries on the African ...

  16. Causality Analysis of the Impact of Foreign Direct Investment on ...

    African Journals Online (AJOL)

    This study used a Cointegration VAR model to study the Contemporaneous Long – run dynamics of the impact of foreign direct Investment (FDI) on Growth Domestics Products (GDP) with other four macroeconomic variables in the Nigerian Economy for the period of January 1970 to December 2004. The Unit Root Test ...

  17. Impact of Foreign Direct Investment Flows on Poverty in Ghana ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Impact of Foreign Direct Investment Flows on Poverty in Ghana. Ghana will need considerable external assistance to achieve its Poverty Reduction Strategy II and Millennium Development Goals by 2015. At present ... In this ROSSA bulletin: Meet Kathryn Toure, the new regional director of IDRC's sub-Saharan Africa office.

  18. Foreign direct investment and public sector management and ...

    African Journals Online (AJOL)

    Foreign direct investment and public sector management and institutions: the Acquaintances in Sub-Saharan Africa (SSA) low-income economies. ... of the SSA low-income countries to attract potential FDI inflows in their accountabilities as advocates of public sector management and institutions for poverty reduction.

  19. Foreign Direct Investment Behaviour in Low and Middle Income ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    This project will examine the impact of foreign direct investment (FDI) on economic efficiency, poverty and inequality in low- and middle-income countries. It will seek to ... Canada, North and Central America, Far East Asia, Viet Nam, South Africa, North of Sahara, South of Sahara, South America, Central Asia, South Asia ...

  20. foreign direct investment and economic growth in developing ...

    African Journals Online (AJOL)

    Prof

    matters for its effect on economic growth. Few sectors reflected a positive impact of. FDI and one sector even showed a robust negative impact of FDI on economic growth. Vijayakumar and Sridharan, (2010) study the causal relationship between. Foreign Direct Investment and Growth in the BRICS countries (Brazil, Russia, ...

  1. Determinants of Foreign Direct Investment and Nigerian Economic ...

    African Journals Online (AJOL)

    This study on foreign Direct Investment determinants and the Nigeria's economy covering 38 years, was empirically done, and was discovered that exchange rate is a very important determinant influencing FDI inflow, and FDI is a significant variable influencing the economy (GDP) The study recommends that adequate ...

  2. Determinants of Foreign Direct Investment and Its Causal Effect on ...

    African Journals Online (AJOL)

    Foreign direct investment (FDI) is an important tool for the growth of any economy as it is more stable than several forms of capital flows. The consensus is that it provides the much needed requirement for economic development and growth. However, evidences in Nigeria have shown FDI crowding out of domestic firms and ...

  3. Foreign direct investment and economic growth in Nigeria: a ...

    African Journals Online (AJOL)

    The paper examines the causal relationship between foreign direct investment ( FDI) and economic growth, measured by the gross domestic product (GDP). Augumented Dickey-Fuller (ADF) test was used for the unit root test, Johansen Cointegration test was conducted to establish short and long run relationship between ...

  4. Corruption and Direct Foreign Investments in Nigeria | Coker ...

    African Journals Online (AJOL)

    The paper notes that Corruption impacts negatively on the flows of direct foreign investment into Nigeria. The initiative by governments in Nigeria to reduce the incidence of corruption in the country has been discussed, and the problems and gains of such programmes elucidated. We recommend among others; that: all ...

  5. China Agricultural Foreign Direct Investment in Tanzania: Macro ...

    African Journals Online (AJOL)

    The study examines the engagement of China's foreign direct investment (FDI) in agriculture towards development in Tanzania between 1999 - 2011. Both qualitative and quantitative data were collected from two hundred respondents purposively sampled from ten institutions. The data were summarized using frequencies ...

  6. Analysis of the determinants of foreign direct investment flows in ...

    African Journals Online (AJOL)

    Yet, the theory of growth tells us that it is impossible to consider development without a substantial accumulation of capital. An important channel through which these countries can solve the problem is to resort to foreign direct investment (FDI). This paper, using dynamic panel data, sets out to identify the main determinants ...

  7. Causality Analysis of the Impact of Foreign Direct Investment on ...

    African Journals Online (AJOL)

    failed to fully capture. The manifestation of economic crises in most of developing countries including Nigeria in the late 1970s and early 1980s made the authorities ..... Inflation rate (measure by consumer price index), FDI= Foreign Direct investment, GDP= Real Gross domestic product, INR= Interest rate , COP= Crude oil ...

  8. Foreign direct investment as a market penetration strategy in Nigeria ...

    African Journals Online (AJOL)

    This study investigates foreign direct investment (FDI) as a market penetration strategy in Nigeria within the period 1986-2007. The study used time series data and employed regression model to determine the macroeconomic variables that influence FDI inflow in Nigeria.. It was found that the growth in the Nigerian ...

  9. Effect of Trade Openness and Foreign Direct Investment on Industry ...

    African Journals Online (AJOL)

    The macroeconomic implications of trade openness and foreign direct investment (FDI) on industry performance in Ghana have been examined. The main positive determinants of industrial performance are raw materials availability, level of economic performance, wages and salaries, and rate of inflation. Industrial ...

  10. Technology Transfer, Foreign Direct Investment and Economic ...

    African Journals Online (AJOL)

    If you would like more information about how to print, save, and work with PDFs, Highwire Press provides a helpful Frequently Asked Questions about PDFs. Alternatively, you can download the PDF file directly to your computer, from where it can be opened using a PDF reader. To download the PDF, click the Download link ...

  11. FOREIGN DIRECT INVESTMENT AND TECHNOLOGICAL INNOVATION IN DEVELOPING COUNTRIES

    Directory of Open Access Journals (Sweden)

    Kamilia Loukil

    2016-09-01

    Full Text Available A large number of countries have enacted laws aimed at making it easier for firms to invest in their country, while many countries offer various monetary incentives and tax incentives to encourage inward Foreign Direct Investment (FDI. The desire to attract FDI is due not only to the fact that FDI brings in new investment boosting national income and employment, but also due to the expectation that inward FDI would also provide additional spillover benefits to the local economy that can result in higher productivity growth and increased export growth. This study aims to examine the impact of foreign direct investment on innovation in developing countries. The estimation of a panel threshold model on a sample of 54 developing countries for the 1980-2009 period shows the presence of non linear effects in the relationship between FDI and innovation. We find a threshold value of technological development below which FDI has a negative impact on innovation and above which FDI has a significant positive impact on innovation. We conclude that it is not enough for economic policy to attract foreign investments, it is still necessary to support domestic firms to build an absorptive capacity allowing them to enjoy the benefits of multinational firms.

  12. Impact of Foreign Direct Investment on Nigeria Economic Growth

    OpenAIRE

    Adeleke Kunle M.; Olowe S.O; Fasesin Oladipo Oluwafolakemi

    2014-01-01

    The study analyzed the impact of foreign direct investment on Nigeria economic growth over the period of 1999-2013. The main type of data used in this study is secondary; sourced from various publications of Central Bank of Nigeria, such as; Statistical Bulletin, Annual Reports and Statement of Accounts. The regression analysis of the ordinary least square (OLS) is the estimation technique that is being employed in this study to determine the relationship between and impact of the Direct Fore...

  13. Political Globalization and Foreign Direct Investment Inflows in Turkey

    Directory of Open Access Journals (Sweden)

    Cem Doğan

    2016-06-01

    Full Text Available This article examines the impact of political globalization on foreign direct investment inflows to Turkey. Existence of foreign missions in a country, membership in international organizations, participation in U.N. Security Council Missions, and International Treaties are all seen as indicators political globalization. Using different econometric techniques, this study aims to find out whether any empirical relationship between political globalization and FDI exists. The analysis in this article covers the period in Turkey between 1970-2012. The results of cointegration analysis provide no an evidence of a long-run or short run any relationship political globalization and FDI.

  14. The Impact of Crime on Foreign Direct Investment

    OpenAIRE

    Afriyanto, Muhammad Mukhlis

    2017-01-01

    This study examines the impact of crime incidence on Foreign Direct Investment (FDI) in Indonesian provinces. This study uses panel data covering 31 provinces for the period 2005 to 2015. We involve Total Crime, Property Crime, Violence, Vandalism, Arson, Fraud, Homicides and Kidnapping as variable of crime. The results show that crime variables have significant impact on FDI. We find that for every increase in total crime incidence per 100,000 people by ten percent, FDI is expected to decrea...

  15. The distribution of foreign direct investment in China

    OpenAIRE

    Broadman, Harry G.; Xiaolun Sun

    1997-01-01

    Foreign direct investment (FDI) has played a major role in China's push toward a market-oriented economy. Recent inflows account for 40 percent of combined flows of FDI to all developing countries, making China the biggest developing country FDI recipient. This record is impressive, but certain problems must be overcome if FDI is to continue to help sustain the country's record growth rate and further its economic development. For one thing, FDI in China is highly concentrated geographically,...

  16. Foreign direct investment and economic growth in Romania

    Directory of Open Access Journals (Sweden)

    Camelia MORARU

    2013-05-01

    Full Text Available FDI issue was and is heavily debated, therefore, in this area there are concerns both at nationally and internationally level. With the hypothesis that large flows of foreign direct investment determines a number of benefits for the economy of recipient country, in recent years, global FDI flows rose eminent. This paper illustrates the trend of FDI, their structure and evolution, thus anchoring our economy among other European countries in terms of volume of FDI attracted.

  17. Foreign Direct Investment, Host Country Factors and Economic Growth

    OpenAIRE

    Edna Maeyen Solomon

    2011-01-01

    This paper analyses how the levels of economic development, human capital, financial development and the qualities of the economic and political environments in host countries simultaneously affects the impact of aggregate inflows of Foreign Direct Investment (FDI) on economic growth. Multiple interaction terms are employed between inward FDI and each of the host country factors mentioned above. The System GMM estimator is applied to a panel of 111 countries from 1981 to 2005. The results sho...

  18. A comparative analysis of foreign direct investment factors

    OpenAIRE

    Miškinis, Algirdas; Juozėnaitė, Ilma

    2015-01-01

    The paper identifies factors affecting the foreign direct investment (FDI) inflow. It analyzes the determinants of FDI in recent empirical evidence as well as determines differences among FDI factors in Greece, Ireland, and the Netherlands. The determinants being examined are the gross domestic product (GDP) per capita, exchange rate, unit labor costs, trade openness as well as inflation. The analyzed period is 1974–2012. Data were collected from the World Bank and the Organization for Econom...

  19. Exporting, linkages and productivity spillovers from foreign direct investment

    OpenAIRE

    Girma, Sourafel; Görg, Holger; Pisu, Mauro

    2008-01-01

    In this paper we analyse productivity spillovers from foreign direct investment using firm-level panel data for U.K. manufacturing industries from 1992 to 1999. We investigate spillovers through horizontal, backward, and forward linkages; distinguish spillovers from export-oriented vs domestic-market-oriented FDI; and allow for differing effects, depending on domestic firms' export activities. The results suggest that the mechanisms through which spillovers affect domestic firms are very comp...

  20. Foreign Direct Investment – The Case of Botswana

    OpenAIRE

    Patricia Lindelwa Makoni

    2015-01-01

    This article sets out to analyse the occurrence of foreign direct investment (FDI) in Botswana. Diamonds contribute more than 50% of Botswana’s gross domestic product (GDP), hence economic growth and development focus has been on the mining sector. The country’s other sectors of tourism, agriculture, financial services and manufacturing have not received as much support from the Government, private sector and even international investors. This article briefly examines FDI inflow ...

  1. Labor Costs and Foreign Direct Investment: A Panel VAR Approach

    OpenAIRE

    Bahar Bayraktar-Sağlam; Selin Sayek Böke

    2017-01-01

    This paper examines the endogenous interaction between labor costs and Foreign Direct Investment (FDI) in the OECD countries via the Panel VAR approach under system GMM estimates for the period 1995–2009. The available data allows identifying the relevance of the components of labor costs, and allows a detailed analysis across different sectors. Empirical findings have revealed that sectoral composition of FDI and the decomposition of labor costs play a significant role in investigating the d...

  2. Foreign Direct Investments in Central Asian Energy: A CGE Model

    Directory of Open Access Journals (Sweden)

    Michael P. BARRY

    2009-05-01

    Full Text Available Turkmenistan, Uzbekistan, and Kazakhstan have adopted significant legislative changes since the fall of the former Soviet Union in an effort to attract foreign direct investment into their energy sectors. Of the three republics, Kazakhstan has been the most successful in attracting foreign interest, but all three republics face significant challenges in further development of oil and gas infrastructure. Even if these countries are completely successful in bringing in foreign investment, a question will remain: who wins and who loses in these countries. Using updated data, this paper will use a computable general equilibrium model to measure the effects of FDI into Central Asia. Results of the model suggest that the region would be better off overall from foreign investment in its natural gas sector, due mostly to improvements in overall production efficiency and its overall terms of trade. However, the gain in the natural gas sector would come at the expense of production and net exports of non-petroleum related industries.

  3. DISPUTE RESOLUTION OF FOREIGN DIRECT INVESTMENT IN CHINA

    Directory of Open Access Journals (Sweden)

    Fiska Silvia Raden Roro

    2012-09-01

    Full Text Available Corruption activity in this modern era keeps hurting the implementation of foreign investment in Indonesia, especially for the dispute settlement aspect. Unfortunately, today, Indonesia is one of the interesting place for foreign investment destination, especially for consumer goods manufacturers. This situation happened because of Indonesia’s great resources which is totally supportive to business development activity. This article was intended to spur the development of Indonesia’s legal system, especially about foreign investment, and also to explain how the dispute resolution on foreign investment in Chinese Regime perspective, including considerations of how Chinese culture and settlement in foreign investment, methods of negotiation, mediation, arbitration. It will also be discussed how the practice of the settlement of disputes through litigation also the enforcement of foreign arbitral awards and the enforcement of a foreign court related to Chinese Regime.

  4. CHALENGES AND OPPORTUNITIES BROUGHT BY FOREIGN DIRECT INVESTMENTS IN BRAZIL

    Directory of Open Access Journals (Sweden)

    EVELINE BARBOSA

    2006-01-01

    Full Text Available This paper analyzes the challenges and opportunities brought by foreign directinvestment in general and in Brazil particularly. The study is based on literature review andstatistical data show that foreign direct investments have important effects on the businessenvironment of the host country as they bring productivity improvement, formal employmentand income generation, increase on the export level, establishment of firms with highinnovation standards and the capacity to improve the quality of national products, with somedegree of technology diffusion, increases in the network of suppliers and possible buyers, andthe introduction of new strategies of business management, logistics as well as other ways ofmodernizing industrial structures. It concludes that the major benefits from foreign directinvestments are the change on local companies strategies. The study also shows thatinvestments are concentrated on most developed areas and that there is no specific strategy forinvestment attraction to the less economically favored areas of Brazil

  5. Capital Accumulation in a Region. Cooperatives Versus Foreign Direct Investments

    Directory of Open Access Journals (Sweden)

    Zimnoch Krystyna

    2016-09-01

    Full Text Available The main aim of this article is to demonstrate the ability of cooperatives to create internal resources of a region through foreign direct investments and the creation of financial, physical, human, and social capital. It concerns the comparing and emphasizing of the stability of resources created in a region by these forms of action. In order to demonstrate the stability of internal resources of a region, generated through foreign direct investment, a research was conducted involving the analysis of the rankings of the largest foreign investors in Poland, statistical data from the Central Statistical Office and the NBP, showing the inflow and outflow of FDIs, the number of companies with foreign capital participation, and the number of people working in them. In addition, a case study was used for the regions where the investments have been withdrawn, showing the importance of cooperatives for the stabilization of the potential of the regions. The study shows that the transfer of FDIs is always guided by the maximization of profit, tax optimization of a location, and the native currency exchange rate fluctuations. The following consequences of withdrawal have no significance to foreign investors but affect the regions: the increase in the unemployment rate, the reduction in the income of local residents, the increase in debt, the acquisition of real estate purchased on credit. The case study shows that cooperative enterprises can replace foreign capital in the region, ensuring the stability and durability of its internal resources. The concepts and strategies for regional development should focus on cooperatives as a way to create the internal resources of a region, which are seen as the current development source. Co-operatives can prevent the leaching of resources and backwash effects. The economic policy must ensure the equal treatment of all of the entities investing in the region. Currently, Poland gives the priority to foreign investors

  6. RISK AND THE FOREIGN DIRECT INVESTMENT - SYNTHETIC APPROACH

    Directory of Open Access Journals (Sweden)

    LĂPĂDUŞI MIHAELA LOREDANA

    2016-06-01

    Full Text Available As part of the international economics flows, FDI always puts a mark on the economic development of a country. The internationalization of a company by investments involves a great many risks, from the lowest to the highest level of involvement. On the basis of these considerations one can assess that the country risk is one of the most important pillars that support the process of internationalization of a company by means of foreign direct investments. Broadly sepaking, country risk is an important component of the overall risk of trading on international levels. In other terms it can be seen as the likelihood of losses resulting from a series of macroeconomic (GDP decline on the long run, inflation increase, economic crises, etc., social (conflicts between social classes, civil wars, riots, etc. and political events (wars, territorial claims, conflicts of interest, etc.. In order to identify the main country risk factors that influence the decision of corporations to invest abroad, AT Kearney (2004 performed an extensive survery among multinational corporations. Those risk factors that were most frequently mentioned included government regulations (64%, country financial risk (60%, currency or interest rate volatility (51% and political and social disturbance (46%.[11] The purpose of this article is to highlight a number of important factors that may affect the realization of a foreign direct investment, in other terms to influence "go-no-go" decisions, that is to invest or not to invest. Also, through the analysis of the influence of country risk over FDI one aims at evaluating the relationship between risk and potential gain resulting from conducting the respective business. The purpose of this article is an attempt to identify and develop aspects that outline a number of risk factors of influence over FDI.

  7. Foreign Direct Investments Expansion – Essential Globalization Factor

    Directory of Open Access Journals (Sweden)

    Cătălin Emilian HUIDUMAC PETRESCU

    2011-01-01

    Full Text Available We live in a time when the world economy is constantly changing. Foreign direct investments is one of the most dynamic part of the world economy and in a continuous globalization, those international financial flows determining the traders to know their defining elements and to adopt a specific management in the international affairs field. We are viewers of an unprecedented expansion of foreign direct investments, essential factor of the globalization development process. The paper analyzes the evolution of FDI so far, along with a brief illustration as the main trends of international financial flows for 2010 and 2011. In the context of economic globalization, it is absolutely necessary to clear out a study on the various economic activities, especially on the differences between countries. The analysis of these differences is particularly important as it helps improve and optimize the strategies adopted by foreign transnational companies. In the past 15 years, one observes that most companies in emerging countries, characterized by a great expansion, have adopted in the first phase of their existence, corporate strategies that gave them the opportunity to become global companies. According to surveys, after reaching the first goal, becoming a multinational or a transnational company, they have developed new business models beyond the classical principles and strategies. It is anticipated that in the coming decades, the strategies of emerging companies will be influenced by functional specialization, which, according to experts, influence the process of globalization. The analysis of strategies adopted by companies in emerging countries is absolutely necessary because the results cannot be overlooked. For example, until 2004, only five Asian companies were part of the top 100 transnational companies. The study was carried out by UNCTAD and the identification criterion was the size of foreign assets. In 2006, 14% of world total FDI came from

  8. Foreign Direct Investment Location Choice Factors: Some Evidence for Brazil

    Directory of Open Access Journals (Sweden)

    Romana KOREZ-VIDE

    2014-12-01

    Full Text Available Due to the liberalization and transformation of emerging markets economies, the attractiveness of these countries for foreign direct investors has been rising in the last decades. This paper explores foreign direct investment (FDI location choice factors of German and Austrian companies in Brazilian regions. We perform a quantitative analysis, based on the Multinomial Nested Logit Model and supplement its findings by the qualitative analysis, based on the semi-structured experts’ interview. The analyses show that investor-nation specific agglomeration, industry specialization, workforce qualification and physical infrastructure were important FDI location choice factors for German and Austrian companies in Brazil. Suggestions for future research of the FDI location choice factors are discussed.

  9. Foreign direct investments in Romania in EU28 framework

    Directory of Open Access Journals (Sweden)

    Constantin Postoiu

    2015-12-01

    Full Text Available Foreign direct investments flows are perceived by economic policymakers and by economic researchers as one of the key - determinants of the process of adjustment and structural modernization of emerging economies. They are also recognized in the economic literature as an important source of economic growth. This research aims to identify whether FDI can contribute to the economic growth of a country and to estimate whether the foreign investors are attracted to investin economies that recorded successive growth rates. This approach involves the use of econometric tools and descriptive statistics to empirically support the assumptions made. Thus, for the quantitative analysis Eviews 7 and ArcGIS software tools were used. For the case study we analysed the Romanian economic situation in the current European context. First we take a look at the main evolution of foreign direct investment flows in the European Union. Subsequently we focus on the FDI flows into the Romanian economy and we test the links between these FDI flows and the economic growth process.

  10. FOREIGN DIRECT INVESTEMENTS FLOWS IN BLACK SEA ECONOMIC COOPERATION

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    RADU-MARCEL JOIA

    2011-04-01

    Full Text Available We live in a time when the world’s economy is in a constantly change. Foreign direct investments flows are in actual economy one of the most dynamic and prospective part of the world’s economy being in a continuous globalization. These international financial flows determine the traders who take part at the world’s economy to know to adopt a specific management in the international affairs field. We are viewers of an unprecedented expansion of foreign direct investments. The main objective of the paper is to analyze the foreign direct investments flows in Black Sea Economic Cooperation. This study is based on UNCTAD reports and on an econometrical model which gives us the possibility to create different analysis concerning FDI flow in this cooperation. So we defined a simple regression model, in which the dependent variable is represented by Nominal and real GDP, total and per capita, variable explicated by FDI flows, using as method the Least Squared, including 19 observations. Through this paper, we tried to illustrate the relation between the FDI flows and the economic growth rate in the past years inRomania, member of Black Sea Economic region. In line with a general upward trend in FDI to Central and Eastern Europe, inward FDI to the Russian Federation held steady between 1998 and 2001, at an annual average of $2.8 billion. In Black Sea Economic region, Russian average is the biggest one, Russia being a leader country in warding FDI. The Russian Federation is by far the leading investor country in the region, accounting for more than 75% of its annual outflows. Inward and outward direct investments flows in Russia have reached in 2009 an amount of $38,722 billion. In Romania, following years of stagnation at very low levels, 1991 to 1997, FDI flows reached $1.1 billion in 2002. Inflows to Bulgaria peaked at $1 billion in 2000; the surge is largely due to flows from developed countries. Inward and outward direct investments flows in

  11. Labor Costs and Foreign Direct Investment: A Panel VAR Approach

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    Bahar Bayraktar-Sağlam

    2017-09-01

    Full Text Available This paper examines the endogenous interaction between labor costs and Foreign Direct Investment (FDI in the OECD countries via the Panel VAR approach under system GMM estimates for the period 1995–2009. The available data allows identifying the relevance of the components of labor costs, and allows a detailed analysis across different sectors. Empirical findings have revealed that sectoral composition of FDI and the decomposition of labor costs play a significant role in investigating the dynamic association between labor costs and FDI. Further, results suggest that labor market policies should focus on productivity-enhancing tools in addition to price hindering tools.

  12. Foreign Direct Investment (FDI in India’s Retail Sector

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    Hiranya K Nath

    2013-05-01

    Full Text Available This article presents an overview of retail trade in India in the wake of the country’s new policy that will allow foreign capital in multi-band retailing. It discusses various potential benefits and costs of foreign direct investment (FDI in the retail sector, particularly in terms of its effects on traditional retailers, employment, consumers, farmers, and local manufacturers. It argues that given somewhat slower growth projection for the Indian economy during the next decade, various structural issues including inadequate infrastructure and a lack of affordable real estate, and the prevalent structure of the agricultural markets, it is unlikely that all the potential benefits and costs will be realised to their fullest extent, at least in the foreseeable future. The economic dynamics and the political process will play an important role in determining the outcomes of this move to allow FDI in the retail sector and will ultimately determine the effects on various stakeholders.

  13. 76 FR 79054 - Direct Investment Surveys: BE-12, Benchmark Survey of Foreign Direct Investment in the United States

    Science.gov (United States)

    2011-12-21

    ... provide the amount of: net property, plant, and equipment; of total assets; and of total liabilities... state (BE-12A, BE-12B); gross property, plant, and equipment by state (BE-12A, BE- 12B); commercial...] RIN 0691-AA80 Direct Investment Surveys: BE-12, Benchmark Survey of Foreign Direct Investment in the...

  14. INTERNATIONALIZATION OF STATE-OWNED ENTERPRISES THROUGH FOREIGN DIRECT INVESTMENT

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    Fernanda Ribeiro Cahen

    2015-10-01

    Full Text Available State-owned enterprises (SOEs are created to focus on domestic needs, and yet recent evidence points to increasing outward foreign direct investment by SOEs. Existing International Business (IB theories focus on efficiency-based motives for internationalization; therefore, they do not fully capture SOEs’ internalization dynamics, which are driven largely by political factors and social welfare considerations. We integrate public management and IB theories to develop propositions that combine these questions: why SOEs internationalize; what are their motivations; and what are the main managerial outcomes of SOEs’ internationalization. Our findings suggest that SOEs display little hesitancy in entering international markets, and that SOE international expansion is not contradictory with the goals of state-ownership if the purpose is to adjust the company to changing institutional environments both in the domestic and international markets. Our propositions about SOE internationalization are based on an in-depth case study of the outward foreign direct investment conducted by Brazil’s Petrobras over the past three decades.

  15. Outward foreign direct investments and home country's economic growth

    Science.gov (United States)

    Ciesielska, Dorota; Kołtuniak, Marcin

    2017-09-01

    The study examines the time stability of the causality direction and cross-correlations between the home country's economic growth and pace of growth of its outward foreign direct investment (OFDI) stocks within the complex system of the Polish national economy. The research has been performed in order to verify, using both the time and frequency domains time series analyses, if economic agents' long term decisions on outward foreign direct investments, leading to cross-border value chains and production fragmentation processes, are of adaptive or predictive character. Consequently, the aim was to check if the home country's economic growth leads the internationalization processes of domestic enterprises, which stays in line with Dunning's Investment Development Path (IDP) paradigm, or if these complex processes, thanks to entrepreneurs' ability to formulate relevant rational expectations, precede the home country's economic growth, which would be supported with the introduction of the policy on reinforcing the internationalization processes of domestic enterprises. The presence of the unidirectional economic growth-led internationalization, consistent with the IDP concept's base assumptions, has been ascertained by the results of the short term Granger causality tests. Nevertheless, the results of the wavelet analyses, supported with the results of the econometric block exogeneity long term causality Wald tests, have revealed that in the long term the OFDI stocks' growth permanently precedes the home country's economic growth, which stays in the unequivocal contrast with the IDP paradigm's premises, as well as with the indicated above short term Granger causality tests' outcomes and indicates that economic agents' choices are not strictly of adaptive but also of predictive character, which influences the current state of knowledge on economic complex systems' characteristics. Such a result is of a great importance in the light of the existence of the significant

  16. The Effect of Insurance on Foreign Direct Investments Inflow to Nigeria

    OpenAIRE

    Chimaobi V. Okolo; Afamefuna J. Ani; Ebere U. Okolo

    2015-01-01

    This paper seeks to assess the implications of insurance to foreign direct investment inflow in Nigeria. Multiple linear regression technique and correlation matrix test were employed to measure the extent to which foreign direct investment was influenced. The result showed that insurance premium (IP), asset size of insurance industry (AS), and total investment of the industry (TI) impacted significantly and positively on foreign direct investment inflow in Nigeria. There...

  17. Profiles of foreign direct investment in US energy, 1992

    Energy Technology Data Exchange (ETDEWEB)

    1994-05-16

    The report reviews the patterns of foreign ownership interest in US energy enterprises, exclusive of portfolio investment (<10% ownership of a US enterprise). It profiles the involvement of foreign-affiliated US companies in the following areas: domestic petroleum production (including natural gas), reserve holdings, refining and marketing activities, coal production, and uranium exploration and development.

  18. Profiles of foreign direct investment in US energy, 1992

    International Nuclear Information System (INIS)

    1994-01-01

    The report reviews the patterns of foreign ownership interest in US energy enterprises, exclusive of portfolio investment (<10% ownership of a US enterprise). It profiles the involvement of foreign-affiliated US companies in the following areas: domestic petroleum production (including natural gas), reserve holdings, refining and marketing activities, coal production, and uranium exploration and development

  19. MACROECONOMIC ENVIRONMENT AND GREENFIELD FOREIGN DIRECT INVESTMENT OF HOTEL BRANDS

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    Jože Perić

    2016-12-01

    Full Text Available The powerful attraction of foreign direct investment (FDI is particularly important for further development of tourism. The strategically focused attraction of FDI in tourism has a much higher significance because of the multiple effects in relation to other segments of the economy. In this context, it is necessary to highlight the investment engagement and the presence of globally branded luxury hotels. The purpose of the study is to assess the macroeconomic environment, the effects of greenfield FDI in tourism and, consequently, the presence of global hotel brands using the comparative analysis of the selected countries as the methodological basis of this study. The research results indicate that a favorable macroeconomic environment plays an important role in attracting foreign capital. Countries that have a more favorable macroeconomic environment attract more greenfield FDI, and provide a greater presence of global hotel brands, and thus greater competitiveness. Also, the political stability, the encouraging macroeconomic business conditions, the elimination of administrative and legislative barriers, the elimination of the country's image as a corrupt destination and tourism staff education at all levels are particularly important for FDI in tourism.

  20. Chinese Foreign Direct Investment in R&D in Europe

    DEFF Research Database (Denmark)

    Di Minin, Alberto; Zhang, Jieyin; Gammeltoft, Peter

    2012-01-01

    investment in R&D in Europe, focusing on three different aspects: technology exploration vs. technology exploitation as investment motive; locational strategies for R&D investments; and the dynamics of motives of overseas R&D units. The analysis proceeds to draw out differences between the R...... rather than technological innovation, as the extant literature tends to assume. Chinese R&D units appear to evolve often from a strategy of pure technology exploration, over fusion of foreign technologies with R&D activities back home, into one of technology exploitation in foreign locations....

  1. Polish Foreign Trade: The Quality Catch-up and the Influence of Foreign Direct Investments

    DEFF Research Database (Denmark)

    Nielsen, Jørgen Ulff-Møller

    2000-01-01

    This paper investigates how the Polish transition process has expressed itself in export and inward foreign direct investments (FDI), and the relations between export and FDI. Since 1988, the number of Polish products able to compee in export markets has steadily increased. The quality level...

  2. Trade openness and foreign direct investment in Africa

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    T Kandiero

    2014-06-01

    Full Text Available Africa’s share of foreign direct investment (FDI has lagged behind other regions in the world, despite a sharp increase in FDI inflows to the region in 2001. Factors contributing to this circumstance include perceptions of high corruption, weak governance and poor infrastructure. The motivation of this paper is to investigate the impact of openness to trade on the FDI inflow to Africa. In addition to economy-wide trade openness, we also analyse the impact on FDI of openness in manufactured goods, primary commodities and services. The empirical work uses cross-country data from selected African countries observed over four periods: 1980-1985, 1985-1990, 1990- 1995 and 1995-2001. We find that the FDI to GDP ratio responds well to increased openness in the whole economy and in the services sector in particular.

  3. Determinants of Foreign Direct Investment in Romania: a Quantitative Approach

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    Calcedonia Enache

    2017-02-01

    Full Text Available This study aims to examine the dynamic relationship between foreign direct investments (FDI and economic growth, using the Structural Vector Autoregressive model, in the period 2007-2014. The results of the econometric model show that the trajectory of FDI has its own origins, with reduced influences from economic growth. Another important conclusion is that there is a unidirectional causal relationship from the economic growth towards FDI, more precisely the influence of FDI on economic growth does not have a systematic, anticipatory nature. These results were achieved in the condition that, in the analyzed period, the net inflows of FDI were influenced by the lack of certainty on the sustainable re-launching of the economic growth both domestically and internationally, the segmentation of the financial market, the domestic structural reforms.

  4. The impact of foreign direct investment on unemployment in Japan

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    Milan Palát

    2011-01-01

    Full Text Available The flow of foreign direct investment is one of the indicators of economic interconnection with the rest of the world. The paper is aimed at evaluating of inward FDI flows into Japanese economy and unemployment development. For many decades, Japan has attracted considerably lower levels of inward FDI compared to other developed countries of the world. Also the rate of unemployment in Japan was relatively low which is caused by a specific attitude of the active population of Japan towards employment issues. Methods of regression and correlation analysis (including testing the statistical significance were used in the analysis of FDI and unemployment. The correlation has been approved between FDI and the rate of unemployment.

  5. Foreign direct investments: a review from the Nigerian perspective

    OpenAIRE

    Edwin, Agwu M.

    2014-01-01

       As   the   world   economy   continues   to   become   more   globalized,   foreign   direct  investment   (FDI)   continues   to   gain   prominence   as   a   form   of   international  economic   transactions   and   as   an   instrument   of   international   economic  integration.   In   recent   years,   developing   countries   like   Nigeria   with   large   home  markets  and  some  entrepreneurial  skills  have  produced  large  numbers  of  rapidly  growing   and   profitable   ...

  6. Foreign Direct Investments and Human Capital Development in Subsaharan Africa

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    Luc NEMBOT NDEFFO

    2010-12-01

    Full Text Available The objective of the present study is to estimate the impact of foreign direct investments on human capital development in 32 Subsaharan African countries over the period 1980 – 2005. Human capital is captured by the percentage of children in full-time education in primary and secondary schools. Panel data regressions are used for the estimations. The results show a correlation not only between FDI and the percentage of children in full-time education in primary school but also between the FDI and the percentage of children in full-time education in secondary school. These results are not significant for that. This shows that FDI directed towards Sub-Saharan Africa still remain insufficient. That is why a lot of effort should be made in order to favour the attraction of FDI in this part of the continent. The other variables which have a positive and significant impact on the percentage of children in full-time education are: the domestic investment rate, public sector expenditures, life expectancy at birth and the growth rate of the gross domestic product per capita.

  7. Foreign Direct Investments and the New Migration Pattern for Europe

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    Ana María Aragonés

    2012-04-01

    Full Text Available The present paper explores the relationship between Foreign Direct Investments (FDI and immigrant workers. Two different groups of countries are compared: traditional host (United Kingdom, France and Germany and new host (Spain, Portugal and Ireland EU Member States, in order to highlight that the actual reasons for the flows of immigrants are the needs of international movements of capital. FDI features are studied along with its stimulating impact, mainly on job generation. A comparative approach is used to evaluate both the demographic situation of each country and the difficulties they face to fulfil the gaps in their labour markets as the diminishing native workforce calls for foreign labour. This article primarily focuses on the “pull” factor. Finally, an econometric dynamic panel model is presented; the empirical evidence indicates that the economic-demographic pull factors in the receiving countries like unemployment rate, the real Gross Domestic Product and the inflows of FDI and the ratio of the economically active population over the total population, are significant variables related to the migration flows in both groups of countries, new and traditional.

  8. National policy measures. Right approach to foreign direct investment flows

    Directory of Open Access Journals (Sweden)

    Cătălin-Emilian HUIDUMAC-PETRESCU

    2013-02-01

    Full Text Available 2011 was a difficult year for all the countries, developed and emerging ones. For overcoming the negative effects of the financial crisis, many economies have established as purpose to adopt new economic policies regarding the foreign direct investment flows (FDI, even to stimulate the flows or to reduce it (protectionism measures. So, there can be identified two categories of national policies: measures for the FDI flows stimulation and measures whose aim was the weighting of FDI developing, through restriction and regulation. In the first category we could include the liberalization measures and promotional and faciletation policies. In this study we evidenced that the fundament of the second category of policies is the belief that the FDI outward lead to job exports, to a raise of unemployment and a weakness of the industrial base.Many reports on FDI flows, here we talk about those made by UNCTAD, show that the regulation and restriction policies are seen as a possible protectionism, especially in the agricultural and extractive industries, where there have been required nationalization processes and divestments. Even more, the economies which adopted this kind of policies have been less interested in investing abroad, the outward of FDI being affected and globally the total outward decreased.

  9. Profiles of foreign direct investment in U.S. energy 1993

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1995-05-05

    Profiles of Foreign Direct Investment in US Energy 1993 describes the role of foreign ownership in US energy resources. This report also looks at the investment patterns of US energy companies in other countries. The data used in this report come from the Energy Information Administration (EIA), the US Department of Commerce, company annual reports, and public disclosures of investment activities.

  10. Technology Spillover from Foreign Direct Investment in Turkey

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    Özcan Karahan

    2016-12-01

    Full Text Available Purpose – The purpose of this paper is to examine the opportunities and challenges that youth entrepreneurs are facing in Montenegro, considering all aspects of youth participation in the development of the country. A quality research of several successful young entrepreneurs is presented. Design/methodology/approach – Several successful young entrepreneurs were interviewed. The principles of case study design and method were followed. Data collection involved both macro and micro level analysis of interviews and direct observation. Findings – The analysis shows that although in the areas of youth participation, significant progress has been made in the last several years, youth entrepreneurship programme in Montenegro is still in its early stages of development and needs strong sustainable commitment, assuring the development and efficient functioning of various youth participation mechanisms at the local, regional and national level. It is also essential to continue to standardize and support youth work, youth information and non-formal business education of young people. Surveys show that young people in Montenegro believe they have much to offer and can significantly contribute to all areas of the society’s development. However, their potential remains greatly untapped due to certain obstacles that they face. There are needs for encouraging programs to inform youth about the value of their participation in all aspects of society. Research limitations/implications – The main limitations were access to a greater number of successful young entrepreneurs making the analysis more descriptive and conclusive. Originality/value – The paper supports understanding of the complex employment challenges and opportunities facing youth and stimulates discussion on how to address this key development issue.Purpose – The aim of this paper is to investigate the relationship between Foreign Direct Investment flows and economic growth using

  11. BANKING ETHICS IN THE FOREIGN DIRECT INVESTMENTS FROM ROMANIA

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    MEDAR LUCIAN-ION

    2011-09-01

    Full Text Available Capital account liberalization created premises and allow Romania for final exit from the financial crisis. Promoting direct investment in Romania can lead to sustainable economic growth, create new jobs and thus, by selling labor set up new forms of saving, which will support investments. Banking ethics elements behind the development of direct investments in Romania are legislation, regulation and behavior of participants. Amid an emerging economy rocked by the global financial crisis, capital account liberalization has allowed entry direct investment, but allowed and the capital flight. Respect for ethics in the business financial banking groups provide, at least, economic development and upgrading the infrastructure of Romania

  12. FISCAL COMPETITION AND DIRECT FOREIGN INVESTMENTS: ROMANIA VERSUS POLAND

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    Lazar Paula

    2012-12-01

    Full Text Available The European Economic Community treaty defines indirect taxation common rules taking into consideration their impact upon free merchandise’s circulation and upon international commercial exchanges. Once the Roma treaty has been signed (1957 the established scope was creating a common market. But, how is it possible to create a common market without any monetary and fiscal instruments? Thus, these instruments have had to be created in order to achieve such an objective. If from the monetary point of view introducing euro as a common currency was a big step ahead, from the fiscal point of view things haven’t evolved in such an easy manner. Fiscal objectives are achieved only if the national market is running normally and correctly. Indirect taxation is harmonized base upon article 113 from the European Union Treaty, while regarding direct taxation legal recommendations and regulations approval we can’t talk about harmonization but about fiscal competition. We are stating this because there are 27 states in the European Union and each one is sustaining its own direct taxation system. Furthermore, the taxation system (fiscal system is influencing member states economical performances through economies, investments and human capital formation by affecting the revenue’s distribution, research and development expenses level and type and by fiscal competition – an effect more and more profound. In this context we aim at analyzing the way fiscal competition had had a positive impact upon attracting foreign direct investments in Romania and Poland. We also aim at underlining positive and negative points for fiscal competition taking into consideration that not only a decrease in micro or macro-economic fiscal burden will have a positive impact upon investments in-flows and there are other factors to be taken into consideration, like: infrastructure, labor expenses

  13. Illicit financial flows and foreign direct investment in developing countries

    Directory of Open Access Journals (Sweden)

    Emmanuel Innocents Edoun

    2016-12-01

    Full Text Available Africa is facing a number of challenges that are negatively affecting socio-economic development at all levels of governments and local governments are expected to play a leading role for Africa’s development. One of these challenges are illicit financial flows that are perceived by many as a crime against Africa’s transformation. The continent is losing billions of dollars every year because of tax evasion, corruption and inappropriate transfer pricing and maladministration. With tax being one of Africa’s main sources of revenue, current and past researches revealed that, illicit financial flows (IFFs cripple African Governments tax base as a results of capital outflows and lack of good governance. This situation obviously is a challenge for Africa’s development as governments struggle to finance structuring projects and this in turn compels these governments to seek funds from international organisations at very high interest rates. It is also important to reveal that Foreign Direct Investment (FDI rapidly grew after the Second World War with the intention to maximize profit on investment in less developed countries and specifically in the African continent. In competing in Africa, most multinationals main objective is to pay less tax, make extensive profits and transfer the proceeds to their country of origin. This subsequently gave rise to illicit financial flows in Africa where the continent is losing billions of dollars. Past studies equally revealed that, Africa’s revenue could increase between 55 and 65%, if appropriate mechanisms of monitoring the flows were in place. This study therefore is based on the premise that, tax evasion, illicit financial flows, corruption and abusive transfers pricing are all factors that affect Africa’s development. Using appropriate method of inquiry, this study wants to demonstrate the presence of FDI’s in Africa as a modus operandi behind tax evasion. It also using the

  14. Foreign Direct Investment – The Case of Botswana

    Directory of Open Access Journals (Sweden)

    Patricia Lindelwa Makoni

    2015-08-01

    Full Text Available This article sets out to analyse the occurrence of foreign direct investment (FDI in Botswana. Diamonds contribute more than 50% of Botswana’s gross domestic product (GDP, hence economic growth and development focus has been on the mining sector. The country’s other sectors of tourism, agriculture, financial services and manufacturing have not received as much support from the Government, private sector and even international investors. This article briefly examines FDI inflow trends and the country’s national economic-building policies which the Government has put in place to diversify its economy from the current export-oriented, diamond mining economy. A country-specific case study approach was adopted. The results yielded show that Botswana is overly dependent on export earnings from diamonds. This leaves the country vulnerable to external global economic shocks. Given that diamonds are a natural resource with a limited lifespan, the Government of Botswana needs to draw up investor-friendly policies to attract FDI inflows to expand its economic base. International capital inflows would complement domestic savings and further boost employment and trade opportunities in the country.

