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

... BE-605: Quarterly Survey of Foreign Direct Investment in the United States--Transactions of U.S... conducting the mandatory survey titled BE-605, Quarterly Survey of Foreign Direct Investment in the United... quarterly Form BE-605 is required from each U.S. business enterprise in which a foreign entity has a direct...

15 CFR 806.15 - Foreign direct investment in the United States.

Science.gov (United States)

2010-01-01

... 15 Commerce and Foreign Trade 3 2010-01-01 2010-01-01 false Foreign direct investment in the... Foreign Trade (Continued) BUREAU OF ECONOMIC ANALYSIS, DEPARTMENT OF COMMERCE DIRECT INVESTMENT SURVEYS § 806.15 Foreign direct investment in the United States. (a) Specific definitions—(1) Foreign direct...

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...

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.

Forecasting Business Investment Using the Capital Expenditure Survey

OpenAIRE

Natasha Cassidy; Emma Doherty; Troy Gill

2012-01-01

Business investment is a key driver of economic growth and is currently around record highs in Australia as a share of GDP. In compiling forecasts for business investment, the Reserve Bank uses a variety of different indicators, including information from liaison as well as survey measures of firms’ investment intentions. The most comprehensive survey is the Australian Bureau of Statistics’ (ABS) quarterly survey of Private New Capital Expenditure and Expected Expenditure (Capex survey). Whil...

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...

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.

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...

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...

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.

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...

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...

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.

FORMS AND MOTIVATIONS OF FOREIGN DIRECT INVESTMENT

Directory of Open Access Journals (Sweden)

Maria-Ramona SÂRBU

2014-04-01

Full Text Available This study proposes the identification of forms of Foreign Direct Investment (FDI and analyzes factors influencing FDI motivation. Designing a coherent program to encourage foreign direct investment is based on knowledge of the factors that determine international companies to resort to this type of development: these companies resort to foreign direct investment if they have ownership advantages and internationalization, while another country has locational advantages to the company's home country. Thus, identifying the factors that influence the motivation of FDI is important both at the microeconomic level, local, local authorities and macroeconomic, national, government to develop measures for multiplying FDI .

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.

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...

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 ...

THE ROLE OF FOREIGN DIRECT INVESTMENT IN THE AUTOMOBILE

Directory of Open Access Journals (Sweden)

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.

Chinese outward foreign direct investments to Europe

NARCIS (Netherlands)

Blomkvist, Katarina; Drogendijk, Rian

This paper addresses Chinese outward foreign direct investments (OFDI) in Europe. We aim to provide more knowledge on the ongoing research discussion about Chinese OFDI, more specifically, we answer questions about what is driving Chinese firms to invest in Europe, and whether Chinese investment

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.

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

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

Smallish foreign direct investment, sluggish growth: Can MERCOSUR do better? 08 décembre 2010. 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 ...

Do democratic institutions and foreign direct investment affect ...

African Journals Online (AJOL)

Do democratic institutions and foreign direct investment affect economic growth? Evidence from ... International Journal of Development and Management Review ... The importance of sound democratic institutional structures and foreign direct investment for enhancing economic growth is well documentedin literature.

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 and the gen......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...

Foreign Direct Investment And Poverty Redution In Nigeria ...

African Journals Online (AJOL)

Journal of Research in National Development ... The relationship between Foreign Direct Investment and growth has been realized or ... to reduce her poverty level throughout without the right conducive environment, ... for empirical analysis that embrace the impact of foreign direct investment as GDP ... from 32 Countries:.

The Impact Of The Foreign Direct Investment On Romania’s Economy

OpenAIRE

Mihaela Ioneci; Georgiana Mîndreci

2010-01-01

Foreign direct investment can be regarded as a factor out of the crisis of the Romanian economy. The relationship between the foreign direct investment and the gross domestic product is beneficial for the economy to the extent to which investment is directed towards innovation and new technologies. The virtuous circle diversity - change - technology needs investment to take effect. Microeconomic level investment completes the strategies and the investment decisions at macroeconomic level.

DETERMINANTS OF FOREIGN DIRECT INVESTMENT DEVELOPMENT

Directory of Open Access Journals (Sweden)

Elena Chirila - Donciu

2013-12-01

Full Text Available FDI had a strong impact in the last three decades on economic growth, foreign trade and production structures in almost all countries. The purpose of this paper is to analyze the main factors that contribute to attracting foreign direct investment flows and also the competitiveness of the business environment in Romania and its implications on investment decisions and economic growth. Research results show that the presence of FDI goes to those areas that can provide efficiencies investment factors: skilled and qualified labor, educational and research institutions etc..

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.

BANKING ETHICS IN THE FOREIGN DIRECT INVESTMENTS FROM ROMANIA

Directory of Open Access Journals (Sweden)

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

Are there productivity spillovers from foreign direct investment in China?

OpenAIRE

Galina Hale; Cheryl Long

2007-01-01

We review previous literature on productivity spillovers of foreign direct investment (FDI) in China and conduct our own analysis using a firm-level data set from a World Bank survey. We find that the evidence of FDI spillovers on the productivity of Chinese domestic firms is mixed, with many positive results largely due to aggregation bias or failure to control for endogeneity of FDI. Attempting over 2500 specifications which take into account forward and backward linkages, we fail to find e...

Financial Frictions, Foreign Direct Investment, and Growth

OpenAIRE

Luis San Vicente Portes

2010-01-01

This paper assesses the role of financial frictions and Foreign Direct Investment (FDI) on an economy´s growth rate, business cycle volatility, and firm´s capital structure. We gauge these effects within the Financial Accelerator framework, where entrepreneurs can establish affiliates of local firms abroad through Foreign Direct Investment. Model simulations suggest that in the presence of credit market imperfections FDI is associated with faster growth, less leverage, and lower aggregate vol...

Foreign direct investment in China

OpenAIRE

Bredero, Q.S.

2007-01-01

Foreign Direct Investment in China is one of the most comprehensive studies of FDI in China and provides a remarkable background of information on the evolution of China’s FDI policies over the last 30 years.

ECONOMIC CRISIS AND FOREIGN DIRECT INVESTMENTS IN ROMANIA

Directory of Open Access Journals (Sweden)

E. Bako

2015-10-01

Full Text Available Foreign direct investments represent an essential factor of economic development and growth at all levels: national, regional and local (county. The authors analyse the evolution of foreign direct investments in Romania over the last decade, taking into consideration the influence of the economic and financial crisis, different territorial levels, types of foreign investments, the economic activities and also the main countries of origin. The aim of the paper is to explain some of the reasons for the illustrated evolution of FDI and to reveal some policy implications for the future period.

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 ...

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

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...

Comparative Analysis of Direct and Indirect Property Investment ...

African Journals Online (AJOL)

Sultan

substitute for direct property investment in Abuja, Nigeria. The study .... of stock market investment using Lagos,. Ibadan and ... ordinary shares and saving account for the. Adeogun ... Hence, the need for this study which provides information.

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 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...... in the shape of physical capital transfers. We therefore turn to an empirical analysis of the relationship between FDI and disaggregated aid flows. Our results strongly support the hypotheses that aid invested in complementary inputs draws in foreign capital while aid invested in physical capital crowds out...

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...

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.

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

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

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...

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)

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.

OUTWARD BRAZILIAN FOREIGN DIRECT INVESTMENT: IMPULSES AND RESPONSES

Directory of Open Access Journals (Sweden)

Ronald de Oliveira Concer

2010-12-01

Full Text Available This paper models the outward foreign direct investment from Brazil series using time a series econometrics model, namely the Vector Auto Regressive (VAR model. We have drawn impulse response functions for the key relevant factors that may explain the outward foreign direct investment flows. We start with a review of the literature on the Dunning location approach to international business. We worked with a data set of quarterly observations from Q1-1995 to Q1-2010. We carried also out Granger causality tests as for determining whether international business travelling should be included as an explanatory variable in our model. Results stressed that although the strong exchange rate in Brazil is often blamed for forcing companies to invest abroad, the evidence found in the aggregate data suggests that there is not a significant relationship between the level of foreign exchange rate and the outward Brazilian foreign direct investment. Differently from previous studies, this paper uses impulse response functions to present dynamic results, thus avoiding the typical binary results “affect” or “don’t affect”, and in so doing we provide a more detailed insight into this important location factor.

OUTWARD BRAZILIAN FOREIGN DIRECT INVESTMENT: IMPULSES AND RESPONSES

Directory of Open Access Journals (Sweden)

Ronald de Oliveira Concer

2010-01-01

Full Text Available This paper models the outward foreign direct investment from Brazil series using time a series econometrics model, namely the Vector Auto Regressive (VAR model. We have drawn impulse response functions for the key relevant factors that may explain the outward foreign direct investment flows. We start with a review of the literature on the Dunning location approach to international business. We worked with a data set of quarterly observations from Q1-1995 to Q1-2010. We carried also out Granger causality tests as for determining whether international business travelling should be included as an explanatory variable in our model. Results stressed that although the strong exchange rate in Brazil is often blamed for forcing companies to invest abroad, the evidence found in the aggregate data suggests that there is not a significant relationship between the level of foreign exchange rate and the outward Brazilian foreign direct investment. Differently from previous studies, this paper uses impulse response functions to present dynamic results, thus avoiding the typical binary results “affect” or “don’t affect”, and in so doing we provide a more detailed insight into this important location factor.

Spatial pattern of foreign direct investment of China's textile enterprises

Institute of Scientific and Technical Information of China (English)

2018-01-01

China textile industry has achieved encouraging achievements, becoming the primary industry of the integration of investment, production, consumption, employment increase and foreign exchange earnings. On the basis of reviewing studies on foreign direct investment of domestic textile enterprises, this paper come up with the structure analysis framework of spatial strategies of foreign investment of China's textile enterprises with the methods of statistical information, field research and interviews of senior managers. Besides, this paper analyze the spatial distribution and industry choices of foreign direct investment of China's textile enterprises.

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...

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

National Research Council Canada - National Science Library

Jackson, James K

2005-01-01

.... 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...

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...

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...

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.

IMPACT OF FOREIGN DIRECT INVESTMENT ON HIGHER EDUCATION

OpenAIRE

Kalpana Singh; Dr. Alka Awasthi

2017-01-01

The purpose of this paper is to examine how Foreign Direct investment (FDI) can be leveraged to enhance its impact on Higher Education. This paper attempts to discuss the possibilities of bringing quality, excellence and more opportunities in “Higher education” through the FDI route. FOREIGN DIRECT INVESTMENT: Education sector is growing day by day and gaining lots of importance in the world and India as well. Education Industry is likely to grow by the Gross Enrolment Ratio (GER) by 2020. Fo...

The importance of foreign direct investments in Sumadija and Pomoravlje region

Directory of Open Access Journals (Sweden)

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.

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.

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

Joint Ventures in Cuba: Opportunities for Direct Foreign Investment.

Science.gov (United States)

Tancer, Robert S.

1995-01-01

Presents a brief history of direct foreign investment in Cuba since 1982. This investment currently plays an important role in Cuba as a replacement to Soviet aid and as a means to earn foreign exchange. Tourism and mining are the preferred area for foreign investment because both of these sectors offer hard currency returns for Cuba. (20…

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.

Influence of foreign direct investment on indicators of environmental degradation.

Science.gov (United States)

Solarin, Sakiru Adebola; Al-Mulali, Usama

2018-06-21

This study aims to contribute to the existing literature by looking at the influence of foreign direct investment on carbon dioxide emissions, carbon footprint, and ecological footprint. In order to realize the aim of this study, we have utilized the augmented mean group estimator, which is supported by common correlated effect mean group estimator in the analysis for 20 countries. The panel results reveal that foreign direct investment has no effect on environmental degradation indicators. The panel results further reveal that gross domestic product, energy consumption, and urbanization are the main contributors to environmental degradation. The results at country level show that foreign direct investment and urbanization increase pollution in the developing countries while they mitigate pollution in the developed countries. Moreover, gross domestic product and energy consumption increase pollution for both developed and developing countries, which includes China and the USA. The negative impact of foreign direct investment on environmental degradation in the developed countries can be explained on the basis that these countries have strong environmental regulations, which makes it almost impossible for dirty foreign industries to invest therein. From the output of this research, several policy recommendations are enumerated for the investigated countries.

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...

IMPACT OF FOREIGN DIRECT INVESTMENT (FDI ON DOMESTIC INVESTMENT IN REPUBLIC OF CROATIA

Directory of Open Access Journals (Sweden)

Igor Ivanović

2015-11-01

Full Text Available The aim of this paper is to investigate how foreign direct investment (FDI affects domestic investment in the Republic of Croatia. More precisely, the general purpose of this study is to determine the impact of net inflow of foreign capital on domestic investment in order to gain a clearer picture about the sensitivity and efficiency of domestic investment. After parsing domestic investment and FDI in Croatia, according to Croatian Bureau of Statistics and the Croatian National Bank, a historical overview of their movement from 1995 to 2014 was analyzed. In the following an overview and comparison of studies from around the world which deal with similar topic was made. In the empirical part; domestic gross fixed capital formation, changes in domestic stocks, net FDI and GDP growth rate was used as variables. Quarterly time series data ranging from the Q1 2001 to Q4 2014 were processed with the subset VAR (vector autoregressive econometric model. The results shows that FDI have negative influence on domestic investment in the Republic of Croatia with time lag.

THE DYNAMICS OF FOREIGN DIRECT INVESTMENT IN ROMANIA AFTER EU ACCESSION

Directory of Open Access Journals (Sweden)

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.

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.

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

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.

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...

Foreign direct investments into French real estate

OpenAIRE

BRIZARD, Arthur

2013-01-01

The purpose of this thesis is to draw the global trend of Foreign Direct Investments (FDI) in the French real estate market since 2008 and to understand foreign investors’ behavior and the incentives which urge them to invest in French property market. This study relies on the numerous yearly reports released by consulting and real estate companies and gives an overview of FDI since 2008. From a legal point of view, the French property market is extremely organized. Acquiring, holding and sel...

THE STRUCTURE AND TERRITORIAL DYNAMIC OF FOREIGN DIRECT INVESTMENT IN ROMANIA

Directory of Open Access Journals (Sweden)

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

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.

Foreign direct investment and urban concentrations: unbundling spatial lags

NARCIS (Netherlands)

Poelhekke, S.; van der Ploeg, F.

2009-01-01

Foreign direct investment (FDI) is seen as a way to import technology and catch up with economic leaders. It is therefore important to understand why some countries attract more investments by multinationals than others. We expand the set of common determinants of FDI with urban agglomerations and

Direct Foreign Investment in the United Kingdom.

Science.gov (United States)

Hinde, Kevin

1987-01-01

Notes introductory undergraduate economics textbooks have no formal analysis of the rationale for direct foreign investment by multinational firms. Examines this area in an attempt to develop more content information for undergraduate courses. (RKM)

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.

Mode of foreign entry, technology transfer, and foreign direct investment policy

OpenAIRE

Mattoo, Aaditya; Olarreaga, Marcelo; Saggi, Kamal

2001-01-01

Foreign direct investment can take place through the direct entry of foreign firms or the acquisition of existing domestic firms. Mattoo, Olarreaga, and Saggi examine the preferences of a foreign firm and the host country government with respect to these two modes of foreign direct investment in the presence of costly technology transfer. The tradeoff between technology transfer and market...

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

Directory of Open Access Journals (Sweden)

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.

DIRECT INVESTMENT ON REGIONAL MARKETS

Directory of Open Access Journals (Sweden)

LIVIU NEAMŢU

2013-08-01

Full Text Available Foreign direct investment are that category of investments that allow participation in leadership andeffective control of the companies in which it invests. It's so new firms, as well as the establishment ofinternational operations of the company through expansion of existing operations. Typically, the companyincurred in a market that is confined to a distinct geographical area, but the limits of market changes. Thechange can be the result of higher management decisions on market opening and development of a newtechnology or product. Markets with a lower level of development are likely to attract a higher level of directinvestments than those in more developed countries. The specific reasons behind the decision of a company toinvest abroad are operating efficiency, reduce risk, market development and Government policy in the hostcountry. Transnational corporations are large conglomerates which consists of the parent company and itssubsidiaries/branches, both in the country of residence and abroad. Transnational corporations affect stronglyboth the production and the world of international economic relations. This influence is determined by themotivations of expansion that they promote. The expansion of transnational corporations has as satisfying"ambitions" of global expansion, and impulsionate getting supraprofiturilor. The strength of these structures isbased on maximizing profits.