  15. FOREIGN DIRECT INVESTMENTS – AN ESSENTIAL FACTOR FOR ECONOMIC GROWTH IN TRANSITION ECONOMIES

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    Carmen BOGHEAN

    2015-06-01

    Full Text Available The purpose of this analysis is to analyse the connection between foreign direct investments and economic growth in transition economies during a period of increased integration of financial systems in the global financial system. The research focuses on the relationship between foreign direct investments and economic growth during 1970-2013, by means of methods such as the graphic, the regression and the correlation ones. The research findings show that there is a direct and strong connection between the inward financial flows of foreign direct investments and the GDP during the period under analysis in transition economies. In transition economies, a high inward flow of foreign direct investments leads to an increase of the Gross Domestic Product per capita, while a positive development of the standard of living will attract new inward FDI flows, since transition economies are seen as attractive recipients/hosts for foreign direct investments.

  16. DIRECT FOREIGN INVESTMENTS AND THE LACK OF POSITIVE EFFECTS ON THE ECONOMY

    Directory of Open Access Journals (Sweden)

    Suzana Djordjevic

    2015-12-01

    Full Text Available In recent years, Croatia was interesting to investors in attracting foreign direct investment. One of the objectives of this research was to deal with their negative effects. Most of invested capital was invested in brownfield investments, i.e. in taking over the ownership share of companies through privatization. Consequently, revenues were spent to settle financial debts and not on the growth and development of competitiveness. According to economic theory, foreign direct investments have a positive impact on the economic growth of the recipient country. This paper attempts to answer the question: ‘Is the economic theory confirmed in the Croatian case?’ The aim is to analyse the impact of foreign direct investments on the economic growth of Croatia in the period from 1999 to 2014. The paper analyses the impact that direct foreign investments had on the unemployment rate, GDP per capita and export using the model of linear regression.

  17. Regional Determinants of Foreign Direct Investments in Croatia

    Directory of Open Access Journals (Sweden)

    Ines KERSAN-ŠKABIĆ

    2014-12-01

    Full Text Available The aim of this paper is to identify the factors that infuence the unequal distribution of FDI infows and that foreign investors identify as signifcant in making investment decisions regarding Croatian regions. Panel data analysis was applied: static (random effects and dynam-ic analysis. The results show that positive and signifcant infuences on FDI have: education, infrastructure, the manufacturing industry, dum-my variables for areas of special state concern and capital city region, while negative statistically signifcant infuences are: unemployment and dummy variable for border regions with the EU. The basic conclusion is that FDI infows follow the development path of the Croatian regions (with the highlighted agglomeration effect and that efforts in creating preconditions for econom-ic growth will, at the same time, have an impact on attractiveness of a particular region for foreign investments.

  18. Evaluation of Foreign Direct Investment Contribution in the Economic Development of Sverdlovsk Region and Russia

    Directory of Open Access Journals (Sweden)

    Larisa Mikhailovna Kapustina

    2016-09-01

    Full Text Available The article discusses the role of foreign direct investment in the economy of receiving region and country on the example of the Russian Federation and Sverdlovsk region. The positive and negative effects of foreign capital in national and regional economies are marked. A set of indicators to assess the impact of foreign direct investment in the host region economy is offered to determine the trends of attracting foreign capital in the last decade and the role of foreign direct investment in the economic development of the Sverdlovsk region and the Russian Federation. The examples of investment projects with the participation of foreign companies which were successfully implemented in the Sverdlovsk region have been considered. The conclusion about higher rates of the transnationalization of economic activity in Russia in comparison with similar processes in the Sverdlovsk region is made. In the paper, a comparative statistical analysis of the development of the economy of the country and Sverdlovsk region by attracting internal or investment resources is provided. The comparative analysis shows that the country and region economy does not depend much on the foreign direct investment inflows. With the help of the econometric analysis, we have confirmed the hypothesis about a weak impact of foreign direct investment on economic growth in the Sverdlovsk region and the Russian Federation. The results of the calculations for the Sverdlovsk Region and the Russian Federation show that domestic investment in fixed assets is the key factor for the growth of the gross regional product and the gross domestic product.

  19. ANALYSIS OF FOREIGN DIRECT INVESTMENTS ENGAGED BY JAPANESE MULTINATIONAL COMPANIES

    Directory of Open Access Journals (Sweden)

    CODRUŢA DURA

    2011-01-01

    Full Text Available In recent years, the most visible feature of globalization was the new trend of the capital flow which moves from the stage of nternalization to the stage of transnationalization. The decisive factor that led to this development was the trans-nationalization of production/ distribution networks by multinational companies (MNCs. MNCs, which are also frequently referred to as transnational corporations (TNCs, are conglomerate organizations which carry out multiple and diverse economic activities and they consists of a parent company and a large number of subsidiaries operating in various countries of the world. Japan has been worthy of note on the international business scene not only by the high competitiveness of its companies on the global markets, but especially through the transnationalization of the activities of these enterprises, a process which has resulted in the implementation, via Foreign Direct Investments (FDI of Japanese production units abroad, with significant positive impact both on the global economy and on the domestic economy. A great number of empirical studies since the mid-1990s, using firm-level data, have shown that multinational companies (MNCs dominate today the Japanese business environment. The paper puts together the findings of some interesting working papers published by Japanese researchers in recent years, trying to provide a scientific answer to the following question: “In what way do FDI undertaken by MNCs influence the level of performances achieved by Japanese companies at home?” The conclusion is that FDI and the activity carried out by Japanese MNCs abroad have indubitable positive effects on both countries and firms involved - such as raises in production, employment and productivity at firms’ level or increases in competition intensity among firms, improvements in real wage and welfare at macroeconomic level.

  20. Dolado - Lütkepohl Causality Tests between Foreign Direct Investment and Economic Growth in Nigeria

    OpenAIRE

    Alimi, R. Santos; Ibironke, Adesola

    2012-01-01

    Foreign direct investment (FDI) is often seen as an important catalyst for economic growth in the developing countries. It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. The main purpose of the study is to re-investigate the causation between foreign direct investment and economic growth in Nigeria for the period 1970-2010. This study made use of two different methodologies t...

  1. FAKTOR-FAKTOR YANG MEMPENGARUHI FOREIGN DIRECT INVESTMENT (FDI) DI KAWASAN ASIA TENGGARA

    OpenAIRE

    Cep Jandi Anwar1; Kuswantoro; Sherly Franscisca Dew

    2016-01-01

    The need for investment as factors triggering the development of a country has a very important role. Foreign direct investment can be one of the important sources of capital in developing countries, and contribute, the national development by transfer of asset, management, and technology to stimulate the economy of the country.The purpose of this research is to determine the effects of interest rate, inflation, economic growth, openness on foreign direct investment (cases s...

  2. Why hasn’t Macedonia succeeded for a long time in absorbing Foreign Direct Investment

    Directory of Open Access Journals (Sweden)

    Dr.Sc. Nasir Selimi

    2015-06-01

    Full Text Available Recently almost all countries of the world without exception developed countries or the developing countries are attracting foreign direct investments. The reason is that there is no dilemma that benefits of foreign direct investments in the host countries as well as domestic countries are greater than the damage that can have. Western Balkan countries also follow this trend for attracting foreign direct investment. Some of them have achieved notable successes, while the others have achieved less success.  Macedonia is a country that during the last two decades ranks among the countries with smaller foreign direct investments. In the paper which I have chosen to analyze, in the start I gave a general overview of the meaning, role and importance of foreign direct investments for economic development of a country.  Later I have analyzed the trend of foreign direct investments in the region, and especially in Macedonia. At the end sought and given reasons of locking foreign direct investment in Macedonia and recommendations to overcome such a situation.

  3. Influence of Foreign Direct Investments on Commodity Exchange of the Republic of Croatia

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    Goran Marijanović

    2009-12-01

    Full Text Available Almost all countries of the world try to ensure accelerated development of their economies with the help of foreign direct investments. Since the foreign direct investments, in addition to capital, potentially ensure the transfer of contemporary technology, management and marketing knowledge and skills respectively, they can be a signifcant growth factor of competitive abilities of national economies and involvement of countries into international exchange. Trough the RCA method and “Trade Overlap” index, this paper analyzes the infuence of foreign direct investments on the comparative advantages and specialization degree in international commodity exchange for the selected group of transition countries and the Republic of Croatia. The paper tries to determine how much the foreign direct investments have infuenced the structure change of the foreign trade exchange and whether they have contributed to export growth of more complex groups of products in the observed period.

  4. The importance of foreign direct investments in Sumadija and Pomoravlje region

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    Đorđević Ivan

    2015-01-01

    Full Text Available The terms of foreign investment and foreign direct investments are very often terms in foreign economics policy because they represent one of the key issues in foreign economics and practice. The relationship between investments and economic growth is the key question in the modern economic theory. Foreign direct investments are representing the most common shape of international capital movement wich are including the long term connections between more differents countries, regions. The Sumadija and Pomoravlje Region is located in the central Part of Serbia. This Region is the heart of Serbia. Economic development of this part of Serbia is important for the economic development of the whole Serbia as a country. It is very important for the longrange economic growth to define strategy for economic growth for the region of Sumadija and Pomoravlje. In this strategy we will determine the most important tasks and objectives of economic growth also the incentives in the ten year period to come. In the transition country which is Serbia with huge regional and economical problems, without its own funds it is important to attract foreign investment, first of all direct investment. Foreign direct investment which are the basics of all investments in Serbia especially in Shumadija and Pomoravlje region.

  5. Inclusive Development and Chinese Foreign Direct Investment in ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    Investment from China has generally involved production of low-tech, labour intensive, and land intensive products which have directly and indirectly affected the course of economic development, industrial structure, and local labour market and enterprise development. This research project looks at the impacts of Chinese ...

  6. CORRUPTION AND FOREIGN DIRECT INVESTMENT. EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN STATES

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    Cristina Mihaela Amarandei

    2013-09-01

    Full Text Available This paper examines the impact of corruption on foreign direct investment inflows for ten Central and Eastern European states. The paper attempts to answer the question: what is the role of corruption in attracting foreign direct investments? Using the data from UNCTAD for foreign direct investment and Corruption Perception Index from Transparency International, for a period of 12 years, 2000-2012, we evaluate the specific impact of corruptions on FDI using GDP as control variable. Our results confirm the majority of literature and show a negative significant relation between the variables analyzed, but at a lower intensity than expected.

  7. AN ECONOMETRIC ANALYSIS ON THE ECONOMIC DETERMINANTS OF FOREIGN DIRECT INVESTMENTS IN TURKEY

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    SEVDA YAPRAKLI

    2013-06-01

    Full Text Available The purpose of this study is to investigate whether there is a relationship among foreign direct investment and some of the macroeconomics variables in Turkey. For this purpose for the period of 1970-2006, the relationships among foreign direct investment and GDP, labour cost, real exchange rate, openness and foreign trade deficit are econometrically analyzed by employing multivariate cointegration analysis and error correction model. According to the results, FDI is positively effected by GDP and openness, and negatively by labour cost, real exchange rate ve foreign trade deficit variables. Morever, bi-directional causality is observed among FDI and GDP and real exchange rate.

  8. THE DYNAMICS OF FOREIGN DIRECT INVESTMENT IN ROMANIA AFTER EU ACCESSION

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    Nicoleta Rusu

    2010-12-01

    Full Text Available Identification of potential investment of the countries in the current context is one of the main important problem of the world economy because the investments, particularly foreign ones, is considered the key factor for economic growth and development. Foreign direct investments are an alternative source for financing the national economy, with a tendency in recent years of a positive effect on the Romanian economy. This paperwork highlights the role of foreign direct investment in Romania's economical growth potential, with major impact on employment, on the economic modernization, technology transfer and on the living standards. At the same time the article analyzed and highlights the contains of the current trend of foreign direct investments, structure and dynamics after Romania joined the European Union and their geographical distribution on the main development regions.

  9. Institutions and foreign direct investment (FDI) in Malaysia: empirical evidence using ARDL model

    OpenAIRE

    Abdul Karim, Zulkefly; Zaidi, Mohd Azlan Shah; Ismail, Mohd Adib; Abdul Karim, Bakri

    2011-01-01

    Since 1990’s, institution factors have been regarded as playing important roles in stimulating foreign direct investments (FDI). However, empirical studies on their importance in affecting FDI are still lacking especially for small open economies. This paper attempts to investigate the role of institutions upon the inflow of foreign direct investment (FDI) in a small open economy of Malaysia. Using bounds testing approach (ARDL model), the empirical findings reveal that there exists a long ru...

  10. Preview of BPM6 Methodology and Analysis of Foreign Direct Investment in 2015 in Croatia

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    Šlogar Helena

    2017-06-01

    Full Text Available Foreign direct investments include equity capital, reinvested earnings and debt relations between ownership-related residents and non-residents. Since 31 October 2014, the Croatian National Bank has started to publish information in the field of statistics Relations (balance of payments, foreign debt and the IIP in accordance with the methodology prescribed by the sixth edition of the Manual on Balance of Payments (Eng. Balance of Payments and International Investment Position Manual, BPM6, thus changing the presentational form of direct investment. Direct investments are not classified according to the so-called direction of investments (Eng. directional principle on direct investment in Croatia and direct investment abroad anymore, but according to BPM6 apply the socalled principle of assets and liabilities (Eng. Assets / Liabilities principle. The aim is to point out the differences between the standards BPM5 and BPM6 and determine which activities and which countries are the most represented in the structure of direct investments in Croatia. By identifying relevant activities and countries in the structure of foreign direct investment, relevant information is obtained about the macroeconomic state of the Republic of Croatia and about the opportunities and potential dangers that certain activities and countries provide.

  11. The Rise of China and Foreign Direct Investment from Southeast Asia

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    Krislert Samphantharak

    2011-01-01

    Full Text Available This paper discusses foreign direct investment from Southeast Asia to China. With the exception of some government-linked companies, most investments from Southeast Asia have been dominated by the region’s overseas Chinese businesses. In addition to cheap labour costs, large domestic market and growing economy, China has provided business opportunities to investors from Southeast Asia thanks to their geographic proximity and ethnic connections, at least during the initial investment period. However, the network effects seem to decline soon after. As the Chinese economy becomes more globalised and more competitive, the success of foreign investment in China will increasingly depend on business competency rather than ethnic relations.

  12. Expanding Markets: Foreign Direct Investment as a Lesson in Economic Geography

    Science.gov (United States)

    Kalafsky, Ronald

    2012-01-01

    Firms face numerous challenges when looking to invest internationally, not the least of which includes understanding the business environment of a new market. Given the expansion and impacts of foreign direct investment (FDI), it has become increasingly important for students to understand and analyze the motivations, concerns, and strategies of…

  13. The determinants of the location of foreign direct investment in UK regions

    NARCIS (Netherlands)

    Dimitropoulou, Dimitra; McCann, Philip; Burke, Simon P.

    2013-01-01

    This article employs a database of over 2000 observations of Foreign Direct Investment (FDI) projects in UK regions. We analyse this data by means of various multinomial and conditional logit models in order to identify the major determinants of the location choices of these inward investments.

  14. The scope of foreign direct investment in South Eastern Europe and the economy of SCG

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    Beslać Milan

    2006-01-01

    Full Text Available Foreign direct investments have had a long tradition in the modern Serbian history. The influence of the foreign capital on the Serbian economy was particularly expressed in the period between the two World Wars, when France England, Belgium, Germany and even Russia invested into Serbia. After World War II, until the end of the sixth decade, foreign direct investments were not stipulated in the legal regulations. In the last decade of the twentieth century and at the beginning of the twenty-first, the inflow of foreign direct investments has been provided for through the economy transformation and privatization process. In the last three years, privatization has been oriented only to sale and inflow of foreign capital, while the reverse process, i.e. investment into foreign countries (outflow, has been totally neglected. Therefore, orientation only to the FDI inflow constitutes both an opportunity and an obstacle to intensive economic development. Along with that, the following laws have not been passed yet: Law on Denationalization Law on Investment Funds and Law on Takeover of Joint-Stock Companies. Such laws will ensure completion of the privatization process and create an ambience for intensive economic development.

  15. Foreign Direct Investment from China in the Regions of Russia: Are They Substitutes or Compliments of Foreign Trade?

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    Alina Nikolaevna Novopashina

    2012-12-01

    Full Text Available The study summarizes theoretical approaches explaining the conditions under which foreign direct investment (FDI can complement or substitute foreign trade depending on investment incentives. The author examines the example of investment and trade cooperation between cross-border and internal regions of Russia and China. Using regression analysis of China’s FDI impact on the foreign trade of Russian regions with China the author concludes that cross-border regions can attract China’s FDI because of their comparative advantages. The paper also employs FDI localization ratios in cross-border and internal regions and the structure of China’s FDI by different activities. The study shows that FDI from China can complement foreign trade with China in cross-border regions. However internal regions attract FDI from China mostly because of access to their home markets, and in this case FDI are substitutes of foreign trade with China

  16. Foreign Direct Investment and its Role in the Development of Greece

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    Vasiliki DELITHEOU

    2011-06-01

    Full Text Available A distinctive characteristic of Global Economy over the last few decades has been the rising rate and impressive increase in Foreign Direct Investment (FDI globally. Due to the potential role that foreign direct investment may play in accelerating the growth rate and re-shaping the economy, many developing countries are seeking such types of investment that can multiply efforts being made towards the growth of their economy. Consequently, foreign direct investment has become an important source of private external finance for developing countries. For this reason, countries like Greece are attempting to focus on the implementation of policies that can attract specific FDI and thus achieve high rates of growth. Attracting FDI and the subsequent creation of sustainable enterprises that will provide an increase in jobs and will reinforce the productivity of the country, is today a national target.

  17. THE MAIN FEATURES OF THE FLOWS OF FOREIGN DIRECT INVESTMENTS IN ROMANIA

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    Elena Chirilă-Donciu

    2012-10-01

    Full Text Available A distinctive characteristic of The Global Economy over the last few decades has been the rising rate and the impressive increase in the Foreign Direct Investment (FDI globally. Due to the potential role that foreign direct investments may play in accelerating the growth rate and re-shaping the economy, many developing countries are seeking such types of investments that can multiply the efforts being made towards the growth of their economy. The purpose of this research is to analyze the flows of foreign direct investments in Romania between 2003 and 2010. The results of the research highlight the negative balance between the trade balance and the enterprises with FDI in 2007-2010, due to the financial crisis, to the fragile budget balance, due to the low competitiveness of the imports, the low quality of the Romanian products and the macroeconomic risk determined by the rate of inflation, the unemployment and the instability in the exchange rate.

  18. FOREIGN DIRECT INVESTMENT AND ECONOMIC PROGRESS:APPLICATION OF A DYNAMIC MODEL

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    Cyril A. Ogbokor

    2018-01-01

    Full Text Available Capital movements,whether in the form of foreign direct investment or foreignportfolio investment are considered to have a positive multiplier effect on theeconomy.The study contributes to the empirical literature by investigatingwhether foreign direct investment affects economic growth using Namibia as atest centre.The study made use ofvector autoregression methodto examine thisrelationship.A quarterly data covering 1990:Q1 to 2014:Q4 was employed.Theresults found cointegratingrelationships among the four variables that wereinvestigated. The estimated long-run equation also suggests a positive relationshipamongst the variables that have been examined in the study. Surprisingly, noevidence of causality was found pertaining tothe variables assessed in the study.Moreover, real exchange rate and net foreign direct investment contributed moretowards innovations in economic growth during the forecast horizon compared tothe openness index. The study concludes by crafting opportunities for furtherinquiries.

  19. THE STRUCTURE AND TERRITORIAL DYNAMIC OF FOREIGN DIRECT INVESTMENT IN ROMANIA

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    LILIANA SCUTARU

    2015-03-01

    Full Text Available This paper analyzes the structure of foreign direct investment in Romania, FDI agglomeration areas at the local level and their fields, with a particular analysis on greenfield investments because this type of investment is, par excellence, the promoter of new technologies and technical and technological progress. In this respect, the paper considers the analysis of foreign direct investment stock in greenfield enterprises and their location and territorial distribution by regions in Romania of stock of greenfield investments. The research reveals that, in the period under review, greenfield investments in Romania have shifted from the manufacturing sector to the service sector, thereby increasing the country's vulnerability to financial risks and speculation worldwide. In terms of regional distribution, the research highlights the fact that FDI are highly unevenly localized in Romania

  20. Challenges and Problems in the Kosovo Reality Related to Foreign Direct Investment

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    MSc. Nexhat Shkodra

    2015-06-01

    Full Text Available Economic development is a goal aspired by many countries of the world, Kosovo included. In attaining such goals, many countries face numerous difficulties. Amongst the most often taken paths by various countries is the attraction of foreign direct investments to the country. The term investment includes a wide range of human activities in engaging financial means into one of the areas: immoveable property, bonds and shares, manufacturing and service projects, scientific research, technological development, personnel education, etc. Different from internal investment which is engaged by domestic investors in their own territories, Foreign Direct Investment, the topic of our study, is a form of investment which generates revenues by a company in the country and an affiliate branch outside the investor’s seat. Foreign Direct Investments generate relations through the local company and its branches outside the country. Foreign Direct Investments (FDIs are considered to be a strength giving life to economic development of a country, and especially the developing countries. They have an important role to play in a long-term development of a country, and not only as a capital source, but also in increasing competitive abilities of the domestic economy, by technological transfers, strengthening infrastructure, increased productivity and generation of new employment opportunities.

  1. FOREIGN DIRECT INVESTMENT OUTFLOWS FROM CHINA AND INDIA

    OpenAIRE

    K. C. FUNG; ALICIA GARCIA-HERRERO

    2012-01-01

    In this paper, we examine the determinants of Indian and Chinese FDI outflows. There are three sets of results. First, Chinese investment is attracted to more corrupt countries, while India is attracted to economies with better rule of law. Further analysis suggests that our result of China investing in more corrupt destinations is mostly driven by Chinese investment in the sub-sample of African countries. While we do not conduct economic welfare analysis, several studies in the literature re...

  2. Exports, Foreign Direct Investment and the Costs of Coporate Taxation

    OpenAIRE

    Keuschnigg, Christian

    2006-01-01

    Depending on the definition of the tax base, the statutory corporate tax rate implies rather different measures of effective average and marginal tax rates. This paper develops a model of a monopolistically competitive industry with extensive and intensive business investment and shows how these margins respond to changes in average and marginal corporate tax rates. Intensive investment refers to the size of a firm's capital stock. Extensive investment refers to the firm's production location...

  3. Foreign direct investments and their impact on the economic development of Bosnia and Herzegovina

    Science.gov (United States)

    Susic, I.; Stojanovic-Trivanovic, M.; Susic, M.

    2017-05-01

    From the perspective of macroeconomic indicators, investment is a significant determinant of economic development in general, as well as the development indicator of economic entities in the micro segment. Investments are an essential element of any economic policy, because their implementation provides a platform not only for economic development, but also are prerequisite for the stability of economic and social trends. Foreign direct investment plays an important role in the financing of the global economy, and it represents the most frequent feature in financing the national economies of developing countries and countries in transition. Demand for foreign investment in the global market is large, and thus the governments have been conducting many activities in order to create a more favorable environment to attract investors. In this paper, special attention was paid to direct investments in financing the economy on a global scale, their importance for the development of the global economy and the impact of foreign direct investment in the economic development of Bosnia and Herzegovina. The major activities, which are necessary to be done to attract investments in the highest possible volume, have been emphasized. With the use of statistical and quantitative analysis, the paper shows that the inflow of foreign capital is one of the basic prerequisite of economic growth acceleration and that the inflow of foreign capital has a positive impact on the economic development of Bosnia and Herzegovina. By monitoring and analyzing the various instruments of foreign capital inflow, with an emphasis on investment in the free zone and a joint venture with foreign investors, it has been clearly pointed out the fact that they have diverse, but proven positive impact on macroeconomic variables in the economy of Bosnia and Herzegovina.

  4. Outward Foreign Direct Investment from Malaysia: An Exploratory Study

    OpenAIRE

    Tham Siew Yean

    2007-01-01

    Although Malaysia is well known as a host economy, there is little research on its investment abroad even though this has been steadily increasing over time. Using a case study approach based on Dunning’s OLI framework, seven firms are studied in order to understand their motivations to invest abroad as well as home and host country policies that have facilitated or hindered their investments. The main motivations for these firms to invest abroad are quite varied, ranging from the low labor c...

  5. Does Democratic Institutions and Foreign Direct Investment Affect Economic Growth? Evidence from Nigeria

    Directory of Open Access Journals (Sweden)

    Hassan O. Ozekhome

    2017-09-01

    Full Text Available A reciprocally re-enforcing relationship exists between institutions, foreign direct investment and economic growth. Sound institutional framework which supports foreign direct investment is significant for driving rapid Economic growth. An important factor that has undermined rapid and sustained economic growth is the weak institutional structure, decrepit state capacity and low level of foreign direct investment in Nigeria. Democratic structures reflected in the rule of law, effectiveness and predictability of the judiciary and enforceability of contracts proceedings is imperative for accelerating economic growth. Employing the Generalized Method of Moments (GMM estimation techniques on annual time series data covering the period from 1981 to 2015, the relationship between these variables was empirically investigated. The empirical findings reveal that democratic institutions and foreign direct investment are significant variables influencing economic growth in Nigeria. In particular, the results, using Nigerian data, show that weak institutions have a destabilizing impact on growth. The impact of FDI on the other hand is found to be positive and significant. Therefore, sound institutional framework, as well as appropriate and consistent macroeconomic policies that encourage foreign direct investment to propel rapid economic growth in Nigeria needs to be put in place.

  6. The Determinants of International Capital Movements and an Analysis in the Context of Foreign Direct Investments: A Case of Turkey

    Directory of Open Access Journals (Sweden)

    Oğuzhan AYDEMİR

    2015-07-01

    Full Text Available Foreign direct investments being an important part of the international capital movements are evaluated as the investments making in the form of reestablishing a factory in a foreign country, becoming a partner with an existing company or purchasing an established company. Foreign direct investments make a major contribution to economic development in connection with employment, technology, business information, integration with international markets and generating a sound competition environment. In view of the results which foreign direct investments give to national economy; determining the economic factors as to which national economy foreign direct investments would prefer is of great importance in terms of providing foreign capital inflows with continuity. In this regard; the factors determining foreign direct investments are estimated and the relationship between these factors and direct foreign capital inflows is analyzed in this study. As a result of the study; it is seen that gross domestic product (GDP, trade openness, unit labor cost and inflation are the economic determinants of foreign direct investments. Separately it is concluded that GDP, trade openness and unit labor cost have a positive effect on foreign direct investments and that there is negative relationship between inflation and foreign direct investments.

  7. Foreign Direct Investment and Trade Openness: The Case of Developing Economies

    Science.gov (United States)

    Liargovas, Panagiotis G.; Skandalis, Konstantinos S.

    2012-01-01

    This paper examines the importance of trade openness for attracting Foreign Direct Investment (FDI) inflows, using a sample of 36 developing economies for the period 1990-2008. It provides a direct test of causality between FDI inflows, trade openness and other key variables in developing regions of the world: Latin America, Asia, Africa, CIS…

  8. The implications of IFRS adoption on foreign direct investment in poor countries

    Directory of Open Access Journals (Sweden)

    Catalina Florentina PRICOPE

    2017-05-01

    Full Text Available Globalisation has contributed to the acceleration of international capital transactions and has increased investors’ need to access homogeneous, reliable and comparable financial reports. The objective of the study is to investigate the impact of International Financial Reporting Standards adoption on foreign direct investment flows in poor countries. In order to achieve this objective, the propensity score matching method was applied on a sample of 38 poor countries between 2008 and 2014. Results indicate that International Financial Reporting Standards adoption has a positive impact on foreign direct investment flows in poor countries.

  9. The Effect of Foreign Direct Investment in Economic Growth from the Perspective of Nonlinear Dynamics

    Directory of Open Access Journals (Sweden)

    Ch. K. Volos

    2015-09-01

    Full Text Available In today’s globalized economy one of the most crucial factors for the economic growth of a country, especially of a developing country, is the foreign direct investment, not only because of the transfer of capital but also of technology. In this work, the effect of foreign direct investments in a county’s economic growth by using tools of nonlinear dynamics is studied. As a model of the economic growth of a country, a well-known nonlinear discrete-time dynamical system, the Logistic map, is used. The system under study consists of two countries with a strong economic relationship. The source country of foreign direct investments is an industrialized, economically powerful and technologically advanced country that makes significant investments in the host country, which is a developing country and strong dependent from the source country. Simulation results of system’s behavior and especially the bifurcation diagrams reveal the strong connection between the countries of the proposed system and the effect of foreign direct investments in the economic growth of the host country.

  10. THE EFFECTIVENESS OF THE TAX INCENTIVES ON FOREIGN DIRECT INVESTMENTS

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    Florian Marcel NUTǍ

    2012-06-01

    Full Text Available The economic integration trend has freed the capital movement and many new locations became available for investment. That is why the policy makers had to think for new and more efficient ways to lure the capital owners. One of the most used and dynamic method is the fiscal policy. The fiscal incentives were in many cases the main reason for choosing a country and stay away from another. The main reason for this situation is that the fiscal policy is one of the most flexible public tools to manipulate the market and the decisions on it. Public administrations can encourage or block different kinds of investment decisions according to its policy and long term plans.

  11. THE IMPACT OF THE ECONOMIC CRISIS ON FOREIGN DIRECT INVESTMENT IN ROMANIA

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    CIURLĂU LOREDANA

    2014-05-01

    Full Text Available Foreign Direct Investment (FDI bring an essential contribution to economic growth. They create jobs, optimize the allocation of resources, technology transfer and stimulate trade. Doing business in Romania needs friendly taxation and economic freedom for entrepreneurs, including to foreign investors, creating a favourable economic environment framework by promoting conditions conducive to attracting foreign investors, such as: fair treatment, fair and non-discriminatory manner; protection from illegal situated between kilometeres; the appeal directly to international arbitration, as well as the transformation of Romania into an attractive environment in terms of taxation.

  12. The Effects of Foreign Government Policies on the Location of U.S. Direct Investment Abroad

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    Kee Min

    2001-06-01

    Full Text Available Many argue about which policy and non-policy variables play an important role in influencing foreign direct investment decisions. This article contributes to this debate by considering the effects of foreign government policies on the location of U.S. direct investment abroad. The analysis used pooled cross-section and time series data for 44 countries over three time periods to examine the effects of different types of non-policy and policy variables, including market size, per capita income, country risks, tax rates, investment incentives, and investment regulations. This study found that a policy variable, investment regulation and two non-policy variables, market size and per capita income impact investment decision. A moderately strong effect is found in investment incentive policy, whereas country risks and tax rates turned out not to be strong factors in influencing U.S. investment locations. However, in the case of FDI in developing countries, country risk and tax rates appeared to be more important factors for the location of U.S. FDI than host countries' market size. Strong interaction effects between policy variable and market size are found, while less strong interaction is found between policy variable and per capita income. This study concludes that policy variables are also important factors along with non-policy factors and the determinants of FDI are not independently exerting an influence but jointly affecting U.S. investment locations.

  13. Determinants of foreign direct investment in ASEAN: A panel approach

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    Hong Hiep Hoang

    2015-02-01

    Full Text Available This paper analyzes the factors of FDI inflows in ASEAN countries over the period 1991 to 2009. The results indicate that the market size, trade openness, quality infrastructure, human capital, labor productivity are the main factors that have positive impacts on FDI inflows. Additionally, exchange rate policy, real interest rate, political risk and corruption also affect FDI inflows. Surprisingly, the cheap labor does not help to attract FDI to the region, because foreign investors are particularly interested in labor productivity. This study also shows that the Asian financial crisis in 1997 affected the amount of FDI inflows, but not on the nature of FDI inflows in the region.

  14. Implications of foreign direct investment in India's retail sector

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    Murali Patibandla

    2014-12-01

    Full Text Available Supply chain is the backbone of retail business. Adoption of an efficient supply chain between producers and consumers by modern large retailers could reduce average transaction and information costs of market exchange; generate surplus for stakeholders such as producers, farmers, and consumers; expand output; and could thereby contribute to economic growth and net employment gains. Foreign players can introduce a highly advanced supply chain and develop local producers and generate externalities. This paper develops a simple theory of supply chain and economic growth. It shows the implications of adaptation of the Wal-Mart model of retailing on India's retail business.

  15. Going Global: The Economic and Geopolitical Effect of China’s Increasing Outward Foreign Direct Investment

    Science.gov (United States)

    2013-03-01

    embeddedness ” led them to conduct business in locations that firms from developed countries would not otherwise invest. Second, soft budget constraints...Foreign Direct Investment Profile, 7–10. 101 Nolan, Is China Buying the World?, 72–4. 102 Mutuna Chanda “China in Zambia: Jobs or exploitation...Gary Clyde Hufbauer and Sean Lowry, “U.S. Tire Tariffs: Saving Few Jobs at High Cost,” PIIE Policy Brief 12–9 (Peterson Institute for International

  16. COMPARATIVE STUDY OF THE ECONOMIC DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN PAKISTAN, INDIA AND INDONESIA

    OpenAIRE

    Azam, Muhammad

    2015-01-01

    In this study an attempt has been made to investigate the effects of economic factors on foreign direct investment (FDI) inflows into Pakistan, India and Indonesia. Simple loglinear regression model for each country has been used and the method of least squares has been applied. Empirical results show that market size, domestic investment, tradeopenness, and physical infrastructure are the important economic determinants of FDI.Further, this study also found that the empirical results of the ...

  17. FOREIGN DIRECT INVESTMENTS IN SOUTH-EASTERN EUROPE COUNTRIES ANALYSIS OF INFLUENCE FACTORS

    Directory of Open Access Journals (Sweden)

    Nenad POPOVIĆ

    2010-01-01

    Full Text Available That influences the inflow of foreign direct investments (FDIs into South-Eastern Europe (SEE, whereby main emphasis will be put on republics of Former Yugoslavia, but also with some references to Romania’s case.Choice of the countries for comparison is made upon assumption that they were characterized by relatively the same industrial, market and social development before they entered the process of transition, so comparisons from the aspect of achieved results is of scientific importance. Special attention will be directed to the result made by the Republic of Serbia in the process of attracting FDIs. First of all, main terms of foreign direct investments will be defined in this paper and we will give general review of literature related to allocation of foreign direct investments. Then, recent trends of foreign direct investments in south-astern Europe will be described. Finally, the factors that influence allocation of FDIs,as well as relationship between index of global competitiveness of observed countries and accumulated FDIs during period of transition will be analyzed.

  18. Foreign direct investment to Africa: trends, dynamics and challenges

    Directory of Open Access Journals (Sweden)

    Elsabe Loots

    2012-06-01

    Full Text Available The FDI debate is often characterised by generalities about the importance of these flows within the global context.  This article aims to unpack the African-specific FDI issues in order to get a clearer and more substantiated understanding of the current trends, dynamics and challenges, with emphasis on the period since 2000.  The research concludes that nominal flows to the continent are on the increase, with exponential increases over the past decade.  The descriptive analysis indicates that flows to the continent are unevenly spread and are concentrated in the largest economies and/or in petroleum-/oil-exporting countries.  The impact of FDI on growth and investment in particularly smaller economies indicates that FDI inflows are making a substantial contribution to these economies and illustrates the importance of this source of investment.  The econometric analysis reveals that oil exporters and the size of the economy are powerful explanatory variables in explaining FDI flows to Africa, with trade openness a positive, but less powerful variable.

  19. Political Risk and Foreign Direct Investments in Kosovo

    Directory of Open Access Journals (Sweden)

    MSc. Neshat Podvorica

    2015-06-01

    Full Text Available The purpose of this paper is to present the importance of political risk and its impact on attracting investments, also to analyse policies made by the Kosovo institutions to reduce political risk and increase the FDIs. Attracting of the FDIs is complex because they depend on many factors, and one of the methods that measure political risk is the model used by the PRS Group that includes the flow of the economy through 12 components. Measuring political risk plays an important role in transitional countries, because these are countries that have problems in various fields and also the trust on by the investors is low. As a finding of this study is that Kosovo is estimated to have moderate political risk, and is close to joining the group of countries with low political risk. Challenges faced by Kosovo in reducing political risk are concentrated in several components, which are: socioeconomic, corruption and rule of law components. Kosovo has taken significant steps in improving the conditions for investment, government stability and positioning of the country facing internal and external conflicts.

  20. Foreign direct investment and poverty alleviation : the case of Bulyanhulu and Geita gold mines, Tanzania

    NARCIS (Netherlands)

    Nyankweli, Emmanuel M.

    2012-01-01

    This PhD thesis seeks to quantify the economic, social and environmental effects of the gold mining sector as a component of foreign direct investments in Tanzania and its contribution to poverty alleviation. In addition to highlighting the socio-economic gains and losses, by exploring the corporate

  1. The Impact of Foreign Direct Investment on Economic Growth in the ...

    African Journals Online (AJOL)

    The main objective of this study is to determine the impact of Foreign Direct Investment (FDI) on the economic growth of the countries of the Economic Community of West African States (ECOWAS). The study utilised the fixed effects model to estimate regression coefficients of all ECOWAS countries between 2000 and 2009.

  2. EXTENSIVE ROLE OF FOREIGN DIRECT INVESTMENT IN DEVELOPMENT OF INDIAN ECONOMY

    Directory of Open Access Journals (Sweden)

    Amit Saini

    2016-12-01

    Full Text Available Since 2001, the extensive growth in domestic economy were potentially associated with the scale of foreign direct inflows that were largely interconnected with industrial growth, re-shuffling investment policies, and availability of large market size in India. However, the government remained much restrictive earlier in these issues to protect the domestic entrepreneurs along with to promote the self-efficacy among individuals. Within this framework, this paper is being prepared to observe the degree of effect of foreign direct investment inflow over successive economic parameters such as gross domestic product and Export. Moreover, to define such interconnection, the generalized linear model econometric model has been developed to analyze the overall effect and uni-variate effect over three categorical factors i.e. country, year and foreign direct investment itself. Finally, the results shown, the consistent foreign direct investment inflows is the result of successive years that led to increase the prestige of gross domestic products and Export in many folds during a period from 2000 to 2012.

  3. Foreign direct investment mode choice : entry and establishment modes in transition economies

    NARCIS (Netherlands)

    Dikova, Desislava; van Witteloostuijn, Arien

    2007-01-01

    In this study, we bridge two streams of foreign direct investment literature, specifically studies on establishment mode choice (i.e., the choice between an acquisition and a greenfield establishment) and studies on entry mode choice (i.e., the choice between a wholly owned outlet and a subsidiary

  4. Bilateral foreign direct investment in forest industry between the U.S. and Canada

    Science.gov (United States)

    Rao V Nagubadi; Daowei Zhang

    2011-01-01

    In this study we examine the trends and various factors influencing bilateral foreign direct investment (FDI) in the U.S. and Canadian forest industry between 1989 and 2008. Using panel data analysis methods, we find that bilateral FDI is positively influenced by depreciation of host country's real exchange rates and exchange rate volatility, and home country...

  5. Taxation and business environment as drivers of foreign direct investment in OECD countries

    Czech Academy of Sciences Publication Activity Database

    Hájková, Dana; Nicoletti, G.; Vartia, L.; Yoo, K.-Y.

    2006/2, č. 43 (2006), s. 7-38 ISSN 0255-0822 R&D Projects: GA MŠk LC542 Institutional research plan: CEZ:AV0Z70850503 Keywords : taxation * foreign direct investment * OECD Subject RIV: AH - Economics http://www.oecd.org/dataoecd/62/30/40505831.pdf

  6. Institutional System Development for Outward Foreign Direct Investment in China and Russia

    DEFF Research Database (Denmark)

    Marinova, Svetla Trifonova; Child, John; Marinov, Marin Alexandrov

    This paper examines institutional formation and institutional entrepreneurship relating to outward foreign direct investment (OFDI) in China and Russia since the beginning of their market-oriented economic reforms. It focuses on the stages of OFDI institutional development during these periods...

  7. Outward Foreign Direct Investment from Emerging Economies and National Development Strategies

    DEFF Research Database (Denmark)

    Gammeltoft, Peter; Kokko, Ari

    2013-01-01

    Foreign direct investment (FDI) is an integral part of national development strategy throughout the developing world. However, while traditionally strategies have focused on the role of inward flows only, today, outward FDI is used on a larger scale and more deliberately to access markets...

  8. Determinants of Foreign Direct Investment in Nigeria: Political Factor Effects Revisited

    OpenAIRE

    ibrahim, waheed; Omoniyi, Benjamin

    2011-01-01

    The paper examines the determinants of Foreign Direct Investment (FDI) in Nigeria during 1970 – 2006. cointegration techniques reveal that the major determinants of FDI are market size, real exchange rate and political factor thereby validating theoretical expectations. Furthermore, simulations using impulse response and variance decomposition analysis suggest that uncontrolled trade liberalization must be avoided.