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.

THE DYNAMICS AND STRUCTURE OF THE FOREIGN DIRECT INVESTMENTS IN ROMANIA

Directory of Open Access Journals (Sweden)

Otil Maria Daniela

2009-05-01

Full Text Available The need for capital investment, which amounts to a level well above current economic possibilities, imposes as an objective condition the use of foreign capital in the form attracting direct capital investments. Investments are an important driving force

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.

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

Directory of Open Access Journals (Sweden)

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.

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.

Improving quality of foreign direct investment attraction in Vietnam

OpenAIRE

Ngo Phuc Hanh; Đao Van Hùng; Nguyen Thac Hoat; Dao Thi Thu Trang

2017-01-01

Foreign direct investment (FDI) enterprises are playing a key role in Vietnam's economy. By the end of 2016, there are more than 21,398 FDI projects in force, with the total registered capital of nearly 293 billion USD. One hundred six countries and territories have invested in 19 industries in 68 provinces and cities of Vietnam. These investments have added a large amount of capital to the economy, which has basically been used effectively, contributing to the economic growth of Vietnam. In ...

Foreign Direct Investment and its Role in the Development of Greece

Directory of Open Access Journals (Sweden)

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.

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

Directory of Open Access Journals (Sweden)

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.

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

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

2010-12-08

Dec 8, 2010 ... Since the 1990s, foreign direct investment (FDI) has been on the rise worldwide. ... to developing countries, mainly the fast-growing economies of East Asia. ... besides Brazil, and to entrust these subsidiaries to develop global ...

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

Directory of Open Access Journals (Sweden)

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.

Exchange Rate Movement and Foreign Direct Investment in Asean Economies

OpenAIRE

Lily, Jaratin; Kogid, Mori; Mulok, Dullah; Thien Sang, Lim; Asid, Rozilee

2014-01-01

The inflows of foreign direct investment (FDI) are important for a country's economic development, but the world market for FDI has become more competitive. This paper empirically analyses the exchange rate movements and foreign direct investment (FDI) relationship using annual data on ASEAN economies, that is, Malaysia, the Philippines, Thailand, and Singapore. By employing ARDL bounds test approach, the empirical results show the existence of significant long-run cointegration between excha...

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.

Spatial Policy оf Exporting Direct Investments: Features оf China

Directory of Open Access Journals (Sweden)

Alina Nikolaevna Novopashina

2014-03-01

Full Text Available In recent years, China has shown rapid growth in volumes of foreign direct investment (FDI, which is the consequence of implementing policy. However, the structure of FDI does not correspond to the government-supported areas. Existing theoretical and empirical studies don’t reveal the causes of China’s FDI. Results of the regression analysis (based on panel data for 2003-2010 prove that the most attractive for Chinese investors were countries with following features: 1 rich in mineral resources, 2 possessing advanced technologies, 3 higher than in China income levels, 4 geographic proximity to China and 5 foreign trade openness. Furthermore, features of the current institutional environment in China affect the directions of foreign direct investment. Investors from PRC direct FDI in developing countries which have low quality of institutions as well as China. Investing in these countries is primarily aimed at getting access to their mineral resources and consumer markets. As for investing in developed countries, the reason is acquisition of advanced technologies which they possess. Directions of FDI in these countries, on the contrary, are determined by the high quality of institutions

Foreign Direct Investments and Tax Correlation: Some of EU Countries and Turkey

Directory of Open Access Journals (Sweden)

Ali YAVUZ

2010-06-01

Full Text Available In the globalizing world; individuals, markets and capital are more mobile than the past for that reason countries are in cutthroat competition for attract the direct and indirect investments. Especially, developing countries overview their own tax policy and perform incentive measures including tax incentives to attract the direct investments which have a positive effect of production and employment level. In this process, some countries achieve their goals and some are not. The purpose of this study evaluate the difference of tax policies in Turkey which in EU candidacy process and some old central, east Europe countries which are in EU and the main rival of Turkey to attracting direct investments. In this evaluation process, changing income tax, corporate tax, value added tax and performance of attracking the direct investments which was performed in selected countries, were evaluated by comparative

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...

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.

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.

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.

Foreign Direct Investment Relations between Myanmar and ASEAN

OpenAIRE

Thandar, Khine

2008-01-01

Myanmar highly appreciates foreign direct investment (FDI) as a key solution reducing the development gap with leading ASEAN countries. Accordingly, it is welcomed by the government. Myanmar's Foreign Investment Law was enacted in 1988 soon after the adoption of a market-oriented economic system to boost the flow of FDI into the country. Foreign investors positively responded to these measures in the early years and FDI inflow into Myanmar gradually increased during the period from 1989 to 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...

Motivations of Russian firms to invest abroad: how do sanctions affect Russia’s outward foreign direct investment?

Directory of Open Access Journals (Sweden)

Liuhto Kari

2015-12-01

Full Text Available In 2013, Russia’s outward foreign direct investment (OFDI soared and the OFDI stock exceeded $ 500 billion. However, a year later, Russia’s OFDI dropped by nearly 15 per cent. Rapid upward and downward swings make it necessary to analyze the motivation of Russian firms to invest abroad as well as to assess the impact of sanctions on Russian OFDI. The author points out that a significant part of Russia’s outward FDI stock is accounted for by the operations of Russian corporations in their home market. It is concluded that although Western sanctions target a relatively small number of Russian citizens and companies, they nevertheless affect some of Russia’s key people, largest banks, and hydrocarbon producers. Therefore, their direct impact could be substantial. Alongside the direct impact, one should consider their indirect impact, such as the tumbling rouble exchange rate and Russian banks’ increasing interest rates, which decrease Russian firms’ capability to invest abroad. Moreover, a less amicable politic al atmosphere in the West may push some Russian corporations out of the Western markets and diminish the enthusiasm of new ones to enter them. Today, Russia’s counter-sanctions do not directly restrict the country’s OFDI, but Russian state-owned enterprises may reach a decision to hold foreign investments to support Russia’s sanction policy.

The causal relationship between Foreign Direct Investment (FDI ...

African Journals Online (AJOL)

The causal relationship between Foreign Direct Investment (FDI) and the ... of selected west African countries: Panel ARDL/Granger Causality Analysis. ... among this developing countries and an important revelation for policy implication.

Japanese direct investment and its impact on migration in the ASEAN 4.

Science.gov (United States)

Ito, S; Iguchi, Y

1994-01-01

"The purpose of this article is to show the relationship among Japanese direct investment...,domestic labor markets, and international labor migration in ASEAN-4 countries (Indonesia, Malaysia, Philippines, and Thailand). The effects of foreign direct investment on skilled labor migration are also considered." excerpt

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

Directory of Open Access Journals (Sweden)

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.

Inclusive Development and Chinese Foreign Direct Investment in ...

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

... and maximizing the benefits of foreign direct investment, especially in terms of ... of Economics and Business Management at the National University of Laos, and the Cambodia Economics Association. ... Agent(e) responsable du CRDI.

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.

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 ...

Impact of Foreign Direct Investments on Unemployment in Emerging Market Economies: A Co-integration Analysis

Directory of Open Access Journals (Sweden)

Yilmaz Bayar

2017-09-01

Full Text Available Purpose: The goal of the paper is to investigate the long run effect of both foreign direct investments and domestic investments on the unemployment in 21 emerging economies over the period 1994-2014. Design/methodology/approach: The effect of domestic and foreign direct investments on unemployment was investigated via panel data analysis. First tests of cross-section dependence and homogeneity were conducted, and then the stationarity of the series was analyzed with Pesaran's (2007 CIPS unit root test. The long run relationship among the series was examined with Westerlund-Durbin-Hausman's (2008 co -integration test. Finally, we estimated the long run coefficients with the Augmented Mean Group (AMG estimator. Findings: The empirical findings revealed a co-integrating relationship among domestic investments, foreign direct investments, and unemployment. Furthermore, foreign direct investment inflows affected the unemployment positively in the long term, but domestic investments affected the unemployment negatively. Originality/value: This study can be considered as one of the early studies researching the long run interaction between domestic investments, foreign direct investments and unemployment for the sample of emerging market economies. Furthermore, the findings are very meaningful for policymakers in the design the economic policies for decreasing unemployment.

Taxation and Foreign Direct Investment: A Synthesis of Empirical Research

OpenAIRE

Ruud A. de Mooij; Sjef 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...

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...

Seeking new growth hotspots in absorbing foreign direct investment

Institute of Scientific and Technical Information of China (English)

裴长洪

2009-01-01

In recent years, China’s service industries have absorbed an increasing amount of foreign direct investment (FDI); foreign investors have taken wholly foreign-owned enterprise (WFOE) as the most preferred vehicle of making investment in China; free ports have become a major source of FDI inflows to China; China’s FDI inflows as a percentage of global FDI inflows have been in decline. In the export-oriented or import-substitution manufacturing industries, China still needs to vigorously absorb FDI in the future. In addition, China should continue opening its infrastructure and social service industries. It is therefore imperative to further improve the institutional and policy environment for foreign investment utilization.

Tax Incentives : Using Tax Incentives to Attract Foreign Direct Investment

OpenAIRE

Morisset, Jacques

2003-01-01

The increasing mobility of international firms and the gradual elimination of barriers to global capital flows have stimulated competition among governments to attract foreign direct investment, often through tax incentives. This note reviews the debate about the effectiveness of tax incentives, examining two much-contested questions: can tax incentives attract foreign investment? And what...

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

China’s Foreign Direct Investments:Challenges of Due Diligence and Organizational Integration

Institute of Scientific and Technical Information of China (English)

ABDOL; S.SOOFI

2015-01-01

This paper critically reviews Chinese companies’ foreign direct investment practices of recent years. Using case studies involving overseas Greenfield as well as merger and acquisition(M&A;) of Chinese enterprises, we aim to draw lessons from these experiences. However, because of increasing importance of outbound acquisitions by Chinese companies, this paper focuses on Chinese M&A; activities. After presenting the theoretical discussions of post-acquisition organizational integration, this paper identifies factors that have contributed to less than expected performances of Chinese foreign investments. Three main factors are identified as the plausible causes of the less than satisfactory outcomes: inadequate due diligence, not considering political and country risks, and cultural differences. In all cases, inexperience of Chinese enterprises in foreign direct investment, either in Greenfield form or M&A;, has attributed to the problems. Therefore, summing the experiences of the Chinese enterprises that have foreign direct investment is essential for those Chinese investors that intend to invest overseas. Conduct of meaningful, in-depth due diligence before serious negotiations for investment or acquisition, inclusion of risk premium for political risk in cash flow analysis, and early post-merger integration planning are essential for avoidances of bitter outcomes many Chinese investors experienced overseas.

Comparative analysis of direct and indirect property investment ...

African Journals Online (AJOL)

Comparative analysis of direct and indirect property investment returns in Abuja. ... in property shares is more risky than commercial property due to the risk ... of the stock market, it was discovered that there is a strong positive relationship ...

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...

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

Directory of Open Access Journals (Sweden)

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.

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

Directory of Open Access Journals (Sweden)

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.

Pattern of foreign direct investment in India since 1991

Directory of Open Access Journals (Sweden)

Gill M.S.

2004-01-01

Full Text Available The Foreign Direct Investment (FDI norms in India have been liberalized in a phased manner since 1991. Foreign investment is now coming into the country not only as a source of new technology, but also as a source of capital and managerial skills. Accordingly actual inflow of FDI in India has increased at a compound annual growth rate of 36.3% between 1991 and 2003. The regional pattern of FDI has been marked by strong variations during this period, with more investment going to states with better infrastructure and more progress in the reform process. The hitherto reserve sectors for public investment like power, oil and telecommunications have attracted considerable FDI after liberalization. In terms of the country-wise approvals of FDI, USA accounts for nearly 20% of the share followed by Mauritius, UK and Japan. FDI has come in the form of joint ventures, mergers and acquisitions and green field investments. There have been certain hindrances in the actual inflow of FDI which need to be overcome in the coming years.

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.

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...... direct compositional effects as well as changing competition in the host country. Our results show that there are, on average, productivity benefits from inward FDI, although we can identify a number of countries which, on aggregate, do not appear to benefit in terms of productivity. On the other hand...

Chinese foreign direct investment in Brazil: motivations, challenges and prospects

Directory of Open Access Journals (Sweden)

Yanyi Wang

2013-08-01

Full Text Available The objective of this research was to identify motivations presented as established by Chinese companies that perform foreign direct investment in Brazil, as well as the challenges encountered in this process and their future prospects. After a structured bibliography review of topics from foreign direct investment and Chinese investment in Latin America and Brazil, we conducted an empirical study on qualitative basis from the consultation to key informants, the methodological approach that has been used in international business studies that focus on containing China or with managers and / or Chinese managers as respondents. The procedures of data collection involved semi-structured interviews conducted, in person and by phone, in addition to questionnaires containing open questions, while processing the data followed the protocol of classical content analysis. The results of the empirical stage of the research highlight cultural and political issues that underlie strategic business decisions.

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 ...

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…

TAX COMPETITION REGARDING FOREIGN DIRECT INVESTMENT BETWEEN TRANSITION EUROPEAN COUNTRIES

Directory of Open Access Journals (Sweden)

Ramona DUMITRIU

2005-01-01

Full Text Available This paper explores the fiscal measures adopted in the transition European countries in order toencourage the foreign direct investment. There were analysed six countries: Albania, Macedonia,Moldova, Russian Federation, Union of Serbia and Muntenegro, Ukraine, based on the four criteria:corporate and capital gains tax rates, withholding taxes, tax incentives, foreign tax relief andtransfer pricing rules. Finally, the conclusion is that all the analysed countries offer favourable fiscalconditions for the foreign direct investment. Serbia, Muntenegro, Macedonia and Moldova haveattractive fiscal regimes, showing that the authorities from these countries count on the foreign directinvestment as a solution of solving the social and economic problems.

FOREIGN DIRECT INVESTEMENTS FLOWS IN BLACK SEA ECONOMIC COOPERATION

Directory of Open Access Journals (Sweden)

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

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 ...

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

African Journals Online (AJOL)

Africa to several factors discouraging foreign direct investment. Suggestions and ... in the economy of African states and what reasons account for such impacts. ..... information to second-guess market signals (prices) and because powerful interest ..... over 115 million people using cell phones in Nigeria, we do not have any ...

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.

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

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.

Foreign direct investments in Southeast Asia

OpenAIRE

Sjöholm, Fredrik

2013-01-01

Foreign direct investment has been of large importance in economic growth and global economic integration over the last decades. South East Asia has been part of this development with rapidly increasing inflows of FDI. However, there are large variations over time and between countries in the region as regard to the policies towards FDI, and in actual inflows of FDI. This chapter aims at examining the size of FDI in South East Asia and the trends in it. The main determinants of FDI in Southea...

The Rise of China and Foreign Direct Investment from Southeast Asia

Directory of Open Access Journals (Sweden)

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.

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

African Journals Online (AJOL)

Foreign Direct Investment (FDI) plays an important role in fostering economic growth ... growth and development efforts, it also brings with it skills and new technology. ... Malaysia, Thailand and China, FDI inflows into sub-Saharan Africa pale.

Foreign Direct Investments and Tax Correlation: Some of EU Countries and Turkey

OpenAIRE

Ali YAVUZ; Serdar ÇİÇEK

2010-01-01

In the globalizing world; individuals, markets and capital are more mobile than the past for that reason countries are in cutthroat competition for attract the direct and indirect investments. Especially, developing countries overview their own tax policy and perform incentive measures including tax incentives to attract the direct investments which have a positive effect of production and employment level. In this process, some countries achieve their goals and some are not. The purpose of t...

Intra-EU Direct Investment and Enlargement

Directory of Open Access Journals (Sweden)

Festa Andrea

2015-03-01

Full Text Available This paper examines the determinants of the intra-EU direct investment (IDI into the New Member States (NMS using a panel dataset of bilateral capital flows for the period 1993-2013. It is found out by using a simple gravity model that EU membership is the most important determinant. Unlike previous studies including non-EU countries, the distance is insignificant, which is caused by proximity of these countries to one another. A separate analysis focused on subgroups of accession countries gives some evidence that even when size of their economy, distance, institutional quality and EU accession are taken into account, Central European countries receive more IDI than the Baltic and the Balkan states. On the contrary to that, the analysis restricted to the Balkan countries which have joined the EU shows the inexistence of a negative Balkans effect in attracting foreign investment. This finding is relevant because previous studies demonstrate a persistent negative Balkans effect for non-EU Balkan countries and suggests a crucial impact of the EU accession in determining the intra-EU capital flows.

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.

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

Directory of Open Access Journals (Sweden)

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.

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.

Can listed property shares be a surrogate for direct property investment behaviour?

Directory of Open Access Journals (Sweden)

Douw Boshoff

2012-03-01

Full Text Available The listed property sector in South Africa has grown to a size which could be considered to be a good representation of the income producing property market in general. Stock market listed property investment funds offer the opportunity to compare indirect property investment to direct property investment, which could bridge the gap between irrational investment behaviour and intrinsic asset values. This study investigates the relationship between listed property share prices and the property values in listed property funds. The share prices are correlated with various factors, such as the accounting ratios of the companies, the financial statements of the companies and general economic variables. The outcome of the study is an explanation of the behaviour of listed property shares, and its relationship to the direct property market and the general economy. This would assist in the explanation of market behaviour and provides the opportunity to more accurately predict portfolio asset values, which might be used in the valuation of individual real estate assets.

Technology Spillover from Foreign Direct Investment in Turkey

Directory of Open Access Journals (Sweden)

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

Byways and Highways of Direct Investment: China and the Offshore World

Directory of Open Access Journals (Sweden)

William Vlcek

2010-01-01

Full Text Available This paper examines a lacuna in the literature on foreign direct investment (FDI flows to China: the absence of analysis for the prominent location of small Caribbean and Pacific islands as leading sources of FDI. An indeterminate amount of domestic capital is embedded in these FDI flows, which distorts comparative studies on FDI in developing economies between China and other states. Direct investment from China has also increased in recent years and offshore financial centres (OFCs often serve as the initial destinations. This paper excavates the rationales behind the presence of OFCs and suggests that Chinese actors will emulate the practices of developed state multinational corporations and high-net-worth individuals. The implications of these investment practices are outlined along with possible trajectories for their impact on the process of financial liberalisation in China. Consequently, it encourages increased Chinese participation in the development of global financial governance.

Foreign Direct Investments – the Standard of Fair and Equitable Treatment of Investments on the Example of a Case of the International Center for Settlement of Investment Disputes (ICSID

Directory of Open Access Journals (Sweden)

Ismail Musabegović

2015-06-01

Full Text Available Foreign direct investments (FDI have a tendency of growth, which will, in accordance with projections, be continued in the future. The increasing number of FDI triggers an increase in the number of cases related to them. After defining the term of international capital movements and its manifestations in the first part of the paper, in its second part the authors give an overview of foreign direct investment, both globally and in the region. The third part deals with the investment disputes before the arbitration court, while in the fourth section, a case of the International Center for Settlement of Investment Disputes (ICSID is presented. As the case of violation of the principle of fair and equitable treatment of investments is in the main focus of this paper, it is thesubject of а deeper analysis. In this paper, the authors use methodology which is characteristic for social sciences: descriptive and historical method, comparative analysis and case study.

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...

The Influence of Foreign Direct Investments on Regional Development in Croatia

Directory of Open Access Journals (Sweden)

Ines Kersan-Škabić

2014-12-01

Full Text Available The aim of this study was to determine the influence of foreign direct investments (FDI on regional development in Croatia and to contribute to previous studies that deal with regional FDI re-allocations. Our analysis was conducted at the NUTS 3 level (21 Croatian counties and applied panel data analysis to determine the influence of FDI as well as other factors that proved to be significant in regional development in Croatia. The results point out that investment (i.e., both domestic and foreign direct investments, labor productivity, and export have a positive and significant influence on regional development, while absorptive capacity has a negative influence. It is therefore important to strengthen the absorptive capacity of Croatian regions to create a favorable investment environment and to provide good preconditions for the development of other factors of regional development. Findings are relevant for policy-makers who should take more proactive roles in attracting FDI as a way of strengthening regional development in Croatia. This may help policy-makers to act locally to achieve cohesion, but it can also be important for foreign investors that observe regional FDI determinants in the European Union.

Does foreign direct investment cause higher levels of productivity or do higher levels of productivity attract foreign direct investment? A study in transforming brazilian industry

Directory of Open Access Journals (Sweden)

Nádia Campos Pereira

2013-04-01

Full Text Available DOI: http://dx.doi.org/10.5007/2175-8077.2013v15n35p82   With this research, it was aimed to investigate the factors that determine the investment decision of foreign investors in the Brazilian industry. Evidence shows that foreign investors are attracted not only by more productive and best performing sectors, but depending on the adopted strategy, they may choose investment projects in sectors that have lower performance levels which offer the potential for growth and the and improvement of efficiency levels and capacity. Granger causality test indicated that not only foreign investment gives more productivity gains, but also this productivity induces more foreign investment inputs. Foreign investors are also attracted by those sectors, which use their assets in an inefficient way in order to generate profits. These sectors may be attractive to foreign investors that want to invest in a more aggressive growth policy in order to get advantages on the availability of inefficiently used assets. These sectors may be also attractive targets to investors who seek to compete directly in relatively less competitive sectors.

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.

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

African Journals Online (AJOL)

Having established the fact that foreign direct investment has positive impact on growth domestic product ...... on Sharing Global Prosperity, September. 2003, Helsinki, Finland. ... Evidence from East Asia and Latin. America, Contemp. Econ.

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.

FOREIGN DIRECT INVESTMENT INTENSITY EFFECTS ON TFP INTENSITY OF ASEAN 5 PLUS 2

OpenAIRE

Elsadig Musa Ahmed

2008-01-01

This study aims to investigate the role of foreign direct investment (FDI) intensity through decomposition of labour productivity growth into contributions of capital deepening, increased usage of foreign direct investment (FDI) intensity, and the simultaneous contribution of the quality of these factors. This has expressed as the contribution of total factor productivity (TFP) intensity growth in achieving productivity driven growth in ASEAN 5 (Malaysia, Indonesia, Philippines, Singapore and...

Changing Dynamics of Foreign Direct Investment in China’s Automotive Industry

Directory of Open Access Journals (Sweden)

Lingling Wang

2013-09-01

Full Text Available China’s automotive industry has developed dramatically in recent years as more and more major multinational corporations (MNCs in this industry began to invest in China.  Most of these investments have developed in the form of joint-ventures with Chinese state owned enterprises (SOEs. This paper contributes to the current literature by studying the effect of foreign direct investment (FDI on the productivity of the automotive industry in China using panel data during the 1999 –2008 period. Channels through which FDI may directly and indirectly affect the productivity are investigated using pooled ordinary least squares model (POLS and fixed effects model (FES to estimate the influence of FDI on productivity in the automotive industry. The results suggest that FDI plays a negative role in this industry and suggests that there is a need for Chinese government to modify its policies and practices in order to improve the productivity of such a key industry in the Chinese economy.

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 ...

INTERNATIONALIZATION OF STATE-OWNED ENTERPRISES THROUGH FOREIGN DIRECT INVESTMENT

Directory of Open Access Journals (Sweden)

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.

Foreign Direct Investment and Government Policy in Central and Eastern Europe

DEFF Research Database (Denmark)

Meyer, Klaus E.; Jensen, Camilla

2004-01-01

The 1990s have been a period of extraordinary politics in Central and Eastern Europe (CEE). This chapter discusses how the transition from state to market has created bureaucratic barriers to entry, but also windows of opportunity for foreign direct investment (FDI). The high costs and high...... 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...

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.

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.

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

Effects of national accounting standards convergence to international accounting standards on foreign direct investment

Directory of Open Access Journals (Sweden)

Asieh Farazandehnia

2015-09-01

Full Text Available One of the most important factors on attracting foreign investors to invest on Tehran Stock Exchange is to have transparent accounting rules and regulations. When there are some consistency between national accounting standards and international accounting standards, we may, at least, expect foreign investors to have better understanding on financial statements. In 2006, there were some changes on Iranian national accounting standards in an attempt to make them closer to international accounting standards. In this study, we select the information of 153 firms five years before and after this regulation and study the effect of convergence from national accounting standards to international accounting standards on foreign direct investment. Using some statistical tests, the study has determined that there was no meaningful relationship between foreign direct investment before and after change on accounting standards. In addition, there was no difference on the information quality before and after change on accounting standards. However, there was some meaningful relationship between the information quality and foreign direct investment.

Foreign Direct Investment and China’s Productivity Growth during the 1997 Asian Financial Crisis

Directory of Open Access Journals (Sweden)

Fulgence Dominick Waryoba

2017-09-01

Full Text Available The study estimates the fixed effect model using cross–section weights to estimate panel EGLS for 7 years in 29 regions of China. Though for the sample period, foreign direct investment influences productivity positively, the effect is very lower compared to other factors in the model. Conversely, labor has a very high influence on productivity for the period under consideration. Nevertheless, the years after 1997 have shown more productivity growth compared to the years before 1997. This is probably due to the fact that the government acted quickly to recover by boosting the external demand. Consequently, the contribution of export on productivity growth is significantly large. As long as China’s productivity keeps growing, high technological foreign direct investments will continue to flow into the economy. Chinese government should continue to invest in human capital to match with high technology embodied in foreign direct investments for the economy to continue experiencing high productivity growth.

Particularities Regarding the Evolution and Role of Foreign Direct Investments in Romania’s Economy

Directory of Open Access Journals (Sweden)

Ion Botescu

2016-01-01

Full Text Available Criticized by some, praised by others foreign direct investments are a financial flow with amajor impact on the economies of many countries. In an increasingly globalized world, the processthrough which multinationals open production and distribution branches over the entire surface ofthe globe is something as natural as possible. After the fall of communism in Europe, Romania has been a favorite destination for manyforeign investors, fact which requires a careful analysis on the dynamics and structure of foreigndirect investment flows attracted by Romania. I have also tried to highlight the nature of the linkbetween the flow of foreign direct investment attracted by Romania and the variations recorded inthe economic development of our country. Given all the positive and negative aspects presented, foreign direct investments are a realityfor Romania, and future policies promoted in the area should stimulate the entry foreign capitalfirms whose work will generate a high level of content of knowledge and technology directlyimpacting the improvement of the economic efficiency at national level.

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

Directory of Open Access Journals (Sweden)

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.

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.

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

Directory of Open Access Journals (Sweden)

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

Foreign direct investment in the financial sector of emerging market economies

OpenAIRE

Bank for International Settlements

2004-01-01

Executive summary Foreign participation in the financial sectors of emerging market economies (EMEs) increased rapidly during the 1990s. It has continued to expand so far in this decade, on balance – although its pace fell somewhat following problems in Argentina in 2002 and the global slowdown in mergers and acquisitions. While banks accounted for the majority of financial sector foreign direct investment (FSFDI), they were joined during this period by securities and investment firms. In a n...

Foreign direct investment in the United States and u.s. Interests.

Science.gov (United States)

Graham, E M

1991-12-20

Foreign direct investment entered the United States at unprecedented rates during the second half of the 1980s. The result has been much higher levels of foreign ownership of U.S. economic activities than those to which the nation has been accustomed. The reasons for this investment include loss of competitiveness of U.S. firms compared to international rivals as well as attractions to foreign investors of the United States itself. The economic effects of greater levels of foreign ownership are generally positive, although some problems with levels of competition could ensue. National security considerations might cause the United States to place some restrictions on this investment, but other restrictions at the present time appear to be unwarranted.

Current and Potential Chinese Foreign Direct Investment in the Slovak Republic

Directory of Open Access Journals (Sweden)

Zhang Liqun

2017-06-01

Full Text Available This article presents an overview of current and potential investment from China into the Slovak Republic within the broader CEEC region cooperation based on the 16+1 platform. Based on a business study on the automotive industry in the CEEC region, and particularly Slovakia as one of the industrial sectors for possible Chinese investment with immense potential, the article aims to identify the main advantages and disadvantages of the region as a foreign direct investment destination. The article also analyses the impact of FDI inflows on the Slovak economy. We come to the conclusion that the recent FDI inflow from China to Slovakia has been statistically insignificant, which may, however, change in case the envisaged Chinese investment into the steel industry in Slovakia will be realised. With respect thereto, the article also points at the need to set out a new revised framework for the international legal protection of Chinese investment in the EU. It has been established that further research is required to assess the impact of Chinese FDI on the Slovak economy.

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

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.

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...... to a key insight of the early IB literature, namely, that foreign direct investment (FDI) often is driven by strategic interaction among MNCs in oligopolistic industries. Instead, the contemporary IB literature focuses on the FDI as a way to reduce transaction costs and/or as a way to leverage and build...

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.

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

Directory of Open Access Journals (Sweden)

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.

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

Directory of Open Access Journals (Sweden)

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.

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

Directory of Open Access Journals (Sweden)

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.

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…

Foreign Direct Investment and its Spillover Efficiency in China

OpenAIRE

劉, 黄金

2004-01-01

In this paper, we review the development process and its characteristics of inward foreign direct investment (FDI) in China. Using the latest data of Jiangsu province, we test the spillover efficiency of FDI. We find that FDI has spillover efficiency in Jiangsu's economy, but the smaller the technology gap between domestic and foreign enterprises, the larger the spillovers.

Technology Transfer, Foreign Direct Investment and International Trade

OpenAIRE

Leonard K. Cheng

2000-01-01

By developing a Ricardian trade model that features technology transfer via foreign direct investment (FDI), we show that technology transfer via multinational enterprises (MNEs) increases world output and trade in goods and services. When there are many goods a continuous reduction in the cost of technology transfer will cause increasingly more technologically advanced goods to go through the product cycle, i.e., goods initially produced in the advanced North are later produced in the backwa...

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

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.

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

Directory of Open Access Journals (Sweden)

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.

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...

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.

Antidumping duties, undertakings and foreign direct investment in the EU

NARCIS (Netherlands)

Belderbos, R.A.; Vandenbussche, H.; Veugelers, R.

2004-01-01

We study the effects of EU antidumping policy when foreign firms can ‘jump’ antidumping duties through foreign direct investment (FDI) in the EU. We show that duty jumping or duty pre-empting FDI occurs if the EU administration has broader objectives than protecting EU industry's profitability and

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

Directory of Open Access Journals (Sweden)

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.

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.

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

Directory of Open Access Journals (Sweden)

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.

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.

Sugli investimenti esteri diretti "intra-settoriali". (A note on intra-industry foreign direct investment

Directory of Open Access Journals (Sweden)

J.H. DUNNING

2013-12-01

Full Text Available Questa nota suggerisce che i modelli di investimenti diretti internazionale nel settore della produzione , non solo tendono a seguire quelli di commercio delle materie prime , ma che , nel corso degli anni 1965-1975 , la componente intra-industriale di tali investimenti tendeva ad aumentare.  Tuttavia, i dati relativi interni ed esterni relativi ai beni di investimento diretto in cinque paesi oltre questo periodo di 10 anni rivelano alcuni spunti interessantiThis note suggests that patterns of international direct investment in manufacturing industry not only tend to follow those of commodity trade, but that, over the years 1965-1975, the intra-industry component of such investment had tended to increase. However, there are only a few countries in the world which are both substantial inward and outward direct investors. Nevertheless, data on outward and inward direct investment assets in five countries over this 10 year period reveal some interesting insights.JEL: F21

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.

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

ESG Integration and the Investment Management Process : Fundamental Investing Reinvented

NARCIS (Netherlands)

van Duuren, Emiel; Plantinga, Auke; Scholtens, Bert

2016-01-01

We investigate how conventional asset managers account for environmental, social and governance factors (ESG) in their investment process. We do so on the basis of an international survey among fund managers. We find that many conventional managers integrate responsible investing in their investment

Does Corporate Governance or Transparency Affect Foreign Direct Investment?