  9. The Contribution of Foreign Direct Investments to the Convergence of Regions in the Czech Republic.

    Czech Academy of Sciences Publication Activity Database

    Hašková, S.; Volf, Petr

    2017-01-01

    Roč. 10, č. 2 (2017), s. 23-33 ISSN 1802-503X Institutional support: RVO:67985556 Keywords : foreign direct investment * unemployment * gross domestic product Subject RIV: AH - Economics OBOR OECD: Finance http://library.utia.cas.cz/separaty/2017/SI/volf-0484393.pdf

  10. Examining the Regional Aspect of Foreign Direct Investment to Developing Countries

    DEFF Research Database (Denmark)

    Sunesen, Eva Rytter

    This paper applies a general-to-specific analysis to detect regularities in the driving forces of foreign direct investment (FDI) that can explain why some regions are more attractive to foreign investors than others. The results suggest that regional differences in FDI inflows to African, Asian...... at improving the investment climate for foreign investors. This also means that there is no African bias. Among a large number of return and risk variables applied in the empirical literature, growth and inflation turn out to be the only robust and significant FDI determinants across regions although the size...... and Latin American countries can be fully explained by structural characteristics rather than fixed regional effects. The implication of this finding is that countries that are lagging behind other developing countries in attracting foreign capital have the opportunity to implement policies aimed...

  11. FAKTOR-FAKTOR YANG MEMPENGARUHI FOREIGN DIRECT INVESTMENT (FDI DI KAWASAN ASIA TENGGARA

    Directory of Open Access Journals (Sweden)

    Cep Jandi Anwar1

    2016-10-01

    Full Text Available The need for investment as factors triggering the development of a country has a very important role. Foreign direct investment can be one of the important sources of capital in developing countries, and contribute, the national development by transfer of asset, management, and technology to stimulate the economy of the country.The purpose of this research is to determine the effects of interest rate, inflation, economic growth, openness on foreign direct investment (cases study in 5 South-east Asia countries namely, Indonesia, Malaysia, Thailand, Philippines, and Vietnam period of 2005 to 2012. The analytical method in this study is linear regression analytical method of panel data with Fixed Effect Model (FEM method to calculate the data is used by Eviews 8 software.The result of this research showed that during 2005 to 2012 the economic growth has positive and significant effect on foreign direct investment. Interest rate, inflation, and openness have negative and significant onforeign direct investment. Simultaneously, independent variable is significantly affect on dependent variable.

  12. A New Trend of Foreign Direct Investment and Sustainable Growth of Emerging Economies

    Directory of Open Access Journals (Sweden)

    Pradeep Kumar

    2016-07-01

    Full Text Available With the rise of globalisation concept, the opportunity of going global for companies has become so influential that many of the companies that are doing well in the home country are staring up their businesses in other countries to maximise the profit. The trend of investing in other economies has become very popular that's why the trend of foreign direct investment between developed and developing economies has not only been increased but significantly a new trend has emerged for foreign direct investment among developing to developing economies. It has been seen that foreign direct investment (FDI as foreign capital is playing very wider and important role in the socio-economic development of a nation. Evidently, it played an important role to the development of the developed nations, and playing a significant role in the development of the number of developing nations. Today, FDI is considered to be the core incentive for economic and social development as far as the developing nations are concerned.

  13. Examination of the Singapore Shift in Japan's Foreign Direct Investment in Services in ASEAN

    OpenAIRE

    Shintaro Hamanaka

    2010-01-01

    Asia is fast becoming the largest recipient of Japan's foreign direct investment (FDI). Within the Asian region, the Association of Southeast Asian Nations (ASEAN) has been the major investment destination of Japan. In the manufacturing sectors, however, the investment flows from Japan to ASEAN—with Thailand being the largest recipient—has been declining. In contrast, Japan’s FDI in the services sectors in ASEAN has been growing rapidly. The recent phenomenon of the Singapore Shift i...

  14. Foreign direct investment and their impact on economic development countries in transition

    Directory of Open Access Journals (Sweden)

    Marijana Joksimovic

    2017-07-01

    Full Text Available Foreign direct investment (FDI is among the key developmental factors that, along with international trade, contributes to the globalisation of the world economy and business. It is therefore necessary to ensure FDI improves economic development. Attracting investors, a favourable investment climate, and investment attractiveness compared to other countries in the region are some of the prerequisites for effective economic development of the Republic of Serbia. The authors in the paper analyse the impact of FDI on the economic development of Republic of Serbia. Based on available countries from 2012 to 2014, the paper presents a comparative view of the Republic of Serbia and the countries in the region.

  15. Attracting Foreign Direct Investment for Growth and Development in ...

    African Journals Online (AJOL)

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  16. Foreign direct investment and economic growth in developing ...

    African Journals Online (AJOL)

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  17. Do democratic institutions and foreign direct investment affect ...

    African Journals Online (AJOL)

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  18. An Analysis of Chinese Foreign Direct Investment (FDI) in Sub ...

    African Journals Online (AJOL)

    user

    Abstract. This study offers an assessment of' Chinese FDI in Sub-Saharan Africa with a particular focus on Ethiopia. The research method employed in this study has both qualitative and quantitative features. The findings of the study are presumed to be of paramount importance by inducting policy direction for policy makers ...

  19. Causality Analysis of the Impact of Foreign Direct Investment on ...

    African Journals Online (AJOL)

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  20. Effectiveness Of Foreign Direct Investment Policy In Nigeria (1986 ...

    African Journals Online (AJOL)

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  1. FOREIGN DIRECT INVESTMENTS IN THE ROMANIAN ECONOMY IN A REGIONAL CONTEXT

    Directory of Open Access Journals (Sweden)

    DANIEL STĂNCESCU

    2012-09-01

    Full Text Available Foreign direct investments represent the most important and stable source of externalfinancing of all states of the world, irrespective of their level of development.In Romania’s path from the elimination of the centralized economy and up to nowadays,foreign direct investments were also a source of economic growth, a financing source, and a meansof acceleration in the process of transition, a contributor to the capitalization of the wealth of thecountry but also a real barometer of the economic situation.The aim of this article is to analyse the foreign direct investment flows in the Romanianeconomy after 1990 according to the 3 stages of qualitative evolution of the Romanian marketeconomy : the period of transition to the market economy (1990-2003, the period of the marketeconomy, of pre-accession to the Union (2004-2006, the period of the first 4 years of membershipin the European Union (2006-2010, the main focus of the research being on outlining the place ofthe national economy in the South Eastern European region, as well as in the European Union.In 20 years of activity to attract international investments, foreign direct investments havecovered on average current account deficit of about 60%.In the last two decades, Romania was the leader of the South East European region (7countries, the investors were directing to our country more than 33% of their investments.The best results achieved by Romania in FDI were recorded in 2003-2006 when totalinvestment flows accounted for about 8% of GDP.

  2. Behavioral economics perspective on foreign direct investment in emerging markets: The case on Bosnia and Herzegovina

    Directory of Open Access Journals (Sweden)

    Amra Halaba

    2016-08-01

    Full Text Available The growing field of behavioral economics (BE has revolutionized the way we look at economic behavior at micro and macro levels. Importance of foreign direct investment (FDI appeals for analysis of decisions made regarding it to be assessed from expanding view of BE. This research provides overview of previous studies and focuses on the case of Bosnia and Herzegovina (B&H as representative of emerging markets to investigate motivations for investing into this country by temporarily present foreign companies. Empirical analysis was based on the questionnaire that was disseminated among foreign investors to B&H. Questionnaire contained motivations for investing in B&H, where examined motivation factors were divided in two groups; namely irrational and rational ones. Choice of methodology was narrowed due to moderate sample size, but consisting of quality the sample members. In order to analyze data, descriptive statistics, correlation analysis and regression analysis were used. By regressing two groups of predictors on annual amount of foreign investments to B&H, it was shown that the highest motivation for investing was business instinct.

  3. The long run relationship between foreign direct investments, exports, and gross domestic product: panel data implications

    Directory of Open Access Journals (Sweden)

    Mehmet ERYİĞİT

    2012-10-01

    Full Text Available Foreign direct investment (FDI is defined as establishing a new company or branch of a foreign company by foreign investor or share acquisitions of a company established in host country (any percentage of shares acquired outside the stock exchange or 10 percent or more of the shares or voting power of a company acquired through the stock exchange (UNCTAD, 2012. This study investigated the long-term relationship between FDI and export volume, FDI and Gross Domestic Products (GDP, and export volume and GDP through cointegration tests. It is conducted the panel data analysis using data for the period of 2000-2010 from 15 countries making direct investment in Turkey regularly since year 2000. Panel unit-root tests showed that variables are stationary for the first difference level. Residual based and error correction based cointegration tests revealed that there is long-term relationship between FDI and export volume, FDI and GDP, and export volume and GDP.

  4. The Impact of Foreign Direct Investments on Economic Growth in Romania

    Directory of Open Access Journals (Sweden)

    Adrian Petre

    2015-12-01

    Full Text Available One of the current priority objectives for Romania is the integration into euro zone. To achieve this objective, Romania must record progress on economic growth. Various empirical studies have analyzed the influence of foreign direct investment (FDI on economic growth to see whether investment flows positively influence the economic development. The results revealed that positive connection depends on certain features of the economy at a time. The purpose of this research is to highlight the impact of the FDIs on the Romanian economic development because the debates on capital flows, both in the political and academic environment, associate these flows with a number of benefits for beneficiary states. In order to fulfill the objective of this research is analyzed, mainly, the relationship between foreign direct investment (FDI and gross domestic product (GDP.

  5. Determinants of Export Diversification in Nigeria: Any Special Role for Foreign Direct Investment (FDI?

    Directory of Open Access Journals (Sweden)

    Damilola Felix Arawomo

    2014-12-01

    Full Text Available The importance of export diversification is presently taking a center stage in trade literature. This paper contributed to the evolving literature by examining the extent of export diversification in Nigeria and also analyzed the impact of foreign direct investment on it. Two major methods of export diversification: export count (horizontal and Herfindahl Index were used. Nigeria’s exports flows based on 4-digit SICT product classification were used. The Generalized Moment Methods (GMM was used to analyze our specified model. Empirical analysis showed that foreign direct investment discourages export diversification in Nigeria, while domestic investment promotes it. Exchange rate and democratic accountability are other factors that discourage export diversification in Nigeria. No evidence was found on the impact of per capita GDP, trade openness and natural resource.

  6. Multinational Corporations and Foreign Direct Investments in Romania. Effects on the Romanian Trade

    Directory of Open Access Journals (Sweden)

    Catana Adina Mihaela

    2011-12-01

    Full Text Available This paper focuses on the study of transnational corporations and their business development through foreign direct investments made in other countries, mostly greenfield type countries. The objective of this paper is to determine the impact of these companies enlargement on the Romanian retail market, especially on the consumer goods market. Transnational companies have experienced a very dynamic economic growth, enjoying success at first in their country and then expanding to other countries. As independent players on the international market, multinational corporations are becoming more and more powerful every day. Most of these companies record annual sales of ten million dollars each. The most important aspect of business globalization is the interdependence between national economies. In this process, Foreign Direct Investments have an important role, given the fact that the internal resources are not enough to ensure the development and support of businesses hence the need to obtain external resources. Generally, FDI have a strong training effect both in the national and global economy, providing the replacement and modernization of techniques and technologies, increasing production and supply of goods, improving their quality and competitiveness, creating new jobs and growing the quality of life. Thus, each national economy is building its economic development strategy in which investments have a predominant role. Foreign Direct Investment is a major driver of globalization that characterizes the modern economy. Increasing of Foreign Direct Investment flows, accompanied by the increasing of the portfolio investments, highlights the major role played by transnational corporations, especially in developing economies and transition economies. The most important areas in which FDI was made in Romania are: financial intermediation and insurance, trade, construction and real estate, information technology and communication. The entering of

  7. The Impact of Country Risk on the Dynamics of Foreign Direct Investments in Romania

    Directory of Open Access Journals (Sweden)

    Sorcaru Sergiu-Lucian

    2016-12-01

    Full Text Available The main objective of the scientific approach consists of country risk analysis to substantiate the Foreign Direct Investments (FDI in Romania. The thesis proposes a new approach and analysis regarding the risks to which foreign investors are subjected to, both in terms of concepts and theoretical understanding of the phenomena. As a method of analysis we have used qualitative research as it focuses on cultural studies of the place chosen for investment; on the sociological survey and it covers an extensive interdisciplinary field. The motivation of approaching so an important topic on country risk and the importance it has in the location of foreign investments in general, and especially the direct foreign investments, is justified on the one hand by the scarcity of studies in the field, and, furthermore, the impact of economic policies that it can have such research. The results or our approach are correlated with statistical data analysis, which allowed the creating a general framework on the country risk influence on FDI. The added value lies in the approach particularly complex due to the multitude of variables involved, and the risk management is an absolute necessity in today's economy.

  8. A Comparison of Foreign Direct Investments in Eurosian Countries to World Trend in the Period of 1995 - 2011

    Directory of Open Access Journals (Sweden)

    Hayri Tuzla

    2013-12-01

    Full Text Available The world which rapidly globalizes and where the boundaries diminish day by day, the foreign direct investments affect many diverse macroeconomic variables, specifically economic growth and unemployment. Most current studies support that there exists a strong causality relationship between foreign direct investments and economic growth.On the other hand, there exists a weaker positive causality relationship between economic growth and foreign direct investments. Moreover, it is an undeniable fact that the economic growth leads to a decline in unemployment. This study aims to compare the foreign direct investment trends of seven Eurasian countries (Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Turkmenistan and Uzbekistan in the period of 1995 and 2011. The results are compared to both the world foreign direct investment trend and the other Central Asian countries.

  9. Does Foreign Direct Investment Affect Green Growth? Evidence from China’s Experience

    OpenAIRE

    Shujing Yue; Yang Yang; Yaoyu Hu

    2016-01-01

    Foreign Direct Investment (FDI) not only affects the economic growth but also affects the environmental protection of the host country. With China’s background of pursuing green growth, we need to consider the performance of FDI from the economic and environmental benefit aspects. On this basis, using slacks-based measure directional distance function (SBMDDF) to build up green growth efficiency, economic efficiency and environmental efficiency indexes, empirical research on FDI in 104 Chines...

  10. The Changing Patterns of Foreign Direct Investment in EU Accession Countries

    DEFF Research Database (Denmark)

    Meyer, Klaus E.; Ionascu, Delia Simona; Kulawczuk, Przemyslaw

    2005-01-01

    Foreign direct investment (FDI) in Central and Eastern Europe (CEE) has been maturing as the region prepared to join the European Union (EU). Since the beginning of transition the pattern of FDI has evolved, reflecting new business strategies pursued in anticipation of EU membership. Based on first...... results from a questionnaire survey conducted in 2003 in Hungary, Lithuania and Poland, we portray the recent patterns and developments in foreign investment, the motives for investment, and managers' assessment of the local business environment. Some questions have been replicated from a study conducted...... in the emerging economies of Egypt, India, South Africa, and Vietnam, which allows us to benchmark FDI patterns in CEE against other emerging economies in different parts of the world. We find that find fewer changes over the period of the 1990s then we expected, but some interesting differences across the three...

  11. The Impact of Foreign Direct Investment on Economic Growth: The Case of Romania

    Directory of Open Access Journals (Sweden)

    Maria-Ramona Sârbu

    2015-08-01

    Full Text Available In the context of the current trends there is highlighted the interest in the emerging economies to attract foreign capital in the form of foreign direct investment (FDI as a source of external financing and economic recovery factor. FDI are objectively necessary for these countries given their role in increasing the competitiveness of emerging economies. Although foreign direct investments in emerging economies are well under the required level, the impact of FDI on emerging economies is different from one country to another, depending on a number of factors, on the actual conditions existing in each country, including the role that there is attributed to FDI within development strategies of the emerging economies. Theoretical and empirical studies have attempted to explain the phenomenon of FDI through their economic and financial implications, considering their resilience, stability and dominant character of all types of foreign investments. The purpose of the paper is to analyze the trends of FDI flows and the impact that FDI inflows exert on the economic growth of Romania. The results show that FDI has a positive effect on the economic growth for the period analyzed 2000 - 2013.

  12. Productivity Spillovers from Foreign Direct Investment: What If Productivity is No Longer a Black Box?

    Directory of Open Access Journals (Sweden)

    Toan Thang Tran

    2013-07-01

    Full Text Available While the positive productivity spillover from Foreign Direct Investment (FDI to domestic owned firms in host countries is unequivocally emphasized in theory, the empirical evidence is contradictory. This paper, based on firm level data in Vietnam (enterprise census, 2000-2005, provides more inside on that. Using time-varying stochastic frontier approach, the study decomposed the change of productivity into technical change, technical efficiency change and scale efficiency change. The evidence from estimating the spillovers in each corresponding components suggest that horizontal FDI bring negative spillovers, mainly to technical change but positive spillovers to technical efficiency. Vertical FDI also have mixed impacts to domestic owned firm’s productivity.Keywords: Stochastic frontier model, foreign direct investment, productivity spillover, panel data

  13. Foreign direct investment (FDI) in energy/electricity projects in the economies in transition

    International Nuclear Information System (INIS)

    Brendow, K.

    1995-01-01

    Registered foreign direct investments (FDI) in energy/ electricity projects in central and eastern Europe and the CIS are weak and disappointing compared with expectations and business opportunities. In addition, energy FDI is highly concentrated in oil and gas exploration/extraction. FDI opportunities in electricity generation, transmission and distribution while being explored, have not been implemented, mostly for legislation restriction reasons towards foreign participation. The major issue appears to be the extent of privatization of this politically and socially sensitive industry. Progress are made in Hungary, Poland and the Czech Republic. A significant breakthrough depends on political stability, economic recovery and progress in privatization. 2 figs

  14. Regulatory policy and the location of bio-pharmaceutical foreign direct investment in Europe.

    Science.gov (United States)

    Koenig, Pamina; Macgarvie, Megan

    2011-09-01

    This paper examines the relationship between cross-country differences in drug price regulation and the location of biopharmaceutical Foreign Direct Investment (FDI) in Europe. Simple theory predicts that price regulation in one country might affect total investment, but not the location of that investment, if sales are global. Nevertheless, some manufacturers threaten that the introduction of price regulation in a country will motivate them to move their investments to other countries. Are such threats cheap talk, or is there evidence that firms avoid price-controlling countries when making FDI location choices? We use data on 527 investments initiated in 27 European countries between 2002 and 2009 and find that investors are less likely to choose countries with price controls, after controlling for other determinants of investment. We also observe a relative decline in investment in countries that increased the stringency of regulatory regimes during our sample period. The effect is restricted to non-manufacturing investments and is most robust for those related to administrative functions. Copyright © 2011 Elsevier B.V. All rights reserved.

  15. The Determinants of Inward Foreign Direct Investment: the Case of Malaysia

    OpenAIRE

    Yong Ting Aw; Tuck Cheong Tang

    2009-01-01

    This study empirically explores the role of corruption, and the impact of China joining the WTO in 2001 on inward foreign direct investment (FDI) in Malaysia. From the empirical tests, this study suggests:- (1) FDI and its determinants are cointegrated; (2) Openness, interest rate, inflation rate, the joining of China into the WTO, and the level of corruption are the major determinants explaining inward FDI in Malaysia, both in the long-run as well as short- run. In general, these findings do...

  16. The Determinants of Foreign Direct Investment in Europe and Asia: A Comparison Study

    OpenAIRE

    Deogratias, Denis Dawson

    2013-01-01

    ABSTRACT This research study makes use of the institutional FDI fitness framework to study and compare the main determinants of foreign direct investment in Europe and Asia. The main categories of FDI fitness explored included market fitness, government fitness and educational fitness. Within these, variables such as GDP, annual GDP growth, inflation, domestic credit, school enrolment, political stability and corruption perception were evaluated. Using panel data techniques to test th...

  17. How Does Corruption Influence the Effect of Foreign Direct Investment on Economic Growth?

    OpenAIRE

    Okada, Keisuke; Samreth, Sovannroeun

    2010-01-01

    We investigate the effect of Foreign Direct Investment (FDI) on economic growth by employing the data of 132 countries for the period from 1995 to 2008, considering the role of corruption in each country as an absorptive factor. The estimation results indicate that, although FDI alone does not promote economic growth, it has a significant effect on economic growth if the interaction term between FDI and corruption is considered. The threshold level of corruption separating the negative and...

  18. The Impact of Corruption and Money Laundering on Foreign Direct Investment in ASEAN

    OpenAIRE

    Nugraha, I Wayan Yasa

    2013-01-01

    The purpose of this study is to examine the impact of corruption and money laundering on Foreign Direct Investment (FDI) inflow in ASEAN by using panel data which covers ten years observation (2000€“2009) and five cross sections of selected countries i.e. Indonesia, Malaysia, Singapore, Thailand, and Philippines. The model is estimated using ordinary least square method with fixed effect estimation. The result shows that there is a significant positive association between the establishment of...

  19. Foreign Direct Investment, Ecological Withdrawals, and Natural-Resource-Dependent Economies

    OpenAIRE

    Long, Michael; Stretesky, Paul; Lynch, Michael

    2017-01-01

    This article examines the relationships between foreign direct investment (FDI) and natural resource depletion and natural resource rents for a longitudinal (2005–2013: N = 125 nations) sample of less developed countries (LDCs). Theoretically, we argue that FDI contributes to increased ecological withdrawals and dependence on the natural resource sector for economic growth within countries. We hypothesized that LDCs with higher levels of FDI would also have higher levels of natural resource d...

  20. The Connection between Foreign Direct Investment and Unemployment Rate in the United States

    OpenAIRE

    Mihaela Simionescu; Mirel-Daniel Simionescu

    2017-01-01

    Considering that foreign direct investment (FDI) is the principal mechanism for economic globalization, this study analyzes the relationship between FDI and unemployment rate in the US. A vector error correction model was built for checking the long-run and the short-term relationship between FDI inflows and the absolute variation of the unemployment rate in the current period compared to previous period. The quarterly data covered the period from 2000 to 2016. The empirical findings showed t...

  1. Determinants of Outward Foreign Direct Investments from Small Island Developing States

    OpenAIRE

    Densil A. Williams

    2009-01-01

    Problem statement: Although there is a burgeoning literature on the rise of Multinational Enterprises (MNEs) from developing economies, comparatively less work exists on MNEs from small, developing economies. Given the precipitous rise in the level of outward foreign direct investments from small, economies, it is still not clear in the academic literature and for policy purposes, those factors in the home environment which influence the rise of these multinational enterprises from these smal...

  2. THE EFFECTS OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIES OF CENTRAL AND EASTERN EUROPE COUNTRIES

    Directory of Open Access Journals (Sweden)

    CUCOŞ PAULA – ROXANA

    2016-08-01

    Full Text Available The present study aims to highlight the positive impact that foreign direct investments have on occupancy rate, on government revenue and economic growth of Central and Eastern Europe countries. The period of time that was analyzed is conducted from 1993 to 2012. Results have validated what the literature says, namely that FDI exerts a positive influence on economic growth in the FDI receiving countries.

  3. The Intangible Assets of Korean Manufacturing Firms for Foreign Direct Investment

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    Sunghoon Hong

    2004-12-01

    Full Text Available This paper attempts to apply the intangible assets approach to the emerging multinational enterprises of Korea. More specifically, it tries to empirically analyze whether Korean firms investing in foreign markets possess more advanced intangible assets than those investing only in the domestic market, and whether Korean firms exploit different types of tangible assets in different host regions. The following conclusions have been drawn by analyzing the data on Korea manufacturing firms listed on the Stock Exchange. First, firms investing in foreign markets possess more advanced intangible assets than domestic market-oriented ones. More specifically, firms investing in the Western developed region are shown to be superior in the economies of scale, R&D, advertising intensity, capital intensity, and interfirm linkages, whereas those investing in the Asian developing region are superior only in the economies of scale and organizational skills. This implies that Korean firms operating in developed countries seem to exploit a wider range of intangible assets to address intense competition and sophisticated demand in the host markets. And, when firms investing in the developed and developing regions are compared directly, the former group are found to exploit technological capability and interfirm linkages more intensively. Second, availability of internal funds and human capital intensity do not show statistical significances, implying that these abilities are not different between firms investing in foreign markets and the domestic market. Third, Korean multinational enterprises are more similar to Japanese than Western ones in terms that they actively exploit organizational skills and interfirm network. Nonetheless, these conclusions have been derived by analyzing the data on parent firms, based on the assumption that Korean overseas subsidiaries commonly share the intangible assets of their parents. This weakness is mainly due to the limited

  4. The Impact of Foreign Direct Investment on the Export Performance: Empirical Evidence for Western Balkan Countries

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    Dr.Sc. Nasir Selimi

    2016-07-01

    Full Text Available Recently there are many authors that have studied and analyzed the impact of foreign direct investments (FDI on the export performance. They have different opinions about the effect of foreign direct investments on the export performance. Some of them in their papers conclude that FDI have positive effect on the export performance and some not. There are also findings that FDI do not have any impact on the export performance. Of course for economic benefit of host country it is not important only the amount of FDI, but also their structure. To measure the effect of FDI on the export performance is not easy. Therefore, the main objective of this paper is to analyze empirically the foreign direct investments and exports performance during the period of 1996-2013 in Western Balkan countries. The paper also investigates for the fixed effects and individual heterogeneity across countries and years. Based on the panel regression techniques and Least Square Dummy Variable (LSDV regression method, FDI positively affect export performance in the sample countries in various model specifications. The results and conclusions of this paper we hope that will help everybody who are interested and studying this matter, especially the policy makers.  The last ones have the obligation to facilitate and promote the export if they award confirm that FDI contribute on developing their economy.

  5. Determinants of foreign direct investment in Lesotho: evidence from cointegration and error correction modeling

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    Malefa Rose Malefane

    2013-02-01

    Full Text Available Over the past decade, Lesotho has recorded a substantial increase in levels of foreign direct investment (FDI inflow, part of it prompted by trade privileges. Building on the extant literature, this study provides an empirical analysis of determinants of FDI in Lesotho. The study looks at how macroeconomic stability, regulatory frameworks, political stability and market size affect FDI.  The evidence from this study shows that some of the foreign enterprises in Lesotho are there to serve a bigger South African market. Also, the country has benefited from a more export-oriented investment promotion strategy. Critical issues however remain that must be addressed if the country is to attract more FDI and retain existing investors .These issues pertain to bureaucratic red-tape, corruption and political instability.

  6. Foreign direct investment vs domestic investment across the European Union. Case study: Romania

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    Romeo Victor IONESCU

    2015-11-01

    Full Text Available The paper deals with the idea that investment process is important not only for the economic growth, but for the global integration. There is a powerful connection between FDI and domestic investments. As a result, the analysis is focused on FDI flows in EU28 and Euro area. The comparative analysis is followed by regression, in order to point out the disparities between Member States and their trend. The average value of inward and outward FDI flows is analysed using FDI intensity. A distinct part of the paper is focused on domestic investment process and analyses total investment, investment in construction and investment in equipment. The analysis is supported by the latest official statistical data, pertinent diagrams and tables. The main conclusion of the paper is that the economic crisis in Europe led to a decrease in FDI and domestic investment flows.

  7. STRATEGIC MOTIVATIONS OF AUSTRALIAN AND NEW ZEALAND MANUFACTURING FOREIGN DIRECT INVESTMENTS IN INTERNATIONAL MARKETS

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    Rizwan Tahir

    2011-07-01

    Full Text Available We empirically investigate how different location-specific variables and strategic motives influenced Australian and New Zealand (ANZ firms' ownership strategy choices in foreign markets between 1998 and 2008. This study is the first to analyse how strategic motives and ownership-specific, location-specific, and internalisation variables have influenced the ownership structure choices of ANZ firms in foreign markets. The results indicate that large market potential and low levels of cultural distance increase the probability that ANZ manufacturing firms will undertake wholly owned subsidiary (WOS ownership structures and market-seeking (MS and/or efficiency-seeking (ES foreign direct investment (FDI. Low exchange rate fluctuation increases the probability that ANZ manufacturing firms will undertake WOS-type risk reduction-seeking (RRS FDI.

  8. Impact of Foreign Direct Investment on the Unemployment Rate in Malaysia

    Science.gov (United States)

    Muhd Irpan, Hamidah; Mat Saad, Rosfadzimi; Nor, Abu Hassan Shaari Md; Noor, Abd Halim Md; Ibrahim, Noorazilah

    2016-04-01

    Malaysia as a developing country needs support from other countries for economic growth. This is done by receiving massive foreign direct investment (FDI) which contributes to a higher employment rate. Higher employment leads to a better living among Malaysians while increasing its gross domestic product (GDP). During 2009, Malaysia faced a downward trend on the FDI. In many studies, decreasing FDI affects employment rate significantly. This study focuses on the impact of FDI on employment rate in Malaysia. Other factors such as the number of foreign workers, gross domestic product (GDP) and exchange rate (EXCR) are also included in the study. Data used in the study is annual data spanning from 1980 to 2012. Autoregressive distributed lag (ARDL) model is used to determine the long run relationship between the variables. The study finds that FDI, number of foreign workers, and GDP significantly influence the unemployment rate in Malaysia.

  9. Determinants of Foreign Direct Investments in Transition Economies: Case of Commonwealth of Independent Countries

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    Sobir Shukurov

    2016-01-01

    Full Text Available While there has been voluminous research on the determinants of FDI for developed and developing countries, little has been done on this issue for transition economies, especially, for the Commonwealth of Independent States (CIS countries. the present paper examines the determinants of inward Foreign Direct Investment (FDI flows in the CIS during 1995–2010. the results of empirical analysis using panel data models, conducted with the purpose of identifying the factors that determine the motivation and decision of multinational companies (MNC to invest in CIS economies, show that regardless of the presence of high investment risk in transition economies, the choice of FDI location always depends on a preliminary analysis of countries’ advantages (FDI stock, market size, abundance in natural resources and disadvantages at macro level (fiscal imbalance and inflation. These pre‑existing conditions can always roughly predict the type of FDI (resource-seeking, market‑seeking, efficiency-seeking.

  10. THE DUALITY OF FOREIGN DIRECT INVESTMENTS. SUSTAINABLE GROWTH FOR COMPANIES AND COUNTRIES

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    LIVIU NEAMŢU

    2016-04-01

    Full Text Available Current civilization increasingly relies more and more on economic interdependence. In this context, the organizations, be they companies or states, are forced to grow by integrating these interdependencies into their development process. In this process of interdependent integration each participant identifies advantages wishing to exploit their own development process, pursuing a sustainable kind of development by avoiding any risks and identify as many opportunities. Direct investments in various world economies represent the spearhead for this process of identifying opportunities and reduce risk in a global development process. This process ensures both the safety on medium and long-term development and rapid application for their development plans of both companies and the economies of various countries of the world. Through this study we identified the main opportunities sought by world states in this process of internationalization of business and globalization of markets. But we also highlighted the limitations of this process and regulation needs of investing processes in order to ensure the sustainability of the process. The second advantaged component in this process of international expansion and increase of economic interconnection is represented by multinationals enjoying benefits far superior to those of states in the medium-term development. However the limits of investing process force the companies to require certain advantages or guarantees during the progress of investment processes. Thus, we highlight a duality of foreign direct investment opposing on the one hand the companies interested to secure their international operations and liberalization of markets and states requiring a relatively regulated investment process to avoid dependence on foreign capital.

  11. Foreign Direct Investment and the Survival of Domestic Private Firms in Viet Nam

    DEFF Research Database (Denmark)

    Kokko, Ari; Thang, Tran Toan

    2014-01-01

    Foreign direct investment (FDI) may benefit local firms in the host country through various kinds of spillovers, but it may also raise competition and result in the crowding out of domestic firms. Using detailed firm-level data for the period 2001–2008, this paper examines the aggregate effect...... of FDI on the survival of domestic private firms in Viet Nam. We estimate the impact of both horizontal and vertical FDI and explore how the presence of state-owned enterprises (SOEs) influences the exit hazard for private firms. The results suggest that horizontal and upstream FDI raise the exit hazard...... significantly, while downstream FDI may reduce the hazard. The presence of SOEs has a direct negative effect on the survival odds of local private firms in the same industry, but there is also an indirect impact on the exit hazard from FDI. Local firms are more vulnerable to foreign entry in sectors with high...

  12. Pengaruh Reformasi Ekonomi India Mengenai Foreign Direct Investment (Fdi) Terhadap Strategi Investasi Softbank Group Corporation Di India2013-2016

    OpenAIRE

    Sumbari, Titi; Harto, Syafri

    2017-01-01

    This research analyze about the impact of economic reforms in India regarding foreign direct investment (FDI) toward Softbank Group Corporation's investment strategy in India in 2013-2016. The economic reforms undertaken by the India government on FDI provides an opportunity for Softbank Group Corporation to invest in India. The investment is poured on telecommunications and internet sector in India through the provision of capital to startup and e-commerce firms in India. In addition investm...

  13. Foreign Direct Investment and Energy Supply in the Middle East and North Africa: A Correlational Study

    Science.gov (United States)

    Elghali, Siddig

    Middle East and North Africa countries have been criticized for failing to utilize foreign direct investment energy resources efficiently. The changing of energy resources environment of the past decades with its growing emphasis on the importance of imminent energy supply challenges require strategists to consider different types of energy resources investment to improve energy supply. One type of energy investment will show effectiveness and efficiency in utilizing foreign direct investment in exposing RE, fossil fuels, natural gas, and reducing CO2 emissions. The purpose of this quantitative correlational study was to utilize foreign direct investment to predict total primary energy supply in the Middle East and North Africa region between 1971 and 2013. The study was conducted using a sample size of 43 years of energy supply resources and foreign direct investment from 1971 to 2013, which includes all of the years for which FDI is available. RE potential may equip Middle East and North Africa countries with sustainable and clean electricity for centuries to come, as non-renewable energy resources may not meet the demands globally and domestically or environmentally. As demands for fossil fuels grow, carbon emissions will increase. RE may be a better option of CO 2 emissions sequestration and will increase electricity to rural areas without government subsidies and complex decision-making policies. RE infrastructure will reduce water desalinization costs, cooling systems, and be useful in heating. Establishing concentrated solar power may be useful for the region cooperation, negotiations, and integration to share this energy. The alternative sought to fossil fuels was nuclear power. However, nuclear power depends on depleting, non-renewable uranium resources. The cost of uranium will increase if widely used and the presence of a nuclear plant in an unstable region is unsafe. Thus, renewable energy as a long-term option is efficient. A nonlinear regression

  14. Do Transport Infrastructures Promote the Foreign Direct Investments Attractiveness? Empirical Investigation from Four North African Countries

    Directory of Open Access Journals (Sweden)

    Samir Saidi

    2018-03-01

    Full Text Available The relationship among foreign direct investments and economic growth is a very controversial issue that has given rise to an abundant literature. Numerous research studies examine the bidirectional causal relationship and investigate the major determinants of these investments. In the same order of ideas, this article gives an empirical study from four North African countries to evaluate the role of transport infrastructures to improve the territorial attractiveness for the foreign direct investment. The present paper starts by a theoretical study explaining the role of transport as a major determinant of FDI. In a second section, we represent the empirical study. By using an econometric model with panel data, we found that traditional determinants of FDI have the most significant influence on the international investors’ decision. However, the same findings verify a positive impact of transport and consider it as a new important factor with strategic issues that cannot be avoided. The empirical validation from the four countries leads to verify that it is necessary to adopt development strategies that take into account the transport infrastructures and logistics function

  15. Impact of Foreign Direct Investment and Economic Growth in Ghana: A Cointegration Analysis

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    Samuel Antwi

    2013-07-01

    Full Text Available Foreign direct investment (FDI has been an important source of economic growth for Ghana, bringing in capital investment, technology and management knowledge needed for economic growth. This paper aims to study the relationship between FDI and economic growth in Ghana for the period 1980-2010 using time series data. The data used in this study was mainly secondary data collected from the period, 1980 to 2010 consisting of yearly observations for each variable. The real GDP growth and foreign direct investment net inflows as percent of GDP (FDI ratio data were taken from the World Banks World Development Indicators 2011 CD Rom. Yearly time series data covering the period 1980-2010 for which data was available was used. The cointegration methodology is applied on yearly data of FDI, GDP and GNI to determine the extent to which these variables are related. The study establishes that a long-run equilibrium and causal relationship exists between the dependent variable; FDI and the two independent variables under consideration namely, GDP and GNI. It was determined that in the short-run, effects of GDP and GNI volatility on FDI are nearly imaginary. These findings hold practical implications for policy makers, government and investors.

  16. The assessment of corruption impact on the inflow of foreign direct investment

    Science.gov (United States)

    Gasanova, Ayshan; Medvedev, Alexander N.; Komotskiy, Evgeny I.

    2017-06-01

    The aim of this paper is to investigate the impact of corruption on the inflow of foreign direct investment (FDI). The data, taken from official sources, Transparency International and the Heritage Foundation, have been treated in a special program "Deductor Studio Academic" by the method of Machine Learning (cluster analysis using Kohonen Self-Organizing Maps). There was composed a Kohonen map, in which the countries were divided into 4 clusters: countries with low levels of corruption and high level of FDI inflow, countries with low level of corruption and FDI above average, countries with average level of corruption and the average level of FDI, and countries with high level of corruption and low level of FDI. The research has shown that corruption influences the investment attractiveness of the host country. This means that in countries where the level of corruption is low and economic environment is attractive, the level of foreign direct investment is high, and in those countries where the level of corruption is high and and economic attractiveness is low - the level of investment is low. However, the study identified countries which have high level of corruption and high FDI inflow - China, India, Brazil and Russia (BRIC countries). These countries are the exception from the rule due to the wide domestic market, cheap labour, the wealth of natural resources - all these factors increase the investment attractiveness of these countries. It was found that corruption in BRIC countries has similarity being a controlled and predictable phenomenon. This allows calculating the cost of corruption for accounting it in business projects.

  17. The effects of public debt on foreign direct investment in South Africa (1983-2013: An empirical analysis

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    Mary Oyemowo Oche

    2016-12-01

    Full Text Available The political move in South Africa occurred against a setting of high government deficits. Efforts have been made over the years by the government to reduce fiscal deficit and inflation, liberalize the capital account and the financial system as well as reduce tariffs. The main objective of this study, therefore, is to empirically investigate the effect of public debt on foreign direct investment in South African for the period 1983 – 2013. The study employs a Vector Error Correction Model, which provides both the long run and short run relationships among the variables. The long run results indicate that the relationship between public debt and foreign direct investment, as well as interest rate and foreign direct investment, is positive and statistically significant, while there is an insignificant negative relationship between exchange rate and foreign direct investment. Based on the long run results, the study, thus, recommend that the level of public debt and interest rate should increase so that the level of foreign direct investment can increase in the country. However, the policy of depreciation of rand is considered inappropriate for the economy if the desire is to increase the level of foreign direct investment in the country

  18. THE MIGRATING NATURE OF FOREIGN DIRECT INVESTMENTS AND THEIR IMPACT ON ECONOMIC GROWTH

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    Boghean Carmen

    2015-07-01

    Full Text Available The global economic crisis of 2008-2009 has reignited the debate concerning the pertinence of financial integration, both in industrially advanced and emergent economies as well. Thus, the crisis provides a new chance to revise the analysis comparing the international capital flows and economic growth. The foreign direct investments of the past few years have become increasingly important for the global economic activity, and the professional literature has developed a numerous number of hypotheses concerning the relationship between FDI and economic growth. The idea that the increased FDI inflows result in stronger economic growth is currently very topical in several debates. Some of the previously conducted research argue that FDIs can have both positive and negative effects on the GDP. The careful analysis of the effects that FDIs may have on economic growth in various economic sectors of the recipient country has resulted in various findings. FDIs can have negative effects on the economic growth prospects of the recipient countries when they lead to substantial reversed flows in the form of revenues from dividends or when multinationals obtain substantial privileges or other advantages in the recipient country. There are numerous research papers in professional literature that approach the relationship between foreign direct investments and economic growth. The research in the field has intensified in the past decade, due to the increasingly important weight of FDI in the total capital flows. The present research will analyse the relation between economic growth and the amount of international capital flows in order to identify to what extend foreign direct investments help increase the level of economic growth. The analysis we are suggesting encompasses the group of developed countries, developing countries, as well as those countries identified as transitioning during 1970-2013. The main objective of the present research is to identify and

  19. Economic reform in Vietnam - the role of foreign direct investment and trade policy

    International Nuclear Information System (INIS)

    Tran, D.L.

    1998-11-01

    Vietnam was one of the five poorest countries in the world in the 1980's. Since then, Vietnam has adopted a market economic policy, and she has made substantial economic progress. In the last 10 years Meanwhile Vietnam's per capita income has increased by 3 times, the volume of export doubled very two years, and the inflation rate was reduced to 4.5 % in 1997 from 775 % in 1986. The GDP also has increased, the exchange rate with the US$ was stabilized and foreign direct investment (FDI) and trade has increased. There was about US$35 billion were invested by the foreign investors between 1987 to the middle of June 1998. However, the current crisis in the economies of Southeast Asian countries has put pressure on Vietnam to rethink seriously her future reform program with respect to stabilization and sustainable current economic policies. Since FDI is an imperative for the development of a country like Vietnam, it is necessary to use this capital very careful for her economy. Thus, the main objective of this dissertation is to study the role of FDI in the development of Vietnam. To examine this objective, various investigations were made, especially focusing on development dimensions such as reforming state enterprises, foreign trade policy, foreign investment and so on. Therefore, in the future, FDI and privatization policies should be strengthened to maintain and create an international market. Moreover, there are some major reforms required to transform the state sector into a private sector with appropriate policy measures, such as improving management of financial companies, developing the agricultural sector and minimizing bureaucracy and red tapism of the government. This dissertation provides a set of recommendations how to strengthen Vietnams economic and market situation in the 21st century. (author)

  20. Foreign Direct Investment, Environmental INGO Presence and Carbon Dioxide Emissions in Less-Developed Countries, 1980-2000

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    Andrew Jorgenson

    2010-10-01

    Full Text Available The authors engage foreign investment dependence and world society theories to examine environmental harms in less-developed countries. Results of cross-national random effects panel regression models indicate that foreign investment in manufacturing contributes to total carbon dioxide emissions and emissions per unit of production. World society integration in the context of environmental international non-governmental organization presence does not directly suppress emissions. However, a stronger presence of such organizations in some less-developed nations appears to mitigate the impacts of foreign investment on anthropogenic emissions. These results hold, net of population, level of development, and other structural factors.