OpenAIRE

Haksoon Kim

2010-01-01

The paper investigates the relationship between the foreign direct investment (FDI) and the corporate governance or transparency by investigating the country-level FDI flows, FDI inward performance, corporate governance and transparency variables. From the regression analysis with Newey-West estimator of 28 country panel data from 1990- 2002, we find strong positive relationships between corporate governance or transparency level of hosting countries and FDI inward performance within hosting ...

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.

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 ...

Foreign Direct Investments and Human Capital Development in Subsaharan Africa

Directory of Open Access Journals (Sweden)

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.

Foreign Remittances, Foreign Direct Investment, Foreign Imports and Economic Growth in Pakistan: A Time Series Analysis

Directory of Open Access Journals (Sweden)

Muhammad Tahir

2015-10-01

Full Text Available This empirical research paper focuses on establishing a relationship between external determinants and economic growth of Pakistan economy. Empirical analyses are carried out with time series econometric techniques using data over the period of 1977-2013. The main finding is that external determinants such as foreign remittances, foreign direct investment, and foreign imports matter from a growth perspective. Foreign remittances and foreign direct investment have a significant positive role in the growth process of Pakistan economy. Furthermore, it is found that foreign imports have adversely influenced the economic growth of Pakistan. The study recommends that policy makers shall take appropriate steps to increase the inflow of both foreign remittances and foreign direct investment in order to achieve the long run economic growth.

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.

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...

Italian trade and direct investment in North Africa

OpenAIRE

Riccardo Settimo

2014-01-01

More than three years since the events of the Arab Spring, the five North African countries � Algeria, Egypt, Libya, Morocco and Tunisia are still going through a difficult transition. This study provides an overview of Italian trade and direct investment in the region. The main stylized facts are the following: (1) among the countries of the European Union, Italy is the region�s largest trading partner; (2) the region is a crucial source of energy, supplying 31 per cent of the oil and 44...

Co-movement of Foreign Direct and Portfolio Investments in Central and Eastern Europe

OpenAIRE

Yaman O. Erzurumlu; Giray Gozgor

2014-01-01

This paper empirically examines short- and long-run relationships between foreign direct investments (FDI) and volatility of foreign portfolio investments (FPI) in 12 Central and Eastern European (CEE) countries. We use the Generalized Autoregressive Conditional Heteroskedasticity models to calculate volatility of the FPIs. We utilize the second generation panel unit root test, panel-Wald causality test procedure and panel cointegration analysis allowing for structural breaks, and cross-secti...

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...... investments), but aid may crowd out private investments when it comes in the shape of pure physical capital transfers. Empirically, we find that aid invested in complementary inputs draws in FDI, while aid invested in physical capital crowds it out. The paper shows that the composition of aid matters for its...

A signaling model of foreign direct investment attraction

Directory of Open Access Journals (Sweden)

Marcelo de C. Griebeler

2017-09-01

Full Text Available Foreign direct investors face uncertainty about government's type of the host country. In a two period game, we allow the host country's government to mitigate such uncertainty by sending a signal through fiscal policy. Our main finding states that a populist government may mimic a conservative one in order to attract foreign direct investment (FDI, and this choice depends mainly on its impatience degree and the originally planned FDI stock. We highlight the role of the government's reputation in attracting foreign capital and thus provide some policy implications. Moreover, our model explains why some governments considered to be populist adopt conservative policies in the beginning of its terms of office. Resumo: Investidores estrangeiros diretos são incertos sobre o tipo do governo do país onde desejam investir. Em um jogo de dois períodos, permitimos que o governo de tal país mitigue essa incerteza ao enviar um sinal através da política fiscal. Nosso principal resultado estabelece que um governo populista pode imitar um conservador a fim de atrair investimento estrangeiro direto (IED, e essa escolha depende principalmente do grau de impaciência e do estoque de IED originalmente planejado. Destacamos o papel da reputação do governo em atrair capital externo e assim fornecemos algumas recomendações de política. Além disso, nosso modelo explica porque alguns governos considerados populistas adotam políticas conservadores no início do seus mandatos. JEL classification: F41, F34, C72, Keywords: Signaling, Foreign direct investment, Game theory, Palavras-chave: Sinalização, Investimento estrangeiro direto, Teoria dos jogos

Foreign Direct Investment as a Determining Factor in Turkey’s Export Performance

Directory of Open Access Journals (Sweden)

İ. Yaşar VURAL

2011-05-01

Full Text Available Export growth in Turkey has been much faster than GDP growth over the past few decades. Although in the last several years Turkey has been experiencing a constant growth of both exports and foreign direct investments as a result of marketoriented reform process, often associated with European Union (EU accession, the export performance as well as the inflow of foreign direct investment (FDI to Turkey is not satisfactory. Despite increasing inflows of FDI especially in recent years there has not been any attempt to assess its contribution to Turkey’s export performance—one of the channels through which FDI influences growth. Using annual data for 1982–2009 this paper investigates the determinants of Turkey’s export performance in a simultaneous equation framework (3SLS. Results suggest that the real appreciation of the Turkish Lira adversely affects Turkey’s export performance. Export supply is positively related to the domestic relative price of exports while the higher domestic demand reduces export supply. Foreign investment appears to have statistically significant impact on export performance as well as its coefficient has a positive sign. Also, the statistical adequacy of the models used is supported by the following diagnostic tests.

Determinants of Foreign Direct Investments Outflow From a Developing Country: the Case of Turkey

Directory of Open Access Journals (Sweden)

Gokhan Onder

2013-09-01

Full Text Available Foreign direct investments (FDI outflows of Turkey have remarkably been raising over the last decade. This rapid increase brings about the need for questioning the determinants of FDI outflows. The aim of this paper is to estimate the factors affecting outflow FDI from Turkey from 2002 to 2011 by using Prais-Winsten regression analysis. According to estimation results, population, infrastructure, percapita gross domestic product of the host country, and home country exports to the host country are the factors having positive effects on outflow FDI. We found, on the other hand, that the annual inflation rate of the host country, its tax rate collected from commercial profit, and its distance from Turkey have a negative relation with investment outflows. Moreover our results show that while investment outflows to developed countries are in the form of horizontal investments, investment outflows to developing countries are in the form of vertical investments.

The Intangible Assets of Korean Manufacturing Firms for Foreign Direct Investment

Directory of Open Access Journals (Sweden)

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

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.

HUNGARY, POLAND, THE CZECH REPUBLIC AND RUSSIA: ECONOMIC GROWTH AND FOREIGN DIRECT INVESTMENTS

Directory of Open Access Journals (Sweden)

Dementiev N. P.

2017-06-01

Full Text Available The article examines the role of foreign direct investment (FDI in the economic development of Hungary, Poland and the Czech Republic in recent decades. It is shown that the high rates of economic growth achieved by these countries in the pre-crisis years were closely linked to large foreign loans. The governments placed special emphasis on the attraction of FDI in high-tech export industries having very high growth rates (motor vehicles, machinery, equipment, computers, electronics and optics. For this purpose, central banks maintained an undervalued exchange rate of national currencies. As a result, adverse foreign trade balance in each of the three countries has shown a surplus in recent years. Furthermore, the disadvantages of excessive foreign loans are listed: high interest and dividend payments to foreign investors, reduction of national and economic sovereignty. For example, more than half of the Czech economy is under the control of foreign investors. Foreign direct investment in the Russian economy is also briefly discussed. It is shown by comparing the data of the Bank of Russia and the Eurostat that more than half of FDI in Russia is made through so-called special purpose entities (SPE and would be only formally considered a direct investment.

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...

Gradualism in Tax Treaties with Irreversible Foreign Direct Investment

OpenAIRE

Richard Chisik; Ronald B. Davies

2010-01-01

Bilateral international tax treaties govern the host country taxation for the vast majority of the world’s foreign direct investment (FDI). Of particular interest is the fact that the tax rates used under these treaties are gradually falling although the treaties themselves do not specify any such reductions. Since there is no outside governing agency to redress treaty violations, such reductions must be both mutually beneficial and self-enforcing. Furthermore, the optimal tax rates must be l...

Faktor Penentu Foreign Direct Investment di Asean-7; Analisis Data Panel, 2000-2012

OpenAIRE

Mutiara Ruth, Astrid; Syofyan, Syofriza

2014-01-01

The number of Foreign Direct Investment (FDI) in Asia, especially in ASEAN, has been increasing drastically over the past few decades. FDI is one of the sources of investment that is really important, mainly for developing countries. This research aims to investigate what factors that determine FDI in ASEAN, during 2000-2012. ASEAN-7 (Indonesia, Singapore, Thailand, Malaysia, Vietnam, Laos, and Filipina) are the object of this research. This research is divided into two main parts. The first ...

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.

ECONOMIC REGIME AND FOREIGN DIRECT INVESTMENT IN UKRAINE

Directory of Open Access Journals (Sweden)

Łukasz Cywiński

2014-08-01

Full Text Available An economic regime might take the form in which extractive institutions do not allow for the proper development of foreign direct investment. In consequence these countries cannot fully benefit from economic aspects of globalization and increasing standards of living. This is the case of Ukraine, a country with very good location advantages and a well-educated workforce that attracts only the murky type of FDI. It is a country that is troubled by corruption and political instability but at the same time a country that began the path to finding its national identity by fighting against extractive institutions.

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...

A Panel data analysis of locational determinants of outward Foreign Direct Investment from China and India

OpenAIRE

Duanmu, J; Guney, Y

2009-01-01

The upsurge of Chinese and Indian outward foreign direct investment (FDI) raises an unanswered question about locational determinants of direct investment from the two countries. Using an unbalanced bilateral FDI database, we find that Chinese and Indian FDI are attracted to countries with large market size, low GDP growth, high volumes of imports from China or India, and low corporate tax rates. We also find important differences between China and India. While Chinese FDI is drawn to countri...

Considering barriers to investment in South Africa

Directory of Open Access Journals (Sweden)

KB Afful

2014-10-01

Full Text Available This paper examines the effect of South Africa’s economic fundamentals on net direct investment and net portfolio investment. The results suggest that the main determinants of investment in South Africa are resource prices, input productivity and the economic performance of the domestic economy. The results illustrate that net direct investment and net portfolio investment are close but not perfect substitutes. In addition, we find that an increase in labour input costs reduces both net direct investment and net portfolio investment. Further, an increase in fixed capital productivity increases net direct investment. Further, also the results illustrate that subsidies increase both net direct investment and net portfolio investment. Moreover, an increase in exports increases both net direct investment and net portfolio investment. Policy recommendations are thus proposed that may increase foreign direct investment in South Africa.

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.

Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination

OpenAIRE

Jürgen Bitzer; Monika Kerekes

2005-01-01

Reexamining foreign direct investment (FDI) as a potential channel for knowledge diffusion -- based on industry data from seventeen OECD countries during the period 1973-2000 -- we find that FDI-receiving countries benefit strongly from FDI-related knowledge spillovers. We do not find evidence for positive FDI-related technology sourcing effects. Instead, our results suggest that outward FDI might have negative effects on the output of the FDI-sending country.

Japanese investment in Peru: limits of developmental investment

OpenAIRE

Kamiya, Marco

2004-01-01

Japanese Investment in Latin America was considerable in the 1960s and 1970s, but the investment never took off in the developmental style as in East Asia. The author examines why Japanese Foreign Direct Investment in Peru did not follow the pattern of developmental investment, analyzing the elements involved regarding policies in Peru and particular circumstances in Japan in the 1990 decade.

German crowd-investing platforms: Literature review and survey

Directory of Open Access Journals (Sweden)

David Grundy

2016-12-01

Full Text Available This article presents a comprehensive overview of the current German crowd-investing market drawing on a data-set of 31 crowd-investing platforms including the analysis of 265 completed projects. While crowd-investing market still only represents a niche in the German venture capital market, there is potential for an increase in both market volume and in average project investment. The market share is distributed among a few crowd-investing platforms with high entry barriers for new platforms although platforms that specialise in certain sectors have managed to successfully enter the market. German crowd-investing platforms are found to promote mainly internet-based enterprises (36% followed by projects in real estate (24% and green projects (19%, with the median money raised 100,000 euro.

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

Directory of Open Access Journals (Sweden)

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.

FISCAL COMPETITION AND DIRECT FOREIGN INVESTMENTS: ROMANIA VERSUS POLAND

Directory of Open Access Journals (Sweden)

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

EXPLORING TAX HOLIDAY POLICY IMPLEMENTATION FOR INDONESIAN INVESTMENT CLIMATE: HAS IT BEEN EFFECTIVE?

Directory of Open Access Journals (Sweden)

Mulyono R.D.P.

2017-07-01

Full Text Available This study aims to explore the reasons for the ineffectiveness of tax holiday policy implementation in Indonesia as well as the government’s strategies to improve the investment climate. This research uses exploratory study type which does not test theory or hypothesis by using preliminary survey method, conducting direct or indirect interview via e-mail to certain informant by giving questionnaire and direct observation passively observing the field and related websites supporting statistical data in this study in depth. In testing the validity of research data used source triangulation and method triangulation. The progress that has been achieved to date in the implementation of tax holiday policy is to provide ease of bureaucracy administration and simplicity of licensing services in investing by improving coordination among government to improve foreign investors' confidence when investing in Indonesia. So technically, the implementation of tax holiday policy is quite effective in attracting foreign direct investment because it can perform the right obligations according to the regulations. In the investment point of view, tax holiday policy is not effective in attracting foreign direct investment or not becoming the main factor of investor's goal in investment. The cause of the ineffectiveness of the tax holiday policy in attracting foreign direct investment in Indonesia is another indicator that becomes an assessment among others the ease of investment licensing, infrastructure, electricity supply, investor protection, minority and tax administration. Indonesian government's strategy to improve the investment climate is through deregulation, debureaucracy, law enforcement and business certainty for investors.

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

How institutional voids influence Brazilian foreign direct investment in Angola

Directory of Open Access Journals (Sweden)

Renato Virches

2017-04-01

Full Text Available How do institutional voids influence emerging market multinationals (EMNEs foreign direct investment (FDI in developing countries? In this article we respond to this question by examining Brazilian FDI in Angola as our analytical setting. We focus on the host country’s institutions and its institutional voids as essential factors that attract the FDI of EMNES to developing countries. The research indicates that Brazilian companies fill in much of these voids within the market intermediaries, often creating a point of competitive advantage, and also creating advantages in relation to FDI from other economies that invest in Angola. The scarce literature on FDI in Africa has been largely dedicated to the analysis of Chinese investment in the region. We aim to complement recent research on the influence of the host country’s institutions on the behavior of FDI in developing countries, explaining how some EMNEs are able to use the institutional voids of developing countries as market opportunities. Our findings should provide also implications for EMNEs managers from other emerging markets by providing a better understanding of how Brazilian multinationals expand their business in less developed countries, handle institutional voids and manage relationships with local and foreign institutions in the host country.

The Promotion of Foreign Direct Investment into Japan - The Measures' Impact on FDI Series

OpenAIRE

Maiko Wada

2005-01-01

At the occasion of delivering the fiscal year 2003 policy speech, Prime Minister Junichiro Koizumi proposed to double foreign direct investment (hereafter, FDI) stock into Japan within five years to revitalize the Japanese economy. Against this background, various measures aimed at promoting FDI into Japan have been investigated and implemented by the government and concerned ministries. A number of significant measures implemented in the most recent years to improve the investment environmen...

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

NARCIS (Netherlands)

Dikova, Desislava; van Witteloostuijn, Arien

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

European Accounting Harmonisation: Consequences of IFRS Adoption on Trade in Goods and Foreign Direct Investments

OpenAIRE

Laura Márquez-Ramos

2011-01-01

This paper focuses on the importance of accounting harmonisation in foreign activities at country level. The adoption of International Financial Reporting Standards (IFRS) is considered to reduce information costs among countries and, therefore, encourage international trade in goods and investment. The results provide evidence that benefits exist in terms of trade in goods and foreign direct investments (FDI) when IFRS are adopted.