  1. CENTRAL AND EASTERN EUROPEAN COUNTRIES IN EUROPEAN UNION IMPACT OF FOREIGN DIRECT INVESTMENTS

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    Carmen Apolzan

    2010-12-01

    Full Text Available Economic integration refers to trade unification between different states , and one of its most important aspects is liberalisation of capital movement. In this paper is presented a brief evolution of economic integration cases focusing on one of the most integrated economies European Union. We concentrate on the participation of foreign investors in different economies and their impact, taking the example of Central and Eastern European Countries and their markets. Also , the level of influence that direct investments in capital markets entails on the Stock Exchange evolution is presented for the case of Romania .

  2. The Impact of Corruption and Money Laundering on Foreign Direct Investment in ASEAN

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    I Wayan Yasa Nugraha

    2013-12-01

    Full Text Available The purpose of this study is to examine the impact of corruption and money laundering on Foreign Direct Investment (FDI inflow in ASEAN by using panel data which covers ten years observation (2000–2009 and five cross sections of selected countries i.e. Indonesia, Malaysia, Singapore, Thailand, and Philippines. The model is estimated using ordinary least square method with fixed effect estimation. The result shows that there is a significant positive association between the establishment of Financial Intelligence Unit (FIU and FDI inflow, while Corruption Perception Index (CPI, as the proxy of corruption, does not significantly affect FDI inflow.

  3. Foreign direct investment and income inequality in Central and Eastern Europe

    Directory of Open Access Journals (Sweden)

    Svilena MIHAYLOVA

    2015-06-01

    Full Text Available The paper explores the impact of foreign direct investment (FDI on income inequality in ten countries from Central and Eastern Europe (CEE in the period 1990 – 2012. First, the theoretical and empirical literature on the distributional effect of FDI is outlined. Second, we discuss briefly general trends in FDI inflow and income inequality in the countries from CEE after 1990. Third, we estimate several fixed effects regression models and find that FDI has the potential to exert influence on income inequality but this effect varies depending on the level of education and economic development of the host countries.

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

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    Napiórkowski1 Tomasz M.

    2014-10-01

    Full Text Available 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.

  5. The impact of foreign direct investment and economic growth on carbon dioxide emissions in Vietnam

    OpenAIRE

    Thi Ha, Pham

    2017-01-01

    This paper examines the relationship between foreign direct investment (FDI), economic growth,and carbon dioxide (CO_2)emissions in Vietnam during the period 1988-2015 by applying the autoregressive distributed lag (ARDL) approach. The results reveal that pollution haven hypothesis does not exist in Vietnam since FDI is good for environment in the long-run,and it is not significant in the short-run. However,economic growth causes pollution in the long-run,and it is insignificant in the short-...

  6. Productivity Spillovers from Foreign Direct Investment: What If Productivity is No Longer a Black Box?

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    Toan Thang Tran

    2011-04-01

    Full Text Available While the positive productivity spillover from Foreign Direct Investment (FDI to domestic owned firms in host countries is unequivocally emphasized in theory, the empirical evidence is contradictory. This paper, based on firm level data in Vietnam (enterprise census, 2000-2005, provides more inside on that. Using time-varying stochastic frontier approach, the study decomposed the change of productivity into technical change, technical efficiency change and scale efficiency change. The evidence from estimating the spillovers in each corresponding components suggest that horizontal FDI bring negative spillovers, mainly to technical change but positive spillovers to technical efficiency. Vertical FDI also have mixed impacts to domestic owned firm’s productivity.

  7. The Influence of Brexit on the Foreign Direct Investment Projects and Inflows in the United Kingdom

    OpenAIRE

    Simionescu, Mihaela

    2017-01-01

    The main purpose of this study is to assess the impact of Brexit on the foreign direct investment (FDI) in the United Kingdom. As a novelty, compare to previous studies from the literature, the research focused on two proxies for FDI: FDI projects with the associated new and safeguarded jobs and FDI inflows as percent of GDP. Moreover, other methods were used to measure the Brexit impact on the FDI: a gravity model approach based on mixed-effects Poisson models and a counterfactual analysis b...

  8. INDIA’S FOREIGN DIRECT INVESTMENT: CURRENT STATUS, ISSUES AND POLICY RECOMMENDATIONS

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    Mukesh Ranga

    2010-12-01

    Full Text Available Foreign Direct Investment (FDI as an important driver of growth. It is an important source of non debt financial resources for country for economic development. Besides it is a means of achieving technical know-how and employment generation of employment. However, many are of the view that FDI is a big threat to sovereignty of host and domestic business houses. Faster exploitation of natural resources for profit may deprive host from such resources in long run. Midst of debate on pros and cons of FDI, world economy has observed a phenomenal change in volume and pattern of FDI. There is clearly an intense global competition of FDI. India is not behind this global race of attracting foreign investment. India emerged as an attractive FDI destination in services but has failed to evolve a manufacturing hub which has greater economic benefit. FDI though one of the important sources of financing the economic development, but not is not a solution for poverty eradication, unemployment and other economic ills. India needs a massive investment to achieve the goals of vision 20-20. Policy makers need to ensure transparency and consistency in policy making along with comprehensive long term development strategy.

  9. Multiple finances, margins of foreign direct investment and aggregate industry productivity

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    Jiarui Zhang

    2012-03-01

    Full Text Available Based on a heterogeneous firm set-up, we model firms’ access to the internal capital market, bank finance as well as bond finance and investigate how firms’ adjustment among multiple sources of finance affects their performance in foreign direct investment and aggregate industry productivity. We find that when facing a bank credit shock (e.g. tighter bank lending, firms with different productivities react differently. Less productive firms exit from the foreign market due to a lack of funds while the more productive resort to bond finance to sustain their multinational status. The increased demand for bond finance as compensation for decreased bank finance by the surviving multinationals exacerbates the competition in the bond market and bids up the bond return rate, which triggers a Melitz-type selection effect through the bond market and brings aggregate industry gains.However, the divestment of those failing FDI firms and the consequently reduced bond financing demand mitigate this effect.

  10. The importance of foreign direct investment for South East European countries' agriculture

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    Stojadinović-Jovanović Sandra

    2015-01-01

    Full Text Available As agriculture is strategically important sector for economic development and growth, it is also important every mode of foreign participation in agriculture, including foreign direct investments (FDI. The aim of the paper is to consider whether there are opportunities and potentials for improvements in SEE countries' agriculture through FDI and in which segments. Therefore, the paper analyses agricultural characteristics within other macroeconomic characteristics of SEE countries' economies and also possible FDI impacts on agriculture aiming to determine if there are opportunities for improvements in SEE agriculture through FDI. Research results, presented in the paper, suggest that FDI has significant potential for support and improvement of SEE countries' agricultural performances. However, there is a need for higher level of FDI in order to use potential positive effect as well as recognition of these potential benefits from FDI inflow in agriculture by the governments and policy makers.

  11. Foreign direct investment and trade in health services: a review of the literature.

    Science.gov (United States)

    Smith, Richard D

    2004-12-01

    Globalization is a key challenge facing health policy-makers. A significant aspect of this is direct trade in health services, a result of the rise of transnational corporations, challenges in health care financing, porous borders and improved technology creating the scope for increased 'foreign direct investment' (FDI) in health care. This has gathered momentum with the General Agreement on Trade in Services (GATS), which aims to further liberalize trade in services, and within which FDI has been noted as perhaps the most critical area for trade negotiation. Given the rapid development of this area, there are little empirical data. This paper therefore seeks to provide the first comprehensive and systematic review of evidence concerning FDI and health services. This process included electronic bibliographic database searches, website searches and correspondence with experts in the area of trade in health services, from which 76 papers, books and reports were reviewed. Perhaps due to the rapid developments in this area, most of the literature is speculative, polarized between those arguing for the benefits of liberalization and those arguing against. However, there seem to be three issues which emerge as of most importance: (i) the extent to which a national health system is commercialized per se is of more significance than whether investment in it is foreign or domestic; (ii) the national regulatory environment and its 'strength' will significantly determine the economic and health impact of FDI, the effectiveness of safeguard measures, and the stability of GATS commitments; and (iii) any negotiations will depend upon parties having a common understanding of what is being negotiated, and the interpretation of key definitions is thus critical. Each of these issues is explored in some depth, with the overall conclusion that countries should take a step back and first think through the risks and benefits of commercialization of their health sector, rather than being

  12. The Quality of Entrepreneurial Environment as a Factor of Foreign Direct Investments Inflows

    Directory of Open Access Journals (Sweden)

    Peter Kuzmisin

    2013-12-01

    Full Text Available The content of this paper is built on the fact that foreign direct investments have the potential to influence the structure and quality of economic development and competitiveness that many scientific researches and studies have already confirmed. The paper presents entrepreneurial environment as a significant factor for increasing country’s competitiveness. It clarifies and proves relationship between entrepreneurial environment, or more precisely its barriers, and foreign direct investment inflows. The starting point is identification of the barriers of the Slovak entrepreneurial environment according to Doing Business 2012 by comparing Slovakia with the Visegrad Four Countries. Subsequently relationship of barriers (paying taxes, trading across borders, enforcing contracts, protecting investors and FDI inflows on the sample of 25 leading countries for foreign investors according to FDI Confidence Index (Brazil, China, Germany, India, USA etc. is tested by Spearman's rank correlation test. The paper specifies barriers of EE, which removal would have a real impact on increasing FDI inflows into economy of Slovakia with relevant effects on its competitiveness.Research limitations were determined by the availability of statistical data, relatively large sample of surveyed economies in the world and comparison with other assessments (indices of FDI and competitiveness of countries. Given the limits on the scope of a magazine article, we will continue in our research in more detail in the future. Specific attention in this context will be devoted to the impact of investment incentives on FDI inflows. Methodology and selection of applied testing tool in synergy with selected statistical set of datas can bring new approach to the studied field and can stimulate extension of possibilities reached in this paper. The value of this paper lays in the specification of weak points of the Slovak entrepreneurial environment in the context of  its location

  13. THE CORRELATION BETWEEN THE EXCHANGE RATE AND THE DIRECT FOREIGN INVESTMENTS

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    Halmi Mirela

    2012-07-01

    Full Text Available Since the fall of the monetary system from Bretton Woods, based on a system of fixed rates, numerous theoretical and empirical articles have emerged through which the volatility of the exchange rate and the commercial influxes was analyzed and the identification of specific connections regarding the transmission of the effects of the modification of the exchange rapport of a currency in economy was tried. The general idea from these works start from the uncertainties regarding the evolution of a currency in comparison to another and their effects on the goods and services balance of a state. Important works from the domain are evaluated. The authors are renowned researchers in the area of international finances and some of them are part of the personnel of the most important international finance-banking institutions such as the International Monetary Fund and the Bank of International Settlements. The studies regarding the relation between the exchange rates and the direct foreign investments are contradictory: some do not find a significant influence of the exchange rate and other demonstrate that there is a strong connection between the two variables. If a connection between the two variables is established, it remains to be settled if the connection is direct or reversed. The Granger causality test identified the characteristics of the relation between the direct foreign investments and the exchange rate. The conclusions of the research mark out the complex nature of the relation between the two variables, the results being extremely heterogeneous from one country to another.

  14. Foreign direct investment, institutional development, and environmental externalities: evidence from China.

    Science.gov (United States)

    Wang, Danny T; Chen, Wendy Y

    2014-03-15

    The question of how foreign direct investment (FDI) affects a host country's natural environment has generated much debate but little consensus. Building on an institution-based theory, this article examines how the institutional development of a host setting affects the degree of FDI-related environmental externalities in China (specifically, industrial sulfur dioxide emissions). With a panel data set of 287 Chinese cities, over the period 2002-2009, this study reveals that FDI in general induces negative environmental externalities. Investments from OECD countries increase sulfur dioxide emissions, whereas FDI from Hong Kong, Macau, and Taiwan shows no significant effect. Institutional development reduces the impacts of FDI across the board. By focusing on the moderating role of institutions, this study sheds new light on the long-debated relationships among FDI, institutions, and the environments of the host countries. Copyright © 2014 Elsevier Ltd. All rights reserved.

  15. The Impact of Foreign Direct Investment on Developing Economies and the Environment The Impact of Foreign Direct Investment on Developing Economies and the Environment

    Directory of Open Access Journals (Sweden)

    Anne Marie Zwerg

    2008-12-01

    Full Text Available This article is about the impact of foreign direct investment on developing economies and the environment. All of us that are concerned about the environment should ask ourselves if the increase in capital mobility associated with the world-wide process of  liberalization, deregulation and privatization, known as the Neo-liberal global regime, has contributed to the problems of higher emissions, ozone layer destruction, and pollution of water sources, as well as to create false economic bubbles that lead to increased consumption in these regions whilst forcing the destruction of the environment by the poor in order to survive and cope with the roles their society demands. Neo-liberal practices such as those enforced in developing countries like Colombia, while seeking to attract foreign investment to push their economies, tend to generate a false aggregated demand growth that in most cases is not sustainable in the long term, increases global unemployment, unleash destructive competitive processes and weaken government’s ability to regulate business in the citizens` best interests.Este artículo trata sobre el impacto de inversión extranjera directa en economíasen vías de desarrollo y el medio ambiente. Todos los que nos preocupamos por elmedio ambiente debemos preguntarnos, si el aumento en la movilidad de capitales asociada con el proceso mundial de liberalización, desregulación y privatización,conocido como “neoliberalismo”, ha contribuido a problemas de emisiones másaltas, destrucción de la capa de ozono, y polución de fuentes de agua, así como a lacreación de falsas burbujas económicas que llevan a aumentar el consumo en estasregiones, obligando a los más pobres a destruir el medio ambiente para sobrevivir ypoder cumplir con los roles impuestos por la sociedad. Prácticas neoliberales talescomo las implantadas en países en vías de desarrollo, como Colombia, en busquedade alcanzar mayor inversión extranjera para

  16. The Analysis of Investment Environment and Foreign Direct Investment Prognostication: Lithuanian Case

    OpenAIRE

    Gaspareniene, L

    2015-01-01

    The aim of this article is to research the investment environment and to prognosticate the trends of FDI in Lithuania. The methods of the research include systematic and comparative analysis of the scientific literature and linear regression and trend analysis. The results of the research have revealed that the trend and amount of FDI in Lithuania strongly correlate. The linear regression equation is also growing, which proposes that over the next two years FDI in Lithuan...

  17. Economic Growth, Foreign Direct Investment and CO2 Emissions in China: A Panel Granger Causality Analysis

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    Hongfeng Peng

    2016-03-01

    Full Text Available Using a sample of province-level panel data, this paper investigates the Granger causality associations among economic growth (GDP, foreign direct investment (FDI and CO2 emissions in China. By applying the bootstrap Granger panel causality approach (Kónya, 2006, we consider both cross-sectional dependence and homogeneity of different regions in China. The empirical results support that the causality direction not only works in a single direction either from GDP to FDI (in Yunnan or from FDI to GDP (in Beijing, Neimenggu, Jilin, Shanxi and Gansu, but it also works in both directions (in Henan. Moreover, we document that GDP is Granger-causing CO2 emissions in Neimenggu, Hubei, Guangxi and Gansu while there is bidirectional causality between these two variables in Shanxi. In the end, we identify the unidirectional causality from FDI to CO2 emissions in Beijing, Henan, Guizhou and Shanxi, and the bidirectional causality between FDI and CO2 emissions in Neimenggu.

  18. Foreign Direct Investment, Environmental INGO Presence and Carbon Dioxide Emissions in Less-Developed Countries, 1980-2000

    OpenAIRE

    Andrew Jorgenson; Christopher Dick

    2010-01-01

    The authors engage foreign investment dependence and world society theories to examine environmental harms in less-developed countries. Results of cross-national random effects panel regression models indicate that foreign investment in manufacturing contributes to total carbon dioxide emissions and emissions per unit of production. World society integration in the context of environmental international non-governmental organization presence does not directly suppress emissions. However, a st...

  19. The trade-off between foreign direct investments and exports: The role of multiple dimensions of distance

    NARCIS (Netherlands)

    Lankhuizen, M.B.M.; de Groot, H.L.F.; Linders, G.M.

    2011-01-01

    To serve foreign markets, firms can either export or set up a local subsidiary through horizontal foreign direct investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between countries is large, while exports become more important if

  20. Determinants of Foreign Direct Investments in Bulgaria and Romania in the Context of Recent Economic Crisis

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    Mirel-Daniel Simionescu

    2017-03-01

    Full Text Available The objective of this paper is to select some relevant macroeconomic determinants for foreign direct investment (FDI in Bulgaria and Romania since the start of the recent economic crisis (2008-2015. Even if the economic recession installed in 2009 in Romania, the foreign investors’ decisions were influenced by the moment of global recession from 2008. A Bayesian approach was proposed, because of the small sample for the variables in analyzed period: FDI as percent of GDP, real GDP rate, unemployment rate, inflation rate, real interest rate, real effective exchange rate index (2010=100 and money demand (M2 as percent of GDP. The estimation results reflected that foreign investors in both countries were attracted by the increase in GDP from a year to another. On the other hand, for Bulgaria the inflation rate was the strongest determinant, indicating the economic stability of the country that made huge efforts in getting one digit inflation rate. In Romania, as expected, the foreign investors were searching for cheap labour force and the increase in unemployment rate attracted more FDI during the crisis period.

  1. Investing in the Future World Order: Geoeconomic Strategy and Foreign Direct Investment

    Science.gov (United States)

    2017-06-01

    2014, but the WTO ruled against the United States in favor of China stating that due to the narrow definition of what is considered a government...those matters. For investment policy purposes, this definition is narrower: systems and assets, whether physical or virtual, so vital to the United...the Master, Not Victim, of Globalisation ,” accessed April 21, 2017, https://www.ft.com/content/9c7bfa42-e479-11e6-9645-c9357a75844a. 13 Financial

  2. The new determinant creation theory: a way to attract new foreign direct investment flows

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    Juan Carlos Botello

    2015-03-01

    Full Text Available According to the literature related to the movement of foreign direct investment (FDI worldwide, there are two main causes for these flows. The first one is related to the decision taken by companies to invest in certain markets according to their own international strategy and, the second corresponds to the government’s policy designed to attract capital through the use of various factors such as infrastructure, skilled labour, cheap labour, industrial policy, natural resources, gross domestic product, the legal system, geographic location, cancellation fees, among others. Thus, governments attract capitals to certain types of industries using the attractiveness of their determinants. Considering the above approach, if a government wants to attract capital to an industrial sector different than to which traditionally it tries to attract, should it create new determinants to attract new investment flows? This paper proposes a new theory to attract new investment flows based on the creation of new determinants. To develop this new determinant creation theory, the case of Mexico is analyzed.

  3. Firm Characteristics and their Effects on Foreign Direct Investment Evidence from Romania, Republic of Moldova and Republic of Turkey

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    Doina Prodan Palade

    2016-12-01

    Full Text Available The purpose of this paper is to examine whether the firm accounting and financial performance ratios are reflected in the level of the Foreign Direct Investment and which one plays the most important role in attracting the foreign investors. the paper investigates the prior research works on this topic, underlining the influence of different factors on the level of Foreign Direct Investment. The sample is made of 25 randomly extracted firms listed on Bucharest Stock Exchange, for the fiscal year 2014. We constructed and tested a multiple linear regression model, using the level of Foreign Direct Investment as the dependent variable and 22 financial ratios, as independent variables. the authors found a positive effect of the financial ratios such as the net turnover to networking capital, equity multiplier, and net profitability ratio on the level of Foreign Direct Investment. the results of the research show that to enhance Foreign Direct Investment, corporations must improve their accounting and financial performance. The originality of this study results from the fact that it takes into consideration three different economic environments: Romania, Turkey and Moldova, respectively a European Union member country, a candidate to the European Union and a non- European Union country.

  4. FOREIGN DIRECT INVESTMENT IN POST-CONFLICT COUNTRIES: THE CASE OF IRAQ’S OIL AND ELECTRICITY SECTORS

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    Ghassan Faraj Hanna

    2014-04-01

    Full Text Available Foreign direct investment is new phenomenon to Iraq, a post conflict country with abundance of natural resources. With dominant state-controlled public sector, attracting foreign investment is an added challenge to an economy devastated by years of wars. A qualitative case study was conducted to assess determinants of foreign direct investment in Iraq’s energy sector. Data was collected from interviews with business and government subject matter experts, and a review of publically available documents. Lack of security, political instability, corruption, and inadequate government policies towards foreign direct investment as symptoms found and typically shared by other post-conflict countries. The persistence of violence was not seen as a deterrent; however, foreign direct investment activity in the energy sector was virtually limited to the semi-autonomous region of Kurdistan. Investments were either wholly-owned or joint-venture enterprises. Implications to other post conflict countries, using Kuwait and Nigeria as illustrative examples, are presented and recommendations made.

  5. Multilateral negotiations in foreign investment

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    David Orlando Ruiz Castro

    2016-04-01

    Full Text Available Direct foreign investment is one of the most important economic variables in the world. Aspects related to international investment agreements are reaching an outstanding place in economic international diplomacy. Nowadays, in the multilateral level there is not an agreement regarding investment and therefore this study is focused on this particular type of agreement. In order to reach this objective this study shows, first of all, how different attempts have been developed to get a multicultural a agreement regarding investment, and to refuse the general opinion that says that exponential growth of foreign investment flows in recent years has given impulse to launch a multilateral investment agreement. Secondly, this study discusses about regulations related to foreign investment under current WTO regulations, such as investment, measure agreements, and service agreement. Then, it analyzes what has happened inside the WTO from the creation of the investment team at the Singapore Conference to the failed Conference in Cancun. Finally, it analyzes the main arguments against the multilateral agreement and the effects of future possible multilateral negotiations in investment and it ends with some recommendations and conclusions.

  6. Is Russia successful in attracting foreign direct investment? Evidence based on gravity model estimation

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    Mariev Oleg

    2016-09-01

    Full Text Available The aim of this paper is twofold. First, it is to answer the question of whether Russia is successful in attracting foreign direct investment (FDI. Second, it is to identify partner countries that “overinvest” and “underinvest” in the Russian economy. We do this by calculating potential FDI inflows to Russia and comparing them with actual values. This research is associated with the empirical estimation of factors explaining FDI flows between countries. The methodological foundation used for the research is the gravity model of foreign direct investment. In discussing the pros and cons of different econometric methods of the estimation gravity equation, we conclude that the Poisson pseudo maximum likelihood method with instrumental variables (IV PPML is one of the best options in our case. Using a database covering about 70% of FDI flows for the period of 2001-2011, we discover the following factors that explain the variance of bilateral FDI flows in the world economy: GDP value of investing country, GDP value of recipient country, distance between countries, remoteness of investor country, remoteness of recipient country, level of institutions development in host country, wage level in host country, membership of two countries in a regional economic union, common official language, common border and colonial relationships between countries in the past. The potential values of FDI inflows are calculated using coefficients of regressors from the econometric model. We discover that the Russian economy performs very well in attracting FDI: the actual FDI inflows exceed potential values by 1.72 times. Large developed countries (France, Germany, UK, Italy overinvest in the Russian economy, while smaller and less developed countries (Czech Republic, Belarus, Denmark, Ukraine underinvest in Russia. Countries of Southeast Asia (China, South Korea, Japan also underinvest in the Russian economy.

  7. Foreign direct investment in the health care sector and most-favoured locations in developing countries.

    Science.gov (United States)

    Outreville, J François

    2007-12-01

    Given the growing importance of the health care sector and the significant development of trade in health services, foreign direct investment (FDI) in this sector has gathered momentum with the General Agreement on Trade in Services. Despite extensive case based research and publications in recent years on health care markets and the rise of private sectors, it is surprisingly difficult to find evidence on the relative importance of the largest multinational corporations (MNCs) operating in the health care sector. The objective of the paper is to identify some of the determinants of foreign investment of the largest MNCs operating in this industry. The list of the largest MNCs has been compiled using company websites and data is available for 41 developing economies for which at least two MNCs have an office (branch and/or affiliate). The results of this study have some important implications. They indicate that location-specific advantages of host countries, including good governance, do provide an explication of the internationalization of firms in some developing countries rather than others.

  8. MODELING THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH – EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN COUNTRIES

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    Florin Cornel Dumiter

    2014-10-01

    Full Text Available The internationalization and globalization of economical problems, industrial manufacturing, and the movement of financial capital, determine the investment activities to become a global one, with implications for all the national and world wide economies. As a result, the foreign direct investments, throughout their economical constitution and substance, form a part of the economical relationships and international cooperation, which bring an essential contribution to the economical growth, creating work places, optimize the allocation of resources, enabling technology transfer and stimulate trading. Foreign Direct Investments have presently become the most important source of external funding for all the countries, regardless of their level of development. This kind of investments proved to be a more stable and used source of funding than the portfolio investments or the bank loans, as they are less affected by the financial crisis. Against this background, global direct financial investments flows remain one of the main manifestations of globalization, which is easily demonstrated if we reflect on the fact that currently over 50% of everything that happens in the world, be it product or services, is carried out by subsidiaries of transnational corporations, namely companies resulting from direct financial investments. It is estimated that the volume, structure and geographical distribution of foreign direct investments will be "patterned" in the proportion of 50% by the international economic situation, the implications of the crisis on the global financial system.

  9. FOREIGN DIRECT INVESTMENT (FDI, KEBIJAKAN INDUSTRI, DAN MASALAH PENGANGGURAN: STUDI EMPIRIK DI INDONESIA

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    Syamsudin Syamsudin

    2008-06-01

    Full Text Available Unemployment has become one of the major problems in Indonesia in the last eight years. SBY administration decides many economic policies in order to overcome the problem, but it seems not enough. However, the rate of foreign direct investment in Indonesia is increasing in the last three years. Macroeconomic indicators show that everything in its right track. This research analyzes the effects of FDI rate to employment rate in Indonesia. This research uses empirical data from ADB from 1983-2004. This research uses error correction model as a tool of analyses. The result shows that FDI rate does not have effect to employment rate. It means that FDI does not open job opportunity for many unemployer in Indonesia. In the end, this paper discusses the possibility of industrial policy in order to provide direction for government to develop Indonesia’s industry.

  10. Foreign direct investment and policy framework: New Granger causality evidence from African countries

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    Rafiu Adewale Aregbeshola

    2014-11-01

    Full Text Available The strategic importance of foreign direct investment in the contemporary economies has been tremendous.While various countries (developed and developing economies have benefitted from the direct and spillovereffects of FDI, which range from improved technology and knowledge diffusion through to individual andcorporate capability enhancement, FDI outflow remains largely channelled to the developed countries, andthe rapidly developing countries in Asia and South America. Evidence suggests that the developmentenhancingeffects of FDI are felt more highly in the developing economies, such as economies in Africa.However, FDI inflow to the developing economies has been very low. Using data generated from the AfricanDevelopment Indicators (ADI between 1980 and 2008 in econometric estimations, this paper finds thatgovernment policies (especially fiscal and monetary policies play significant roles in facilitating FDI inflow tothe African countries studied. The study thereby suggests an improved regulatory framework to make Africamore attractive to inflow of FDI.

  11. The impact of sovereign credit rating downgrade to foreign direct investment in South Africa

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    Virimai Mugobo

    2016-02-01

    Full Text Available Foreign Direct Investment (FDI has grown to be an attractive alternative to borrowing from multilateral institutions such as the World Bank and the International Monetary Fund for emerging economies. Global investors prefer investing in countries which have received a Sovereign Credit Rating (SCR as they perceive it as a good measure of risk allocation. This research applied an event study methodology to SCR downgrades from the three international CRAs (Moody, Standard and Poor and Fitch over the period 2004 to 2014 to investigate the impact of SCR change on FDI flow into South Africa. Empirical findings show that there is a statistically significant relationship between FDI and SCR downgrades. Evidence also shows that not all downgrades from the three CRAs equally affect investors’ decisions as Moody’s downgrades tend to dominate, causing FDI to reaction at with a higher magnitude. However, not only SCR downgrade determines FDI flow into SA but there is a host of other fundamentals that government should address to attract investment and stabilise financial markets

  12. Present international patterns of foreign direct investment: underlying causes and some policy implications for Brazil

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    François Chesnais

    2013-12-01

    Full Text Available An important feature of the 1980s has been the substantial fall in the flow of foreign direct investment (FDI to the developing countries and also, with the limited exception of the Asian NIE (Korea, Taiwan, Malaysia, Singapore and China, to the newly industrialized countries, in particular those in Latin America. FDI has been concentrated more than ever among the advanced industrialized countries of OECD. The same period has witnessed a number of extremely important changes, both in the nature and location of basic or key technologies, the role of technology in industrial competitiveness; the most appropriate industrial management paradigm following the difficulties of the "Fordist" one; the nature of predominant international supply or market structures; and the relationships between productive and financial capital. Today a number of governments in developing countries and in NIC, among them the new government of Brazil, are again engaged in an attempt to attract FDI and to make foreign capital one of the major pillars of industrial revival and future growth. This paper argues that this policy objective is both fairly illusory and largely mistaken. It is fairly illusory in that it seriously underestimates the nature and strength of the structural factors which have been at work since the mid-1970s and seriously modified the strategies and investment priorities of the TNC which under took the brunt of the investment in developing countries and NICs in the earlier "golden age" of the 1960s and 1970s . The objective of luring foreign capital again to Brazil in ways and on a level similar to the 1960s is also largely mistaken in that it fails to recognize that the change in technological paradigms has modified the parameters of international technology transfers (cf. Ernst and O'Connor, 1989 and made indigenous and endogenous industrial growth dependent to a much higher degree than in the previous period (19601975 on factors which foreign capital

  13. Are Foreign Investments Replacing Domestic Investments? - Evidence from Finnish Manufacturing

    OpenAIRE

    Oksanen, Olli-Pekka

    2006-01-01

    This study analyses the relationship between firms’ foreign and domestic investments using a panel dataset containing 218 Finnish manufacturing firms during the years 1998-2002. The study examines whether foreign investments increase or decrease domestic investments and whether the effect varies between investments directed to developed markets or emerging markets. Financial constraints’ effect on the relationship is also investigated. The empirical part estimates an empirical investment equa...

  14. The Impact of Economic Growth and Foreign Direct Investment on CO2 Emissions: The Case of Turkey

    OpenAIRE

    KIZILKAYA, Oktay

    2017-01-01

    Abstract. The aim of this study is to evaluate the relationship between carbon dioxide emissions, economic growth, foreign direct investment and energy consumption in Turkey. To this extent, ARDL bounds testing method to cointegration is being implemented over the period of 1970-2014.  The long run estimation results suggest that economic growth and energy consumption have positive impacts on CO2 emissions. However, this research did not find anysignificant relationship between foreign direct...

  15. PERCEPTION OF FOREIGN DIRECT INVESTMENT AS A RESULT OF CULTURAL DIFFERENTIATION

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    Sebastian D. TOCAR

    2017-06-01

    Full Text Available The impact of foreign direct investment (FDI on the economy is difficult to overestimate. The influence of cultural factors on FDI is recognized in the scientific community. There are attempts to approach the subject, although they are usually superficial and focused on a certain side of the relation, qualitative analysis is rarely used. The paper presents a qualitative approach to the link between the country's culture and FDI. We propose the results of content analysis of the articles published in three countries: Romania, Ukraine and Moldova, which aim to highlight differences in the vision of FDI as a result of cultural differentiation and cohere with the amount of FDI. The research results aim to underline the role of cultural differentiation between the countries.

  16. Potential risks of atracting direct foreign investments to the formation of regional clusters

    Directory of Open Access Journals (Sweden)

    Galina Dmitrievna Boush

    2012-03-01

    Full Text Available This paper discussesthe role ofdirectforeign investmentsin the processes of regionalclusters’ creation. The new type of clusters was identified - clusters that are created bytransnational corporations (TNCsinvitedinto the territory.The authors analyzedthe globalexperience of creatingclusters byforeign direct investmentof transnational corporations and found out thatthere is much evidence thatindicatesa weakeconomic potentialof such projects.A statisticalanalysis of economic indicators of several foreign regional clusters (of this type showed that clustersof this typeare developedmainly due tomarket conditionsrather thanfrom its own resources. Correlationandregression analysisconfirmed the hypothesisofweak influence ofdirectforeign investment on economicpotentialof clustersin the early stagesof its development. The authors offer a set ofindicators to assessthe effectiveness ofclusters’ performancein case of a highdependency on a foreigninvestment

  17. Interaction of Economic Freedom and Foreign Direct Investment Globally: Special Cases from Neglected Regions

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    Yhlas Sovbetov

    2017-06-01

    Full Text Available This paper studies the macroeconomic impact of economic freedom on foreign direct investments inflows in both global and regional panel analyses involving 156 countries through the period of 1995-2016. Unlike to prior literature, it includes often neglected nations such as Fragile and Conflict-Affected states, Sub-Saharan, Oceanian, and Post-Soviet countries. The paper finds a positive impact of economic freedom on FDI under fixed-effects model in global case where a unit change in economic freedom scales FDI inflows up to 1.15 units. More specifically, all 9 regions also refer to positive and significant impact of economic freedom on FDI. The highest impact is recorded in European countries, whereas the lowest ones are documented in Fragile-Conflict affected states, Sub-Saharan zone, and Oceanian countries.

  18. Implications Of Foreign Direct Investment, Financial Development And Real Exchange Rate For Economic Growth In Cameroon

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    Victalice Ngimanang Achamoh

    2016-05-01

    Full Text Available This paper assesses the effects of foreign direct investment (FDI, financial development and real exchange rate (RER on economic growth in Cameroon using Cameroon’s annual time series data spanning the period 1977 - 2010. To address these objectives, residual based Engle-Granger test, the OLS based Autoregressive Distributive Lag (ARDL bound testing and maximum likelihood based Johansen cointegration techniques are employed. Results of Unit roots tests show that all the series possessed unit roots at level or first difference form. The ARDL model and VECM results reveal that the RER has a significant negative effect on economic growth, while FDI and Financial Development relate positively to economic growth. These findings have implications for stimulating economic growth by increasing efficiency of the financial sector in allocating credit to the private sector and preventing real exchange rate appreciation in the shortrun.

  19. Foreign Direct Investment and the Transfer of Technologies to Angola’s Energy Sector

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    Albert Edgar Manyuchi

    2016-01-01

    Full Text Available The relationship between foreign direct investment (FDI and the transfer of technology is undergoing a great deal of academic scrutiny and policy analysis. A growing body of literature shows that FDI can be a channel by which to transfer and/or acquire technology; however, there is a paucity of empirical studies on this as it relates to African economies. This article seeks to fill some of that gap by focusing on how FDI inflows are contributing to the transfer of technologies specifically into Angola’s energy sector. The analysis is based on qualitative research conducted in Angola in 2014 and reveals that energy production and distribution-technology infrastructure, including machinery and human skills, have been developed largely through FDI inflows. There is, however, no evidence that this FDI has enlarged Angola’s endogenous scientific and technological research capabilities in the energy sector; therefore, policies that promote these capabilities, especially manufacturing capabilities, should be introduced.

  20. Determinants Of Foreign Direct Investment In Mauritius Evidence From Time Series Data

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    Medha Kisto

    2017-08-01

    Full Text Available Over the last two decades Foreign Direct Investment FDI claimed an impressive economic record as it enables economy to transit from an agrarian to knowledge based economy. This paper focuses on the determinants and impact of FDI in Mauritius using annual time series data from 1975 through 2015. The Vector Error Correction Model VECM analysis reveals that macroeconomic variables namely inflation rates and exchange rate are among the major and important factor that affect FDI in Mauritius over this period of time. Exchange rate exhibited negative significant influence on FDI while interest rate affects FDI positively. The study therefore recommends that government should continue to diversify the export and tourism markets ensure stable macroeconomic policies implement reforms on doing business increase its expenditure in the area of infrastructural development and redirect FDI in productive sector of the economy as ways to accelerate the growth of Mauritian economy.

  1. THE EVOLUTION AND EFFECTS OF THE FOREIGN DIRECT INVESTMENTS IN ROMANIA

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    DOBROTĂ GABRIELA

    2014-02-01

    Full Text Available Foreign direct investments are an important component of financial resources needed for the development of any economy. Attract them should represent a desideratum in economic development strategies, fact which requires providing a favorable climate, generated by a set of economic, political, social or legal conditions. The effects generated by FDI at the macroeconomic level, are reported in plan of economic growth, at the level of balance of payments and the state budget, and also on the labor market. In the paper are presented aspects of the process of attracting FDI in Romania after the transition to market economy and is realized a meaningful analysis of flows and corresponding balances between 2003-2012. The research has enabled the formulation of important conclusions regarding the evolution of FDI, their effects and the favorable conditions for their assimilation in the romanian economy.

  2. THE SIGNIFICANCE OF FOREIGN DIRECT INVESTMENT IN COUNTRIES IN TRANSITION WITH THE PROJECTION OF FDI INFLOW IN SERBIA UNTIL 2020

    Directory of Open Access Journals (Sweden)

    STEVANOVIĆ Mirjana

    2016-11-01

    Full Text Available Foreign direct investments (FDI are the core and essence of every economic policy of any country, both in theory and in practice. In other words, we have fresh capital which is placed through foreign direct investment on the one hand and on the other hand, we have equity owners who use the opportunity to place it with the aim to make a profit. The inflow of foreign direct investments in countries in transition is analyzed in this paper, with a special emphasis on Serbia with the projection of inflow movement by the year 2020 (the statistical method of a linear growth trend was applied; problems the countries in transition are faced with, legislative regulations, tax incentives

  3. Impact of Telecommunication Infrastructure, Market Size, Trade Openness and Labor Force on Foreign Direct Investment in ASEAN

    OpenAIRE

    Meidayati, Anis Wahyu

    2017-01-01

    AbstractForeign Direct Investment (FDI) in recent years has created a positive impact for ASEAN countries. FDI give spillover effects that directly contribute capital improvements, technological developments, and global market access, also skills and managerial transfers. In order to attract FDI inflow into country, ASEAN member countries need to know what factors which attract investment related to the needs of infrastructure types and other factors. The purpose of this study is examine the ...

  4. THE IMPACT OF FOREIGN DIRECT INVESTMENT (FDI ON AGRICULTURAL GROWTH IN NIGERIA (1979-2014

    Directory of Open Access Journals (Sweden)

    Zechariahs Benapugha OWUTUAMOR

    2018-03-01

    Full Text Available This study examining the impact of foreign direct investment (FDI and other macroeconomic variables on agricultural growth in Nigeria from 1981 to 2014, using annual time series data from Central Bank of Nigeria (CBN, World Bank and the United States of America (US Federal Reserve System. Data was analysed using trend analyses, unit root tests, co-integration tests, ordinary least squares (OLS regression and Granger causality tests, while the hypothesis was tested with F-test. Results revealed very low FDI inflow into agriculture, not commensurate with the share of agriculture to GDP. All significance were taken at the 5% probability level, i.e. p<0.05. There was positive non-significant relationship between agricultural growth and FDI in agriculture, meaning that FDI in agriculture has no direct impact on agricultural growth or the impact on agricultural growth is masked by other macroeconomic variables. Significant positive relationship exists between agricultural growth and macroeconomic instability, while interest rate differential had a significant negative relationship. There was unidirectional causality running from FDI in agriculture, stock of gross external debts, and variability of consumers’ price index to agricultural growth, while agricultural growth was significant in granger causing macroeconomic instability. Recommendations are government should not involve itself in business, but seek for and encourage more FDI for the agricultural sector, encourage joint ventures between foreign and domestic investors/entrepreneurs, ensure stability and consistency in its macroeconomic policies, while monetary policy rates should be fixed in such a way that it would attract the right amount of investments in agriculture.

  5. Analysis Of Supporting Factors On Foreign Direct Investment And Its Impact Toward Indonesian Employment And Export Performance Period 2005-2015

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    Suharto

    2017-09-01

    Full Text Available This research analyzes effects of foreign direct investment and Its Impact toward employment and export performance in Indonesia 2005-2015. This research with secondary data focuses on the Supporting factors in which attract foreign direct investment into Indonesia. This research focused on the problem First the impact of labor export results economic growth rate exchange rate inflation rate interest rate and tax toward foreign direct investment second the impact of foreign direct investment on the expansion of employment and export performance in Indonesia during the period 2005-2015. The result of this research explains that variables of human resourceslabor and export performance give positive effect as significantly to attracting foreign direct investment in Indonesia. While foreign direct investment in Indonesia gives positive effect to employment creation and to export performance.

  6. Investment in Information and Communication Technology inDeveloping Countries: The Effect of Foreign Direct Investment:Evidences from Sultanate of Oman

    OpenAIRE

    Alraja, Mansour Naser; Hammami, Samir; Samman, Hazem Mohammed Al

    2016-01-01

    Foreign direct investment (FDI) is a crucial tool developing the economy of any country if it is employed in a proper manner. Moreover, foreign direct investment has many effects; and one of them is thriving the information and communication technology (ICT) sector as a pivotal sector which includes four sub-sectors according to the World Bank (ICT Service Exports, ICT Goods Imports, High-Technology Exports and ICT Goods Exports). Hence, the aim of this paper is to identify the influence of f...

  7. Foreign Direct Investment and Government Policy in Central and Eastern Europe

    DEFF Research Database (Denmark)

    Meyer, Klaus E.; Jensen, Camilla

    2004-01-01

    , this chapter discusses how aspects of the institutional framework and FDI policy affect diverse types of investment projects. Acquisition and Greenfield investors are concerned with different aspects of government policy: privatization and regulatory policies for acquirers and investment incentives, regional...... policy and special economic zones for Greenfield investors. The shifting policy priorities have thus changed the types of projects undertaken by foreign investors in the region....

  8. The Impact Of Foreign Direct Investment On Turkish Economy 2010–2016

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    Isiks Aliya Zhkanova

    2017-12-01

    Full Text Available This study focuses on Foreign Direct Investment (FDI inflows and how they are linked with the economic indicators in Turkey including the Real Effective Exchange Rate (REER, and Gross Domestic Product per capita of Purchasing Power Parity - GDP (PPP in Turkey. The GDP (PPP variable is used because it shows significant causality on REER, along with the exchange rate volatility of the U.S Dollar in the Turkish stock market. Also, as an important sector of the Turkish economy, tourism revenue is elucidated according to the Organization for Economic Co-operation and Development (OECD data from 2016. The main objective of this study is to evaluate the impact of the FDI investment on economic condition in Turkey for the period between January 2010 and July 2016. The selected period is important because it represents the crucial time for Turkish economy following the 2008 global financial crisis along with the ongoing Civil War in neighboring Syria that had initiated in 2012, Turkish-Russian crises of 2015, and the military coup attempt in Turkey in 2016. It is argued that despite all the negative international and regional developments, FDI and Tourism play key roles in attracting income to the country. This is presented in the level of REER and GDP for PPP. The results also support the findings of many economists, who have previously asserted that the Turkish economic interaction is growing at a globalized level, and is able to compete with the other large attractive areas for foreign investors around the world. Finally, the results demonstrate that the tourism industry was the least affected sector in Turkey.

  9. Foreign direct investments in the role of strengthening the export competitiveness of the Serbian economy

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    Đurić Dejan

    2016-01-01

    Full Text Available The globalization of economic activity imposes the need for all countries to participate intensely in the current international economic cooperation and exchange processes of goods, services, labor and capital. Greater integration into international economic and trade flows is particularly important for small countries, given that the limitation of resources and insufficient domestic production impose the need for greater imports. On the other hand, import imposes a greater need for more exports so that the growing imports could be financed. Adjusting the challenges of globalization is an important task for all countries in order to accomplish basic economic goal, and that is the growth of living standards of all citizens. In this sense, in this paper, special attention is paid to the state of foreign trade and the analysis of the effects of FDI on export competitiveness and increase exports of the national economy, as one of the most important conditions of economic progress in the future. The main objective of this paper is to highlight the importance of the impact of foreign direct investments to strengthen the export activities of the Serbian economy, and the importance of intensification of export activity and qualitative changes in the structure of domestic exports.

  10. Foreign direct investment with regard to the economic growth of the Japanese economy

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    Milan Palát

    2011-01-01

    Full Text Available Foreign direct investment presents an indivisible part of the global economy and a major catalyst to development. The paper stresses out the importance of FDI in boosting the growth of the nation’s economy and is aimed at assessing the flow of inward FDI into Japan in the frame of the economic development of the country. Many studies reflected the superior managerial efficiency and productivity of foreign business companies operating in Japan and this is considered to be an asset of inward FDI into Japan. From the beginning of the reference period (with an exception of last two decades the ratio of FDI on gross domestic product in Japan remained quite stable. This economy witnessed augmented FDI flows in the 1990s but current economic situation aggravated by the global financial and economic crisis differs significantly from the development in previous years. A fitted developmental series using a logarithmic polynomial indicate the described trend of FDI in Japan. Based on results of methods of regression and correlation analysis (including testing the statistical significance, the correlation is evident between FDI and gross domestic product in the monitored country and the existence of a growth impact of FDI can be thus accepted.

  11. Transformation of the Central and East European passenger car industry: selective peripheral integration through foreign direct investment

    OpenAIRE

    Petr Pavlínek

    2002-01-01

    The Central and East European (CEE) passenger car industry underwent major transformations through foreign direct investment (FDI) in the 1990s. The author demonstrates that the effects of FDI on the passenger car industry have been profound, but geographically uneven. To understand the different regional and local strategies of foreign car producers better, the author introduces a classification of FDI in the passenger car industry based on the degree of embeddedness in local economies and r...

  12. Handbook of Land and Water Grabs in Africa; Foreign direct investment and food and water security

    NARCIS (Netherlands)

    Allan, T.; Keulertz, M.; Sojamo, S.; Warner, J.F.

    2012-01-01

    According to estimates by the International Land Coalition based at the International Fund for Agricultural Development (IFAD), 57 million hectares of land have been leased to foreign investors since 2007. Current research has focused on human rights issues related to inward investment in land but

  13. Direct foreign investment in power sector in India: Enron - a case study

    International Nuclear Information System (INIS)

    Singhyadav, S.

    1996-01-01

    In order to develop its economy at a faster pace, India needs to make large investments in its infrastructure - electric power being one such sector - domestic as well as foreign companies - to invest in this area. In response, Enron Corporation of USA entered into an agreement with the Maharashtra State Electricity Board to establish a 2-phase power project for a capacity of 2015 MW (695 MW in Phase I and 1320 MW in Phase II). Soon after the contract, there was a change of government in the State, as a result of elections. The new government scrapped the project tariff, etc. Since India is an emerging destination for foreign investments, scrapping of the project may have an adverse repercussion on the inflow of foreign capital in future as also on the cost of this capital. However, a renegotiated settlement will go a long way to establish the credibility of Enron as a serious multinational giant and India as a sage destination for foreign investments. (author). 19 refs., 3 tabs

  14. Foreign direct investment as an entry mode. An application in emerging economies

    NARCIS (Netherlands)

    Sels, A.T.H.

    2006-01-01

    This dissertation examines the determinants of foreign investment entry modes in Central and Eastern Europe during transition. Utilizing various theoretical bases in industrial organization and strategy, it attempts to distill a better understanding of the ownership choice between joint ventures and

  15. Foreign direct investment and technology spillovers in low and middle-income countries : a comparative cross-sectoral analysis

    NARCIS (Netherlands)

    Jacob, J.; Sasso, S.

    2015-01-01

    In this paper we analyse the trends in Foreign Direct Investment (FDI) flows worldwide across sectors and across value-chain activities, with a particular focus on low- and middle-income countries in comparison with advanced countries. We begin by discussing the growing fragmentation of global

  16. Testing for causality between the foreign direct investment, current account deficit, GDP and total credit: Evidence from G7

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    Akbas Yusuf Ekrem

    2013-01-01

    Full Text Available In this study, countries were analyzed between 1990 and 2011 in order to determine whether a causal relationship exists among current account deficit, GDP, foreign direct investment, and total credits of G7. Analysis took into account the cross-sectional dependence and was applied to test the causality among the variables form the panel. Firstly, panel unit root tests were used for determining stationary of variables. As a result of the panel unit root tests, it was found that GDP and foreign direct investment have a stationary structure and that total credits and current account deficit contain unit root. In order to see whether there is a long-term relationship among the variables or not, the panel co-integration test was used. As a result of the test, it was concluded that there is a co-integration relationship among the series. The possibility of a causal relationship was analyzed among the variables using the causality test developed by Elena Ivona Dumitrescu and Christophe Hurlin (2012. Results of the analysis showed a unidirectional causal relationship from current account deficit and foreign direct investment to GDP. Bidirectional causality was found between current account deficit and total credits. Finally, a unidirectional relationship was found from foreign direct investment to current account deficit and total credits.

  17. Good Governance and Foreign Direct Investment : A Legal Contribution to a Balanced Economic Development in the East African Community (EAC)

    NARCIS (Netherlands)

    Mbembe, Binda

    2015-01-01

    One of the objectives of the East African Community (EAC) is the promotion of a balanced economic development between its Partner States: Burundi, Kenya, Rwanda, Tanzania, and Uganda. And one of the ways to reach this economic development is the attraction of investment, especially Foreign Direct

  18. Producer firms, technology diffusion and spillovers to local suppliers : Examining the effects of Foreign Direct Investment and the technology gap

    NARCIS (Netherlands)

    Jordaan, J.A.

    2017-01-01

    In this paper, we conduct a detailed examination of the effects of Foreign Direct Investment (FDI) and the technology gap on local technology dissemination and spillovers. Using unique firm level data from surveys among FDI firms and domestic producer firms and a random sample of their suppliers in

  19. Exploitation, exploration, and how learning affects strategic intent in multinational enterprises' foreign direct investment decisions: A commentary essay

    NARCIS (Netherlands)

    Kamal, F.; Englis-Danskin, Paula

    2012-01-01

    Research on foreign direct investment is a rich vein of inquiry in international business and management literature. Scholars explore various aspects of FDI including the reasons for location selection. Chen and Yeh's research is in that tradition. Under the title of “Re-examining location

  20. Net profit flow per country from 1980 to 2009 : The long-term effects of foreign direct investment

    NARCIS (Netherlands)

    Akkermans, Dirk H.M.

    2017-01-01

    Aim of the paper The paper aims at describing and explaining net profit flows per country for the period 1980-2009. Net profit flows result from Foreign Direct Investment (FDI) stock and profit repatriation: inward stock creating a profit outflow and outward FDI stock a profit inflow. Profit flows,

  1. Foreign direct investment outflows in the forest products industry: the case of the United States and Japan

    Science.gov (United States)

    R.V. Nagubadi; D. Zhang

    2008-01-01

    This paper investigates the determinants of foreign direct investment (FDI) outflows from two major forest product importing countries: the U.S. and Japan. Exchange rate, per capita income, cost of capital, and cost of labour in host countries have significant impacts on the FDI outflows from these two countries. A complementary relationship is found between forest...

  2. Foreign Direct Investment, Economic Freedom and Economic Performance in Sub-Saharan Africa

    Directory of Open Access Journals (Sweden)

    Kazeem Bello Ajide

    2015-03-01

    Full Text Available The controversies that trailed whether direct impact of Foreign Direct Investment (FDI on growth are conditional on a certain intermediating links or not, has made an inquiry into the likely mediating links in the FDI growth space a recurring subject of discourse.While the importance of institution has prominently featured as playing a vital role on the one hand, economic freedom (a key institutional component has consistently been elected, as a good candidate surrogate on the other hand. It is against this backdrop this study examines the effect of FDI inflow on economic performance in the SSA region giving prominence to economic freedom. The results support the view that economic freedom is germane in influencing the economic-wide performance in the region but have insignificant effects on the different sector performances. It is recommended that economic freedom be given priority in the region and FDI should be attracted to other sectors other than the primary sector, as it is the case.

  3. Does Foreign Direct Investment Affect Green Growth? Evidence from China’s Experience

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    Shujing Yue

    2016-02-01

    Full Text Available Foreign Direct Investment (FDI not only affects the economic growth but also affects the environmental protection of the host country. With China’s background of pursuing green growth, we need to consider the performance of FDI from the economic and environmental benefit aspects. On this basis, using slacks-based measure directional distance function (SBMDDF to build up green growth efficiency, economic efficiency and environmental efficiency indexes, empirical research on FDI in 104 Chinese cities from 2004 to 2011 has shown that: (1 Different cities have differences in their green growth efficiency. Shenzhen city is always efficient in green economic growth. (2 Overall, FDI is positive on Chinese cities’ green growth. (3 When the green growth efficiency is broken down into economic efficiency and environmental efficiency, FDI promotes China’s economic green growth through both environmental benefits and economic benefits. (4 The effect of FDI differs in different sectors. FDI in the emission-intensive sector promotes green efficiency mainly through the improvement of economic efficiency. FDI in the non-emission-intensive sector promotes economic efficiency, environmental efficiency and green efficiency.

  4. Investimento direto estrangeiro e o desempenho das exportações brasileiras Foreign direct investment and the performance of Brazilian exports

    Directory of Open Access Journals (Sweden)

    Elaine Aparecida Fernandes

    2008-09-01

    Full Text Available Brazil, in the 1990s, assumed a remarkable position as a host of foreign direct investment. It is worth mentioning that the service sector received the highest proportion of foreign investment. This market seeking strategy was responsible for the growth of the Brazilian imports. The results are confirmed by the performance of foreign enterprises into different groups of activities. Those enterprises with majority of foreign capital have increased their imports the most from 1995 to 2000. Therefore, during the 1995-2000 period, this study does not support the view that foreign investment has directly improved the performance of the Brazilian exporting sector.

  5. A multi-criteria decision-making model for evaluating priorities for foreign direct investment

    Directory of Open Access Journals (Sweden)

    Korhan K. Gokmenoglu

    2015-10-01

    Full Text Available The objective of this study is to evaluate the relative priority of nine developed countries as a home country for foreign direct investment (FDI from the vantage point of the United States during three time periods: pre-crisis (2004-2006, crisis (2007-2009, and post-crisis (2010-2012. Our study suggests a methodology based on a combination of the analytic hierarchy process (AHP, the technique for order preference by similarity to ideal solution (TOPSIS, and the multi-period multi-attribute decision-making (MP-MADM technique. To investigate our research question, we selected fifteen robust FDI determinants from recent studies. The results for all three time periods show that productivity, market potential, market size, GDP growth and development have the highest priority in the decision-making process. On the other hand, we found that the 2007 global financial crisis significantly affected each variable in the decision-making process. During the crisis, two variables in particular - corruption and GDP growth - significantly increased in importance. These findings have far-reaching policy implications and can assist policymakers and investors in their strategic decision-making process.

  6. Foreign direct investment in the western Balkans: Privatization, institutional change, and banking sector dominance

    Directory of Open Access Journals (Sweden)

    Botrić Valerija

    2010-01-01

    Full Text Available The paper provides analysis of foreign direct investment (FDI dynamics and its determinants for the group of countries lately referred to as Western Balkans (non- EU ex-Yugoslavia countries plus Albania. Due to vulnerable external positions and enhanced funding requirements related to the EU accession and catching-up, FDI is often highly welcomed by government officials in the South East European (SEE countries. The notion that FDI is frequently accompanied by knowledge and know-how transfer makes this source of capital growth even more desirable than simple capital accumulation from frequently inadequate domestic savings. The analysis of the FDI determinants on the overall economy level conducted within the panel data framework aims to provide the answer whether the same factors as in Central and Eastern European countries, now new EU member states, are relevant for the sampled countries. Due to data limitations and the frequent emergence of new countries in the region, the analysis does not extend to the early transition period. Since it entails the beginning of the financial crisis, the comparison of the results obtained with those of previous studies will enable the discussion of internal versus external factors of FDI attraction in the region.

  7. Environmental Regulation, Foreign Direct Investment and Green Technological Progress—Evidence from Chinese Manufacturing Industries

    Directory of Open Access Journals (Sweden)

    Jiangfeng Hu

    2018-01-01

    Full Text Available This study examines the spillover effects of foreign direct investment (FDI on green technology progress rate (as measured by the green total factor productivity. The analysis utilizes two measures of FDI, labor-based FDI and capital-based FDI, and separately investigates four sets of industry classifications—high/low discharge regulation and high/low emission standard regulation. The results indicate that in the low discharge regulation and low emission standard regulation industry, labor-based FDI has a significant negative spillover effect, and capital-based FDI has a significant positive spillover effect. However, in the high-intensity environmental regulation industry, the negative influence of labor-based FDI is completely restrained, and capital-based FDI continues to play a significant positive green technological spillover effects. These findings have clear policy implications: the government should be gradually reducing the labor-based FDI inflow or increasing stringency of environmental regulation in order to reduce or eliminate the negative spillover effect of the labor-based FDI.

  8. The Composition Effect of Macroeconomic Factors on Foreign Direct Investment in Selected SAARC Countries

    Directory of Open Access Journals (Sweden)

    Mehwish MALIK

    2014-06-01

    Full Text Available The objective of the study is to investigate the most promising economic variables i.e., foreign direct investment (FDI, exports and financial development on economic growth in selected South Asian Association of Regional Co-corporation (SAARC countries. In addition, this study argued that whether FDI, Exports and financial development fosters or hinder economic growth in SAARC countries, for this purpose, panel data set of selected five SAARC countries namely, Bangladesh, India, Nepal, Pakistan and Srilanka considered for empirical consideration over a period of 1975 to 2011. By using two-stage least square (2SLSL technique, empirical evidence on the effects of FDI, exports and financial development on economic growth is mix in terms of apriori expectations. In case of Bangladesh, exports and broad money supply (M2 is the positive and significant contributor to increase economic growth, whereas, M2 increases India’s GDP. FDI is the only significant contributor to increase Pakistan’s economic growth. In case of Nepal and Srilanka, broad money supply increases economic growth, whereas, due to high dependency on imports, exports could not considerably increases economic growth in those regions.

  9. Foreign direct investment and liberalization policies in Pakistan: An empirical analysis

    Directory of Open Access Journals (Sweden)

    Rana Ejaz Ali Khan

    2014-12-01

    Full Text Available To enhance the inflow of foreign direct investment (FDI and ultimately to increase the economic growth, the countries have implemented a variety of financial and trade liberalization policies in the last three decades. Pakistan also initiated such type of policies. This study makes an analysis of the impact of liberalization (financial and trade in Pakistan, on the inflow of FDI using the time series data of 1971–2009. The DF-GLS test is used to determine the level of integration, and autoregressive distributed lag model to examine the long-run relationship. The results indicate that liberalization indicators, like financial liberalization index and trade openness along with real interest rate, negatively affect the inflow of FDI in Pakistan. Tax revenue of product also negatively affects the FDI. On the other hand, the gross fixed capital formation, infrastructure, and inflation positively influence the FDI in Pakistan. The market size (proxied by real gross domestic product has shown insignificant effect on FDI.

  10. Environmental Regulation, Foreign Direct Investment and Green Technological Progress-Evidence from Chinese Manufacturing Industries.

    Science.gov (United States)

    Hu, Jiangfeng; Wang, Zhao; Lian, Yuehan; Huang, Qinghua

    2018-01-29

    This study examines the spillover effects of foreign direct investment (FDI) on green technology progress rate (as measured by the green total factor productivity). The analysis utilizes two measures of FDI, labor-based FDI and capital-based FDI, and separately investigates four sets of industry classifications-high/low discharge regulation and high/low emission standard regulation. The results indicate that in the low discharge regulation and low emission standard regulation industry, labor-based FDI has a significant negative spillover effect, and capital-based FDI has a significant positive spillover effect. However, in the high-intensity environmental regulation industry, the negative influence of labor-based FDI is completely restrained, and capital-based FDI continues to play a significant positive green technological spillover effects. These findings have clear policy implications: the government should be gradually reducing the labor-based FDI inflow or increasing stringency of environmental regulation in order to reduce or eliminate the negative spillover effect of the labor-based FDI.

  11. Environmental Regulation, Foreign Direct Investment and Green Technological Progress—Evidence from Chinese Manufacturing Industries

    Science.gov (United States)

    Hu, Jiangfeng; Wang, Zhao; Lian, Yuehan; Huang, Qinghua

    2018-01-01

    This study examines the spillover effects of foreign direct investment (FDI) on green technology progress rate (as measured by the green total factor productivity). The analysis utilizes two measures of FDI, labor-based FDI and capital-based FDI, and separately investigates four sets of industry classifications—high/low discharge regulation and high/low emission standard regulation. The results indicate that in the low discharge regulation and low emission standard regulation industry, labor-based FDI has a significant negative spillover effect, and capital-based FDI has a significant positive spillover effect. However, in the high-intensity environmental regulation industry, the negative influence of labor-based FDI is completely restrained, and capital-based FDI continues to play a significant positive green technological spillover effects. These findings have clear policy implications: the government should be gradually reducing the labor-based FDI inflow or increasing stringency of environmental regulation in order to reduce or eliminate the negative spillover effect of the labor-based FDI. PMID:29382112

  12. Foreign direct investment and technology spillovers in Mexico: 20 years of NAFTA

    Directory of Open Access Journals (Sweden)

    Enrique Armas

    2017-10-01

    Full Text Available This article analyses the development of technology capabilities in the manufacturing sector of Mexico during the last two decades. It has been argued that the inclusion of Mexico in the North America Free Trade Agreement (NAFTA in 1994 would be enough to catch up with Canada and the United States. In this regard, trade liberalisation and foreign direct investment (FDI would have been two strategic tools to close the technology gap between Mexico and its commercial partners in North America. Yet, after twenty years of NAFTA, it has been demonstrated that many indigenous firms in Mexico must develop an absorptive capacity to benefit from FDI. This paper suggests that the debate on the Asian miracle in the 1990s could be an adequate theoretical framework to discuss technology development and industrialisation in the case of emerging economies. In fact, this debate reveals two alternative approaches to explain the development of technology capabilities: (i the accumulation view of growth, and (ii the assimilation view of growth. Therefore, the Asian miracle exemplifies how entrepreneurship, learning and a supporting innovation policy could be an adequate strategy to benefit from FDI and technology spillovers in the case of emerging economies.

  13. The Effect of European Accession Prospects on Foreign Direct Investment Flows

    OpenAIRE

    Hakan Gungor; Ayla Ogus Binatli

    2010-01-01

    The amount of FDI is increasing than any other international transactions during the last two decades. While countries remove barriers and implement policies to attract FDI inflows, the volume of foreign trade and investment increased .The objective of this paper is to enlighten the impact of EU accession of CEEC countries and Turkey on FDI flows into these countries. We perform Arrenalo-Bond - GMM model for the period of 1990-2009 for Poland, Hungary, Czech Republic, Estonia, Slovakia, Roman...

  14. IMPACT OF THE FOREIGN DIRECT INVESTMENT FROM THE MANUFACTURING SECTOR ON THE ROMANIAN IMPORTS OF INTERMEDIATE GOODS AND OF RAW MATERIALS

    Directory of Open Access Journals (Sweden)

    RAMONA DUMITRIU

    2010-01-01

    Full Text Available Increasing exports by stimulating the foreign direct investment could be a solution to the problem of the persistent trade balance deficit of Romania. However, in such an attempt there have to be taken into consideration the potential effects of the foreign direct investment on some categories of imports. This paper explores the dynamic relation between the foreign direct investment from the manufacturing sector and the Romanian imports of intermediate goods and raw materials. We found causality linkages between the foreign direct investment and the imports of intermediate goods, meaning that Romanian branches of the multinational companies prefer to import such goods instead of producing or buying from the domestic markets. Instead, we failed to identify any causality between the foreign direct investment and the imports of raw materials.

  15. Impact of Foreign Direct Investment on Economic growth of Ethiopia A Time Series Empirical Analysis, 1974-2011

    OpenAIRE

    Menamo, Meskerem Daniel

    2014-01-01

    Abstract This paper measures the impact of foreign direct investment (FDI) on economic growth in Ethiopia based on annual time series data over the period 1974 to 2011. It in particular examines how FDI affects GDP growth, both directly and also conditioning on trade liberalization that Ethiopia adopted in early 1990s. I estimate three different growth model specifications to investigate these relationships using Ordinary Least Square (OLS) method. Results show that two years lagged FDI has a...

  16. Modeling of Social Effect of Foreign Direct Investment in The Regions of Kazakhstan

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    Dinara Zhaksylykovna Rakhmatullayeva

    2015-06-01

    Full Text Available In the article, the authors estimated the social effect of foreign direct investments (FDI in the regions of Kazakhstan. In order to do it, the authors studied the dynamics of FDI of the region operating enterprises with foreign participation and the regional six indicators of socio-economic development during 2003-2013 on the basis of database of RK Agency on statistics. There are 16 regions of Kazakhstan were involved in the experiment (14 provinces and 2 cities of republican significant — Almaty and Astana. The research was carried out using the “simplified” version of the T. Saati’s Analytic Hierarchy Process (AHP mathematical apparatus and MS Excel. The constructed economic-mathematical model of an assessment of FDI impact on the population welfare and living quality in the regions was hypothetical as the expert estimates of hypothetical expert were used. The authors made a hypothesis: to receive tools for an assessment of the social effect of FDI in the regions of Kazakhstan — the Rating of regional priority of the factors (RPF Rating. The RPF Rating allowed to define a priority of the factors of the population welfare and living quality in the regions of the country and to calculate aggregate social effect of FDI in Kazakhstan, having allocated the directions of its action on each of six factors in a regional section. The research did not reveal a negative impact of FDI on socio-economic development of the regions; moreover the aggregate social effect of FDI is positive for all regions of Kazakhstan. The authors believe that RPF Rating can become as the important tool of soundness of socio-economic policy in the area of development of public-private partnership in the regions of Kazakhstan, and also positive social effects of FDI growth in the long term — all of this will result in promoting a long-term positive impact on the welfare and living quality of the population of the republic.

  17. Sustainable Markets Investment Briefings: Foreign investment contracts

    Energy Technology Data Exchange (ETDEWEB)

    Cotula, Lorenzo

    2007-08-15

    This is the fourth of a series of briefings which discuss the sustainable development issues raised by legal arrangements for the protection of foreign investment. The briefings are based on legal research by IIED and its partners. The goal is to provide accessible but accurate information for human rights, development and environmental organisations working on issues raised by foreign investment in low- and middle-income countries. Briefing 4 sets out some of the ways in which foreign investment contracts can impact on sustainable development.

  18. Does the Political Environment Affect Inflows of Foreign Direct Investment? Evidence from Emerging Markets

    Directory of Open Access Journals (Sweden)

    Michal Mádr

    2015-01-01

    Full Text Available The main aim of the paper is to identify and quantify the influence of the political environment on the inflows of foreign direct investment in emerging markets. The paper defines emerging markets as Middle Income Countries according to the evaluation of the World Bank. Our sample of countries contains 78 states. The reference period focuses on the period of 1996–2012 due to data availability. The evaluation of the political environment is based on three dimensions: the quality of democracy, political instability and the level of corruption, which are related to three subcomponents of the concept, Governance Matters, provided by the World Bank. The paper distinguishes between two types of political instability omitted in thematic literature, elite and non-elite. The former represents non-violent instability (minority governments, tension related to the holding of elections while the latter deals with violent forms of instability (civil wars, coups, ethnic and religious riots. The paper uses panel data regression analysis for the purpose of identification and quantification. The research uses fixed effects model with a cluster option. According to the results, the influence of the political environment on FDI is not entirely unequivocal in emerging markets; nevertheless, there is a statistically significant dimension – political instability (both parts. The quality of democracy and the level of corruption are significant only in some cases. The paper combines indicators frequently occurring in empirical literature (the Corruption Perception Index, Freedom in the World, Governance Matters with alternative proxies (the Herfindahl Index Government, the Political Terror Scale, the State Fragility Index, which seem to be a perspective for a future research.

  19. Does foreign direct investment affect environmental pollution in China's cities? A spatial econometric perspective.

    Science.gov (United States)

    Liu, Qianqian; Wang, Shaojian; Zhang, Wenzhong; Zhan, Dongsheng; Li, Jiaming

    2018-02-01

    Environmental pollution has aroused extensive concern worldwide. Existing literature on the relationship between foreign direct investment (FDI) and environmental pollution has, however, seldom taken into account spatial effects. Addressing this gap, this paper investigated the spatial agglomeration effects and dynamics at work in FDI and environmental pollution (namely, in waste soot and dust, sulfur dioxide, and wastewater) in 285 Chinese cities during the period 2003-2014, using global and local measures of spatial autocorrelation. Our results showed significant spatial autocorrelation in FDI and environmental pollution levels, both of which demonstrated obvious path dependence characteristics in their geographical distribution. A range of agglomeration regions were observed. The high-value and low-value agglomeration areas of FDI were not fully consistent with those of environmental pollution. This result indicates that higher inflows of FDI did not necessarily lead to greater environmental pollution from a geographic perspective, and vice versa. Spatial panel data models were further adopted to explore the impact of FDI on environmental pollution. The results of a spatial lag model (SLM) and a spatial error model (SEM) revealed that the inflow of FDI had distinct effects on different environmental pollutants, thereby confirming the Pollution Heaven Hypothesis and Pollution Halo Hypothesis. The inflow of FDI was found to have reduced waste soot and dust pollution to a certain extent, while it increased the degree of wastewater and sulfur dioxide pollution. The findings set out in this paper hold significant implications for Chinese environmental pollution protection. Copyright © 2017 Elsevier B.V. All rights reserved.

  20. The Linkage between China’s Foreign Direct Investment and Ghana’s Building and Construction Sector Performance

    Directory of Open Access Journals (Sweden)

    Kwasi BOAKYE-GYASI

    2016-11-01

    Full Text Available Over the years, China has contributed immensely to the development process of Ghana through foreign direct investments; providing financial aids’ improved management training skills, and the transfer of innovation and technological techniques. This research examines the relationship between China’s foreign direct investment and Ghana’s building and construction sector performance. By using a robust regression model, the results show that China’s FDI in Ghana’s building and construction sector has significant positive effect on the economic growth of Ghana due to strong increase in investors’ confidence in the Ghanaian economy. Thus, FDI contributes to economic growth when there is an improvement of the infrastructure and operational skills of the local building and construction companies. This will lead to the increase of revenue for citizens who are employed in this sector and thus leading to the overall economic development of the country.

  1. The trend of foreign direct investment movement: Did unintended nation brand of legal-families play an instrumental role?

    OpenAIRE

    Tse, Chin-Bun; Kam, Oi-Yan

    2018-01-01

    Combining the suggestion from Fan (2006) that a nation can have a brand image without deliberating efforts of nation branding and the work from Klerman et al. (2011) on Colonial History and effects on legal systems, we view that legal-systems could be an unintended nation brand that could instrumentally affect foreign direct investment (FDI) activities. We classify 193 countries according to their Colonial History or no-Colonial History into 5 legal-families. Applying Generalised Methods of M...

  2. The evaluation of Foreign Direct Investments and their impact in the economics of some transition countries: the case of Kosovo

    OpenAIRE

    Halil Kukaj; Anera Alishani

    2017-01-01

    The Foreign Direct Investment is suggested to have a positive impact on the economic growth of many countries, especially in the transition countries such as Kosovo. During the last century, the world has witnessed remarkable growth of FDI because they impact positively the overall strategy for economic and social development. This article will provide a general review of the FDIs and will focus on their economic implication on the developing countries and especially in Kosovo and some other ...

  3. The Relationship between Foreign Direct Investment from Thailand and Export on the Economic Growth of Laos

    Directory of Open Access Journals (Sweden)

    Thanet Wattanakul

    2017-09-01

    Full Text Available This study examines the relationship between Laos’s GDP, Thailand’s direct investment to Laos and Laos’s export to Thailand by using 44 quarters of data from 2005 Q1 to 2015 Q4. All relationships were studied using the vector error correction model (VECM. The results presented long run relationship from Laos’ GDP and Laos’ export to Thailand as well as from Thailand’s direct investment to Laos’s GDP and Laos’s export to Thailand. In the short run, there was only unidirectional relationship from Laos’s GDP to Laos’s exports to Thailand. This study indicates that Laos’s exporters receive benefits from Thailand’s direct investment contribution to accelerate economic growth in the short term. Therefore, Laos’s government should distribute income from the exporters to other economy sectors or spread the types of export goods into a larger range.

  4. 78 FR 14962 - BE-15: Annual Survey of Foreign Direct Investment in the United States

    Science.gov (United States)

    2013-03-08

    ... the BEA Web site at www.bea.gov/fdi . Definitions (a) United States, when used in a geographic sense..., including a government-sponsored agency). (d) Business enterprise means any organization, association... enterprise in which a foreign person has a direct and/or indirect ownership interest of at least 10 percent...

  5. Estimation of Effect of Foreign Direct Investment on the Russian Economy during Sanctions Based on Spillover Effects

    Directory of Open Access Journals (Sweden)

    Elena Anatolievna Fedorova

    2018-03-01

    Full Text Available The study estimates the effect of foreign direct investments (FDI on the efficiency of enterprises in Russia. The article test the following hypotheses: first – FDI coming from the countries that sanctioned Russia cause larger effect on the efficiency of local companies, unlike China and countries that didn’t impose sanctions, and the effect depends on the share of property of foreign investors in the local companies; second – increasing the volume of investments into research and development of receivers of FDI causes positive effect on the competitiveness of local enterprises; third – FDI into import substituting industries coming from countries that imposed sanctions cause lesser effect on the competitiveness and operational efficiency of Russian companies. The empirical base of the study includes 168 000 observations among 33 606 Russian enterprises during 2011–201. Based on the study, the authors partially confirm the first hypothesis and fully confirm the second and the third hypotheses

  6. The merger of commercial companies in the Saudi Arabian Stock Exchange (Tadawul) and its impact on the rights of Foreign Direct Investment (FDI) in the Saudi system

    OpenAIRE

    Ali Saeed Alshamrani

    2018-01-01

    This work focuses on the rights of Foreign Direct Investment (FDI) in Saudi Arabia when a merger occurs between two or more commercial companies in the Saudi Arabian Stock Exchange (Tadawul). This article aims to give a comprehensive and critical review of the new Saudi Arabia Companies Law 2015 and also the Foreign Investment Law 2000, and the extent to which these laws provide protection for foreign investors in Saudi Arabia. The article is divided into eight sections, as follows. The first...

  7. ON THE CAUSAL LINKS BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN NIGERIA, 1970-2008: AN APPLICATION OF GRANGER CAUSLITY AND CO-INTEGRATION TECHNIQUES

    Directory of Open Access Journals (Sweden)

    Abdullahi USMAN

    2010-03-01

    Full Text Available This paper examines the causal links between foreign direct investment and economic growth in Nigeria during the period 1970-2008. The authors employed the Granger causality and Johansen co-integration techniques to analyze the relationship and direction of causality between the variables. The Johansen co-integration statistic indicates that the variables are co-integrated, and the granger causality statistic reveals a unidirectional causality running from foreign direct investment to economic growth.

  8. Foreign Direct Investment and export performance: The Peruvian experience in the framework of APEC

    Directory of Open Access Journals (Sweden)

    Alexandra Carhuaricra Ubillus

    2016-12-01

    Full Text Available This research measures the impact of APEC economies FDI on Peru's total exports. Solving this question will help us understand the effect that this FDI has on the Peruvian economy through its export capacity, as well as determine whether or not this FDI stimulates an export-oriented industrialization. Using data from  Proinversion, Ministry of Foreign Trade and Tourism (MINCETUR, Central Reserve Bank, SUNAT, the World Bank and StatsAPEC we developed an ordinary least squares (OLS model  and observed that APEC economies FDI has a positive effect on exports. Specifically, an increase in 1 million soles of APEC FDI generates an increase of 44.37 million soles in exports. However, this positive effect has a decreasing marginal returrn as the investment stock rises.

  9. Political risk and foreign direct investment in Nigeria: New empirical evidence

    Directory of Open Access Journals (Sweden)

    Musa Hatim Koko

    2016-08-01

    Full Text Available The positive effect of globalization has continued to impact FDI inflow to developing countries during the last decade except for the rising influence of political risk in host locations. Mixed outcomes have trailed the findings related to the studies on FDI and political risk relationship and in particular on African countries like Nigeria. This paper investigated the effect of political risk on FDI inflow to Nigeria using secondary data from 2000 to 2014 using simple linear regression. The study combined from select variables, the institutional factors with location determinants peculiar to Nigeria’s risk environment. It is found that political risk holds a positive and significant association with FDI to Nigeria but not close enough to inhibit the inflow of foreign investment to the country. However, the findings provide a strong basis for policy shift in relation to security, country promotion and rebranding as well strengthening of institutions.

  10. An Econometric Analysis of the Determinants of Foreign Direct Investment in Africa

    Directory of Open Access Journals (Sweden)

    Manamba Epaphra

    2018-03-01

    Full Text Available This paper provides an empirical analysis on the determinants of FDI inflows in Africa. The dataset used for this paper spans from 1996-2016 and involves 48 African countries. For inferential analysis the paper employs random (RE effect model. Both structural factors and the quality of institutions and governance indices are examined. The key findings of the paper is that openness of the economy, GDP per capita and population growth have a substantial positive explanatory power over FDI in Africa. Similarly, control of corruption and political stability tend to exert a positive influence on FDI inflows in Africa. These findings provide some valuable insights into policy makers, practitioners, and foreign investors’ decision making. More so, to attract foreign investment in the less trade liberalized countries, Government policy should encourage further market liberalization. In the same vein, an effective policy on FDI in all economies should focus on improving production efficiency so as to raise GDP per capita and increase the market size. African Governments should also improve the quality of institutions and governance, especially in terms of enhancement of corruption control and political stability.

  11. Cointegration and Causality among Foreign Direct Investment in Tourism Sector, GDP, and Exchange Rate Volatility in Turkey

    OpenAIRE

    Sekmen, Fuat

    2007-01-01

    The Granger-causality (GC) and error correction (ECM) techniques were applied 1980-2005 data for Turkey to examine cointegration and causality among foreign direct investment(FDI) in tourism sector, overall GDP, and exchange rate volatility (EX). According to the ECM technique, the hypothesis that “no cointegration” was rejected for all three variables. The GC results detect causality runs from one-way from GDP to FDI, but the GC results detect bi-directional causality between GDP and EX sugg...

  12. The evaluation of Foreign Direct Investments and their impact in the economics of some transition countries: the case of Kosovo

    Directory of Open Access Journals (Sweden)

    Halil Kukaj

    2017-03-01

    Full Text Available The Foreign Direct Investment is suggested to have a positive impact on the economic growth of many countries, especially in the transition countries such as Kosovo. During the last century, the world has witnessed remarkable growth of FDI because they impact positively the overall strategy for economic and social development. This article will provide a general review of the FDIs and will focus on their economic implication on the developing countries and especially in Kosovo and some other Western Balkan countries. The paper will clarify the main causes of failure of foreign direct investments and will revile the importance of indicators that are mainly of institutional nature. It is estimated that FDIs impact the economic development of the host country through two main channels: firstly, FDIs increase the domestic capital and increase the efficiency through the improvement of managerial skills, the transfer of new technology or through the bringing of more effective marketing strategies, innovations and best practices, secondly: the effect of FDIs varies much from the specifications of the country in terms of their capacity to absorb the FDIs, the ability to diversify them and their ability to connect the FDIs with the domestic investments.

  13. The German model of capitalism and the persistence of outward foreign direct investment: evidence from German manufacturing industries

    Directory of Open Access Journals (Sweden)

    Martin T Bohl

    2011-06-01

    Full Text Available Against the backdrop of critique on the German model of capitalism in general, and German public policy in particular as to the ability to successfully adjust to rapid change and exogenous shocks in wake of economic globalisation, this paper investigates the degree of shock persistence in foreign direct investment (FDI of ten German manufacturing industries for the period 1976 to 2003. Theory on exports and non-FDI investment suggests that FDI should exhibit a considerable degree of shock persistence because they are subject to high sunk costs because of high entry and exit costs associated with the high level of asset specificity that is normally connected to FDI. Persistence in foreign direct investment time series data is established by applying various unit root tests. The results are robust to the potential presence of structural breaks in the data. The empirical analysis shows that German outward FDI in mature manufacturing industries, with one exception, exhibits a high degree of shock persistence. The results suggest, at least for mature German industries, that the sunk costs view on shock persistency is confirmed for outward FDI. The results furnish evidence for a tentative assessment of the relationship between German public policy and FDI strategies of multinational firms.

  14. Foreign investment multinational companies and economic development

    Directory of Open Access Journals (Sweden)

    Popov Đorđe

    2013-01-01

    Full Text Available There is no universal answer on the question whether foreign investments stimulate economic development. The positive effect of foreign direct investments will follow when the investments is carried out under normal conditions of competition. That means, above all, low barriers for foreign trade and the low level of restrictions for foreign owned companies. In such circumstances, multinational corporations can assist the economies of penetration to make its businesses more efficient. Foreign investors bring with them brand new types of economic activities and in that way shifting the limits of business opportunities in the countries of penetration. But if the investments are implemented in markets protected with protectionist barriers of various kinds, then they could have negative effects. The negative effects are in particularly reflected in the inefficient use of domestic resources. Foreign investments depend on the macro and micro institutional reforms, low inflation, real exchange rate, and reasonably efficient legal system that protects the property rights and encourages savings and investment. The low level of corruption, together with the foregoing conditions is a prerequisite for the creation of a stimulating environment for foreign investments.

  15. The impact of foreign direct investment on the unemployment rate in the Republic of Serbia

    Directory of Open Access Journals (Sweden)

    Stanković Aleksandar

    2015-01-01

    Full Text Available This paper analyzes the Republic of Serbia in the period of transition from a planned economy with special social, political and economic conditions towards an open economy through the inflow of FDI and their impact on the unemployment rate. Creating the conditions for an inflow of FDI started in order to increase the employment rate. Since 2000, most FDI had entered the sector of non-tradeable goods which led towards increasing unemployment. That has had negative effects on Serbia from the development viewpoint, since the country needs FDI in the sector of non-tradeable goods, as they encourage productivity, technological progress and employment. Foreign investors in Serbia were primarily interested in profiting from the privatization (brownfield investments of former state-owned companies which led to the rationalization of the privatized companies through redundancies. The benefits that Serbia has had from the inflow of FDI are significant transfers of technology and enhancement of competition on the local market. On the other hand, negative effect is increase of the unemployment rate at the national level.

  16. Foreign investment law in Central and Eastern Europe

    OpenAIRE

    Gray, Cheryl W.; Jarosz, William

    1993-01-01

    One of the most remarkable developments in Central and Eastern Europe (CEE) has been the region's opening to foreign direct investment. CEE states saw foreign investment climb from minuscule amounts in 1989 to more than $7 billion in 1992. All CEE states have enacted new laws on foreign investment as well as related legislation in areas such as taxation and company and environmental law. The authors describe these efforts at legal reform and assess their impact on foreign investment in light ...