Multinationals and Foreign Direct Investment: The Portuguese Experience (1900-2010

Directory of Open Access Journals (Sweden)

Alvaro Ferreira da Silva

2016-07-01

Full Text Available A long-term perspective on the evolution of inward and outward foreign investment in Portugal over the twentieth century has been absent from the existing literature. In a few cases the analysis has a larger chronological depth, namely in the studies by Salgado de Matos (1973. However, even in this case the author zooms in a specific period of time: the 1960s and early 1970s. Other studies provide a long-term synthesis on foreign direct investment (see for all, Leite et al, 2001; Moreira and Dias, 2008, but they rely on a descriptive and very superficial approach. The chapters dedicated by the recent and in-depth História Económica de Portugal (Lains and Silva, 2005, vol. 3 to the internationalization of the Portuguese economy or to capital as a factor of production never address FDI, which constitutes one important weakness of this work.

Transmission investment and planning in deregulated market environment : a literature survey (part 2)

International Nuclear Information System (INIS)

Wen, F.; Wu, F.F.

2005-01-01

This paper is the second half of a 2-part paper that provided details of a comprehensive survey of issues related to transmission investment and expansion planning in the electricity market. Results of the survey suggested that transmission regulation is needed to provide a fair playing field for competition and to ensure that transmission networks are optimally expanded while also meeting reliability constraints. Regulations will create further incentives for cost reduction while ensuring that regulated firms have assurance of cost recovery. Transmission planning should be controlled or monitored by a government organization or regulator. Legislation is needed to ensure that regulatory authorities can enforce reliability criteria. Mandatory reliability standards and metrics for reliability services should be implemented. The economic benefits of transmission expansion in a deregulated market should be modelled using non-deterministic approaches. It was concluded that transmission expansion plans should be able to meet future transmission capacity requirements, secure returns on investment, and ensure reliability levels for customers. Various international transmission expansion plans were also provided. 38 refs

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

OpenAIRE

Thanet Wattanakul; Tanawat Watchalaanun

2017-01-01

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 re...

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.

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 ...

Investment in the Community coal mining and iron and steel industries - 1981 survey

Energy Technology Data Exchange (ETDEWEB)

1982-01-01

The report has been prepared on the results of the 1981 survey of investments in the Community coal and steel industries. The survey which is conducted annually collects information on actual and forecast capital expenditure and production potential of coal and steel enterprises. The introductory chapter summarizes the results of the survey and the conclusions on them. Subsequent chapters examine in detail the results of the survey for each producing sector, namely: the coal mining industry; coking plants; briquetting plants; iron ore mines; and iron and steel industry. The annex contains a statement of the definitions under which the survey was carried out, together with tables giving a complete analysis of the results of the survey, including tables of capital expenditure and production potential by region and by category of plant for all sectors and categories of coal and steel products falling within the ECSC treaty. Editions are available in the seven community languages.

Investment in the Community coal mining and iron and steel industries - 1980 survey

Energy Technology Data Exchange (ETDEWEB)

1980-01-01

The report has been prepared on the results of the 1980 survey of investments in the Community coal and steel industries. The survey, which is conducted annually, collects information on actual and forecast capital expenditure and production potential of coal and steel enterprises. The introductory chapter summarizes the results of the survey and the conclusions on them. Subsequent chapters of the report examine in detail the results of the survey for each producing sector, namely: the coal mining industry; coking plants; briquetting plants; iron-ore mines; and the iron and steel industry. The annex to the report contains a statement of the definitions under which the survey was carried out, together with tables giving a complete analysis of the results of the survey, including tables of capital expenditure and production potential by region and by category of plant for all sectors and categories of coal and steel products falling within the ECSC Treaty. Editions are available in six community languages.

Chinese outward foreign direct investment: Is ASEAN a new destination?

OpenAIRE

Nguyen, Thi Tuong Anh; Doan, Quang Hung

2016-01-01

The paper re-investigates the determinants of China’s outward foreign direct investment (OFDI) employing panel data analysis collecting between 2003 and 2014. The results highlight that the market-seeking variables as GDP, GDP Per Capita, and openness to trade have a positive impact on China’s OFDI. In addition, Chinese investors are likely to be not associated with economic growth of host countries. Importantly, the previous studies confirmed that only the rich natural resources and the weak...

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...

Direct foreign investment: a migration push-factor?

Science.gov (United States)

Sassen-koob, S

1984-01-01

Policymakers and analysts now recognize that US military activities abroad contribute to the creation of refugee flows into the US. Previously, immigration into the US was viewed as a result of inept and failed domestic policies in the countries of origin. Results show that recent immigrants to the US come from countries with neither the poorest nor the largest population growth rate in the less developed world. However, the sending countries received US direct foreign investment (DFI) in the 1970s, particularly labor intensive investment in export manufacturing. Significant levels and concentrations of DFI promote emigration through: 1) the incorporation of new segments of the population into wage labor and the associated disruption of traditional work structures, 2) the feminization of the new industrial work force and its impact on the work opportunities of men, and 3) the consolidation of objective and ideological links with the highly industrialized countries where most foreign capital originates. The data suggest an examination of the causes of emigration on a much more specific level than that of underdevelopment, poverty, and population growth. These facts carry immediate policy implications for US immigration organizations: 1) if US firms in export processing zones recruited workers from the pool of unemployed--mostly prime-age males--rather than expanding the labor supply by recruiting young women, thereby disrupting unwaged work structures, and 2) if these firms would desist from having high turnover rates among workers, then the migration impact of this type of development would be minimized.

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...

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

Directory of Open Access Journals (Sweden)

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.

Outward Foreign Direct Investment and Human Capital Development: A Small Country Perspective

Science.gov (United States)

McDonnell, Anthony

2008-01-01

Purpose: The purpose of this paper is to examine the pattern of outward foreign direct investment (FDI) by Irish MNCs, and more specifically, to investigate their approach to human capital development and how these correspond to foreign MNCs in Ireland. In particular, it seeks to investigate training and development expenditure, adoption of…

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.

Foreign Direct Investment and Economic Growth in Developing

African Journals Online (AJOL)

Prof

investments involving transfer of assets, including financial capital, advanced .... different impacts across sectors, estimation results showed that the composition ... Investment, Population, Inflation rate, Natural Resource Rent and Interest rate,.

Lingkages Between Foreign Direct Investment and Its Determinants in Malaysia

OpenAIRE

Sulong, Zunaidah; Harjito, D. Agus

2005-01-01

This paper addresses the relationship between Foreign Direct Investment (FDI) and its determinants in Malaysia. The annual data for the period of 1970 to 1999 were employed in this study. The OLS regression is used to determine the relationship between FDI and its independent variables. The variables are estimated in the full model (Model I) and different sub-models (Model II, Model III and Model IV). Generally, the results indicate that there are at least four factors that may be used to pre...

Impacts of foreign direct investment on efficiency in Swedish manufacturing.

Science.gov (United States)

Svedin, Dick; Stage, Jesper

2016-01-01

A number of studies have found that foreign direct investment (FDI) can have positive impacts on productivity. However, while FDI has clearly positive impacts on technology transfers, its effects on resource use within firms is less clear and, in principle, efficiency losses might offset some of the productivity gains associated with improved technologies. In this paper, we study the impacts of FDI on efficiency in Swedish manufacturing. We find that foreign ownership has positive impacts on efficiency, supporting the earlier findings on productivity.

Tax Rate and Tax Base Competition for Foreign Direct Investment

OpenAIRE

Peter Egger; Horst Raff

2011-01-01

This paper argues that the large reduction in corporate tax rates and only gradual widening of tax bases in many countries over the last decades are consistent with tougher international competition for foreign direct investment (FDI). To make this point we develop a model in which governments compete for FDI using corporate tax rates and tax bases. The model’s predictions regarding the slope of policy reaction functions and the response of equilibrium tax parameters to trade costs and mark...

CONCEPTUAL APPROACHES TO FORMING MECHANISM OF INVESTMENT SAFETY REALIZATION

Directory of Open Access Journals (Sweden)

Vladimir Talover

2016-11-01

Full Text Available The purpose of the paper is theoretical justification of theoretical approaches while developing the mechanism of the state investment safety. The tasks of the system of the national economy investment safety are the following: developing investment potential, creating favourable investment climate, forming mechanisms of stable investment activity in the key branches of economy. At the same time, it should also be noted that the complex approach that would allow sufficiently justifying and practically solve the problems of defining indicators, factors of the investment policy and directions of its assurance in realization of the mechanism of investment policy is not sufficiently developed nowadays. This fact determines research topicality. The issue of assuring investment safety is of a special importance in Ukraine that has to assure market economy development, to overcome deformations in the economy structure, to renew products and production apparatus in the industry, to master new kinds of activities. Methodology. The survey is based on the generalization and development of views of the scientific-economic schools, uses approaches of the international agencies and recommendation and normative materials of Ukraine concerning realization of the state investment policy as a totality of interrelated levels and subsystems that allows establishing main functions of the investment safety system. Results of the survey shows that the mechanism of investment safety includes some kinds, forms and methods of organizing investment relations and investment activity, ways of their quantitative determination and establishing interdependence. The concept of investment policy is based on the complex approach and includes the blocks which are locally structured in such way that they allow forming adequate system of its indicators and conducting monitoring of their changes under the influence of the determined factors. The peculiarities and elements of

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...

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...

An Analysis of U.S. Foreign Direct Investment Policy and Economic Development. A.I.D. Discussion Paper No. 36.

Science.gov (United States)

Bergsten, C. Fred; De Castro, Bruce

The purpose of the paper is to analyze U.S. policies toward financial investment in developing nations. The paper is presented in two sections. In section I, the controversial effects of direct foreign investment on development are discussed. Case studies of investment policies toward India, the Philippines, Ghana, Guatemala, and Argentina are…

The determinants of Foreign Direct Investment in the Middle East North Africa region

NARCIS (Netherlands)

Rogmans, T.J.; Ebbers, H.A.

2006-01-01

Although, there has been increasing interest in the determinants of Foreign Direct Investment in emerging markets, FDI into the Middle East North Africa (MENA) region has so far received little attention among academics. The MENA region provides a useful ground for the testing of traditional

DIRECTIONS OF USING DIRECT PAYMENTS BY THE INDIVIDUAL FARMS LOCATED IN CHOSEN REGIONS

Directory of Open Access Journals (Sweden)

Arkadiusz Sadowski

2012-01-01

Full Text Available This paper assesses the diversity of directions for use of direct payments in different types of individual farms. The questionnaire surveys were performed on 295 farms located in dif-ferent parts of the country. Analysed farms were divided into groups according to the amount direct support received. Based on the survey concluded that in all analysed groups the largest share of direct payments is spent on the purchase of means of production. The smallest farms also spend to a high extent, the money on household purposes (20.5% and the largest ones to finance the investment (17.7%.

78 FR 9032 - Annual Survey of U.S. Direct Investment Abroad

Science.gov (United States)

2013-02-07

... 31. The BE-11 survey forms and instructions are available on the BEA Web site at www.bea.gov/dia... institution, or other entity or instrumentality thereof, including a government-sponsored agency). (d... in Form BE-11. Entities required to report will be contacted individually by the Bureau of Economic...

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

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

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...

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

Directory of Open Access Journals (Sweden)

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.

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.

Analyses of direct and indirect impacts of a positive list system on pharmaceutical R&D investments.

Science.gov (United States)

Han, Euna; Kim, Tae Hyun; Jeung, Myung Jin; Lee, Eui-Kyung

2013-07-01

The South Korean government recently enacted a Positive List System (PLS) as a major change of the national formulary listing system and reimbursed prices for pharmaceutical products. Regardless of the primary goal of the PLS, its implementation might have spillover effects by influencing the pharmaceutical industry's research and development (R&D), potentially leading to a variety of responses by firms in relation to their R&D activities. We investigated the spillover effect of the PLS on R&D investments of the pharmaceutical industry in Korea through both direct and indirect channels, examining the influence of the PLS on sales profit and cash flow. Data from 9 years (5 before and 4 after PLS implementation) were drawn from the financial statements of firms whose stocks were exchanged in 2 official stock markets in Korea (526 firms) and additional pharmaceutical firms whose financial performance was officially audited by external reviewers (263 firms). Longitudinal analyses were conducted, using the panel nature of the data to control for permanent unobserved firm heterogeneity. Our results showed that the PLS was directly associated with R&D investments. In contrast, its indirect impacts stemming from the influence on sales profit and cash flow were minimal and statistically nonsignificant. The gross impact of the PLS on R&D investments increased moving further from the enactment year; R&D investments were reduced by 18.3% to 25.8% in 2009-2010 (compared with before PLS implementation) in the firm fixed-effects model. We also found that such negative direct and gross impacts of the PLS on R&D investments were significant only in firms without newly developed chemical entities. Considering the gross negative impact of the PLS on R&D investments of pharmaceutical firms and the heterogeneous response of these firms by the R&D activities, governmental efforts of cost-containment may need to consider the spillover impact of the PLS on pharmaceutical innovation

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

Pension Fund Investment Policy

OpenAIRE

Zvi Bodie

1988-01-01

The purpose of this paper is to survey what is known about the investment policy of pension funds. Pension fund investment policy depends critically on the type of plan: defined contribution versus defined benefit. For defined contribution plans investment policy is not much different than it is for an individual deciding how to invest the money in an Individual Retirement Account (IRA). The guiding principle is efficient diversification, that is, achieving the maximum expected return for any...

Determinants of foreign direct investment in Tunisia: Empirical assessment based on an application of the autoregressive distributed Lag model

Directory of Open Access Journals (Sweden)

Teheni El Ghak

2017-05-01

Full Text Available In recent years, the changing economic and political environment in Tunisia led to a renewed interest on the drivers of foreign direct investment, given its potential important gains. In this study, we investigated the impact of various factors over the period 1980-2012. In doing this, three categories of determinants were considered: economic, political and sociocultural variables. Empirical findings drawn from the autoregressive distributed lag bounds testing approach show that variation in foreign direct investment inflow in the short-run and long-run is affected by the majority of variables considered, except exchange rate, urban population and gross domestic savings. As a matter of policy, it is essential that government should continue its efforts to create a macroeconomic environment which is attractive to foreign direct investment.

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

The Economics of Foreign Direct Investment Incentives

OpenAIRE

Magnus Blomstrom; Ari Kokko

2003-01-01

This Paper suggests that the use of investment incentives focusing exclusively on foreign firms - although motivated in some cases from a theoretical point of view - is generally not an efficient way to raise national welfare. The main reason is that the strongest theoretical motive for financial subsidies to inward FDI – spillovers of foreign technology and skills to local industry – is not an automatic consequence of foreign investment. The potential spillover benefits are realized only if ...

BUSINESS DEVELOPMENT, FOREIGN DIRECT INVESTMENT AND INTERNATIONAL TRADE: A policy and economic comparative analysis for Canada

Directory of Open Access Journals (Sweden)

Isabel Husid

2015-01-01

Full Text Available The present work aims to achieve an overall view of Foreign Direct Investment and International Trade in Canada, analyzing both the current situation and the actions and policies being implemented by several provinces to promote this subject. This study will be valuable to companies and governments to understand what has been done and to support strategic planning to invest and trade with Canada, especially for the Brazilian market.

A Comparative Study of Foreign Direct Investment Flow Using Diffusion Models

Science.gov (United States)

Li, Yiming; Chiang, Yi-Hui; Yu, Shao-Ming; Chiang, Su-Yun; Hung, C.-H.

2007-12-01

In this work, we apply an improvement dynamic model of the foreign direct investment (FDI) flow to analyze the evolution of FDI flow. In comparison with the fundamental growth model of FDI, the simulation result is further accurate if the asymmetric growth pattern and heterogeneity of the potential adopters are considered. According to the result, the internal influence dominates the growth of FDI flow from Taiwan to China during 2001-2006, taking the electronics industry for example.

Foreign Direct Investments – Challenges and Perspectives for Romania

Directory of Open Access Journals (Sweden)

Cristina Batusaru

2013-05-01

Full Text Available In the context of globalization of markets, foreign direct investments have an important role in terms of supporting endogenous growth factors, on the one hand and the circuit of financial flows between countries, on the other hand. If we refer to the effects of the economic crisis on economies, ISD may represent capital infusion instruments for affected economic sectors, contributing to faster recovery of economic gaps that occurred. By studying this topic of FDI we consider the great impact and benefits that they can bring, being essential element in the development of a country, as in the case of Romania. This paper presents the main trends of international financial flows for the period 2008-2012, whereas in the context of economic globalization requires an overall analysis of country-specific FDI performance as it helps in improving and optimizing strategies adopted by foreign transnational companies. In order to underline their importance and necessity, we study the situation of Romania in this field by analyzing the performance of countries in attracting direct foreign investments. Following the study conducted it has been made a number of conclusions and recommendations on how to improve this process in Romania. Academics, researchers, administrators of the university all have a great responsibility on how they support to attract FDI in Romania, even if we refer to work force that they form, the ideas they can provide in supporting and developing this process or by sharing the “know-how” related to the many fields that FDI can have an impact on. This paper aims to bring on the loop the main strengths and weaknesses that Romania has in the field of FDS and invites the readers interested on the topic to involve by providing feedback in order to improve this process in Romania.

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

Directory of Open Access Journals (Sweden)

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.

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   ...

RUSSIAN INDUSTRY INVESTMENT SITUATION

Directory of Open Access Journals (Sweden)

O. V. Pochukaeva

2011-01-01

Full Text Available The actual deficiency of investment into Russian industry innovative development increases its technological drag from industries of countries with developed markets. Although the rate of investment into real sectors of Russian economics mid 2000 was higher compared to the previous period, annual investment amounts were much lower than in 1990. At present, highest investment amounts are directed to industry extractive branches and to the commerce. Amounts invested to various economy branches do not correspond to their contribution to the country’sGross Added Product; particularly underinvested are manufacturing industry branches. At present, foreign share in the country economy total investment makes 15–18%. Recently, most interesting for foreigners was investment to machine-building branches with overwhelming part (for example, 90% in 2007–2008 of foreign investment into the machine-building industry being directed to creation of new automobile plants. Today, first place in the list of foreign investors’ preferences in Russia is taken by the machine-tool construction sector.

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...

Labor Force – Main Determinant Of the Foreign Direct Investments Located in Romania

Directory of Open Access Journals (Sweden)

Aniela Raluca Danciu

2015-03-01

Full Text Available The foreign direct investments can be considered as one of the main factors that have sustained the evolution of the centralized former communist East-European economies into open competitive market systems. The East-European countries were the destination of some significant capital inflow because of some important features of each market as: development level of the infrastructure, labor force characteristics, market size and its future development possibilities, regulation level of the market, liberalization level of the prices, tax policies and technology absorption capability. When talking about Romania one of the main determinants of the foreign direct investments was the labor force, which attracted in the manufacturing industry to types of investors: cost oriented investors and quality oriented investors. The main goal of this research paper is to provide a clear description of the similarities and of the differences of the two investor types, at national and regional. Data used in this research were collected using a questionnaire and were further analyzed using the SPSS software.

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...

MACROECONOMIC ENVIRONMENT AND GREENFIELD FOREIGN DIRECT INVESTMENT OF HOTEL BRANDS

Directory of Open Access Journals (Sweden)

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.

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...

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

Exploring the impact of foreign direct investment on tobacco consumption in the former Soviet Union.

Science.gov (United States)

Gilmore, A B; McKee, M

2005-02-01

Tobacco is the single largest cause of morbidity and mortality in the developed world; in the former socialist bloc tobacco kills twice as many men as in the west. Although evidence shows that liberalisation of the cigarette trade through the elimination of import barriers leads to significant increases in consumption, far less is known about the impact of foreign direct investment on cigarette consumption. This paper seeks to explore the impact that the substantial transnational tobacco company investments have had on patterns of tobacco trade and consumption in the former Soviet Union. Routine data were used to explore trends in cigarette trade and consumption in the 15 countries of the former Soviet Union from the 1960s to the present day. Comparisons were made between trends in countries that have received substantial investment from the tobacco transnationals and countries that have not. Between 1991 and 2000 cigarette production increased by 96% in countries receiving industry investment and by 11% in countries that did not. Over the same period cigarette consumption increased by 40%; the increase was concentrated in countries receiving investments. Despite these investments, cigarette imports still outweigh exports and no trade surplus has yet to result. The findings suggest that liberalisation of inward investment has a significant and positive impact on cigarette consumption and that without appropriate safeguards, market liberalisation may have long term negative impacts on health. Specific trade rules are needed to govern trade and investment in this uniquely harmful product. Implementation of effective tobacco control policies should precede tobacco industry privatisation. International financial organisations pressing for privatisation should ensure this occurs.

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.

RELATIONSHIP BETWEEN INWARD FOREIGN DIRECT INVESTMENT, DOMESTIC INVESTMENT, FORMAL AND INFORMAL INSTITUTIONS: EVIDENCE FROM CHINA

Directory of Open Access Journals (Sweden)

Waqar Ameer

2017-07-01

Full Text Available This study examines relationship between Inward FDI and domestic investment in China, using co-integration and Granger causality analysis (Including bivariate and multivariate Granger causality models. We have used auto-regressive distributed lags(ARDL econometric methodology technique to define relationship between inward FDI and domestic investment using time series data for China. Our study examines long run effects of FDI inflows on domestic investment over time span 1990-2014 for China using informal, formal institutions and key macroeconomic variables as control variables in the model. The results suggest that conclusions drawn from bivariate model may not be valid because of omission of important control variables. Our results of multivariate model show that there is positive unidirectional causality running from IFDI to DI in the long run. In the short run, both inward FDI and domestic investment do not allow Granger causality.

Corporate income tax competition, double taxation treaties, and foreign direct investment

OpenAIRE

Janeba, Eckhard

1992-01-01

In the presence of international-capital mobility foreign direct investment is influenced by corporate income taxation and the rules how taxes paid in the host country are treated at home. In this paper the exemption, credit and deduction method are considered as tax rules. First, it is shown that under the exemption method there exist tax rate combinations that lead to a reversal of capital flows compared to a free-trade situation. Second, the decision on the tax rule and the corporate tax r...

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

Directory of Open Access Journals (Sweden)

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.

An extensive exploration of theories of foreign direct investment

Directory of Open Access Journals (Sweden)

Patricia Lindelwa Makoni

2015-06-01

Full Text Available The purpose of this study was to identify and examine the key foreign direct investment theories. The history and origins of FDI theories were considered, prior to dwelling in-depth on the theories themselves. FDI theories were classified under macroeconomic and microeconomic perspectives. Macroeconomic FDI theories emphasize country-specific factors, and are more aligned to trade and international economics, whereas microeconomic FDI theories are firm-specific, relate to ownership and internalisation benefits and lean towards an industrial economics, market imperfections bias. FDI theories are fairly complex to explain and apply. This paper is purely qualitative in nature, and attempted to explain the different FDI theories by providing an analyisis of the key theories used in many scholarly works

Transmission investment and planning in deregulated market environment : a literature survey (part 1)

International Nuclear Information System (INIS)

Wen, F.; Wu, F.F.

2005-01-01

This paper is the first half of a 2-part paper that provided details of a comprehensive survey of issues related to transmission investment and expansion planning in the electricity market. The lack of adequate transmission capacity has played an important role in recent power crises, and deregulation has had a significant impact on the investment and planning process of transmission systems. The main objective of transmission investment is to meet load demands as cheaply as possible. In a deregulated market, there is no longer centrally coordinated planning of new generation. Transmission planning is generally not coordinated with generation planning. There is considerable uncertainty with regard to transmission capacity requirements due to long lead times for transmission construction. Generating plants and transmission lines are built according to investor assessments and private interests, and current transmission systems were not designed to handle supply and demand patterns in competitive markets. It was recommended that new transmission plans should meet reliability requirements while minimizing expected unserved energy. It was concluded that reliability criteria must be redefined to account for the fact that transmission systems are more stressed under deregulation. Two popular financial transmission rights were also discussed, notably (1) point-to-point financial transmission rights (FTR); and (2) financial flowgate rights (FGR)

THE EVOLUTION OF FOREIGN DIRECT INVESTMENT THEORIES: HOW CAN INSTITUTIONS RELATE?

Directory of Open Access Journals (Sweden)

Zsuzsanna Bényei

2016-07-01

Full Text Available Theories of Foreign Direct Investment (FDI have evolved over the past few decades. There are theories which try to explain the motivation behind investments, and there are others to explain why companies go abroad. To understand the motivations of firms in today’s economic environment, we have to trace the evolution of these theories. At first, researchers tried to explain capital movements with trade theories. However, because of the strict conditionality, they only explained a small part of FDI. To extend the validity of the models, researchers started to examine investments from the firms’ point of view. The models evolved from Vernon’s product life cycle model, through Hymer’s monopolistic advantage model, to Dunning’s eclectic theory. These firm-based theories highlighted the importance of entrepreneurs. Dunning’s theory includes the statements which featured in previous models. We can find monopolistic advantage, localization and internalization models in this argument. This study is an attempt to relate the issue of FDI to institutions. There is a rapidly growing literature on the subject of new institutional economics, which indicates that the effect of institutions can appear in any economic situation. These effects can be shown in Dunning’s theory, too. The consensus view seems to be that institutions play a significant role in ownership, in localization and in internalization advantages. Consequently, we can find them in the other models, too. The purpose of this paper is to ident

The Local Structure of Globalization. The Network Dynamics of Foreign Direct Investments in the International Electricity Industry

Science.gov (United States)

Koskinen, Johan; Lomi, Alessandro

2013-05-01

We study the evolution of the network of foreign direct investment (FDI) in the international electricity industry during the period 1994-2003. We assume that the ties in the network of investment relations between countries are created and deleted in continuous time, according to a conditional Gibbs distribution. This assumption allows us to take simultaneously into account the aggregate predictions of the well-established gravity model of international trade as well as local dependencies between network ties connecting the countries in our sample. According to the modified version of the gravity model that we specify, the probability of observing an investment tie between two countries depends on the mass of the economies involved, their physical distance, and the tendency of the network to self-organize into local configurations of network ties. While the limiting distribution of the data generating process is an exponential random graph model, we do not assume the system to be in equilibrium. We find evidence of the effects of the standard gravity model of international trade on evolution of the global FDI network. However, we also provide evidence of significant dyadic and extra-dyadic dependencies between investment ties that are typically ignored in available research. We show that local dependencies between national electricity industries are sufficient for explaining global properties of the network of foreign direct investments. We also show, however, that network dependencies vary significantly over time giving rise to a time-heterogeneous localized process of network evolution.

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

Directory of Open Access Journals (Sweden)

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.

Labor Costs and Foreign Direct Investment: A Panel VAR Approach

Directory of Open Access Journals (Sweden)

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.

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.

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

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.

Evidence on the determinants of foreign direct investment: the case of EU regions

Directory of Open Access Journals (Sweden)

Laura RESMINI

2010-12-01

Full Text Available This study analyses the determinants of Foreign Direct Investment (FDI at regional level. While the determinants of FDI in Europe have been extensively analysed at the country level, the literature on location patterns and on the determinants of FDI at the regional level is only at its beginning. This study follows this line of empirical research by using original data on the number of foreign investments over the 2005-07 period disaggregated by regions of the EU27 and by sectors. We perform a detailed analysis of the location determinants of foreign investments using different econometric specifications in order to consider a large set of variables potentially explaining FDI location. We attempt, on the one hand, to demonstrate whether variables usually employed to explain the determinants of FDI at the country level also influence the location of FDI at the regional level, and on the other hand to identify which locational advantages are able to attract FDI into EU regions. In so doing, we control for firm, sector and spatial heterogeneity in order to capture potential differences in the patterns of location of different kinds of foreign firms.

CHINA’S ECONOMIC ACTIVITIES IN AFRICA: TRADE, FOREIGN DIRECT INVESTMENT AND AID

OpenAIRE

Michałowski, Tomasz

2014-01-01

The paper examines the nature of China’s economic activities in Africa in three dimensions: merchandise trade, foreign direct investment, and aid. These are three main channels through which China’s presence on the continent affects Africa’s economic growth and development. China’s economic relations with Africa are, to a large extent, driven by Chinese demand for natural resources, especially oil and minerals. It is the most visible in Sino-African trade, where fuels alone account for about ...

The Effect of Corruption on Foreign Direct Investment: A Panel Data Study

OpenAIRE

EPAPHRA, Manamba; MASSAWE, John

2017-01-01

Abstract. Foreign direct investment (FDI) has become an important factor of development in low income countries. At the same time, corruption continues to be one of the greatest obstacles to economic and social development in these countries. However, in East Africa, the study of the nature of corruption as well as its relationship with FDI is scanty in socio-economic literature. In addition, the existing literature provides controversial results. Motivated by these issues, this paper examine...

12 CFR 211.8 - Investments and activities abroad.

Science.gov (United States)

2010-01-01

... of a member bank is deemed to be an investor. (b) Direct investments by member banks. A member bank's direct investments under section 25 of the FRA (12 U.S.C. 601 et seq.) shall be limited to: (1) Foreign... investments in an organization, provided that: (i) Individual investment limits. The total direct and indirect...

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...... 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...

Financial analysis of foreign direct investment on economic growth of developing countries

Directory of Open Access Journals (Sweden)

Raičević Božidar

2016-01-01

Full Text Available The object of the research paper is to perform an empirical analysis of foreign direct investment (FDI influence on economic growth with the aim of establishing factors that will contribute to overcoming the problem. The research results imply that realistic exchange rate, export and import as well as state expenditures are statistically significant for predicting economic growth movement and they have a positive influence on FDI movement. Empirical analysis, contrary to expectations, has shown that FDI, public debt and openness have a negative impact on economic growth in the case of Republic of Serbia. In the following period Serbia has to decrease the share of budget deficit in GDP and control public debt. Serbia has to pay special attention to improving investment environment and encourage export oriented production, whereas finance management and continuation of reform processes are the basis for establishing sustainable development of country, with sustainable use of available resources.

The impact of the 2009 value added tax reform on enterprise investment and employment ‐ Empirical analysis based on Chinese tax survey data

NARCIS (Netherlands)

Wang, D.

2013-01-01

This paper uses the "National Tax Survey" enterprise data to assess the impact of China's nationwide VAT reform of 2009 on enterprise fixed-asset investment and employment. The main finding of our research is that the reform significantly increased business investment in fixed assets, but had no

Foreign Direct Investment and Electronics Exports: Exploratory Empirical Evidence from Malaysia's Top Five Electronics Exports

OpenAIRE

Tuck Cheong Tang; Koi Nyen Wong

2007-01-01

The foreign direct investment (FDI) has contributed significantly to Malaysia's electronics exports as well as the growth and development of the electronics industry as a result of the export-oriented industrialization initiatives undertaken since 1970s. The aim of this study is to explore the causation between FDI and electronics exports by using Malaysia''s top five electronics exports by SITC (Standard International Trade Classification) product groups. The findings show a bi-directional c...

Investment Strategy and Efficiency of Investment Activity of European Insurers

Directory of Open Access Journals (Sweden)

Zhabynets Olga Yo.

2014-02-01

Full Text Available The article studies investment strategy and efficiency of investment activity of European insurance companies. In particular, it analyses the share of investments of insurance companies of Europe in GDP, investment portfolio of European insurers and its structure, contribution of insurance companies – leaders of investment activity – into the European investment portfolio. It studies influence of the financial crisis upon investment strategy of European insurers and analyses efficiency of investment activity of European insurers in risk insurance and life insurance. The article proves that investment business models of insurance companies are capable of resisting crisis phenomena more efficiently than other financial institutions. It marks out that measures of insurance companies that are directed at increase of profitability of investments require from them both significant expenditures on creation of the system of investment risk management and open access to different categories of financial assets and markets, which influences the general risk level, taken upon by an insurance company. The author draws a conclusion that, taking into account recent developments, European insurers should focus on equity and investment risk management, finding new possibilities for their (investments growth and also adaptation of new systems and operations for solution of these important tasks.

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

NARCIS (Netherlands)

Nyankweli, E.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

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

Directory of Open Access Journals (Sweden)

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

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

OpenAIRE

Armas, Enrique; Rodríguez, José Carlos

2017-01-01

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...

The impact of foreign direct investment on unemployment in Japan

Directory of Open Access Journals (Sweden)

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.