  17. Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models

    International Nuclear Information System (INIS)

    Omri, Anis; Kahouli, Bassem

    2014-01-01

    This paper examines the interrelationships between energy consumption, foreign direct investment and economic growth using dynamic panel data models in simultaneous-equations for a global panel consisting of 65 countries. The time component of our dataset is 1990–2011 inclusive. To make the panel data analysis more homogenous, we also investigate this interrelationship for a number of sub-panels which are constructed based on the income level of countries. In this way, we end up with three income panels; namely, high income, middle income, and low income panels. In the empirical part, we draw on the growth theory and augment the classical growth model, which consists of capital stock, labor force and inflation, with foreign direct investment and energy. Generally, we show mixed results about the interrelationship between energy consumption, FDI and economic growth. - Highlights: • We examine the energy–FDI–growth nexus for a global panel of 65 countries. • Dynamic simultaneous-equation panel data models are used to address this issue. • We also investigate this nexus for three sub-panels which are constructed based on the income level of countries. • We show mixed results about the interrelationship between the three variables

  18. The impact of foreign direct investment on CO2emissions in Turkey: new evidence from cointegration and bootstrap causality analysis.

    Science.gov (United States)

    Koçak, Emrah; Şarkgüneşi, Aykut

    2018-01-01

    Pollution haven hypothesis (PHH), which is defined as foreign direct investment inducing a raising impact on the pollution level in the hosting country, is lately a subject of discussion in the field of economics. This study, within the scope of related discussion, aims to look into the potential impact of foreign direct investments on CO 2 emission in Turkey in 1974-2013 period using environmental Kuznets curve (EKC) model. For this purpose, Maki (Econ Model 29(5):2011-2015, 2012) structural break cointegration test, Stock and Watson (Econometrica 61:783-820, 1993) dynamic ordinary least square estimator (DOLS), and Hacker and Hatemi-J (J Econ Stud 39(2):144-160, 2012) bootstrap test for causality method are used. Research results indicate the existence of a long-term balance relationship between FDI, economic growth, energy usage, and CO 2 emission. As per this relationship, in Turkey, (1) the potential impact of FDI on CO 2 emission is positive. This result shows that PHH is valid in Turkey. (2) Moreover, this is not a one-way relationship; the changes in CO 2 emission also affect FDI entries. (3) The results also provide evidence for the existence of the EKC hypothesis in Turkey. Within the frame of related findings, the study concludes several polities and presents various suggestions.

  19. Water Grabbing and the Role of Power: Shifting Water Governance in the Light of Agricultural Foreign Direct Investment

    Directory of Open Access Journals (Sweden)

    Andrea Bues

    2012-06-01

    Full Text Available In recent years, the trend for foreign actors to secure land for agricultural production in low-income countries has increased substantially. The concurrent acquisition of water resources changes the institutional arrangement for water management in the investment areas. The consequences of 'land grabbing' on the local water governance systems have not so far been adequately examined. This paper presents an institutional analysis of a small-scale irrigation scheme in Ethiopia, where foreign and national horticultural farms started to use water from an irrigation canal that was formerly managed as a user-group common-pool resource by local smallholders. The study follows a qualitative case-study approach with semi-structured interviews as the main source of data. For the analysis we employed the Common-pool Resource Theory and the Distributional Theory of Institutional Change. We found that the former management regime changed in that most of the farmers’ water rights shifted to the investment farms. We found three key characteristics responsible for the different bargaining power of the two actor groups: dependency on natural resources, education and knowledge, and dependency on government support. We conclude that not only the struggle for land but also the directly linked struggle for water is led by diverging interests, which are determined by diverging power resources.

  20. Determinants Of Foreign Direct Investment In Transition Economies, With Special Reference To Macedonia: Evidence From Gravity Model1

    Directory of Open Access Journals (Sweden)

    Dauti Bardhyl

    2015-12-01

    Full Text Available This paper accounts for the main determinants of Foreign Direct Investment stocks to 5-South East European Countries and the 10-New Member States of the European Union countries by using an augmented Gravity Model, for the purpose of calculating the potential levels of FDI stock in Macedonia. The study takes into account country specific institutional factors that determine foreign investors’ decisions from 20 core OECD countries to invest in SEE-5 and EU-NMS-10 countries. From the results of the study we find that gravity factors (market size and distance, institutional related factors (control of corruption, corruption perception index, regulatory quality, transition progress and WTO membership and other traditional determinants of FDI (schooling, bilateral exports appear to significantly determine inward FDI stock to the SEE region and new EU member states. The GMM estimates suggest that bilateral FDI stock is subject to persistence effects. The study additionally confirms the relatively strong gravitational character of Macedonia’s inward FDI stock.

  1. FOREIGN DIRECT INVESTMENTS � RELAUNCHING FACTOR OF THE ROMANIAN ECONOMIC GROWTH

    OpenAIRE

    Bogdanoiu Cristiana - Luminita

    2007-01-01

    The modernization and the reorganization of the national economy with the investments help is a dynamic process, which assure the improvement of the fixed capital, the creation of one mobile and complex structure of production, the introduction of the most performant work methods and techniques. Investments are circulator of new, they always bring the change of the exist situation, the apparition of other elements than those who are previously known. Investments engage future, from where devo...

  2. VIETNAM AND FOREIGN DIRECT INVESTMENT: POTENTIALS ANDCHALLENGES ON THE LABOR MARKET

    Directory of Open Access Journals (Sweden)

    Nathalie Homlong

    2013-07-01

    Full Text Available For several years Vietnam has been receiving attention as an attractive businesslocation for foreign companies. But in spite of overall positive economicdevelopments, foreign companies in Vietnam also experience challenges, e.g.connected to bureaucracy and corruption. Another issue that is of crucialimportance for foreign companies in foreign markets are the conditions on thelabor market. This paper investigates questions about the potentials andchallenges for foreign companies on the Vietnamese labor market, and of howattractive Vietnam’s labor market is compared to India and China.Educationlevels, productivity, wage levels, and number of strikes are among theindicators that are used to compare the attractiveness of Vietnam’s labor market tothe labor markets of China and India. Furthermore the results of almost 30interviews conducted withcompanies from Austria, Germany and Switzerland ontheir experiences with doing business in Vietnam are used to shed light on thestrengths and weaknesses of the labor market in Vietnam.

  3. Foreign Direct Investment and Government Policy in Central and Eastern Europe

    DEFF Research Database (Denmark)

    Meyer, Klaus E.; Jensen, Camilla

    2004-01-01

    investment risks associated with FDI in CEE are a reflection the institutional development. Thus, inflows of FDI have been largest in those countries that made most progress in establishing a market-oriented institutional framework. After outlining trends of institutional change and their impact on FDI......, this chapter discusses how aspects of the institutional framework and FDI policy affect diverse types of investment projects. Acquisition and Greenfield investors are concerned with different aspects of government policy: privatization and regulatory policies for acquirers and investment incentives, regional...

  4. The Present Situation and the Future Perspectives of Foreign Direct Investment in Balkan Region

    Directory of Open Access Journals (Sweden)

    Arjan Qefalia

    2009-10-01

    Full Text Available The past decade has witnessed increased globalization of the world economy as result of technological changes, trade liberalization and privatization policies. Balkan countries as developing nations are in the realization process of the globalization changes of the world economy. Being in the process for entry into the EU, many changes are being done to integrate with the global economic trends. The research has shown that after the fall of communism in the 1990s the Balkan Region brought significant political and economic changes. The change in attitude led to a removal of direct blockage for FDI. As a result, continued deregulation and privatization has been widespread. However, history of FDI is relatively short for Balkan Region in comparison with other countries. The economy opened up capital inflows only at the beginning of 1990s, and is still showing low shares in the total of Central and Eastern European flow. Despite Balkans competitive advantage due to its geographical location and its resources, it is still far from other Central European countries in achieving the same level of FDI. This situation came as a result of: political instability, low intraregional trade, the small size of national markets, huge institutional corruption and weak judiciary system. Among the more successful Balkan recipients of FDI has been Bulgaria and Romania, while Greece has been a major source of FDI for the transition economies of the Balkan region. Greek investment is driven in part by the availability of low cost labor in the nearby transition economies. The focus of this article is to analyze and evaluate the current performance of FDI in Balkan Region and how the governments can improve this performance.

  5. Quantitative Evaluations of Foreign Direct Investments Impact on Productivity Development of Companies from Central and Eastern Europe

    Directory of Open Access Journals (Sweden)

    Marilen Pirtea

    2009-02-01

    Full Text Available The approach of the foreign direct investments impact belonging to multinational companies on host country companies and on national economy is an extremely complex and present-day interest issue in the context of globalization phenomena, which at this time puts a mark on the human society evolution. During this period of rapid changes, the economies of those countries, which find them crossing a development process, can benefit a significant increase of productivity and an enhanced access to new resources and commodity markets, but at the same time they are subject to considerable risks. The purpose of this paper is to bring an empirical support at the current level of research, taking into consideration a set of Central and Eastern European countries, including Romania.

  6. The Effect of Exchange Rate and Inflation on Foreign Direct Investment and Its Relationship with Economic Growth in Nigeria

    Directory of Open Access Journals (Sweden)

    Alex Ehimare OMANKHANLEN

    2011-03-01

    Full Text Available This study is on the effect of exchange rate and inflation on foreign direct investment and its relationship with economic growth. Its main objective is to find the effect of inflation and exchange rate and the bidirectional influences between FDI and economic growth in Nigeria. A thirty year period was studied. A linear regression analysis was used on the thirty year data to determine the relationship between inflation, exchange rate, FDI inflows and economic growth. The study reveals that FDI follow economic growth occasioned by trade openness which saw the entry of some major companies especially the telecommunication companies, while Inflation has no effect on FDI. However exchange rate has effect on FDI.

  7. The Dynamics and Structural Changes of Foreign Direct Investments In Romania � before and after the Recent Global Crisis

    Directory of Open Access Journals (Sweden)

    Ramona Mariana Calinica

    2016-07-01

    Full Text Available In the context of the economic globalisation and level of openness increase of various countries� economies to the rest of world, more and more enterprises extended their activity over their national borders, therefore the foreign direct investments being considered key elements in the process of economic integration, playing a major role in the host country�s economy. The aim of this paper consists in realising an in-depth analysis of the FDIs� volume, structure and dynamics in Romania before and after the recent global crisis, on types, sectors and branches, development regions and origin countries, by highlighting in the same time their impact over Romania�s balance of trade.

  8. The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe

    Directory of Open Access Journals (Sweden)

    Calin-Adrian Comes

    2018-01-01

    Full Text Available This paper investigates the impact of Foreign Direct Investment (FDI and remittances on Economic Growth (EG, using panel data of seven countries from Central and Eastern Europe with a Gross Domestic Product (GDP per capita under 25,000 $. The empirical literature stressed the relationships between FDI and remittances and economic growth, and our purpose is to identify if there are significant relationships between FDI, remittances and economic growth in the seven analyzed countries. We find a positive impact of both FDI and remittances on GDP, but the influence of FDI is higher in all analyzed states, with accepting the assumption of ceteris paribus principles in limiting research caused by other possible determinants.

  9. STATISTICAL LIMITATIONS IN TIMING AND RESTRICTIONS OF COMPARABILITY IN ADDRESSING FOREIGN DIRECT INVESTMENT (FDI, IN ROMANIA’S MARKET ECONOMY

    Directory of Open Access Journals (Sweden)

    Gheorghe SĂVOIU

    2012-03-01

    Full Text Available This paper analyzes some statistical limitations in timing and the most important methodological restrictions specific to the process of practical modelling of foreign direct investments (FDI. After a brief introduction about the need for comparability of statistical data and practical implementation, the following section describes the complex process of econometric FDI modeling, the main restrictions that had to be overcome were related to ensuring comparability, selecting only one fairly substantial database for macroeconomic indicators, and building a database for the country rating by statistically converting qualitative information into quantitative information, the option for two types of data sets or series (extenden and small, due to the level of FDI, and the different order of magnitude of FDI values, relatively homogeneous since 1997, and not since 1990. The fi nal section of conclusion ends the article with some final remarks about the specific solution used in modeling process.

  10. Regional Integration and Foreign Investment: The Case of Asean Countries

    OpenAIRE

    Emmanuel O. Nwosu; Anthony Orji; Nathaniel Urama; Joseph I. Amuka

    2013-01-01

    The importance of regional integration in stimulating foreign direct investment cannot be overemphasized. With a special focus on the ASEAN countries, this research paper investigates the role of regional integration in attracting foreign direct investment. We bring a novelty to this paper by dividing foreign direct investment into Inter-and Intra-ASEAN to see if both are determined by the same set of factors. If economic integration drives intra-ASEAN FDI we would expect such FDI to be unrel...

  11. An Examination of Chinese Foreign Direct Investment into the Economies of Sub-Saharan Africa

    Science.gov (United States)

    2014-06-13

    sub - Saharan Africa altruistic as professed, or is it correlated with commercial interests? Does financial aid from China improve the stability of a state? How quickly are Chinese SOEs accelerating their investments into sub - Saharan Africa ? To what extent are these investments targeting natural resource extraction? How much of total sub-Saharan trade with China are the extraction of natural resources? What share of total sub-Saharan exports go to China? What countries have the greatest exposure to China consumption? Do SOE

  12. Analisis Pengaruh Country Risk Terhadap Keputusan Melakukan Foreign Direct Investment (Studi Pada Negara Indonesia, Malaysia, Filipina, Thailand, Dan Vietnam Tahun 2004-2014)

    OpenAIRE

    Aprella, Revi; Suhadak, Suhadak

    2017-01-01

    The purpose of this study is to identify and explain the effect of 1) macro-economic on Foreign Direct Investment, 2) political risk on Foreign Direct Investment, 3) political risk on macro-economic in the state of Indonesia, Malaysia, Philippines, Thailand, and Vietnam. The data used is from AON, World Bank, IMF, UNCTAD, and the BSP. Indicators that affect for each variables is vary between each country, that the factors to be considered are different in each country. The results showed ther...

  13. Foreign Direct Investment, Linkage Formation and Supplier Development in Thailand during the 1990s

    DEFF Research Database (Denmark)

    Lauridsen, Laurids Sandager

    2004-01-01

    in Thailand. This led in turn to the formulation of TNC-SME linkage policies as well as a set of broader SME and supporting industry policies to supplement unfolding liberalisation of trade- and investment policies. The article is concerned with the extent to which the Thai government was able to formulate...

  14. Impact of electricity prices on foreign direct investment: Evidence from the European Union

    NARCIS (Netherlands)

    Bartekova, E.; Ziesemer, T.H.W.

    2015-01-01

    In the course of recent years growing concerns over increasing energy prices have emerged in the context of maintaining Europe’s international competitiveness. In particular, rising electricity price differentials adversely affect firms’ total production costs and ultimately impact their investment

  15. How Tax Policy and Incentives Affect Foreign Direct Investment : A Review

    OpenAIRE

    Morrisset, Jacques; Pirnia, Neda

    2000-01-01

    With an increasing number of governments competing to attract multinational companies, fiscal incentives have become a global trend that has grown considerably in the 1990s. Poor African countries rely on tax holidays, and import duty exemptions, while industrial Western European countries allow investment allowances, or accelerated depreciation. Have governments offered unreasonably large...

  16. The factors impacted to local contractor from Foreign Direct Investment in advancing economic hub development in Iskandar Malaysia

    Science.gov (United States)

    Syafiq Salim, Muhamad; Zakaria, Rozana; Aminuddin, Eeydzah; Hamid, Abdul Rahim Abdul; Abdullah, Redzuan; Shahzaib Khan, Jam

    2018-04-01

    Iskandar Malaysia is an advanced economic hub which is rapidly growing in the State of Johor. It has been an attractive place for Foreign Direct Investment (FDI) to invest. Many sectors are affected by the presence of FDI including the construction sector. This paper highlights the investigation on the effects of FDI to the local contractor in the Iskandar Malaysia Development. In this study, a questionnaire survey was carried out to gain the information on problems from internal factors and external factors that caused the limitation on involvement in FDI project by local contractors. 73 numbers of local contractor registered under CIDB in class G5, G6 and G7 are the respondents. Frequency analysis and Average Index Analysis are used for the results. This study provides the factors that impacted local construction players in Iskandar Malaysia Development. This study has portrayed that FDI plays a vital and significant role in spearheading the active involvement of local contractors in an urban sustainable development.

  17. Territorial Attractiveness of the Foreign Direct Investment: Empirical Evidence from Panel Data Analysis for the Case of Tunisia

    Directory of Open Access Journals (Sweden)

    Samir Saidi

    2016-08-01

    Full Text Available The present article aims to evaluate the role of different macroeconomic variables that may promote the entry of the foreign direct investment (FDI in the industrial sector in Tunisia. In recent decades, several researches indicate that despite the significant impact of the FDI as an important catalyst of development, its benefits remain unequally distributed between countries, sectors and communities. For this reason, the competition between countries becomes more intense and depends on a large set of factors having different importance. In the same order of ideas, we try to estimate the impact of these factors on the FDI attractiveness in Tunisia through an econometric modelling with panel data over the period 2000-2014. We found that the traditional economic factors have the greatest and more significant impact. Also, the results imply that the multinational companies adopt essentially the vertical implementation strategy to invest in Tunisia. The findings have a great value for the decision-makers in Tunisia who can concentrate their efforts on the most important variables to develop the competitiveness of Tunisia.

  18. A research proposal for investigating the effect of foreign direct investments on technology transfer in the Arabian Gulf (GCC)

    Science.gov (United States)

    Tahat, Kaher; Whelan, Susan

    2015-02-01

    In terms of hosting countries perspectives, Foreign Direct Investments (FDI) could have a positive effect on its developing economy, by transferring, both: resources of finance in addition to the international technology (ITT) (Choi, 1997). Multinational companies (MNC) are engaging in the transferring of the new technology, internally as well as licensing older one; they create "Spillover" (Knowledge) for facilitating the transfer of ITT in line with geographical location, period of investment, and the type of industry. Furthermore, the effect of these spillovers depends on the level of transferring this knowledge based on FDI attraction policies of the host country (Huang, 2009). Considering the Arabian Gulf council countries (GCC) as "FDI- rich hosting countries", who are not seeking for financial resources, i.e., they already have a huge financial capacity for funding their different projects, even though FDI has been powerfully presented in GCC . They saw noticeable increases in FDI inflows beginning in 2002, (www.unctad.org.fdistatistics). Therefore by assumption, FDI inflows to GCC could positively affect their economic growth through transferring the advanced technology, in order to build up their level of technology (productivity growth) as well as their economic diversification strategy. If so how this Knowledge could be diffused and measured in order to maximize its benefit and enhancing the productivity growth, and what is the current status of (GCC).

  19. Foreign Direct Investment, Trade and Development : Firm Linkages and Knowledge Transfer

    OpenAIRE

    Perez Villar, Lucia

    2017-01-01

    International fragmentation of production has become a major feature shaping today´s international trade. Lower trade costs regarding trade barriers, transport, and communication, allow firms to relocate production activities to more efficient production centers. This pattern has giving rise to the notion of global value chains (GVCs) to refer to investments, off-shoring and subcontracting activities that divide production processes in several value-adding stages across the globe towards the ...

  20. Network analysis to detect common strategies in Italian foreign direct investment

    Science.gov (United States)

    De Masi, G.; Giovannetti, G.; Ricchiuti, G.

    2013-03-01

    In this paper we reconstruct and discuss the network of Italian firms investing abroad, exploiting information from complex network analysis. This method, detecting the key nodes of the system (both in terms of firms and countries of destination), allows us to single out the linkages among firms without ex-ante priors. Moreover, through the examination of affiliates’ economic activity, it allows us to highlight different internationalization strategies of “leaders” in different manufacturing sectors.

  1. Net profit flow per country from 1980 to 2009: The long-term effects of foreign direct investment

    Science.gov (United States)

    2017-01-01

    Aim of the paper The paper aims at describing and explaining net profit flows per country for the period 1980–2009. Net profit flows result from Foreign Direct Investment (FDI) stock and profit repatriation: inward stock creating a profit outflow and outward FDI stock a profit inflow. Profit flows, especially ‘normal’ ones are not commonly researched. Theoretical background According to world-system theory, countries are part of a system characterised by a core, semi-periphery and periphery, as shown by network analyses of trade relations. Network analyses based on ownership relations of TransNational Corporations (TNCs) show that the top 50 firms that control about 40% of the world economy are almost exclusively located in core countries. So, we may expect a hierarchy in net profit flows with core countries on top and the periphery at the bottom. FDI outflows from the core countries especially rose in the 1990s, so we may expect that the difference has grown in time. Data and results A dataset on 'net profit flow' per country is developed. There are diverging developments in net profit flows since the 1980s, as expected: ever more positive for core countries, negative and ever lower for semi-peripheral and peripheral countries, in particular from the 1990s onwards. A fixed effects quantile regression using publicly available data confirms the prediction that peripheral countries share a unique characteristic: their outward investments do not have a positive influence on net profit flow as is the case with semi-peripheral and core countries. The most probable explanation is that peripheral outward investments are indirectly owned by firms located in core and semi-peripheral countries, so all peripheral profit inflows end up in those countries. PMID:28654644

  2. Foreign Investments in Russia in 2012

    OpenAIRE

    Ekaterina Iliukhina

    2013-01-01

    In 2012, a decline in foreign investors’ activities in the Russian Federation was observed. The inflow of foreign investments as a share of GDP decreased by 2.3 p.p. as compared to 2011. Foreign investments concentrated mainly in the industry and the fi nancial sector. In the industry, the leaders were manufacturing industries. As the geographic pattern of foreign investments is concerned, the largest volume of investments into the Russian Federation came from Switzerland, the Netherlands and...

  3. Investigation of the environmental Kuznets curve for carbon emissions in Malaysia: Do foreign direct investment and trade matter?

    International Nuclear Information System (INIS)

    Lau, Lin-Sea; Choong, Chee-Keong; Eng, Yoke-Kee

    2014-01-01

    Environmental degradation has become a central issue of discussion among the economists and environmentalists. In view of Malaysia's position as one of the main contributors to CO 2 emissions in Asia and its status as a fast growing economy, it is vital, therefore, to conduct a study to identify the relationship between economic growth and CO 2 emissions for Malaysia. This study attempts to examine empirically the environmental Kuznets curve hypothesis for Malaysia in the presence of foreign direct investment and trade openness both in the short- and long-run for the period 1970 to 2008.The bounds testing approach and Granger causality methodology are applied to test the interrelationships of the variables. The results of our study indicate that the inverted-U shaped relationship does exist between economic growth and CO 2 emission in both the short- and long-run for Malaysia after controlling for two additional explanatory variables, namely FDI and trade. Importantly, the results of the study also provide some crucial policy recommendations to the policy makers. - Highlights: • Examining environmental Kuznets curve hypothesis by incorporating FDI and trade. • FDI promotes higher economic growth and leads to higher environmental degradation. • Both FDI and trade directly influence CO 2 emission and economic growth. • Attraction of technology-oriented FDI is crucial for the quality of environment

  4. On foreign capital investment bifurcations

    Czech Academy of Sciences Publication Activity Database

    Vošvrda, Miloslav

    2001-01-01

    Roč. 49, č. 5 (2001), s. 910-924 ISSN 0013-3035 R&D Projects: GA ČR GA402/00/0439; GA ČR GA402/99/1136 Institutional research plan: AV0Z1075907 Keywords : foreign capital investment * a systems of the first order nonlinear differential equations * stable-limit-chaos state Subject RIV: AH - Economics Impact factor: 0.048, year: 2001

  5. Foreign direct investment and natural resources in sub-Saharan Africa

    African Journals Online (AJOL)

    If you would like more information about how to print, save, and work with PDFs, Highwire Press provides a helpful Frequently Asked Questions about PDFs. Alternatively, you can download the PDF file directly to your computer, from where it can be opened using a PDF reader. To download the PDF, click the Download link ...

  6. Technology transfers, foreign investment and productivity spillovers

    OpenAIRE

    NEWMAN, CAROL

    2015-01-01

    PUBLISHED This paper explores the relationship between foreign direct investment (FDI) and the productivity of host country domestic firms. We rely on a specially designed survey of over 4000 manufacturing firms in Vietnam, and separate out productivity gains along the supply chain (obtained through direct transfers of knowledge/technology between linked firms) from productivity effects through indirect FDI spillovers. In addition to identifying indirect vertical productivity spillovers fr...

  7. Selected Factors Determining Inward of Foreign Direct Investment in the Czech Regions in Years 2002 to 2012

    Directory of Open Access Journals (Sweden)

    Ondřej Babuněk

    2017-09-01

    Full Text Available This study aims at the research of the influence of unemployment rate (Un, exchange rate of CZK/USD (Ex, inflation rate (Inf, expenditures on research and development (RaD, size of wages and environmental pollution on inward foreign direct investment (FDI into regions in the Czech Republic in the period 2002–2012. The study dealt with the whole period, then the pre-crisis and crisis period, altogether with the inclusion or elimination of Prague in or out of the group of Czech regions. Models without and with dynamic parameter were checked. For estimation of influence of the above mentioned parameters the fixed effects model, random effects model and pooled ordinary least squares (POLS were used. For dynamic model the generalized method of moments and POLS were applied. The results showed that Wage, appreciation of Ex and RaD positively determined the inflow of FDI to Czech regions and no negative determinant of inward FDI has been found. On the other hand, results of dynamic model imply that inward FDI in preceding year, appreciation of Ex, RaD have positive impact on inward FDI in current year. However, negative impact of Un and Inf on inward FDI were detected. Results of this research enable the policy makers or decision makers try to focus their attention on specific factors and eliminate to consume scarce funding.

  8. Foreing direct investments in Albania

    Directory of Open Access Journals (Sweden)

    Ermira Korra

    2016-07-01

    Full Text Available Foreign Direct Investments are a very important segment in the economic activity of a country, due to the effects they bring with. This is mainly because of the trade liberalization, as well as other advantages such as higher returns on investments, potential resource seeking, new market seeking, or cheap labor force. The issue of Foreign Direct Investment is very broad, but in concrete terms, the main goal of this article is the theoretical analysis and its impact in related policies in Albania. Another objective is closely connected with the help of government authorities to better understand the potential and effective impact of FDI in the Albanian economy and use this information in their decision-making.

  9. The Impact of Foreign Investments on the Achievement of Economic Growth

    OpenAIRE

    N. Salim; M. Maitah

    2010-01-01

    This article deals with the analysis of the positive side of the foreign direct investments in the World´s economy. The importance of this research is derived from the significant role that can be played by foreign investments in industrialized and developing countries. Some countries are still hesitant to attract the foreign investments despite its human and physical potentialities. The foreign investments are mainly influenced by political and economical factors. Foreign direct investments...

  10. Technology transfers, foreign investment and productivity spillovers

    DEFF Research Database (Denmark)

    Newman, Carol; Rand, John; Talbot, Theodore Purdendu

    2015-01-01

    This paper explores the relationship between foreign direct investment (FDI) and the productivity of host country domestic firms. We rely on a specially designed survey of over 4000 manufacturing firms in Vietnam, and separate out productivity gains along the supply chain (obtained through direct...... transfers of knowledge/technology between linked firms) from productivity effects through indirect FDI spillovers. In addition to identifying indirect vertical productivity spillovers from FDI, our results show that there are productivity gains associated with direct linkages between foreign......-owned and domestic firms along the supply chain not captured by commonly used measures of spillovers. This includes evidence of productivity gains through forward linkages for domestic firms which receive inputs from foreign-owned firms....

  11. FOREIGN INVESTMENTS IN RUSSIA IN 2013

    OpenAIRE

    Ekaterina Ilyukhina

    2014-01-01

    Foreign investment in the Russian economy in 2013 increased 10.1% year-o-year. The increase was triggered by the results achieved in Q1 2013. Foreign investment was concentrated in the industrial sector, trade, and financial sector. Manufacturing industry was leading in the industrial sector. Cyprus, Switzerland, and Great Britain were leading in volumes of investment in the Russian Federation.

  12. To disclose or not to disclose: How global competition for foreign direct investment influences transparency reforms in extractive industries

    International Nuclear Information System (INIS)

    Öge, Kerem

    2016-01-01

    In the last decade, the Extractive Industries Transparency Initiative (EITI) has grown in both popularity and influence. The ascendance of EITI is surprising because traditionally, leaders of resource-rich states prefer to tightly control their extractive industries. This paper investigates the underlying causes of EITI membership in order to understand its acceptance, even among some of the most authoritarian regimes. The paper argues that leaders of resource-rich countries use the EITI to consolidate their international prestige as eager reformers, which serves to both maintain and lure foreign investment. The cross-national and interrupted time series analyses reveal that EITI members not only have higher FDI levels compared to non-members, but these investments increase once countries join the initiative. - Highlights: • I investigate the underlying causes of EITI membership. • I argue that leaders use the EITI to both maintain and lure foreign investment. • EITI members have higher FDI levels compared to non-members. • FDI levels increase once countries join the EITI. • The results highlight a utilitarian use of the EITI by corrupt governments.

  13. Determinantes dos investimentos diretos estrangeiros no Brasil, 1980-2004 Determinants of foreign direct investments in Brazil: 1980-2004

    Directory of Open Access Journals (Sweden)

    Leonardo Bornacki de Mattos

    2007-04-01

    Full Text Available Este trabalho teve o objetivo de investigar em que medidas o ingresso dos Investimentos Diretos Estrangeiros (IDE no Brasil respondeu às mudanças nos níveis de seus principais determinantes no período de 1980 a 2004. Após identificar que as séries estudadas eram não estacionárias, optou-se pela utilização do conceito de co-integração, sendo estimado um Modelo de Correção de Erros Vetorial (Vec Model. Os coeficientes estimados foram estatisticamente significativos e apresentaram os sinais esperados. Constatou-se que as variáveis às quais o ingresso de IDE apresentou maior sensibilidade são o risco-Brasil, o grau de abertura comercial da economia e a taxa de inflação brasileira.The main objective of this paper is to investigate the responses of the ingression of the Foreign Direct Investments (FDI in Brazil to changes in the levels of its main determinants in the period from 1980 to 2004. After identifying that the series were nonstationary, it was used the cointegration approach and the estimation of a Vector Error Correction Model (Vec Model. The esteem coefficients had been statistically significant and had presented the expected signals. It was evidenced that the variables to which the FDI ingression presented greater sensitivity is risk-Brazil, the degree of commercial opening of the economy and the tax of Brazilian inflation.

  14. LEGISLATIVE REGULATION OF FOREIGN INVESTMENT IN UKRAINE

    Directory of Open Access Journals (Sweden)

    K. V. Zhyzhko

    2009-09-01

    Full Text Available In this article the basic regulatory documents controlling the foreign investments in Ukraine are considered and the recommendations for their improvement are proposed. Main disadvantages of present situation retarding the investing in Ukraine are analyzed.

  15. Assessing the relationship between total factor productivity and foreign direct investment in an economy with a skills shortage: the case of South Africa

    OpenAIRE

    Bonga-Bonga, Lumengo; Phume, Maphelane

    2017-01-01

    This paper assesses the relationship between total factor productivity (TFP) and foreign direct investment (FDI) in a country with skills shortage. South Africa is used as a case study. Literature is inconclusive on how FDI should affect TFP. This paper shows that it is important to account for the interactivity between FDI and human capital when assessing the effects of FDI on TFP. Moreover, the empirical results show that, contrary to countries with abundance of skills, in countries with sk...

  16. DO DEMOCRATIC INSTITUTIONS AND FOREIGN DIRECT ...

    African Journals Online (AJOL)

    CIU

    Abstract. A reciprocally re-enforcing relationship exists between institutions, foreign direct investment and economic growth. The importance of sound democratic institutional structures and foreign direct investment for enhancing economic growth is well documentedin literature.Sound institutional framework which supports ...

  17. Economic development and foreign direct investment: How to create sustainable development an analysis of the potential for sustainable development on the Indian subcontinent

    Directory of Open Access Journals (Sweden)

    Homlong Nathalie

    2010-01-01

    Full Text Available Focusing critically on the effects of the conditions for foreign direct investment on sustainable growth in the recipient country, this paper analyzes the potential for investments in environmental innovations in India. The definition of sustainability applied in this paper incorporates economic development and investment which promotes environmentally and socially friendly production and innovation. As the Indian economy experienced strong growth in GDP in recent years, but is still lagging behind in providing the basic needs of clean water, clean air and proper waste management for households and companies, the necessity for sustainable development exists. From a methodological point of view this paper uses macroeconomic data to evaluate quantitatively the potentials and needs of Indian states. This results in a state ranking showing the potential for sustainable development in selected Indian states, based on economic and environmental indicators.

  18. Legal significance of environmental protection in foreign investments law

    OpenAIRE

    Divljak Drago

    2013-01-01

    The paper presents the analysis of conceptual interaction between foreign investments and environmental protection, as well as its legal repercussions. A part of the paper has been directed towards critical review of the attempt of legal regulating of these relationships at an international level. A special attention was paid to the treatment of the environment in our foreign investments law. It can be concluded that the dominant paradigm of the future direction of development in this field i...

  19. Evaluation Of Democracy And Foreign Investment In Nigeria | Arinze ...

    African Journals Online (AJOL)

    This paper contends that a good indicator of confidence in the stability of Nigerian economy is the significant inflow of foreign direct investment. Foreign capital inflow to Nigeria in recent years has not been significant. The object of the paper is to examine how the current democracy contributed significantly to improvement in ...

  20. The relationship between the stock market and foreign direct investment in Croatia: evidence from VAR and cointegration analysis

    Directory of Open Access Journals (Sweden)

    Irena Raguz

    2013-03-01

    Full Text Available The aim of this paper is to investigate the existence and characteristics of both the long- and short-term relationships between FDI and the stock market in Croatia. The main hypothesis is that, in the long run, trends in FDI should determine the movement of the stock market through the channel of economic growth. However, in the short run, upward movement on the stock market positively affects Croatian FDI stock, as events on the stock market signalize the vitality and investment climate of the domestic market to foreign investors. The long-term connection is tested by two cointegration approaches; the results of both models suggest the absence of a long-term relationship among observed variables, which may be explained by the lack of connection between FDI and economic growth in Croatia. The short-run relationship is investigated by a two-variable VAR model, and the results obtained are consistent with the theoretical assumptions, as the stock market did prove to be an important short-term determinant of FDI in Croatia.

  1. Do foreign direct investment and renewable energy consumption affect the CO2emissions? New evidence from a panel ARDL approach to Kyoto Annex countries.

    Science.gov (United States)

    Mert, Mehmet; Bölük, Gülden

    2016-11-01

    This study examines the impact of foreign direct investment (FDI) and the potential of renewable energy consumption on carbon dioxide (CO 2 ) emissions in 21 Kyoto countries using an unbalanced panel data. For this purpose, Environmental Kuznets Curve (EKC) hypothesis was tested using panel cointegration analysis. Panel causality tests show that there are significant long-run causalities from the variables to carbon emissions, renewable energy consumption, fossil fuel energy consumption and inflow foreign direct investments. The results of our model support the pollution haloes hypothesis which states that FDI brings in clean technology and improves the environmental standards. However, an inverted U-shaped relationship (EKC) was not supported by the estimated model for the 21 Kyoto countries. This means that economic growth cannot ensure environmental protection itself or environmental goals cannot await economic growth. Another important finding is that renewable energy consumption decreases carbon emissions. Based on the empirical results, some important policy implications emerge. Kyoto countries should stimulate the FDI inflows and usage of renewable energy consumption to mitigate the air pollution and meet the emission targets. This paper provides new insights into environment and energy policies through FDI inclusion.

  2. Foreign investment in Russia: obstacles and opportunities

    International Nuclear Information System (INIS)

    Moody-Stuat, M.

    1994-01-01

    An overview of recent developments with regard to foreign investment in the Russian oil industry is presented. Progress has already been made in the oil and gas sector but some important issues which still remain insufficiently resolved for the potential Western investor are examined. These are: the settlement of the internal division of responsibilities; a stable legal and fiscal framework for foreign investment; decisions on what Russia wants from foreign oil companies; only difficult and costly fields are on offer; reserve estimates are not based on economic criteria; implementation of environmental and operational standards. (UK)

  3. Foreign investments in modern economic activities

    OpenAIRE

    Emil Biber

    2004-01-01

    Worldwide economies are more and more linked by international economic and financial flows to globalization and economic integration phenomena that is effect and cause for them. External investments represent for investors a long-term investment abroad meanwhile for users these could be direct investments or portfolio investments

  4. A STUDY OF CHINESE YUAN (RMB APPRECIATION ACCOMPANYING WITH OTHERS FACTORS INCLUDING FOREIGN DIRECT INVESTMENT (FDI AND THEIR EFFECT ON CHINA ECONOMY

    Directory of Open Access Journals (Sweden)

    Ping-fu (Brian LAI

    2014-07-01

    Full Text Available The Chinese Yuan (RMB has been on the trend of appreciation over the last decade, and such a trend will likely be continuing for some years over the next decade. According to some scholars in their published literatures, the appreciation of RMB, the influx of Foreign Direct Investment (FDI has been ongoing accompanying the sustained growing economy in mainland China over the past decade. It is believed that the China economy has an implication from some significant factors including appreciation of RMB, interest rate of RMB, inflation and continuous increase of FDI for the next several years. The present study aims to provide an emphasis on investigation into effect on China economy as a result of appreciation of RMB and FDI together with some other factors, and to provide an outlook on the economy in China for the coming decades. First, a review was carried on relevant background information and development history of RMB and FDI. There are many reasons and factors behind leading to the sustained growth in the economy in China in the last decade and such effects were in coverage in the literature review. An overview of the development of RMB exchange mechanism, and other variables including (1 RMB exchange rate, (2 China interest rate, (3 Foreign Direct Investment (FDI, (4 Trade Balance of China, (5 Annual Inflation rate in China, (6 Energy Consumption in China, (7 Foreign Exchange Reserve in China, (8 China wages, (9 China External Debt and (10 China Consumer Price Index, which may have effect on the growth of the economy in China is covered in the literature review conducted in Chapter 2.

  5. The Volatile Effect of Conflict Risk on Foreign Investment

    Directory of Open Access Journals (Sweden)

    Umit Hacioglu

    2013-04-01

    Full Text Available The opportunities of investment brought along by the global economic integrity might turn into a threat in an instant and undermine the underlying structures of national economies. It is necessary to analyze the conflict risk properly in terms of both portfolio investment and finance strategies. This is an important step to be included in the process of arriving to a rational decision. In that way, the existing investment risks could be priced more efficiently. It is proved on Collier and Starr models that there is a correlation between the conflict risk and unemployment, economic recession, inflation and fiscal discipline. In brief, the breakdown in the economic parameters increases the conflict risk and a progress occurring in the opposite way, decreases that risk. In this study, it is discussed the effects of the conflict risk for foreign investment availabilities. Keywords: Foreign direct investment; volatile effect; conflict risk; investment climate

  6. U.S. Direct Investment Abroad: Trends and Current Issues

    National Research Council Canada - National Science Library

    Jackson, James K

    2008-01-01

    .... foreign direct investment is concentrated in high-income developed countries. Even more striking is the fact that the share of investment going to developing countries has fallen in recent years...

  7. U.S. Direct Investment Abroad: Trends and Current Issues

    National Research Council Canada - National Science Library

    Jackson, James K

    2007-01-01

    .... foreign direct investment is concentrated in high income developed countries. Even more striking is the fact that the share of investment going to developing countries has fallen in recent years...

  8. U.S. Direct Investment Abroad: Trends and Current Issues

    National Research Council Canada - National Science Library

    Jackson, James K

    2006-01-01

    .... foreign direct investment is concentrated in high income developed countries. Even more striking is the fact that the share of investment going to developing countries has fallen in recent years...

  9. Legal significance of environmental protection in foreign investments law

    Directory of Open Access Journals (Sweden)

    Divljak Drago

    2013-01-01

    Full Text Available The paper presents the analysis of conceptual interaction between foreign investments and environmental protection, as well as its legal repercussions. A part of the paper has been directed towards critical review of the attempt of legal regulating of these relationships at an international level. A special attention was paid to the treatment of the environment in our foreign investments law. It can be concluded that the dominant paradigm of the future direction of development in this field is going to be the strengthening of the bond between international investments and environmental protection. It is insisted on the attitude that our law needs to approach adequately to the matter of legal valorization of the environmental protection issue. This requires the creating of a complex, coherent approach that should be based on adequate legal superstructure and amendments to the existing Law on Foreign Investments. The main direction of changes implies that the current obligation of foreign investors in this field should be raised onto a higher level and foreign investments should be placed in the function of accomplishing of the concept of sustainable development. However, such an approach has to be accompanied by appropriate mechanism of control and supervision in the given field, if its full effectiveness is to be achieved.

  10. Technology transfers, foreign investment and productivity spillovers: evidence from Vietnam

    DEFF Research Database (Denmark)

    Newman, Carol; Rand, John; Talbot, Theodore Purdendu

    FDI through vertical linkages along the supply chain. Our results suggest that domestic firms experience more productivity spillovers through forward linkages from foreign-input suppliers to domestic input users than through backward linkages from foreign customers to domestic producers of inputs....... Productivity externalities from upstream sectors are associated with joint venture foreign investors while downstream sectors experience direct technology transfers from upstream wholly foreign owned investors. Spillovers from FDI through backward linkages are also detected but only when competition from...... imported intermediates is controlled for and are associated with innovations and technology investments made by firms....