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.

Critical review of directional neutron survey meters

International Nuclear Information System (INIS)

Balmer, Matthew J.I.; Gamage, Kelum A.A.; Taylor, Graeme C.

2014-01-01

Having been overlooked for many years, research is now starting to take into account the directional distribution of the neutron work place field. The impact of not taking this into account has led to overly conservative estimates of dose in neutron workplace fields. This paper provides a critical review of this existing research into directional survey meters which could improve these estimates of dose. Instruments which could be adapted for use as directional neutron survey meters are also considered within this review. Using Monte-Carlo techniques, two of the most promising existing designs are evaluated; a boron-doped liquid scintillator and a multi-detector directional spectrometer. As an outcome of these simulations, possible adaptations to these instruments are suggested with a view to improving the portability of the instrument. -- Highlights: • We critically review the existing literature into directional survey meters. • Instruments which could be adapted for this purpose are also reviewed. • Investigate the potential of much lighter portable real-time instrument. • Improvements to existing instruments are suggested to improve their design. • Boron-Doped liquid scintillator design is the most promising, but needs further work

75 FR 80294 - Direct Investment Surveys: BE-11, Annual Survey of U.S. Direct Investment Abroad

Science.gov (United States)

2010-12-22

... composition of external finances; and wholesale and retail trade items (specifically, the cost of goods... Chief Counsel for Advocacy, Small Business Administration (SBA), under the provisions of the Regulatory... Subjects in 15 CFR Part 806 Economic statistics, Multinational corporations, Penalties, Reporting and...

FOREIGN DIRECT INVESTMENT: DIAGNOSIS AND PROPOSALS FOR A BRAZILIAN PUBLIC POLICY

Directory of Open Access Journals (Sweden)

Milton de Abreu Campanario

2011-01-01

Full Text Available The text is the part of public policy of a larger research project on Brazilian Outward ForeignDirect Investment - OFDI. The text analyses the viability to adopt policies to enhance FDI,particularly outward. Based on statistical data and on literature review, the policy agenda framesthe underling questions surrounding the theme. There is not yet a theoretical framework to dealwith emergent countries’ FDI and related policies. There exist strong evidences that capital flowsthrough FDI generate externalities in the following domains: macroeconomics, microeconomicsand foreign relations particularly in areas related to industrial organization and innovation. Thetheoretical proposition is that international capital flows are compatible to monetary stability,commercial openness, investment promotion and industrial innovation policies. A betterpositioning of national enterprises internationally may result in growing partnership within theforeign environment. Brazil has not a set of policies to deal with inward and outward BrazilianFDI flows. These policies do not necessarily jeopardize macroeconomic policy and the relatedmonetary and currency stabilization goals. It contends that FDI stimulus by means of publicpolicies may contribute not just to a better competitiveness and innovation of Brazilianenterprises, but also assure a balanced growing and economic structural change.

INTERNATIONALIZATION STRATEGIES OF THE BRAZILIAN MEAT AGRIBUSINESS SECTOR: EXPORTS OR DIRECT INVESTMENT ABROAD?

Directory of Open Access Journals (Sweden)

Eva Stal

2010-11-01

Full Text Available The article analyzes the internationalization strategies of the four largest Brazilian companies in the meat (beef, pork and poultry agribusiness sector, by considering the comparative and competitive advantages of the country and the companies. JBS, Marfrig, Sadia and Perdigão were studied, of which the last two merged in May 2009, forming Brasil Foods. The authors looked into what led these companies to start investing  abroad directly, as from 2005, as a complement to their exports, the preferred strategy for placing products in foreign markets. The research method used was the multiple case study, drawing on primary data (interviews, corporate annual reports, financial statements, press releases and shareholder information and secondary data (theses, dissertations, academic articles, reports in newspapers and business journals, using bibliographic and documentary research. Everything was analyzed in the light of international business and strategy theories. The results show that exports still predominate and that investing directly abroad was, in principle, a reactive strategy to sanitary barriers against Brazilian products. However, the acquisition of companies in restriction-free countries has increased as part of a forward-looking strategy for gaining access to new markets and strengthening brands. Key-words: Agribusiness. Internationalization. Strategy. 

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...

Institutions, foreign direct investment, and domestic investment : crowding out or crowding in?

NARCIS (Netherlands)

Farla, K.; de Crombrugghe, D.P.I.; Verspagen, B.

2013-01-01

Studies of the relationship between FDI and domestic investment levels reach contradictory findings. We revisit this empirical relationship and argue that some of the conflicting evidence may be explained by the use of poor proxies for the true underlying variables and by questionable methodological

What determines Chinese outward direct investment in Africa? Case study: CNPC and Huawei

OpenAIRE

WU, XUANYONG

2014-01-01

Outward foreign direct investment (OFDI) from China has increased substantially in recent years. Africa, as one of the most significant destinations of OFDI, has attracted increased global attention. The determinants of China’s OFDI to Africa are primarily linked to poorly governed countries with abundant natural resources. However, the results are inconclusive because of the differences between state-controlled and privately owned firms. In order to explore what drives Chinese OFDI in Africa...

THE ROLE OF FOREIGN DIRECT INVESTMENT IN SUSTAINING CHINA’S ECONOMIC GROWTH

Directory of Open Access Journals (Sweden)

ANA-CRISTINA BÂLGĂR

2015-12-01

Full Text Available n over three decades and a half of spectacular economic growth – starting in 1979 with the launch of reform processes and with the dynamic mutations from an autarchic to a global model – the introduction and implementation of the policies targeting the use and attraction of foreign direct investment (FDI represented an exceptionally important stage in China’s history of international “openness,” playing an active role in the promotion, support and enhancement of its economic development. The aim of this article is to outline China’s sinuous investment path, from the autarchic pattern followed by the stage of economic openness characterised by the application of the “open doors” policy and up to the rethinking of the development paradigm and the country’s affirmation on the market as a new powerhouse in the global economy. Our research also aims to outline the implications that all these stages had on China’s current position of world leader in terms of inward FDI. As such, by means of comparative, quantitative and qualitative analyses, we will examine the evolution in time and the external impact of policies regarding the attraction of FDI, as well as the strategy aiming at incentivising Chinese outward investment – a relatively recent phenomenon – and the related support measures, in order to identify the country’s current development stage and its position in the global landscape, as well the possible challenges that China might face in the future.

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.

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

Directory of Open Access Journals (Sweden)

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.

GREEN INVESTMENT: A STRATEGY FOR SUSTAINABLE ECONOMIC GROWTH AND INVESTMENT

Directory of Open Access Journals (Sweden)

Jaya Shukla

2014-01-01

Full Text Available Sustainable economic development has become an important area of concern due to climatic change with its long term effects. Climatic change has posed several challenges for economic sustainability of economies. Now major development projects have to comply with international environmental norms. Failure to do so may result in the delay of a project, fines including penalties for environmental damage or charges for remedial action, that affect the viability of a project or the value of any security taken. This paper investigates with help of secondary date using descriptive statistical technique opportunities and challenges of green investment. Here it is developed into suitable model for developing economies for successfully adopting green investment without much cost to their economies. The paper concludes that green investment involving direct investment and portfolio investment in firms adopting and following environmental protection norms will lead to sustainable growth and investment for economy.

WHY IS IT REASONABLE TO INVEST IN RENEWABLE ENERGY IN UKRAINE?

Directory of Open Access Journals (Sweden)

Yuliia Bashynska

2015-11-01

Full Text Available The purpose of the paper is to present the current status of renewable energy development in Ukraine and to highlight the main advantages of investing in renewables in Ukraine. The purpose is also to reveal the biggest renewable energy installations in Ukraine. The paper displays the main financial initiatives of several international organizations and world economic leaders that have already announced plans to aid Ukraine’s transition to renewable energy. Methology. The survey is based on an analysis of the natural potential, legislative frameworks of the industry and active financial programmes. Results of the survey provide the most attractive opportunities for investing in the emerging market of renewable energy in Ukraine. The survey also shows the amount of economically viable potential of different renewable energy sources. Besides, it is expected that renewable energy will enhance energy security and reduce the negative impact of industry on the environment. Practical implications. Since 2009 when the green tariff was first introduced in Ukraine, the renewable energy sector has been developed to a great extent. Although the sector faced some policy challenges in 2015, such as the imposition of new taxes, but technologies experienced rapid growth. Nowadays the use of renewable energy sources is a priority way of sustainable energy system building in Ukraine. There are several state and regional financial initiatives promoting renewable energy sources. As policymakers have focused on the renewable energy development, new investment centered in energy efficiency technologies. There will be a big step in the direction of renewables usage in private housing complexes. Due to the survey, the main problem of renewable energy development is lack of funding. All the efforts made by the government create an enabling environment for foreign direct investments in renewable energy in Ukraine. Value/originality. Wide renewable energy use would be a

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.

Critical review of directional neutron survey meters

Science.gov (United States)

Balmer, Matthew J. I.; Gamage, Kelum A. A.; Taylor, Graeme C.

2014-01-01

Having been overlooked for many years, research is now starting to take into account the directional distribution of the neutron work place field. The impact of not taking this into account has led to overly conservative estimates of dose in neutron workplace fields. This paper provides a critical review of this existing research into directional survey meters which could improve these estimates of dose. Instruments which could be adapted for use as directional neutron survey meters are also considered within this review. Using Monte-Carlo techniques, two of the most promising existing designs are evaluated; a boron-doped liquid scintillator and a multi-detector directional spectrometer. As an outcome of these simulations, possible adaptations to these instruments are suggested with a view to improving the portability of the instrument.

Critical Review of Directional Neutron Survey Meters

International Nuclear Information System (INIS)

Balmer, M.J.I.; Gamage, K.A.A.; Taylor, G.C.

2013-06-01

Having been overlooked for many years, research is now starting to take into account the directional distribution of the neutron work place field. The impact of not taking this into account has led to overly conservative estimates of dose in neutron workplace fields. This paper provides a critical review of this existing research into directional survey meters which could improve these estimates of dose. Instruments which could be adapted for use as directional neutron survey meters are also considered within this review. Using Monte-Carlo techniques, two of the most promising existing designs are evaluated; a boron-doped liquid scintillator and a multi-detector directional spectrometer. As an outcome of these simulations, possible adaptations to these instruments are suggested with a view to improving the portability of the instrument. (authors)

REGIONAL DISPARITIES IN SLOVAK REPUBLIC AT NUTS 3 LEVEL FROM DIRECT FOREIGN INVESTMENTS POINT OF VIEW

Directory of Open Access Journals (Sweden)

Radoslav Koziak

2011-01-01

Full Text Available Slovak Republic, likewise other member states of the European Union, has beenexperiencing problems with the inter-regional differences for long time. These aremanifested in different forms (economic, social, environmental and others. Diversemacroeconomic regional indicators are used to express and quantificate the inter-regionaldifferences. Among traditionally used and by experts acknowledged quantities ofmeasurement of the inter-regional differences belong for example a gross domestic product(from diverse viewpoint and specification, labor market indicators, e.g. employment andunemployment rates, demographic development indicators, indicators assessingenvironment condition or standard of life, as well as the indicators quantifying theinvestments condition and development (domestic or foreign that flow into the objectterritory since we consider them an important factor and precondition of growth anddevelopment of the state as a whole, as well as its individual regions.The present contribution deals with an issue of the inter-regional differences formulationand measurement in the Slovak Republic on a NUTS 3 regions examination level (from anuniform system of the territorial units classification viewpoint, it means the autonomousdistricts (from a territorial-administrative order of Slovak Republic viewpoint, from directforeign investments‘ point of view.In the contribution there are theoretically defined basic concepts with which we operate,a specified methodological procedure for the inter-regional differences formulation andmeasurement, a direct foreign investments condition analysis from 1997 to 2007(development of the direct foreign investments during above period in all autonomousdistricts were subjected to a statistical examination as well as statistical testing that willreveal a convergence (meaning a moderation/decrease or a divergence (meaninga deepening of the inter-regional disparities on the NUTS 3 level. In addition to anabsolute

Determinants of households’ investment in energy efficiency and renewables: evidence from the OECD survey on household environmental behaviour and attitudes

International Nuclear Information System (INIS)

Ameli, Nadia; Brandt, Nicola

2015-01-01

This paper provides novel evidence on the main factors behind consumer choices regarding investments in energy efficiency and renewable energy technologies using the OECD Survey on Household Environmental Behaviour and Attitudes. The empirical analysis is based on the estimation of binary logit regression models. Empirical results suggest that households’ propensity to invest in clean energy technologies depends mainly on home ownership, income, social context and household energy conservation practices. Indeed, home owners and high-income households are more likely to invest than renters and low-income households. In addition, environmental attitudes and beliefs, as manifest in energy conservation practices or membership in an environmental non-governmental organisation, also play a relevant role in technology adoption. (letter)

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...

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...

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

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

Science.gov (United States)

2017-06-01

Geoeconomic Strategies and FDI Regulation Thus, what is of supreme importance in war is to attack the enemy’s strategy. Sun Tzu Sun Tzu’s infamous...106 BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112...Investment, 262. 111 Bibliography “About Us | International Forum of Sovereign Wealth Funds.” Accessed May 21, 2017. http://www.ifswf.org

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.

Co-investments of sovereign wealth funds in private equity

NARCIS (Netherlands)

Mc Cahery, Joseph; de Roode, Alexander

2016-01-01

Direct investments are the preferred vehicle for large institutional investors to have control over their portfolio investments. We study the deal structure of direct investments by sovereign wealth funds (SWFs) in private equity transactions. We find that SWFs shift from investing in private equity

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.......&D internationalization process of multinationals from developed economies and those from emerging economies. Evidence of Chinese R&D internationalization is provided through analyses of five cases of international R&D units set up by Chinese companies in Europe: ZTE Corporation, JAC Motors, Chang’an Motors, Hisense...

12 CFR 347.108 - Portfolio investments.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 4 2010-01-01 2010-01-01 false Portfolio investments. 347.108 Section 347.108... INTERNATIONAL BANKING § 347.108 Portfolio investments. (a) Portfolio investments. If a bank, directly or indirectly, acquires or holds an equity interest in a foreign organization as a portfolio investment and the...

Determinants of Foreign Direct Investment in Romania: a Quantitative Approach

Directory of Open Access Journals (Sweden)

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.

Volatility measurement with directional change in Chinese stock market: Statistical property and investment strategy

Science.gov (United States)

Ma, Junjun; Xiong, Xiong; He, Feng; Zhang, Wei

2017-04-01

The stock price fluctuation is studied in this paper with intrinsic time perspective. The event, directional change (DC) or overshoot, are considered as time scale of price time series. With this directional change law, its corresponding statistical properties and parameter estimation is tested in Chinese stock market. Furthermore, a directional change trading strategy is proposed for invest in the market portfolio in Chinese stock market, and both in-sample and out-of-sample performance are compared among the different method of model parameter estimation. We conclude that DC method can capture important fluctuations in Chinese stock market and gain profit due to the statistical property that average upturn overshoot size is bigger than average downturn directional change size. The optimal parameter of DC method is not fixed and we obtained 1.8% annual excess return with this DC-based trading strategy.

The Effect of Environmental Regulation on the Locational Choice of Japanese Foreign Direct Investment

OpenAIRE

Kirkpatrick, Colin

2008-01-01

Abstract This paper assesses the impact of environmental regulation in host countries on Japanese foreign direct investment decision-making. It tests the pollution haven hypothesis using data on national environmental regulation standards and Japanese inward FDI in five dirty industries. The results do not support the pollution haven haven hypothesis. On the contrary, inward Japanese FDI appears to be attracted to countries which have committe themselves to a tranparent and stable ...

Direct Investment Casting For Pattern Developed By Desktop 3D Printer

Directory of Open Access Journals (Sweden)

Marwah O.M.F.