  11. Who’s Afraid of a Globalized World? Foreign Direct Investments, Local Knowledge and Allocation of Talents

    OpenAIRE

    Giovanni Pica; José V. Rodríguez Mora

    2007-01-01

    We study the distributional effects of globalization within a model of heterogeneous agents where both managerial talent and knowledge of the local economic environment are required in order to set up a firm in a given country. Therefore, agents willing to set up a firm in a foreign country need to incur a learning cost that depends on how different is the foreign entrepreneurial environments from the domestic one. In this context, we show that globalization fosters FDI and raises wages, outp...

  12. The Role of Cross-border Mergers and Acquisitions in Foreign Direct Investment: Evidence from the Chinese Stock Market

    Directory of Open Access Journals (Sweden)

    Yu-Hua An

    2009-12-01

    Full Text Available In this treatise, we provide empirical evidence based on stock and operating performance measures to show how cross-border mergers and acquisitions (M&As are different from domestic transactions from the perspective of foreign acquirers. We analyze the shareholder wealth effect from 663 domestic and international M&As announced by Chinese corporations between 1994 and 2006. We have uncovered some differences between national and cross-border M&As. We find that foreign acquirers experience significantly higher stock and operating performance than transactions carried out only by domestic firms. Higher target gains for cross-border transactions are consistent with the acquirer's ability to correctly value or capture synergies in cross-border takeovers. We also examine the source of wealth gains in Chinese targets of foreign acquirers. We find that the exchange rate and taxes are more important in justifying the target premium in foreign takeovers than in domestic takeovers. Taken together, our results suggest that the realization of synergy is the main motive behind foreign takeovers. We also analyze the role of corporate governance in cross-border M&As. Consistent with our hypothesis, the dummy for B shares or H shares is positively related with the takeover premium, indicating that strong corporate governance standards influence the valuation process in transition economies.

  13. Exchange Rate as a Determinant of Foreign Direct Investment: Does it Really Matter? Theoretical Aspects, Literature Review and Applied Proposal

    Directory of Open Access Journals (Sweden)

    Isabel Cristina Ruiz

    2005-10-01

    Full Text Available This paper re-examines the role of exchange rates as determinant of FDI. It extends the analysis to include the issue of how exchange rates determine the decision of invest in one country depending on whether the firm is deciding to invest on the country to service the local market or to invest on the country in order to re-export. This paper offers a broad literature review of the state of the empirical research in order to draw conclusions of the real importance of the exchange rate as a determinant of FDI. Details of FDI current behavior in Latin American are described and I propose a model of FDI to be applied for these countries. Data sources are given.

  14. The Role Of Foreign Investment In Economic And Social Development In Libya

    Directory of Open Access Journals (Sweden)

    Mustafa Khalifa Thawadi El. Hamoudi

    2017-02-01

    Full Text Available Investment is whether in local or foreign organization is the action Plan split by various investment activities The Libyan economy is among those economies that require this kind of foreign investment to achieve the desired economic goals which are correlated with the objectives of the Libyan economic system for subsequent stages. Therefore it is important to study the trends and determinants of FDI in developing in general and in Libya in particular. This paper describes the role that could be played by investment foreign investment in economic and social development in Libya pointing out the positive and negative aspects and how to deal with each of them in proportion to the facts of the Libyan Economy needs. And in the light of the new economic orientation in line with the political and economic developments in the international arena and foreign investment and thus contributing to the expansion of the ownership base and create job opportunities for citizen in this study will follow the descriptive approach through the way ahead obtained from digital data from various sources using the forms as required and discussed this paper to the definition of foreign investment evolved of investment determinants of FDI motivated encourage foreign investment history prospects for foreign direct investment in Libya Barriers to foreign direct investment in Libya Policies strategies to support foreign direct investment in Libya conclusions and recommendations.

  15. The Exon-Florio National Security Test for Foreign Investment

    National Research Council Canada - National Science Library

    Jackson, James K

    2006-01-01

    .... While the United States actively promotes internationally the policy of relaxing rules concerning foreign investment, including the national treatment of foreign firms, some Members of Congress...

  16. Evaluating the Influence of Criteria to Attract Foreign Direct Investment (FDI to Develop Supporting Industries in Vietnam by Utilizing Fuzzy Preference Relations

    Directory of Open Access Journals (Sweden)

    Tien-Chin Wang

    2016-05-01

    Full Text Available In the early 2000s, Vietnam’s government concentrated on the promotion of supporting industries which can be seen as a “key” solution to sustaining economic growth, thereby improving the national welfare. However, Vietnam’s supporting industries still exhibit lower development and competitive weakness. The main reason for this condition is due to a lack of capital, technological innovation, and necessary management skills for development. Therefore, attracting foreign direct investment (FDI for developing supporting industries offers the best strategy to realize this solution. However, attracting FDI to develop supporting industries represents a weakness which lies in both the quantity (total capital and projects and quality of investment. So which factors are effective to attract FDI for developing supporting industries in Vietnam? This investigation establishes an analytical hierarchy framework available to the Vietnamese government and to policymakers in order to evaluate the influence of criteria needed to attract FDI for developing supporting industries based on eight main criteria. They include legal and institutional criteria, the market size of supporting industries, human resources, infrastructure facilities, technological development and innovation, domestic supply capacity, international cooperation and competition, and other criteria. This paper uses fuzzy preference relations (FPR to evaluate the influence of criteria necessary to attract FDI for developing supporting industries, and these analytical results demonstrate that legal and institutional criteria, domestic supply capacity, human resources, technology development and innovation are all major considerations for attracting FDI.

  17. The Role of Country-of-origin Characteristics for Foreign Direct Investment and Technical Cooperation in Post-reform India

    OpenAIRE

    Axel Dreher; Peter Nunnenkamp; K. Vadlamannati

    2011-01-01

    The decisions of foreign investors on technical cooperation versus equity engagements and on the degree of ownership in FDI projects are likely to depend on their relative bargaining position vis-à-vis the host country. India provides an interesting case for analyzing the interplay between country-of origin-characteristics and host-country-characteristics and their respective effects on ownership decisions since opening up its economy to FDI in the early 1990s. We perform negative binominal r...

  18. FOREIGN INVESTMENTS INTO SVERDLOVSK AREA IN THE CONTEXT OF RUSSIAN CONNECTION TO WTO

    Directory of Open Access Journals (Sweden)

    L.M. Kapustina

    2005-09-01

    Full Text Available Dynamics and structure of the foreign investments involved in economy of Sverdlovsk area are analyzed in the article. Consequences of Russian connection to WTO from the view point of foreign investments volumes change are considered. Directions of multilateral regulation of investment measures on the basis of the international arrangements are certain.

  19. Do Direct Foreign Investments Increase Efficiency Convergence at Firm Level? The Case of Vietnam, 2000-2011

    Directory of Open Access Journals (Sweden)

    Nguyen Khac Minh

    2014-07-01

    Full Text Available The objective of this study is to assess the extent to which  the effect of FDI on firms’  efficiency and efficiency convergence across industries in Vietnam. Dynamic input output tables are used to construct the linkages between domestic and foreign firms. Stochastic production frontier is used to estimate firms ‘efficiency with a large panel dataset covering manufacturing firms in Vietnam from 2000 to 2011. The analysis shows that, the impact of FDI on domestic firms ‘efficiency score and convergence at firms’ level through the horizontal, backward and supply backward channels are negative and different.

  20. Is foreign direct investment good for health in low and middle income countries? An instrumental variable approach.

    Science.gov (United States)

    Burns, Darren K; Jones, Andrew P; Goryakin, Yevgeniy; Suhrcke, Marc

    2017-05-01

    There is a scarcity of quantitative research into the effect of FDI on population health in low and middle income countries (LMICs). This paper investigates the relationship using annual panel data from 85 LMICs between 1974 and 2012. When controlling for time trends, country fixed effects, correlation between repeated observations, relevant covariates, and endogeneity via a novel instrumental variable approach, we find FDI to have a beneficial effect on overall health, proxied by life expectancy. When investigating age-specific mortality rates, we find a stronger beneficial effect of FDI on adult mortality, yet no association with either infant or child mortality. Notably, FDI effects on health remain undetected in all models which do not control for endogeneity. Exploring the effect of sector-specific FDI on health in LMICs, we provide preliminary evidence of a weak inverse association between secondary (i.e. manufacturing) sector FDI and overall life expectancy. Our results thus suggest that FDI has provided an overall benefit to population health in LMICs, particularly in adults, yet investments into the secondary sector could be harmful to health. Copyright © 2017 Elsevier Ltd. All rights reserved.

  1. Accelerating Economic Growth in Nigeria, The Role of Foregn Direct Investment

    OpenAIRE

    Adofu Ilemona

    2010-01-01

    The study examines the impact of Foreign Direct Investment (FDI) on Economic Growth in Nigeria. Using foreign direct investment, exchange rate and total domestic savings as the explanatory variables, we examine the effect of Foreign D irect Investment (FD I) on Gross Domestic product, our proxy for economic growth and the dependent variable. Employing the OLS regression technique, our result showed that Foreign Direct Investment (FDI) has significant impact on Economic Growth in Nigeria durin...

  2. Latest amendments in the foreign investment laws of Uzbekistan: manifestation of serious ambitions for change?

    OpenAIRE

    MUMINOV BOBOMUROD

    2016-01-01

    Attracting Foreign Direct Investment (FDI) has been priority issue for the Government of Uzbekistan (GOU) since the proclamation of the country’s independence from the Soviet Union in the early 1990s . Today the operating legal regulations provide adequate state guarantees of protection, tax incentives and other privileges for foreign investors, and the GOU has been introducing legal adjustments to honour its commitments in securing a more favorable investment climate. However, foreign invest...

  3. Analysis of Lithuanian Direct Investment into European Union Countries

    Directory of Open Access Journals (Sweden)

    Evelina Zigmantavičiūtė

    2015-05-01

    Full Text Available In this paper the valuation of macroeconomic factors influencing the Lithuanian direct investment into European Union was conducted. The problem of this paper is the different chosen macroeconomic factors influencing foreign direct investment. The object of this paper is Lithuanian direct investment. The methods of this paper include: comparative literature analysis, correlation regression analysis, paired regression analysis. After conducting a research of dependency of Lithuanian direct investment to EU countries from price changes, government sector income, gross domestic product, inflation, jobless rate results, it is found that gross domestic product and government sector income have the most influence on the changes of Lithuanian direct investment.

  4. India welcomes foreign investment in power

    International Nuclear Information System (INIS)

    Kishewitsch, S.

    1993-01-01

    India's electricity supply capacity is 72 GW, and there are plans to add 48 GW every five years for the next 15 years. Economic growth is about 6% and new policies have been implemented to encourage foreign investment in the electric power sector, since state electricity boards lack funds for expansion. Ceilings on foreign ownership have been removed, tariffs are being reduced, rupees are made convertible on trade accounts, and licenses now have 30-year terms. To ensure investor interest, the national parliament has guaranteed a 16% return on equity. Power system developers interested in the Indian market will have to overcome problems associated with bureaucratic inefficiency, low load factors, a high percentage of rural population, lack of local financing, uneven quality of coal supplies, cumbersome regulations, poor maintenance of equipment, transportation delays, and widespread theft of power. In some areas of India, investments in improving the efficiency of the transmission or generation system, or improving efficiency of end-use industrial processes, could be more cost-effective than building new power plants. Recommendations are made for Canadian firms interested in investing in India's electric power sector

  5. Competing for Foreign Direct Investment

    Science.gov (United States)

    Lanza, Kenneth; San Martin, Tessie

    2005-01-01

    In a globalized economy, the meaning of the word "community" has changed. No businessperson today can afford to ignore what is happening outside his or her hometown. The same goes for community college executives. No community can generate economic growth without business growth. Businesses need factors of production, such as labor, capital,…

  6. Deregulation and Macroeconomic Drivers Of Foreign Direct ...

    African Journals Online (AJOL)

    Deregulation and Macroeconomic Drivers Of Foreign Direct Investment In Nigerian Agriculture (1970 -2009): An Econometric Analysis. ... The PDF file you selected should load here if your Web browser has a PDF reader plug-in installed (for example, a recent version of Adobe Acrobat Reader). If you would like more ...

  7. Deregulation and Macroeconomic Drivers Of Foreign Direct ...

    African Journals Online (AJOL)

    This study used secondary data from Central Bank of Nigeria and National Bureau of Statistics to ascertain the determinants of Foreign Direct Agricultural Investment (FDAI) in Nigeria from 1970 to 2009. After attempting modeling the determinants of FDAI with untransformed OLS regression model, autocorrelation was ...

  8. Influence of corruption on economic growth rate and foreign investment

    Science.gov (United States)

    Podobnik, Boris; Shao, Jia; Njavro, Djuro; Ivanov, Plamen Ch.; Stanley, H. E.

    2008-06-01

    We analyze the dependence of the Gross Domestic Product ( GDP) per capita growth rates on changes in the Corruption Perceptions Index ( CPI). For the period 1999 2004 for all countries in the world, we find on average that an increase of CPI by one unit leads to an increase of the annual GDP per capita growth rate by 1.7%. By regressing only the European countries with transition economies, we find that an increase of CPI by one unit generates an increase of the annual GDP per capita growth rate by 2.4%. We also analyze the relation between foreign direct investments received by different countries and CPI, and we find a statistically significant power-law functional dependence between foreign direct investment per capita and the country corruption level measured by the CPI. We introduce a new measure to quantify the relative corruption between countries based on their respective wealth as measured by GDP per capita.

  9. FEATURES OF FOREIGN INVESTMENTS AND THEIR IMPACT ON THE ECONOMY OF THE STATE

    Directory of Open Access Journals (Sweden)

    K. V. Zhyzhko

    2010-03-01

    Full Text Available In this article the importance of foreign direct investments forUkraineare analyzed and studied, and main investors are described. Also the role of transnational companies and theirs influence on recipient countries are studied, and the basic strategies on the markets of countries depending on theirs aims are analyzed. The advantages and disadvantages of foreign investments are described

  10. ASSESSMENT OF CORRUPTION EFFECT ON FOREIGN INVESTMENT FLOWS

    OpenAIRE

    Sprinģis, Māris

    2011-01-01

    The purpose of the present paper is to investigate the impact of corruption on foreign direct investment (FDI) flows. Using data from the International Monetary Fund, Transparency International and United Nations conference about commerce and development data bases a cross-section econometric model was estimated to evaluate in which way and how strong corruption influence FDI inflows. Econometric modelling covers the period from year 2000 to 2007 and the data about 82 world countries that con...

  11. IMPACTS OF FOREIGN INVESTMENT ON ECONOMIC GROWTH IN TRANSITION COUNTRIES

    OpenAIRE

    Bosanac, Siniša; Požega, Željko

    2016-01-01

    The current global economic crisis raises many questions and the most important imperative is to find solutions and recover the world economy. Neoliberalism as a cause of the crisis has shown fundamental shortcomings and proved that the market is an imperfect self-regulating system. At the present time in the media, politicians and some economists mention foreign direct investment (FDI) as a life-saving solution for economic problems and economic growth. The analysis of the economic indicator...

  12. Investimento direto externo, acumulação de capital produtivo e distribuição de renda: uma abordagem pós-keynesiana Foreign direct investment, productive capital accumulation and income distribution: a post-keynesian approach

    Directory of Open Access Journals (Sweden)

    Mário Augusto Bertella

    2005-04-01

    Full Text Available It is developed a macrodynamic model in the post-keynesian tradition of political economy of the productive capital accumulation and income distribution to analyze some of the impacts of the (flow of foreign direct investment and the (stock of foreign productive capital on capital accumulation, economic growth and functional income distribution in a stylized economy. Alongside a usual demand effect, the impacts of such an internationalization of local capital through labor productivity and market concentration are taken into account as well.

  13. FOREIGN INVESTMENT INFLUENCE ON OWNERSHIP AND CONTROL IN JAPANESE FIRMS

    Directory of Open Access Journals (Sweden)

    Nistor Ioan Alin

    2010-12-01

    Full Text Available Corporate equity structure, whether is in a market-based system like US or a bank-based system like Japan is prone to changes due to foreign investment. Protection from outside investors varies greatly around these systems. Where protection is good, market-based systems flourish. These systems have certain advantages as they appear to foster innovation and to encourage the release of capital from declining industries. Bank-based systems may be better suited to established industries. These systems also help protect individuals from direct exposure to stock market risk. But, no matter the system, agency problems are inevitable. The paper looks at the past changes of the Japanese corporate ownership composition under the influence of foreign investment.

  14. Impacto da integração regional sobre os fluxos mundiais de investimento direto estrangeiro The effects of regional integration on the world foreign direct investment flows

    Directory of Open Access Journals (Sweden)

    Carolina de Almeida Jorge

    2011-08-01

    feature of the global economy in the 90's. This process was characterized by several economic and political phenomena that deepened the integration of national economies to global economy. The growth of the world's foreign direct investment (FDI flows and the advance of regionalism are two of these phenomena interrelated by many reasons and mechanisms. This present paper aims to evaluate the impact of regional trading agreements over the world's FDI flows, based on the hypothesis that the trading arrangements, which traditionally generate trade, can also have investment creation and diversion effects. A gravity model was estimated for an unbalanced panel constituted by 71 countries for the period 1990-2003. We compared the results from several estimation methods recommended by recent literature like Poisson, pooled cross-section and fixed effects methods. Our results show that trade arrangements tend to increase FDI due to the raise of intra-regional investment and also to the increase of member countries' attractiveness. Nevertheless, even if the gravity model has shown to be adapted for the analysis of the relationship between FDI and regionalization, some methodological issues remain opened.

  15. 77 FR 58979 - Proposed Information Collection; Comment Request; Direct Investment Surveys: BE-15, Annual Survey...

    Science.gov (United States)

    2012-09-25

    ... foreign investors, including their balance sheets; income statements; property, plant, and equipment... Request; Direct Investment Surveys: BE-15, Annual Survey of Foreign Direct Investment in the United States... to David H. Galler, Chief, Direct Investment Division (BE- 50), Bureau of Economic Analysis, U.S...

  16. 78 FR 11140 - BE-605: Quarterly Survey of Foreign Direct Investment in the United States-Transactions of U.S...

    Science.gov (United States)

    2013-02-15

    ... Web site at http://www.bea.gov/internationallindex.htm#surveys . Definitions (a) United States, when... enterprise means any organization, association, branch, or venture that exists for profit making purposes or... quarterly Form BE-605 is required from each U.S. business enterprise in which a foreign entity has a direct...

  17. The foreign investments phenomena in south-eastern European countries

    Directory of Open Access Journals (Sweden)

    Teodora ALECU

    2010-01-01

    Full Text Available The south-eastern Europe countries have all the common history of the communism policy and economy, which from the foreign investments perspective meant a radical approach, which promoted a nationalism view against foreign capital interference. Similar to China, perhaps India and other countries, the governments of the south-eastern Europe’s countries expressed a rejection to foreign investments, emphasizing the negative effects of such operations, arguing that any foreign capital inflow is followed by a foreign capital outflow which at the end will destabilize the balance of external payments and will overall result in no favorable effect upon the economy of their countries.

  18. Changed circumstances and the renegotiation of foreign investment contracts

    Directory of Open Access Journals (Sweden)

    Dubajić Dušan

    2017-01-01

    Full Text Available Today's world is shaped by the processes of globalization and economic liberalization, which dominantly determine the social, economic, environmental and political conditions. As part of these processes, there is an increasing rhetoric about the activities of the state to build a legal system 'ideal for attracting' foreign investment, to establish state institutions in charge of 'attracting foreign investment', and to create a business environment conducive to 'attract' foreign investment. Faced with citizen requests and pressure to create conditions for employment, in initial negotiations with foreign investors state, authorities articulate their willingness to meet these requests. The affirmative stance of governments towards the investments of multinational companies easily can be changed. Once the investment begins, the pledges made by one contracting party to the other may prove to be unrealistic and economically unjustified. The tensions generated between the host state and foreign investors jeopardize the foreign investment contract concluded by the contracting parties. Further fulfillment of contractual obligations from foreign investment contracts will be possible if the contracting parties resolve the resulting conflict through mutual negotiations. Through negotiations, the contracting parties can depreciate the impact of the changed circumstances, including a range of economic, political, legislative and environmental conditions. Initiating negotiations at the right time and conducting them in good faith may lead to a solution. Even if an agreement is not reached, the renegotiation may contribute to a better understanding of contractual partners and redefining the positions of the contracting parties.

  19. The Determinants of Foreign Investment in Pakistan: A gravity model analysis

    Directory of Open Access Journals (Sweden)

    Syed Waqar Azeem

    2012-06-01

    Full Text Available Background: During the last two decades Pakistan was one of the most attractive countries that received Foreign Direct Investment (FDI among developing economies, and especially in first half of the last decade the growth was so rapid and sustainable in different industries as well as in agriculture.  In Pakistani economy the role of Foreign Direct Investment is very important. Policies are clear about the foreign investment even then adjustments are made according to the time, objective, needs and economic circumstances in the country.  Methods: The present study aims to investigate the determinants of foreign investment in Pakistan by using Gravity model. By using panel data of FDI which is used as dependent variable and Gross domestic product, Gross domestic product per capita, Gross domestic product growth rate, Inflation rate, Trade, Total government expenditure, Population growth and Distance used as independent variable from 1999 to 2009 for empirical consequences, the study encompasses the examination of Foreign Direct Investment inflows from different countries and their geographical distance from Pakistan. Results:  Two type of test is used (1 fixed and (2 random effect to check the relationship among foreign direct investment and independent variables. In our both models distance shows a negative impact on the decision to make an investment by investing partner while GDP and GDP growth have a positive and significant impact. Gravity in this regards does not effect that much for foreign direct investment attraction because results are negatively significant in this case that shows higher distance is a hurdle for the inflow of foreign investment but rest of the variables are significantly positive and related to the inflow of foreign investment except population growth which is negatively correlated.   Conclusion: This research concludes that there is a strong evidence of existence of gravity between Pakistan and its investing

  20. Foreign aid or foreign investments: Call for a paradigm shift in ...

    African Journals Online (AJOL)

    Foreign aid or foreign investments: Call for a paradigm shift in mentality and nomenclature. ... Through these investments, lives were saved, many destinies recovered and some obsolete systems ... As long as these funds are seen as aids to developing countries, they will continue to fail to achieve their primary objectives.

  1. The Committee on Foreign Investment in the United States (CFIUS)

    Science.gov (United States)

    2007-07-23

    Europe, Asia, Latin America, the Carribean , and North America. The Committee on Foreign Investment in the United States (CFIUS) Background The ...Order Code RL33388 The Committee on Foreign Investment in the United States (CFIUS) Updated July 23, 2007 James K. Jackson Specialist in... the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data

  2. 12 CFR 560.43 - Foreign assistance investments.

    Science.gov (United States)

    2010-01-01

    ... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Foreign assistance investments. 560.43 Section 560.43 Banks and Banking OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY LENDING AND... reserve capital in the future (call-able capital), must not, as a result of such investment, exceed the...

  3. Foreign Capital Inflow, Domestic Credit and Private Investment in ...

    African Journals Online (AJOL)

    Historically, private investment in Swaziland relied heavily on foreign resources, which have been rapidly declining in the 1990s. This article examines the role of domestic credit and interest rate policy in promoting desired and sustainable investment rates in the country, in the context of the common monetary agreement.

  4. Foreign investment, international mergers and the 1993 capital income tax reform in Finland

    OpenAIRE

    Hannu Piekkola

    1995-01-01

    Foreign direct investment in Finland and the 1993 Finnish Capital Income Tax Reform are examined in this article. Under territorial taxation, the most common form of international double taxation relief; the tax reform will encourage new capital investment. New capital investment from the US, which applies worldwide taxation, would be mildly discouraged, and FDI in the form of mergers and acquisitions largely discouraged. In the UK and Japan, the worldwide principle only covers tax rates. Thu...

  5. 12 CFR 211.602 - Investments by United States Banking Organizations in foreign companies that transact business in...

    Science.gov (United States)

    2010-01-01

    ... example, for United States institutions to have direct or indirect offices in foreign countries and to... minority investment in the foreign firm by a United States banking organization. In view of these... 12 Banks and Banking 2 2010-01-01 2010-01-01 false Investments by United States Banking...

  6. 76 FR 17819 - Proposed Information Collection; Comment Request; Direct Investment Surveys: BE-15, Annual Survey...

    Science.gov (United States)

    2011-03-31

    ... sheets; income statements; property, plant, and equipment; employment and employee compensation... Request; Direct Investment Surveys: BE-15, Annual Survey of Foreign Direct Investment in the United States... Investment Division (BE- 50), Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC 20230...

  7. The Angolan law of foreign investment in petroleum activities

    International Nuclear Information System (INIS)

    Marques, M.M.L.; Moreira, Vital

    1992-01-01

    Accompanying the political and economical transformations which are under way in Angola, the law on foreign investments (and in general on the freedom of private initiative) was recently the object of important alterations which were also reflected in the access to petroleum activities. These changes are examined and the current regime of foreign investment in Angola and in particular the legal framework of petroleum activities are described. First, however, it is important to provide a summary of the legislative evolution pertaining to this subject so that we can better understand the present situation. (author)

  8. La inversión extranjera directa, las exportaciones, el producto interno bruto y el mercado laboral en Puerto Rico Foreign direct investment, exports, Gross Domestic Product and the labor market in Puerto Rico

    Directory of Open Access Journals (Sweden)

    Ángel L. Ruiz Mercado

    2012-12-01

    Full Text Available En este trabajo se utiliza un modelo de vectores autorregresivos (VAR para examinar la interrelación entre la entrada de flujos de inversión extranjera directa (EFIED, las exportaciones, el producto interno bruto (PIB, la tasa de desempleo (TD y la tasa de participación laboral (TPL en Puerto Rico. Los datos utilizados incluyen los años fisca- les de 1980 al 2010. Se encontraron cuatro vectores cointegrados en el sistema, que evidencian la existencia de una relación de largo plazo entre las variables. Los hallazgos sugieren que aumentos consecutivos en la EFIED podrían reducir significativamente la TD e incrementar el interés de los puertorriqueños por ingresar en la fuerza laboral. El mismo resultado se refleja con relación a los incrementos en el nivel de exportaciones. Las variaciones en el PIB se explican principalmente en el largo plazo por la TD.In this paper, a vector autorregresive model (VAR is applied to examine the interrelationship among foreign direct investment, exports, Gross Domestic Product (GDP, unemployment rate and labor force participation rate in Puerto Rico, taking into account a time period that includes the fiscal years from 1980 to 2010.  Four cointegrating vectors were found in the system which indicates that there is a long run relationship between the variables. The findings suggest that consecutive increases in foreign direct investment inflows could significantly reduce the unemployment rate and increase interest in joining the labor force in Puerto Rico.  The same result also applies to increases in export levels.  The variations in Gross Domestic Product are mainly explained in the long run by the unemployment rate.

  9. Foreign Investment and National Security: Economic Considerations

    Science.gov (United States)

    2008-06-27

    the Carribean , and North America. 35 Peninsular and Oriental Steam Company is a leading ports operator and transport company with operations in ports...and Finance Foreign Affairs, Defense, and Trade Division Report Documentation Page Form ApprovedOMB No. 0704-0188 Public reporting burden for the ...collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources

  10. The Effect of the Border on Chinese Direct Investments : Evidence from Russian Border Regions

    OpenAIRE

    Novopashina, Alina

    2013-01-01

    This paper describes the effects of the border on Chinese direct investments to Russian border regions. The findings of this paper show that Chinese direct investments to Russia gravitated to industries in the border regions exporting their goods to China and to the production of non-tradable goods in non-border regions. The net Chinese foreign direct investments (FDI) inflow to Russian border regions is very small but the development of border trade led to informal investments be...

  11. Foreign investment, corporate ownership, and development: are firms in emerging markets catching up to the world standard?

    Czech Academy of Sciences Publication Activity Database

    Sabirianova, K. Z.; Švejnar, Jan; Terrell, K.

    -, č. 1 (2005), s. 1-63 Institutional research plan: CEZ:AV0Z70850503 Keywords : foreign direct investment * corporate ownership * economic development Subject RIV: AH - Economics http://hdl.handle.net/2027.42/21610

  12. Foreign investment, corporate ownership, and development: are firms in emerging markets catching up to the world standard?

    Czech Academy of Sciences Publication Activity Database

    Sabirianova Peter, K.; Švejnar, Jan; Terrell, D.

    -, č. 72 (2005), s. 1-62 ISSN N Institutional research plan: CEZ:AV0Z70850503 Keywords : foreign direct investment * economic development * productivity * efficiency Subject RIV: AH - Economics http://hdl.handle.net/2027.42/61179

  13. THE EFFECT OF TRANSPORTATION INFRASTRUCTURE ONFOREIGN DIRECT INVESTMENT ATTRACTION IN IRAN

    Directory of Open Access Journals (Sweden)

    Manijeh Taghilou Barzelaghi

    2012-07-01

    Full Text Available Weak transportation infrastructure in developing countries, e.g. Iran, presents abig obstacle to foreign direct investment attraction. One way of increasing theflow of foreign direct investment into a country is decreasing the production coststhrough expanding facilities as well as employing higher technology level. Thus,transportation cost usually is high in these countries and industries are oftenconcentrated in regions with more improved transportation system. The presentstudy aimed to investigate the effect of transportation infrastructure in Iran onforeign direct investment attraction. Hence, the researchers employed JohansenJuselius econometrics method to quantify the short run and long run effect oftransportation infrastructure, trade intensity, and market size on foreign directinvestment attraction during 1974-2007. The results emerging from the presentstudy indicated that transportationinfrastructure did not affect foreign directinvestment attraction in short run, but in long run, it had positive and significanteffect on foreign direct investment attraction.

  14. Comparison of the Economic Factors that Influence Foreign Direct ...

    African Journals Online (AJOL)

    Comparison of the Economic Factors that Influence Foreign Direct Investment Growth in Nigeria and India. ... The PDF file you selected should load here if your Web browser has a PDF reader plug-in installed (for example, a recent version of Adobe Acrobat Reader). If you would like more information about how to print, ...

  15. Exchange Rate Volatility, Inflation Uncertainty and Foreign Direct ...

    African Journals Online (AJOL)

    This article examines the effect of exchange rate volatility and inflation uncertainty on foreign direct investment in Nigeria. The investigation covers the period between 1970 and 2005. Exchange rate volatility and inflation uncertainty were estimated using the GARCH model. Estimation results indicated that exchange rate ...

  16. IMPACTS OF FOREIGN INVESTMENT ON ECONOMIC GROWTH IN TRANSITION COUNTRIES

    Directory of Open Access Journals (Sweden)

    Siniša Bosanac

    2016-12-01

    Full Text Available The current global economic crisis raises many questions and the most important imperative is to find solutions and recover the world economy. Neoliberalism as a cause of the crisis has shown fundamental shortcomings and proved that the market is an imperfect self-regulating system. At the present time in the media, politicians and some economists mention foreign direct investment (FDI as a life-saving solution for economic problems and economic growth. The analysis of the economic indicators proved that FDI cannot be, to the necessary extent, a generator of economic growth and that development of each country should be based on endogenous components. The development of critical thinking and questioning of the neoliberal concept, especially with today's time distance through comparisons of indicators such as economic growth, absence of inflation, employment and the export-import ratio, has revealed major systemic defects of the market fundamentalist policies. A strong indicator and argument to this thesis is particularly evident in the industrial production indexes, in the number of industrial workers and in the share of industry in GDP of transition countries.

  17. ENVIRONMENT SERVICES: OPPORTUNITIES FOR THE FOREIGN INVESTMENTS

    Directory of Open Access Journals (Sweden)

    Camelia CAMASOIU

    2006-12-01

    Full Text Available The goods and services for environment (GSE play a major role in promoting the sustainable development. This idea was largely recognized on the occasion of the Fourth Ministers’ Conference of the World Trade Organisation held in Doha, in November 2001, when it was agreed to negotiate the diminution in, or even the elimination of the tariff and non-tariff barriers to the goods and services for the environment. The Doha Declaration points out that the negotiations concerning the GSE are directly aimed at the intensification of the mutual support of the trade and environment to produce “win-win” results. Beyond the practical aspects of the “win-win” scenario, such as who makes the environment gains and who makes the trade ones or what are the implications of the liberalisation of this kind of trade for the sustainable development on the national and regional levels, etc., the most discussed issue was the definition of the concept of goods and services for the environment.

  18. The Foreign Investment Risks of Chinese B Share Market

    OpenAIRE

    JIANG, MINCHANG

    2014-01-01

    The objective of this dissertation is to investigate and analyse the risks existing in Chinese B share market for foreign investment. Based on the brief history of B share market as well as background information such as characteristics of Chinese stock exchange, several areas of risks are identified as: macroeconomic risks, stock volatility and return including cross-impacts among market segmentations and different countries’ markets, financial market and currency risks, and finally the poli...

  19. The Exon-Florio National Security Test for Foreign Investment

    Science.gov (United States)

    2010-02-04

    Asia, Latin America, the Carribean , and North America. 24 Peninsular and Oriental Steam Company is a leading ports operator and transport company...CRS Report for Congress Prepared for Members and Committees of Congress The Exon-Florio National Security Test for Foreign Investment...c11173008 Report Documentation Page Form ApprovedOMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour

  20. Foreign investment opportunities in the Venezuelan upstream industry

    International Nuclear Information System (INIS)

    Pradas, F.

    1994-01-01

    An overview is provided of the Venezuelan petroleum industry, and the advantages of Venezuela for petroleum industry investment are noted. Proven reserves of hydrocarbons consist of 64 billion bbl of oil and condensates, 3.7 trillion m 3 of natural gas, and some 270 billion bbl of recoverable oil from vast reserves of heavy oil and bitumen. Additional reserves of light and medium crude awaiting discovery are estimated at 40 billion bbl. The state petroleum company PDVSA plans to increase proven reserves and to raise oil production capacity from the present level of 2.8 million bbl/d to 4 million bbl/d. To achieve those increases, it is estimated that PDVSA will need to invest ca $40 billion by the year 2000, of which $28 billion will come from PDVSA's own resources. It is intended that the remainder of the investment will be from foreign enterprises as part of joint ventures. PDVSA already has experience with joint ventures in the refining and petrochemical sectors, and a PDVSA subsidiary, Lagoven, is conducting a natural gas export project with several foreign firms. Another subsidiary, Maraven, is engaging in the first of several ventures to exploit the extensive heavy oil resources of the Orinoco belt. Foreign firms are also acting as contractors to reactivate inactive oil fields. PDVSA also markets Orimulsion, a bitumen-based emulsion fuel which competes with coal as a boiler fuel, through its joint venture subsidiary BITOR

  1. Evaluation of Foreign Investment in Power Plants using Real Options

    Science.gov (United States)

    Kato, Moritoshi; Zhou, Yicheng

    This paper proposes new methods for evaluating foreign investment in power plants under market uncertainty using a real options approach. We suppose a thermal power plant project in a deregulated electricity market. One of our proposed methods is that we calculate the cash flow generated by the project in a reference year using actual market data to incorporate periodic characteristics of energy prices into a yearly cash flow model. We make the stochastic yearly cash flow model with the initial value which is the cash flow in the reference year, and certain trend and volatility. Then we calculate the real options value (ROV) of the project which has abandonment options using the yearly cash flow model. Another our proposed method is that we evaluate foreign currency/domestic currency exchange rate risk by representing ROV in foreign currency as yearly pay off and exchanging it to ROV in domestic currency using a stochastic exchange rate model. We analyze the effect of the heat rate and operation and maintenance costs of the power plant on ROV, and evaluate exchange rate risk through numerical examples. Our proposed method will be useful for the risk management of foreign investment in power plants.

  2. Stock price analysis of sustainable foreign investment companies in Indonesia

    Science.gov (United States)

    Fachrudin, Khaira Amalia

    2018-03-01

    The stock price is determined by demand and supply in the stock market. Stock price reacts to information. Sustainable investment is an investment that considers environmental sustainability and human rights. This study aims to predict the probability of above average stock price by including the sustainability index as one of its variables. The population is all foreign investment companies in Indonesia. The target population is companies that distribute dividends – also as a sample. The analysis tool is a logistic regression. At 5% alpha, it was found that sustainability index did not have the probability to increase stock price average. The significant effects are free cash flow and cost of debt. However, sustainability index can increase the Negelkarke R square. The implication is that the awareness of sustainability is still necesary to be improved because from the research result it can be seen that investors only consider the risk and return.

  3. Does foreign aid crowd out government investments? Evidence from rural health centres in Rwanda.

    Science.gov (United States)

    Lu, Chunling; Cook, Benjamin; Desmond, Chris

    2017-01-01

    Rural healthcare facilities in low-income countries play a major role in providing primary care to rural populations. We examined the link of foreign aid with government investments and medical service provision in rural health centres in Rwanda. Using the District Health System Strengthening Tool, a web-based database built by the Ministry of Health in Rwanda, we constructed two composite indices representing provision of (1) child and maternal care and (2) HIV, tuberculosis (TB) and malaria services in 330 rural health centres between 2009 and 2011. Financing variables in a healthcare centre included received funds from various sources, including foreign donors and government. We used multilevel random-effects model in regression analyses and examined the robustness of results to a range of alternative specification, including scale of dependent variables, estimation methods and timing of aid effects. Both government and foreign donors increased their direct investments in the 330 rural healthcare centres during the period. Foreign aid was positively associated with government investments (0.13, 95% CI 0.06 to 0.19) in rural health centres. Aid in the previous year was positively associated with service provision for child and maternal health (0.008, 95% CI 0.002 to 0.014) and service provision for HIV, TB and malaria (0.014, 95% CI 0.004 to 0.022) in the current year. The results are robust when using fixed-effects models. These findings suggest that foreign aid did not crowd out government investments in the rural healthcare centres. Foreign aid programmes, conducted in addition to government investments, could benefit rural residents in low-income countries through increased service provision in rural healthcare facilities.

  4. Direct Spanish Investments in Latin America

    Directory of Open Access Journals (Sweden)

    Alfredo Arahuetes García

    1995-11-01

    Full Text Available In the period 1981-1992, the international flow of direct investments witnessed significant changes which affected their magnitude, geographical orientation, sectorial distribution, forms of investment and sources of financing. This happened in such a way that traditional distribution among industrialized and developing countries was modified as was the capacity for attraction of the different areas in development. In this sense, the main contrast could be seen in the growing importance of East and South East Asia and the decline of Latin American countries which traditionally have been the largest receivers of direct investments within the group of developing countries. The expansive phase of direct investments begun in 1986 threatened to exclude Latin American countries but the establishment of a new framework for the treatment of the problem of external debt -the Brady Plan-, the change in the context of theinternational economy in 1990 and the stability and economic growth of the countries of the region favoured, without a doubt, the recovery of the capacity for attraction for new flows of direct investments regarding Latin American countries.In this way, Latin America registered once again a growing participation in the international flow of direct investments. The evolution of direct Spanish investment in Latin America followed a path similar to that of wider international flows and, after the intense absorption of the first years of the Eighties, the rest of the decade registered a discreet attraction for investors which only began to change course from 1989 onwards with the reestablishment of the new phase of the economic cycle in the countries of the region.

  5. A Rule of Reason for Inward FDI: Integrating Canadian Foreign Investment Review and Competition Policy

    Directory of Open Access Journals (Sweden)

    Grant Bishop

    2016-10-01

    Full Text Available The Investment Canada Act (ICA needs an overhaul. This reform must include a paradigm shift in thinking to a much less restrictive view about the benefits of foreign direct investment in Canada. Currently, the ICA operates under the presumption that foreign firms behave detrimentally to the Canadian economy: foreign acquirers are required to show “net benefit” to Canada and may need to make onerous commitments for maintaining output or employment. This attitude, a holdover from the ICA’s predecessor, the Foreign Investment Review Agency, has created an atmosphere which fosters protectionism and relies on economically incoherent factors to assess the merit of proposed transactions. It is time to shed that archaic attitude and adopt a more reasoned perspective. Rather than requiring each proposed transaction to provide proof for the specific benefit to Canada, the ICA should assume that foreign acquisitions benefit Canada unless there is proof to the contrary. A more welcoming, balanced and rational perspective would be that foreign acquisitions actually improve the productivity of Canadian companies and contribute to the wellbeing of Canada’s economy. The ICA is flawed in other ways, too. Some reviews of proposed transactions have become unnecessarily fraught with politics. Think of the recent politically enmeshed fretting over the bid that the state-owned Chinese Offshore National Company made for Nexen Energy, or Malaysia’s state-owned Petronas’ bid for Progress Energy Resources Corp. Indeed, there has been a very real fear of traditionally Canadian-owned institutions losing their Canadian essence to foreign ownership. Then, too, there is the federal government’s built-in ability to impose onerous conditions, or undertakings, on foreign acquirers. All this is clearly a deterrent to potentially beneficial foreign investment in Canada. Canada needs a new regime without nationalism, protectionism and politics. Ideally, this new

  6. Global Oligopolistic Competition and Foreign Direct Investment

    DEFF Research Database (Denmark)

    Hansen, Michael W.; Hoenen, Anne K.

    2016-01-01

    Purpose: The purpose of this paper is to re-visit and re-invigorate the oligopolistic industry perspective on multinational corporations (MNC) strategy. Design/methodology/approach: Based on insights from the industrial organization tradition and strategic management, the paper brings the original...... capabilities across borders. The paper argues that progressing global concentration in many industries warrants a rediscovery of the oligopolistic perspective on FDI. Originality/value: The paper provides a comprehensive and unique literature review of the literature on MNC strategy in oligopolistic industries...

  7. Learning and Foreign Direct Investment in Africa

    DEFF Research Database (Denmark)

    Sørensen, Olav Jull

    2007-01-01

    The aim of the article is to fokus on the concept of learning i connection with FDI. The artcile presents a set of learning modes og view the charactitistics of both the knowledge receiver and the knowledge provider. A conceptual model is developed and based on the model, a set of hypotheses are ...

  8. Macroeconomics correlations focused on foreign direct investments

    Directory of Open Access Journals (Sweden)

    Teodora ALECU

    2010-07-01

    Full Text Available This article is meant to reveal the way in which the theory of interconnections between systems and sub-systems partici-pating to the creation of economic value, which have been described by professor Paul Bran in his book Economics of Value is outlined in practice and how its analysis may help us to control the effects of the policies applied at the level of each macroeconomic sub-system.

  9. Foreign direct investment : "Think Nordic" / Douglas Clark

    Index Scriptorium Estoniae

    Clark, Douglas

    2003-01-01

    Eesti on oma majanduspoliitikas järginud Põhjamaade eeskuju ja Skandinaaviamaadest on pärit ka enamus välisinvesteeringuid. Pikemas perspektiivis on oluline panna rõhku teadmistepõhise majanduse arengule. Tabelid

  10. Do global banks facilitate foreign direct investment?

    NARCIS (Netherlands)

    Poelhekke, S.

    2015-01-01

    The wave of globalization in finance during the last decades led to the rise of global banks. Are these merely costly liabilities to the countries that supervise them, or is their global reach also beneficial for the real economy and for FDI in particular? Recent literature has focused on the risks,

  11. Technology Transfer, Foreign Direct Investment and Economic ...

    African Journals Online (AJOL)

    The aim of this study is to investigate the long-run equilibrium relationship between various international factors and economic growth, as well as to assess the short-term impact of inward FDI, trade and economic growth on international technology transfer to Nigeria. To achieve this, the study used a time series data from ...

  12. Foreign Direct Investments into Denmark before 1939

    DEFF Research Database (Denmark)

    Pedersen, Kurt; Strandskov, Jesper

    2008-01-01

    Abstract Drawing on a new database, this article presents the first systematic description and assessment of inward FDI into Denmark before World War II. A total of 168 cases were identified, with British, American and German firms dominating the overall picture as might be expected. The composit...

  13. Investment Preference and Strategies of Foreign Institutional Investors Across Different Industries in Taiwan

    OpenAIRE

    Mei-Ling Chen; Fu-Lai Lin; Mei-Chin Hung; Kai-Li Wang

    2009-01-01

    This paper investigates the investment preference of foreign institutional investors across different industries in Taiwanese stock market. By employing the idea of Fama and French (1992) three-factor model with investment strategy, the investment preference is a function of beta value, company size, book-market ratio and investment strategy. Our empirical results find that foreign institutional investors in all five industries adopt momentum strategies in their investment preference. Next, i...

  14. REGULATION ON FOREIGN INVESTMENT RESTRICTIONS AND NOMINEE PRACTICES IN INDONESIA

    Directory of Open Access Journals (Sweden)

    David Kairupan

    2014-03-01

    Full Text Available Certain provisions of Presidential Regulation No. 36 of 2010 concerning Negative Investment List are not clearly stipulated. In relation to the restrictions of foreign investment in certain business sectors asspecified in the Negative Investment List Article 33 para. (1 and (2 of the 2007 Investment Law expressly prohibits investors from entering into any nominee shareholding documentation. Notwithstanding, manynominee shareholding practices are still employed in Indonesia, aiming to circumvent such restrictions.This paper addresses certain issues on Presidential Regulation No. 36 of 2010 and nominee shareholding practices in Indonesia. Beberapa ketentuan dalam peraturan Presiden No. 36 Tahun 2010 yang mengandung ketentuan Daftar Negatif Investasi tidak dirumuskan secara jelas. Sehubungan dengan pembatasan kepemilikan modal asing di beberapa sektor usaha, Pasal 33 ayat (1 dan (2 Undang-Undang Penanaman Modal No. 25 Tahun 2007 secara tegas melarang penanam modal membuat dokumen-dokumen yang terkait dengankepemilikan saham secara nominee. Namun demikian, praktik kepemilikan saham secara nominee masih sering dilakukan di Indonesia untuk menghindari pembatasan tersebut. Tulisan ini akan membahasbeberapa permasalahan yang berhubungan dengan Peraturan Presiden No. 36 Tahun 2010 dan praktek kepemilikan saham secara nominee di Indonesia.

  15. LUSO-SPANISH-FRANCO-ENGLISH RELATIONS VIEWED FROM THE ENTRANCE OF FOREIGN INVESTMENT FUNDS

    OpenAIRE

    jose r. p. manso

    2004-01-01

    The main objective of the present paper is to study the relationships and the interrelationships among the financial flows (as Foreign Direct Investment – FDI) that entered the Portuguese, Spanish, French and English economies from 1970 till 2001. With this objective in mind this paper or communication begins by describing the methodology used, an econometric one, methodology that begins by the utilisation of various tests to appreciate the quality of the data series, namely their stationarit...

  16. Pension fund regulation: Unintended consequences of foreign investment restrictions in an emerging market economy

    Directory of Open Access Journals (Sweden)

    Coert Frederik Erasmus

    2016-12-01

    Full Text Available Retirement savings allow investors to earn income after retirement by saving while being part of the workforce. Retirement savings comprise the largest portion of retirement savings and should be safeguarded by effective regulation. To safeguard retirement savings, exposure to foreign asset investments is limited. However, in an emerging economy, limiting foreign asset investments, especially investment in developed markets, could hamper the potential investment returns due to the translation risk. To assess the effect of translation risk, a preservation provident fund was used in the present study to determine whether the returns of this preservation provident fund would be adversely affected by investment allocation regulation. The findings indicated how the translation effect affected the preservation provident fund, illustrating the adverse unintended consequences of investment regulation in emerging market economies. Consequently, regulators should reconsider the maximum allowed foreign asset investment in pension fund regulations to enhance investment returns from foreign asset investments

  17. China's Outward Direct Investment in Africa

    NARCIS (Netherlands)

    Cheung, Yin-Wong; de Haan, Jakob; Qian, Xingwang; Yu, Shu

    The empirical determinants of China's outward direct investment (ODI) in Africa are examined using an officially approved ODI dataset and a relatively new OECDIMF format ODI dataset. China's ODI is found responding to the canonical economic determinants that include the market seeking motive, the

  18. Latest Amendments in the Foreign Investment Laws of Uzbekistan: Manifestation of Serious Ambitions for Change?

    Directory of Open Access Journals (Sweden)

    Bobomurod Muminov

    2016-01-01

    Full Text Available Attracting Foreign Direct Investment (FDI has been priority issue for the Government of Uzbekistan (GOU since the proclamation of the country’s independence from the Soviet Union in the early 1990s . Today the operating legal regulations provide adequate state guarantees of protection, tax incentives and other privileges for foreign investors, and the GOU has been introducing legal adjustments to honour its commitments in securing a more favorable investment climate. However, foreign investors in practice are facing serious legal problems in doing business in the country. Frequent modification of laws and their artbitrary application, erroneous interpretation of legal terms, ambiguous rules and procedures, lack of protection of property rights and an independent dispute resolution mechanism are the legal concerns that usually keep foreign investors from entering the market.In this paper I will analyze some of the measures and changes recently adopted by the GOU that aim to make the country’s investment climate more attractive and I will try to find answers for the following questions. How sincere can these efforts be considered by prospective investors? What novelties do those changes provide for the investors? Will such attempts emanate actual and immediate constructive results in the near future?

  19. The Impact of Foreign Investment Restrictions on the Stock Returns of Oil Sands Companies

    Directory of Open Access Journals (Sweden)

    Eugene Beaulieu

    2014-06-01

    Canada Act rules were announced in December 2012, investment dollars from state-owned enterprises have essentially stopped flowing into the bitumen extraction business. Energy-directed foreign direct investment – of which SOEs play an important role – fell off a cliff in 2013, declining 92 per cent year-to-year from $27 billion to $2 billion. These are very worrisome statistics for a nation highly dependent on foreign investment to fund its capital-intensive resource industries.” - Sebation Gault, December 2, 2013 Published in Alberta Oil Magazine

  20. North African oil and foreign investment in changing market conditions

    International Nuclear Information System (INIS)

    Fattouh, Bassam; Darbouche, Hakim

    2010-01-01

    Since the 1960s, the experiences of the North African oil producers of Libya, Algeria, Egypt and Sudan within the oil industry have followed separate paths, which have led them into different relations with foreign oil companies. While reflecting broader trends of 'resource nationalism', these relations have also been affected by a number of factors specific to these countries. In tracing the evolution of the oil investment frameworks of these countries, as well as their concomitant relations with IOCs, this paper probes the roles played by these factors and argues that the type and size of remaining reserves as well as the capability of NOCs are likely to determine the most future developments in the region's oil industry. (author)

  1. Forecasting Foreign Institutional Investment Flows towards India Using ARIMA Modelling

    Directory of Open Access Journals (Sweden)

    Vaishali S. Dhingra

    2015-05-01

    Full Text Available India has witnessed substantial increase in capital flows, particularly Foreign Institutional Investment in equity as well as derivatives segment since the 1990s. However, FII flows are sighted as ‘hot money’- more volatile than other type of flows, which gets affected by the domestic and global- macro economic factors, thereby raising questions about the need to encourage FII flows in narrow and shallow (in terms of absorption capacity capital market such as India. This paper attempts to forecast daily Aggregate FII flow in Indian Capital market and particularly in Futures Market (Derivative Segment using Auto Regressive Integrated Moving Average (ARIMA model.The paper tries to examine FII flows in India towards futures market along with spot market by tracing which AR terms and/or MA terms influence the current inflow or outflow.

  2. Expanding educational access and opportunities: The globalization and foreign direct investment of multinational corporations and their influence on STEM, project-based learning and the national science and technology fair in schools in Costa Rica

    Science.gov (United States)

    Valdez, Joaquin G.

    The purpose of this qualitative study was to examine the influence of globalization and the foreign direct investment (FDI) of multinational corporations (MNCs) on the curriculum in schools in Costa Rica. The study focused primarily on Science, Technology, Engineering and Mathematics (STEM), Project-Based Learning (PBL), 21st century skills, and the national science and technology fair. The high influx of MNCs such as Intel has changed the global and educational culture of the country increasing the number of knowledge-based workers in Costa Rica. As a result, policy changes have been instituted in education to mirror the demands of sustaining the country's global economy. This study was supported by the creation of three research questions that would attempt to answer 1) the extent that teachers implementing STEM curriculum trace their practices back to policy, globalization, and multinational corporations as well as the extent to which the economic growth of Costa Rica and STEM education are related, 2) how mandating the national science and technology fair has influenced 21st century skills through project-based learning and the use of technology by teachers and its impact on curriculum and instruction, and 3) how has the national science and technology fair policy changed the value of STEM education for students, teachers, and educational leaders. To further understand the outcome of this study, four theoretical frameworks were applied that included, Spring's theory of world educational culture, Friedman's world flatteners, Wagner's 21st century skills and partnerships for 21st century skills, and Slough and Milam's STEM project-based learning theoretical framework. Each framework was applied to support the changes to the educational system; survival skills necessary to compete in the global job market; application of 21st century skills in the classroom and in the science projects students created. A research team comprised of 14 doctoral students, led by Dr

  3. Choosing between foreign investment and subcontracting: Strategies of Italian firms

    OpenAIRE

    Giuseppe Tattara

    2010-01-01

    Vertical disintegration in most industries and the globalization of markets has led to significant changes in the pattern of international division of labour among manufacturing firms. At the same time increased competition from low cost producers, exchange rate constraints, the opening up of CEE countries have had huge consequences for the Italian industrial system. This paper deals with the Veneto footwear, furniture and refrigeraion industries and examines the effects of foreign direct inv...

  4. Forfás Statement on Outward Direct Investment 2007

    OpenAIRE

    2007-01-01

    The Statement on Outward Direct Investment provides an update on current trends in outward direct investment (ODI) and examines the economic impact of ODI by Irish firms. This statement highlights the fact that outward investment by Irish companies now exceeds inward investment by overseas firms into Ireland.

  5. Russian law: the legal framework for foreign investment in the Russian petroleum industry - problems and progress

    International Nuclear Information System (INIS)

    Barmin, A.; Doeh, D.

    1994-01-01

    Recent developments in Russian law relating to foreign investment in the petroleum industry are reviewed. The central piece of legislation regulating foreign investment is the Law on Foreign Investments of 1991. Its significance is that it is opened up to foreign investment that had been a closed society but it did not set out how and or what conditions investors' rights were to be acquired and exercised. The main problems that have had to be dealt with include: determining which government authorities (federal, republic, regional etc.) have the power to grant petroleum exploration and production rights; determining the methods by which these rights may be obtained and on what terms; determining export rights; establishing the basis for taxation; establishing the general framework for foreign investment in Russia. The extent to which these issues have been resolved is discussed and remaining areas of concern considered. (UK)

  6. Foreign Direct Investment, Foreign Aid and Domestic Entrepreneurship

    NARCIS (Netherlands)

    Danakol, S.H.

    2015-01-01

    Entrepreneurship is a vital component of economic development through innovation, job creation and efficient allocation of resources. Hence, many governments play a proactive role in facilitating entry of new firms and nourishing an entrepreneurial culture. These objectives became more relevant in

  7. Corporate Social Responsibility as a Strategic Means to Attract Foreign Investment: Evidence from Korea

    Directory of Open Access Journals (Sweden)

    Juil Lee

    2017-11-01

    Full Text Available This study examines how foreign investment can be driven by corporate social responsibility (CSR. By specifying the underlying mechanism of foreign investors’ stock picking behavior, we argue that CSR can attract foreign investment. Given that CSR actions are taken to meet various needs of its stakeholders, the host firm can convey a reliable signal to foreign investors as well as the stakeholders. As such, foreign investments can be increased in the host firm. This idea is examined in a sample of Korean firms. We hypothesize that Korean firms, as host firms, will have more foreign investments, instantiated by foreign ownership, if they are more actively engaged in CSR. To test this argument, we collected a panel dataset of the Korea Economic Justice Institute (KEJI Index between 2004 and 2009 to measure CSR performance of the firm. We estimated foreign ownership with respect to CSR performance. As a result, we found a positive effect of CSR performance on foreign ownership. Given the importance of foreign investment in host countries, this study opens an avenue that can account for foreign investors’ stock-picking behavior.

  8. The Impact of Foreign Investment Restrictions on the Stock Returns of Oil Sands Companies

    OpenAIRE

    Eugene Beaulieu; Matthew M. Saunders

    2014-01-01

    On December 7, 2012 the Government of Canada released a policy statement and revised the guidelines for investments by State-Owned Enterprises in the Canadian oil sands. This policy statement was in response to the proposed purchase of Nexen by the Chinese SOE, CNOOC. According to the new guidelines, foreign investors must convince the Minister of Industry that a particular investment is likely to be of net benefit to Canada and those investments by foreign SOEs to acquire controlling interes...

  9. Foreign investment, corporate ownership, and development: are firms in emerging markets catching up to the world standard?

    Czech Academy of Sciences Publication Activity Database

    Sabirianova Peter, K.; Švejnar, Jan; Terrell, K.

    -, č. 4868 (2005), s. 1-63 ISSN 0265-8003 Institutional research plan: CEZ:AV0Z70850503 Keywords : productivity * economic development * foreign direct investment Subject RIV: AH - Economics http://www.cepr.org/pubs/dps/DP4868.asp

  10. FEATURES OF FOREIGN INVESTMENT AT VARIOUS STAGES OF THE AGRIBUSINESS GLOBAL VALUE CHAIN

    Directory of Open Access Journals (Sweden)

    T. Nagachevska

    2015-08-01

    Full Text Available The article justifies the conclusion that modern foreign investment trends in agriculture do not provide for the fundamental needs of the sector. The essence of the agribusiness global value chain and its stages is defined in the piece of research. The study demonstrates greater involvement of countries with developing and transition economies in international capital flows in the main segment of the agro-industrial complex – the agricultural production (farming stage, likewise clear dominance of developed countries in foreign investment processes in international downstream and upstream segments. Investment trends in various sectors of the agribusiness global value chain are detected in the study. The article reveals factors that are increasingly driving foreign investment in agricultural production today. Approaches to designing and implementing government investment policy that is aimed at maximizing efficiency of the agrarian sector by means of foreign capital inflows are outlined in the study.

  11. 26 CFR 1.956-1T - Shareholder's pro rata share of a controlled foreign corporation's increase in earnings invested...

    Science.gov (United States)

    2010-04-01

    ... foreign corporation's increase in earnings invested in United States property (temporary). 1.956-1T... of a controlled foreign corporation's increase in earnings invested in United States property... investing controlled foreign corporation. (6) Adjusted basis of property acquired in certain nonrecognition...

  12. 75 FR 57217 - Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad

    Science.gov (United States)

    2010-09-20

    ... Form BE-11E to collect property, plant, and equipment expenditures, which is one of three key...] RIN 0691-AA74 Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad AGENCY... the reporting requirements for the BE-11, Annual Survey of U.S. Direct Investment Abroad. The survey...

  13. 75 FR 80294 - Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad

    Science.gov (United States)

    2010-12-22

    ...' total liabilities. BEA also adds an item on Form BE-11E to collect property, plant, and equipment...] RIN 0691-AA74 Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad AGENCY... for the BE-11, Annual Survey of U.S. Direct Investment Abroad. BEA conducts the survey annually and...

  14. ECONOMIC VALENCES OF THE NATIONAL INTEREST IN THE CONTEXT OF FOREIGN DIRECT INVESTMENTS’ INFLOWS

    Directory of Open Access Journals (Sweden)

    CAMELIA MILEA

    2015-03-01

    Full Text Available In the context of globalization and the tightening of relationships among countries, we consider to be important an analysis of the national interest of an economy. The national interest is a complex concept consisting of many interests that occur at several levels, converging towards assuring security, freedom, justice and welfare. The state is the main defender of the national interest. The national interest has as objective the definition of the national development priorities in order to ensure the survival and the prosperity of the country concerned, by following a trend of sustainable development and it is based on several factors, including foreign direct investments. These are a necessity for the development of an economy, especially when national savings do not meet the needs of capital for investments. But in order to serve the national interest, foreign direct investments have to be channeled towards the areas of national interest. After the national interest is defined, there are presented the characteristics of the economic national interest and the ways through which foreign direct investments can support the achievement of the economic interest of an economy. Then, the article highlights a few of the areas toward which foreign direct investments should be directed in Romania in order to sustain the sustainable development of our country.

  15. REGULATION OF DIRECTIONS OF INVESTING OF PENSIONS ASSETS

    Directory of Open Access Journals (Sweden)

    O. V. Shabanova

    2014-09-01

    Full Text Available Peculiarities of regulation of directions of investing of pensions assets in Ukraine are considered in the article. Particularly, the main attention is paid to the significance of investment restrictions. Problems of contemporary investing of pensions assets are determined. The main measures conducing to enhancement of efficiency of an activity of non-state pensions funds are proposed.

  16. Foreign investment: policies and effects on the petroleum industry in New Zealand

    International Nuclear Information System (INIS)

    Tindill, P.

    1995-01-01

    The theme of this Conference is ''The Post Maui Challenge - Investment and Development Opportunities''. In order to ensure the development and exploitation of petroleum discoveries in New Zealand, considerable capital will be required, particularly from overseas. This paper briefly reviews the Government's foreign investment policies and procedures, and highlights some trends. (Author)

  17. Established foreign subsidiaries and the relationship between: the environment, satisfaction and investment intentions

    Directory of Open Access Journals (Sweden)

    Paul Kalfadellis

    2008-01-01

    Full Text Available This study identified the environmental factors that influence established foreign subsidiaries operating in Australia. In seeking to examine and explain subsidiary development in a location this study sought to test the relationship between the identified environmental factors, satisfaction and future investment intentions. Based on a sample of 356 foreign subsidiaries operating in Australia, a mediated regression model was used to test the relationship. The results showed that overall satisfaction, national institutional environment, and local investment image had a positive predictive effect, while input costs and small market had a negative predictive effect on the relationship with investment intentions. Overall satisfaction as a mediator on the relationship between these factors and investment intentionsindicated that national institutional environment, and local investment image had no additional effect on investment intentions beyond their impact on overall satisfaction.

  18. Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents

    OpenAIRE

    Chia-Lin Chang; Sung-Po Chen; Michael McAleer

    2010-01-01

    textabstractThis paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment, inward direct investment (IDI) and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate a...

  19. Foreign investment in Asia in the 1990s: trends, problems and implications for manpower movements.

    Science.gov (United States)

    Sekiguchi, S

    1992-01-01

    Direct foreign investment (DFI) is described as an international reallocation of managerial resources through which manpower moves across borders bidirectionally. This paper describes the diversity and rapidity of change in DFI for flows among North America, western Europe, Japan, ASEAN, Taiwan, China, Hong Kong, Korea, and Russia, and the implications for manpower movements. The US share of DFI in the Pacific Rim has declined while that of Japan and Western Europe has increased with the newly industrialized economies emerging regionally as net capital exporters. US and western European DFI will increasingly turn toward the Americas and Europe. Diminished US DFI will likely be compensated by Asian intraregional flows led by Japan, South Korea, Singapore, and Hong Kong. As for migration trends, bidirectinal flows of unskilled and professional labor may be stimulated by DFI, but only limited direct effects upon manpower movements should be expected.

  20. The results of the Mexican election and the implications it may have on foreign investment

    International Nuclear Information System (INIS)

    Noble, R.

    1994-01-01

    The general effects of the recent Mexican election on that country's socio-economic development are discussed. Future directions of the new government include a trend toward greater deregulation, more privatization, and a greater importance of social welfare policies. The Mexican climate for new investment appears positive; the first half of 1994 saw $8 billion of foreign investment in Mexico. Canadian investment in Mexico dates from the 1850s and Mexico is now Canada's largest economic and trading partner in Latin America. Canada-Mexico trade is expected to rise to over $8 billion/y by 2000. To assist in this relationship, a Canadian Business Centre was opened in Mexico City in 1994 and programs are in place to aid potential Canadian exporters. The implications of the above developments for the oil and gas industry are examined. The Mexican state oil monopoly PEMEX is concentrating on core activities (extraction and refining of oil) and has sold almost all of its secondary petrochemical business. Private contractors can now obtain drilling contracts. PEMEX plans to invest ca $23 billion between now and 2000 and it is likely that at least some of this investment will come via partnerships between private firms and government. This is especially possible in the natural gas sector, where supply and demand are essentially in balance. Gas production will likely increase 60-80% by 2001 and Canadian companies are well suited to help bring this about. Some Canadian firms such as Novacorp and Associated Pipeline Services are already doing business with PEMEX or participating in joint ventures with Mexican firms. Suggestions are offered for doing business in Mexico

  1. Abnormal profitability and foreign investment based on the investigation of covered interest parity

    Science.gov (United States)

    Huang, Bor-Yi; Chiou, Jer-Shiou; Wu, Pei-Shan

    2007-10-01

    Most literature focuses on how foreign investment and the market returns are related. Instead, this study attempts to identify the origin of abnormal behavior by foreign investors, as well as the relationship among the error in covered interest parity (ECIP), foreign investment (INV), and stock returns (RS). This study finds that the behavior of ECIP can be accurately represented by the ARJI model, which is capable of describing sudden jumps in the economy. Consequently, CBP-ARJI thus provides an effective means of studying the interaction among underlying variables. Empirically, ECIP has a negative statistical significant influence on foreign investment. While RS and INV have no mutual volatility spillover effect, they have a close correlation in terms of jump intensity. The previous jump of INV had more impact on current INV, while RS had little impact. The early withdrawal of foreign investment causes stock indexes to fall, creating potential losses for general investors. Foreign investment thus observes abnormal ECIP behavior, while leading the market movements, are always better off.

  2. Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents

    NARCIS (Netherlands)

    C-L. Chang (Chia-Lin); S.P. Chang (Sung-Po); M.J. McAleer (Michael)

    2010-01-01

    textabstractThis paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment, inward direct investment (IDI) and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that

  3. DESIGN FOCUSED ORIENTATION PROCESSES FOR MANAGING INVESTMENT COMPANIES IN THE FOREIGN EXCHANGE MARKET

    Directory of Open Access Journals (Sweden)

    Анатолий Аркадьевич АНАТОЛЬЕВ

    2015-05-01

    Full Text Available This report examines the investment companies operating in the market Forex. Business process analysis showed the design direction of their activities. Dedicated two groups of projects of investment companies can position them as project-oriented organization.

  4. THE GERMAN DIRECT INVESTMENTS IN INNOVATIVE AND TECHNOLOGICAL DEVELOPMENT OF THE RUSSIAN ECONOMY

    Directory of Open Access Journals (Sweden)

    Карина Юрьевна Ашикарьян

    2013-05-01

    Full Text Available In the conditions of globalization and economy modernization the special attention is paid to cooperation of the countries in the sphere of innovations and high technologies which is reached at the expense of a transfer of knowledge and technologies. One of priority instruments of innovative and technological cooperation today are direct foreign investments. Germany occupies one of leading provisions among the developed countries of the world and possesses high scientific and technical potential. The importance is got by direct investments of Germany, as main supplier of the real direct investments bringing new technologies and knowledge in economy of Russia. Thus, the German direct investments are the most important source of advanced technologies and the methods of management promoting modernization of the Russian economy and transition to an innovative way of development. Direct German investments accelerate process of integration of the Russian economy  in the world economy, improve use of various advantages of the international labor cooperation and its division, promote involvement in being formed European economic space.The article describes a role of the German direct investments in innovative and technological development of  the Russian economy.DOI: http://dx.doi.org/10.12731/2218-7405-2013-4-19

  5. THE COST OF DIRECT TAXATION ON INVESTMENT IN BRAZIL

    Directory of Open Access Journals (Sweden)

    Nelson Leitão Paes

    2017-06-01

    Full Text Available ABSTRACT This paper analyzed the impact of taxation on the investment in Brazil, focusing on the taxation of corporate income. Following the literature, it was used an economic model to calculate two indicators of effective tax rates - Effective Marginal Tax Rate (EMTR and Effective Average Tax Rate (EATR. The EMTR measures the increase of the cost of capital due to corporate income tax. The EATR represents a measure of the average tax rate levied on an investment that has a pre-defined economic profit. The results suggest Brazil may face some difficulties to attract foreign investment. The country presents high rates for EATR and EMTR, higher than the average of the rich countries and well above the figures of development countries like Chile, Mexico, South Africa, Russia and China, potential competitors in attracting investments.

  6. El impacto de las inversiones extranjeras directas en las economías en desarrollo y el ambiente The impact of foreign direct investment on developing economies and the environment

    Directory of Open Access Journals (Sweden)

    Luis Carlos Arango Vieira

    2009-01-01

    poor to destroy the environment in order to survive and cope with the roles their society demands. Neo-liberal practices such as those enforced in developing countries like Colombia, seeking to attract foreign investment to push their economies tend to generate a false aggregated demand growth, that in most cases is not sustainable in the long term, and thus high global unemployment, unleash destructive competitive processes, and weaken government's ability to regulate business in the citizens best interests. The forces of global Neo-liberalism are now so powerful that it has become difficult if not impossible for countries like Colombia to maintain non-Neo-liberal economic structures, in which countries are forced to deregulate FDI policies and receive inflows of capital no matter the terms and the objectives as long as it helps to maintain consumption levels.

  7. FCTC guidelines on tobacco industry foreign investment would strengthen controls on tobacco supply and close loopholes in the tobacco treaty.

    Science.gov (United States)

    Lo, Chang-fa

    2010-08-01

    The Framework Convention on Tobacco Control (FCTC) contains no provisions covering tobacco industry investments. This creates the potential for tobacco companies to benefit from investment liberalisation by using foreign investments to avoid tobacco tariffs, increase tobacco consumption and otherwise impair the implementation of FCTC-style measures. Reducing and ultimately eliminating foreign investment activities by tobacco companies can be justified on health grounds, even though it runs counter to current investment liberalisation trends. Through the FCTC process, non-binding guidelines can be elaborated to assist parties in recognising and responding to foreign investment strategies of tobacco companies, to support efforts to exclude the tobacco sector from investment liberalisation and otherwise would improve all countries' awareness of the threat from foreign investment strategies of tobacco companies and provide them with approaches to handle the problems.

  8. Industrial Policy Formulation and its Impact on Foreign Investment ...

    African Journals Online (AJOL)

    The Second World War turned industrial capital outwards in the United States and the scientific and technological changes in the post-war period led to the expansion of American private capital investment particularly in the Third World countries. The private sector in the United States became a vital sector for the expansion ...

  9. The Tradeoff Between Mutual Fund and Direct Stock Investments

    DEFF Research Database (Denmark)

    Marekwica, Marcel; Steininger, Bertram I.

    2014-01-01

    We study the tradeoff between direct and indirect stock investments through equity mutual funds for a utility-maximizing investor. Whereas direct investments impose higher transaction costs on the formation of a well-diversified portfolio, mutual funds charge fees for their services. Our results...... show that the fee levels that make private investors indifferent between direct and indirect stock investments vary heavily according to risk aversion, the amounts invested, correlations between assets, transaction costs, and the length of investment horizon. In particular, our results suggest...... that for a wide range of actively managed mutual funds, the fees charged are too high for these mutual funds to appeal to a wide range of informed investors. However, accounting for search costs, such as costs for financial advice, can facilitate an understanding of the levels of management fees charged by mutual...

  10. CONTRACT OF WORK AS AN INTERNATIONALIZED CONTRACT: A SUI GENERIS RELATION OF FOREIGN INVESTMENT

    Directory of Open Access Journals (Sweden)

    Nanda Saraswati

    2015-08-01

    Full Text Available Contract of work is an agreement made between the government of the Republic of Indonesia with foreign companies, and or joint ventures between foreign companies with domestic legal entities to carry out exploration and exploitation in general mining or oil and gas out of the earth, in the time period agreed by both parties. One of the foreign companies in cooperation with the Indonesian government in this field is PT Newmont Nusa Tenggara which form the contract of work in the field of utilization and development of mining potential in Indonesia. However, Act No. 25 of 2007 on Investment, Chapter IV of Form and Position Enterprises in Article 5, paragraph 2 requires that the foreign investment shall be in the form of a limited liability company based on Indonesian law and domiciled in the territory of the Republic of Indonesia, unless specified otherwise by law. Therefore, a contract of work is often regarded as a national contract by many parties. Others suggested that such contract which involves foreign investment transaction is sui generis, or in other words a quasi-public international contract. This paper will discuss the foreign elements of the contract and conclude that the contract of work can be categorized as an international contract.

  11. FOREIGN INVESTMENT AND FOREIGNERS ENTRY IN BRAZIL: LABORER AUTHORIZED IMMIGRANT AND INDIVIDUAL INVESTORS PROFILES - 2005-2009

    Directory of Open Access Journals (Sweden)

    Silvana Nunes de Queiroz

    2012-12-01

    Full Text Available Due to globalization process, privatizations, expansion of the international commerce and flow of capitals, Brazil emerges into the international scenery, from the middle of the decade of 1990, as one of the best countries for investments. There are several reasons: stable macroeconomical environment, perspective of economical growth, 190 million inhabitants eager for consumption, self-sufficiency in electric energy, affluent natural resources, political stability and example for all Latin America. This article analyses the amount, origin and destiny of the investments (by natural person done by foreigners in Brazil and describes the profile of immigrants by nationality, authorizations granted for work (temporary and permanent, groups of occupation, education levels and migratory destiny. In accordance with the informations of the General Immigration Coordination (Coordenação Geral de Imigração of the Ministry of Labour and Employment (Ministério do Trabalho e Emprego, the foreign investment, together with work authorizations granted to foreigners and as individual investors has been increasing in the country. Between 2008 and 2009, the highest amounts of investments, in Brazil, were reserved to the states of Sao Paulo, Bahia, Ceará, Rio Grande do Norte and Rio de Janeiro, and proceeded from Italy, Spain, Portugal, USA and China. With regard to the profile of immigrants, the requests of work visa were mainly granted, between 2005 the 2009, for the state of Sao Paulo and Rio de Janeiro, for occupations in tourism boats and work on board or foreign platform, respectively. Concerning the three northeastern states, the visa for individual investors is the most solicited one. Those who arrive in the state of Sao Paulo and Rio de Janeiro normally are natural from the USA, United Kingdom and Philippines, while in northeastern states the provenance belongs to Italians, Portuguese and Spaniards, with higher education.

  12. The Russian oil industry and foreign investments: legal aspects and the problem of business risk

    International Nuclear Information System (INIS)

    Konoplyanik, A.A.

    1994-01-01

    Despite the considerable potential oil resources in Russia, oil production is currently falling to the extent where, if present trends continue, imports will be necessary in the next few years in order to meet domestic demand. Foreign investment could make an effective contribution to stabilizing the Russian oil industry. The large resource base, favourable production costs, highly skilled workers and the conversion potential of the former defence industries to oil and gas equipment, are considerable attractions for foreign investors. However, for the time being there are many obstacles and uncertainties for oil and gas investment. Among these are political instability, high taxation, export tariffs, the legal environment, bureaucratic difficulties over new project negotiation, and problems related to oil and gas transportation. Current legislative activities which may lead to a better investment environment are described. (UK)

  13. The Role of Foreign Investment in Korean Privatization

    Directory of Open Access Journals (Sweden)

    Mikyung Yun

    1999-06-01

    Full Text Available This thesis is aiming at observing the privatization trend of the state-owned enterprises after the declaration of the privatization of a great number of the state-owned enterprises in 1998. This thesis analyzed and made comments on this issue, and got an enlightenment on the overseas sale of the state-owned enterprises, according to a deep analysis of POSCO’s and KEPCO’s achievement on privatization by issuing Depositary Receipts. To issue DR (deposit receipt of stock in overseas did not restrict the holding limitation of foreigners; it also has the advantage of getting the domestic premium in Korea. So it is considered to be the principal method of the overseas sale of the state-owned enterprises. The result of this thesis shows that, generally speaking, the recent issue of the DR of state-owned enterprises is successful as a blueprint of privatization. But in order to maximize the scale of sales financing, it is necessary to implement sale strategies by way of taking the pre-market stabilization, using financial experts, accepting various skills of selling.

  14. 26 CFR 1.956-1 - Shareholder's pro rata share of a controlled foreign corporation's increase in earnings invested...

    Science.gov (United States)

    2010-04-01

    ... earnings and profits on December 31, 1965 225,000 (iii) Amount of earnings invested in United States... earnings invested in United States property by A Corporation attributable to the stock acquired by M... foreign corporation's increase in earnings invested in United States property. 1.956-1 Section 1.956-1...

  15. Foreign Operation Methods

    DEFF Research Database (Denmark)

    Welch, Lawrence S.; Benito, Gabriel R. G.; Petersen, Bent

    Introduction and theory -- Introduction -- Theoretical approaches -- Modes of operation -- Franchising -- Licensing -- Management contracts -- International subcontracting -- Project operations -- Exports -- Alliances -- Foreign direct investment -- Strategies -- Mode switching and stretching...

  16. Indochina becoming prime target for foreign investment in E and D

    International Nuclear Information System (INIS)

    Anon.

    1992-01-01

    This paper reports that Indochina is emerging as a prime target for investment in oil and gas exploration and development. The Southeast Asian subcontinent offers sharp contrasts: the booming, market oriented economy of Thailand with its friendly climate for foreign investment, compared with the flagging socialist economies of Myanmar (formerly Burma), Cambodia, Laos, and Viet Nam. The contrast extends to the Thai energy sector as well. Aggressive development of Thailand's gas reserves with foreign assistance and capital underpins the buoyant Thai economy and has helped it reduce its dependence on imports to 40% of total energy demand. That contrast may also give impetus to a window of opportunity for oil and gas companies to participate in little tested or rank exploration plays elsewhere in the region. Except for Thailand, the region has seen little exploration and almost none by private companies since the early 1970s. The other countries are just beginning to emerge from years of international isolation caused by war or civil strife, and some are seeking foreign private investment in oil and natural gas for the first time in more than a decade. The need for hard currency capital is keen. Accordingly, industry officials point to nations such as Cambodia offering among the most attractive terms for oil and gas investment in the world

  17. Openness of Economy, Foreign Investment Inflows and the Phenomenon of Rent Seeking Corruption

    Directory of Open Access Journals (Sweden)

    Syed Toqueer Akhter

    2015-08-01

    Full Text Available Rent seeking behavior has been amongst noticeable obstacles in path of economic growth and development for developing communities. Due to this the study aims at testing the hypothesis that the Rent seeking behavior among bureaucracy is being influenced by the openness of economy as well as inflows of foreign investment significantly. Model estimations imply that reforms may have an insignificant impact upon impact upon curtailing the rent seeking behavior among bureaucracy in a time series setting therefore this research will use two statistical econometric models to show the effect of corruption on the foreign direct inflow received in Pakistan. In order to pretest the impact of all the mentioned variables on rent seeking behavior generalized least square was used because its results were unbiased, consistent and the problem of Serial correlation was solved by using it. In order to quantify rent seeking behavior among bureaucracy different aspects of misuse of public offices appearing in form of petty and grand corruption were used using the variables informal sector, tax evasion, judicial outlay, G.D.P and F.D.I as percentage of G.D.P. All of the variables had proper signs aligned with the theory and all of the variables appeared to be significant except judicial outlay proving that the judiciary has been incompetent and ineffective. The robust regression showed all the same signs except in it every variable was appearing to be significant. Rent seeking corruption has been highly affecting Pakistan in adverse ways and this paper will show how many factors like judiciary is not playing effective role in limiting corruption and also how the economy is being affected by rent seeking behavior.

  18. Esophageal Foreign Body Causing Direct Aortic Injury

    Directory of Open Access Journals (Sweden)

    ECS Lam

    2003-01-01

    Full Text Available Foreign bodies in the esophagus are uncommon causes of esophageal perforation. Many nonperforating cases are successfully managed by flexible gastroscopy. However, complicated foreign bodies such as those that result in esophageal perforation and vascular injury are best managed surgically. Gastroscopy remains the primary method of diagnosis. A case of a 59-year-old woman who developed retrosternal and intrascapular pain, odynophagia and hematemesis after eating fish is reported. Flexible gastroscopy showed arterial bleeding from the midthoracic esophagus. Computed tomography scan localized a 3 cm fish bone perforating the esophagus with surrounding hematoma. An aortogram did not reveal an actively bleeding aortoesophageal fistula. The fish bone was surgically removed and the patient recovered with no postoperative complications. This case illustrates the importance of early consideration for surgical intervention when confronted with a brisk arterial bleed from the esophagus with suggestive history of foreign body ingestion.

  19. Not Just for Americans: The Case for Expanding Reciprocal Tax Exemptions for Foreign Investments by Pension Funds

    Directory of Open Access Journals (Sweden)

    Jack M. Mintz

    2014-11-01

    Full Text Available From provision of OAS, GIS and CPP to the favourable taxation of Registered Pension Plans and RRSPs , Canada’s government has long focused policy efforts on better ensuring that working Canadians approach retirement with sufficient income supports in place. If the government wants to continue to move in this direction by trying to help maximize returns to pension plan members, while decreasing the portfolio risks faced by those pension plans, one step it could consider would be: Expanding the exemption for withholding taxes on foreign dividends and interest earned by pension plans. The exemptions for foreign interest and dividends are already available to U.S. investments, part of a reciprocal arrangement spelled out in the Canada-U.S. Tax Convention. Those exemptions allow U.S. and Canadian pension funds to participate in cross-border investments that would otherwise be too costly. Pension funds rely on international investments to optimize diversification and returns. And tax conventions between countries are typically designed to protect investors from the participating countries from being double taxed by both their resident country and the foreign jurisdiction where they invest. This good policy has certainly been Canada’s model in its numerous bilateral tax treaties. But while the U.S.-Canada Tax Convention extends the benefit of tax exemption to dividends and interest earned from cross-border investments by tax-exempt pension funds, when it comes to all other countries, there is no equivalent result. Yet, aspects of these same exemptions exist in certain bilateral treaties between other countries in treaties with one another. That certainly suggests that there are other trading partners, besides just the U.S., that are open to the possibility of these particular exemptions. If Canada could negotiate broadening these exemptions to countries beyond the United States, it would realize important advantages with little cost. By not moving

  20. THE REGULATION OF METHODICAL IMPLEMENTATION BY EQUITY ACCOUNTING ON ENTERPRISES WITH FOREIGN INVESTMENT

    Directory of Open Access Journals (Sweden)

    Iurii Iakymov

    2016-11-01

    Full Text Available Purpose is to specify on the accounting methodic of transactions with equity and based on it’s ways of their effektive and resultative improvement in the enterprises with foreign investments. Methodology: In the context of such a scientific research the economic substance and methodical support of the equity accounting in enterprises with foreign investment comparison methods were used: research, synthesis, system approach, mathematical methods, formalization, induction, deduction and other methods. The scientific article is compiled on the basis of research results the main provisions of the legal regulation of these processes, the analysis of the literature of scientists and experts, that investigate this perspective, and other official sources from the Internet. Results. This article is devoted to the economic essence and peculiarities of the accounting equity in the context of accounts, the methodology for formation of equity, recognition procedures and the equity in enterprises with foreign investment. Also, the methodical approach of equity accounting in enterprises with foreign investment was analyzed by the author. As a result of research and detailed testing of transactions with equity for enterprises with foreign investments formed the results and recommendations: - specification of accounting method the transactions of equity based on the scientific research of it’s economic nature and characteristics of accounts, capital formation techniques, procedures, recognition and measurement of equity on the basis of comparative characteristics the international experience; - in order to display the mapping technique in the accounts of transactions with equity, is considered the procedure of object accounting in the program 1C and SAP, which based on a comparison of it’s benchmarks; - proposed the model of comparative accounting automation through the use of accounting software 1C and SAP, confirmed the need for a gradual transition to