2017-01-01

Full Text Available Development of RP technologies has encouraged rapid study on portable 3D Printer in which there are varieties of portable 3D printer machines in market. Nevertheless, less reports regarding its consumption of fabricated pattern to be used in direct investment casting. This study has focused on development of ABS P400 pattern in terms of collapsibility behaviour which has capability to be used as sacrificial pattern in direct investment casting. In addition, the internal built structures have been built into two designs such as square and polygon patterns respectively. The patterns were constructed in semi cylindrical geometry which comes with one side opened and one side closed together wrapped with 4 mm of ceramic shell. This experimental were conducted with variation temperature starting from 30°C until 150°C with increment of 5°C per minutes while for the numerical simulation, the temperature selected was between 30 °C to 120 °C with 10 °C increment per minutes. Moreover, the observation was made that glass transition temperature, Tg happened near 110°C. It was observed that the shell cracking happened on the ceramic shell. Other than that, the polygon pattern tends to collapsed inwardly rather than square pattern during the burnout process. A result also shows that, there is significant amount of stress reduction on both square and polygon which was 45 % respectively. Besides that, the amount of strain on pattern itself has shown about 9% reduction. Moreover, there is greater difference in terms of ceramic shell strain reduction which was 38% for square and polygon patterns respectively. Lastly, there is 11 % reduction of strain when compared square and polygon in terms of axial strain on ceramic shell

12 CFR 211.9 - Investment procedures.

Science.gov (United States)

2010-01-01

... Investment procedures. (a) General provisions. 5 Direct and indirect investments shall be made in accordance... for general consent. An investment in a foreign bank may not be made under authority of paragraphs (b) or (c) of this section if: (1) After the investment, the foreign bank would be an affiliate of a...

Employee Perception of the Impact of Information Technology Investment in Organisations: a survey of the hotel industry

Directory of Open Access Journals (Sweden)

Bruce Lo

2000-05-01

Full Text Available To improve their operational efficiency and to maintain their competitiveness in the market place many organisations continue to invest substantially in their Information Technology (IT capability. But how do the employees themselves view the impact and the value of IT investment? This paper considers this question in the context of the hospitality industry. More specifically, it investigates the different perception of hotel employees on the impact of organisational IT investment on (a IT usage by employees, (b employee satisfaction with the IT systems, (c changes in the level of employee performance, and (d organisational performance of the hotel. 945 hotel employees in Bali, Indonesia were surveyed to assess their perception of the organisational impact of IT. Factor analysis, analysis of variance and regression analysis were performed on the data to examine the' range of employee viewpoints. Results showed that there were significant differences among the employees' perception with respect to age, educational level, position in the hotel, and individual income. These findings suggest that even senior management may regard the investment in IT is worthwhile, there may be a divergence of opinion among the employees as to what are the real benefits of IT. In order to fully leverage the potential of their IT investment, managers should pay particular attention to shaping the views of the employees who ultimately determine whether the IT capabilities in an organisation are put to use.

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...

Technology Transfer, Foreign Direct Investment and Economic ...

African Journals Online (AJOL)

2015-05-29

May 29, 2015 ... Investment and Economic Growth in Nigeria. Omojola ... view of FDI and trade, towards a more friendly view, by using FDI and trade as ..... the automatically selected Schwarz Info Criterion and the maximum lags, in ..... National Bureau of Statistics [NBS], 2007, 'National account of Nigeria: 1981-. 2006' ...

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

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

Directory of Open Access Journals (Sweden)

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.

IS VIETNAM THE NEW ASIAN TIGER? SCOREBOARD ANDMACROECONOMIC EVALUATION OF THE ATTRACTIVENESS FORFOREIGN DIRECT INVESTMENT

Directory of Open Access Journals (Sweden)

Nathalie Homlong

2012-07-01

Full Text Available Followingeconomies like China and India,alsoVietnamhas managed toincreaseits attractiveness for foreign direct investmentsin recent years. In contrast tomany European economies Vietnam had overcome the financial and economiccrisisin 2008 quicklyand turned back to high growth rates already in 2010/11.Nevertheless many European economies and companies still regard Vietnam as anunstable and fragile economy. Therefore the questions arisewhich generalinvestment conditions are of importance for companies that are investing abroad,and which factors make Vietnam attractive asa business locationfor foreigncompanies? After a presentation of stylized facts about Vietnam and a discussionof location theories and location factors, we develop a scoring method to evaluategeneral investment conditions. Eight of the member states of the European Unionin Central and Eastern Europeare used as reference groups to test the scoreboardrating tool, before it is applied for Vietnam.

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

Analyzing the Investment Behaviour of Households at the Microlevel

Directory of Open Access Journals (Sweden)

Lepeyko Tetyana I.

2017-10-01

Full Text Available The article is aimed at analyzing the characteristics of the investment behaviour of households at the microlevel. Essence of the investment behavior of of households was considered, substantiating that it differs in relation to the social indicators of households as well as to their income and costs. In order to analyze the investment behavior of households at the microlevel, it was proposed to conduct an expert survey of economic agents (staff of enterprises, private entrepreneurs, etc.. Using the hierarchy analysis method, it has been substantiated that the most appropriate method for the selected criteria (minimizing the time and cost of the survey, improving the truthfulness and completeness of the responses is the anonymous respondent survey. To implement this method, a list of questions was proposed that would allow to analyze the social indicators of households, structure of their incomes and costs. On the basis of the survey conducted at the enterprises of Kharkiv region, the main prerequisites for a possible improvement of the microlevel investment behavior of households have been identified.

The primary parental investment in children in the contemporary USA is education : Testing the Trivers-Willard hypothesis of parental investment.

Science.gov (United States)

Hopcroft, Rosemary L; Martin, David O

2014-06-01

This paper tests the Trivers-Willard hypothesis that high-status individuals will invest more in sons and low-status individuals will invest more in daughters using data from the 2000 to 2010 General Social Survey and the 1979 National Longitudinal Survey of Youth. We argue that the primary investment U.S. parents make in their children is in their children's education, and this investment is facilitated by a diverse market of educational choices at every educational level. We examine two measures of this investment: children's years of education and the highest degree attained. Results show that sons of high-status fathers receive more years of education and higher degrees than daughters, whereas daughters of low-status fathers receive more years of education and higher degrees than sons. Further analyses of possible mechanisms for these findings yield null results. We also find that males are more likely to have high-status fathers than females.

The Foreign Direct Investment and Economic Growth - Case Study for Kosovo

Directory of Open Access Journals (Sweden)

Dr.Sc. Myrvete Badivuku - Pantina

2015-12-01

Full Text Available This research paper will explain the impact and relationship between the Foreign Direct Investment (FDI and economic growth, Kosovo case. The used data in research are secondary data and cover a period of time between 2008 and 2013. By using STATA program for calculation and by various regression analyses (descriptive statistics, linear regression and correlation relationships have been identified between involved variables in research, where economic growth is defined as dependent variable, whereas FDI, interest rate and real effective and exchange rate (REER are defined as independent variables. The main results in this research paper indicate that FDI has a positive relation (0.011 but non-significant effect (T2 on economic growth in Kosovo. The real effective exchange rate has a negative (-0.347 and non-significant relation (T<2 with economic growth. The main activities of FDI in overall Kosovo's economy are: real estate, transport and telecommunication, financial and manufacture services, construction, etc. The main conclusion is that the Kosovo institutions should create a favorable environment, such as: political stability, enforcement of justice, reduction of trade barriers, Kosovo should also create appropriate policy for protection of foreign investors, investment security, fair competition and institutional support. This will impact the drastic improvement and increase of FDI. In 2013 Kosovo had an FDI percentage of 5% of GDP while in 2007 it was over 13% of Kosovo's GDP.

The role of foreign direct investment in the nutrition transition.

Science.gov (United States)

Hawkes, Corinna

2005-06-01

To examine the role of foreign direct investment (FDI) in the nutrition transition, focusing on highly processed foods. Data on FDI were identified from reports/databases and then compiled and analysed. A review of published literature on FDI into the food sector was conducted. The nutrition transition is a public health concern owing to its connection with the rising burden of obesity and diet-related chronic diseases in developing countries. Global health leaders are calling for action to address the threat. Highly processed foods often have considerable fat, sugar and salt content, and warrant closer examination. FDI into food processing, service and retail has risen rapidly since the 1980s, mainly from transnational food companies (TFCs) in developed countries. As FDI has risen, so has the proportion invested in highly processed foods for sale in the host market. FDI has proved more effective than trade in generating sales of highly processed foods, and enables TFCs to cut costs, gain market power and obtain efficiencies in distribution and marketing. The amount of FDI targeted at developing countries is increasing; while a disproportionate share enters the larger developing economies, foreign affiliates of TFCs are among the largest companies in low- and low- to middle-income countries. The effect of FDI is to make more highly processed foods available to more people. FDI has made it possible to lower prices, open up new purchasing channels, optimise the effectiveness of marketing and advertising, and increase sales. FDI has been a key mechanism in shaping the global market for highly processed foods. Notwithstanding the role of demand-side factors, it has played a role in the nutrition transition by enabling and promoting the consumption of these foods in developing countries. Empirical data on consumption patterns of highly processed foods in developing countries are critically needed, but since FDI is a long-term investment vehicle, it is reasonable to

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.

Measuring Social Capital Investment: Scale Development and Examination of Links to Social Capital and Perceived Stress

Science.gov (United States)

Wegner, Rhiana; Gong, Jie; Fang, Xiaoyi; Kaljee, Linda

2014-01-01

Individuals with greater social capital have better health outcomes. Investment in social capital likely increases one’s own social capital, bearing great implications for disease prevention and health promotion. In this study, the authors developed and validated the Social Capital Investment Inventory (SCII). Direct effects of social capital investment on perceived stress, and indirect effects through social capital were examined. 397 Participants from Beijing and Wuhan, China completed surveys. Analyses demonstrated that the SCII has a single factor structure and strong internal consistency. Structural equation modeling showed that individuals who invested more in social capital had greater bonding social capital, and subsequently less perceived stress. Results suggest that disease prevention and health promotion programs should consider approaches to encourage social capital investment; individuals may be able to reduce stress by increasing their investment in social capital. Future research is needed to provide additional empirical support for the SCII and observed structural relationships. PMID:25648725

Investing for Impact: The Global Fund Approach to Measurement of AIDS Response.

Science.gov (United States)

Jain, Suman; Zorzi, Nathalie

2017-07-01

The Global Fund raises and invests nearly US$4 billion a year to support programs run in more than 140 countries. The Global Fund strategy 2012-2016 is focused on "Investing for Impact". In order to accomplish this, timely and accurate data are needed to inform strategies and prioritize activities to achieve greater coverage with quality services. Monitoring and evaluation is intrinsic to the Global Fund's system of performance-based funding. The Global Fund invests in strengthening measurement and reporting of results at all stages of the grant cycle. The Global Fund approach to measurement is based on three key principles-(1) simplified reporting: the Global Fund has updated its measurement guidance to focus on impact, coverage and quality with the use of a harmonized set of indicators. (2) Supporting data systems-based on a common framework developed and supported by partners, it promotes investment in five common data systems: routine reporting including HMIS; Surveys-population based and risk group surveys; Analysis, reviews and transparency; Administrative and financial data sources; and, Vital registration systems. (3) Strengthen data use: the Global Fund funding encourages use of data at all levels-national, subnational and site level. Countries do not automatically prioritize M&E but when guidance, tools and investments are available, there is high level utilization of M&E systems in program design, planning, implementation, and results reporting. An in-depth analysis of the available data helps the Global Fund and countries to direct investments towards interventions where impact could be achieved and focus on target population groups and geographic areas that are most affected.

Does Investment Treaty Affect the Improvement on FDI?

OpenAIRE

Eunsook Seo

2008-01-01

The paper analyzes how investment treaty affects investment creation. Analysis results show that investment treaty could not directly affect the increase in investment with the form of investment agreement contradicting and the opening of investment treaty countries have increased a great deal of investment. Contracting the investment agreement means to ultimately improve the investment environment such as policy transparency, simplification of administration, and the simplification or the cl...

Investment in biogas for energy purposes to promote cleaner production

International Nuclear Information System (INIS)

Bericiarto Pérez, Frank Abel; Poma García, Yaily; Guzmán Chinea, Jesús; García Lorenzo, Dunia; Mata Varela, Milagros de la Caridad

2015-01-01

In Cuba, by the characteristics of a developing country characteristics, formulation and evaluation of projects is a critical task, since the decision to invest means sacrificing the opportunity to meet current needs for different and long-term alternatives. The assessment prior to the execution of a project is proposed as the aim of the present study, as a crucial task that contributes to amendments or self-definition. The results should be directed to the analysis of development trends in the energy environment which indicates the increase of the contribution of renewable energy sources as a viable to meet global demand for energy efficient and sustainable way. For that reason, it has encouraged the use of biogas as the most important fuel of the future, since the materials required for processing and construction of the necessary facilities are within reach of many first-world economies as countries developmental. History: Specific methods of pollution trends in the province; Description: Evaluation of investment within the life cycle of the investment project. Techniques and instruments: Direct observation; Structured surveys and use of specialized software: Excel, QSB, Statgraphics. The research is justified and concludes that the project Swine Genetics UEB Cienfuegos achieved energy independence, as well as sales to 13.7 MW annual energy electro National System (SEN). (full text)

Foreign Direct Investment and China’s Productivity Growth during the 1997 Asian Financial Crisis

OpenAIRE

Fulgence Dominick Waryoba

2017-01-01

The study estimates the fixed effect model using cross–section weights to estimate panel EGLS for 7 years in 29 regions of China. Though for the sample period, foreign direct investment influences productivity positively, the effect is very lower compared to other factors in the model. Conversely, labor has a very high influence on productivity for the period under consideration. Nevertheless, the years after 1997 have shown more productivity growth compared to the years before 1997. This is ...

7 CFR 3560.305 - Return on investment.

Science.gov (United States)

2010-01-01

... 7 Agriculture 15 2010-01-01 2010-01-01 false Return on investment. 3560.305 Section 3560.305... AGRICULTURE DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS Financial Management § 3560.305 Return on investment. (a) Borrower's return on investment. Borrowers may receive a return on their investment (ROI) in...

12 CFR 24.3 - Public welfare investments.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Public welfare investments. 24.3 Section 24.3... DEVELOPMENT ENTITIES, COMMUNITY DEVELOPMENT PROJECTS, AND OTHER PUBLIC WELFARE INVESTMENTS § 24.3 Public welfare investments. A national bank or national bank subsidiary may make an investment directly or...

Inclusive Development and Chinese Foreign Direct Investment in ...

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

This research project looks at the impacts of Chinese investment on local economies ... Faculty of Economics and Business Management at the National University of Laos, ... capacity to conduct economic analysis and apply research methods.

SENSITIVITY OF THE INVESTOR'S TOWARDS STOCK MARKET INVESTMENT

OpenAIRE

M. Jaya

2017-01-01

Investment in stock market has become a common phenomenon for all the individuals. The growth of stock market contributes to national economic growth only when this growth translates into increased mobilization of resources, return from investment, and minimizing the risk attached to stock market investment. This survey has been conducted to find out the stock market investment pattern and risk diversification of retail equity investors. A well structured questionnaire which is pilot teste...

ECONOMIC FEASIBILITY AND PRIORITY DIRECTIONS OF ACTIVIZATION OF SOCIAL INVESTMENTS OF THE ENTERPRISES

Directory of Open Access Journals (Sweden)

O. Grishnova

2016-06-01

Full Text Available The article explores the features of social investment and estimated impact of social investment on key financial and economic indicators of the breweries. Is proved priority areas in social investment and offered to recommendation to improve social investment in the enterprises of the brewing industry in Ukraine.

On attracting investment to Russian economy

Directory of Open Access Journals (Sweden)

Oleinik Elena

2017-01-01

Full Text Available Modern conditions of economic systems development have necessitated more precise directions of investment process for the economic growth to accelerate. The precipitous fall of oil prices that occurred in the second half of 2014 weighed heavily on foreign direct investment flows to oilexporting countries. The problem of attracting investment is one of the key problems of economic development. The aim of this study is to analyze and evaluate the shifts in the structure of investments, the study of the structure of investments to the Russian economy. Structural changes result from differences in the growth rate of the elements forming an economic system. An integral coefficient has been used for evaluation of structural changes. Multiple regression was used to analyze the impact of various factors on the change in structure of investment. The regression coefficients in the model give quantitative assessment of the pace of change in the structure as it depends on a specific factor. The model estimation shows that the variables “share of investments in manufacturing” (positive influence and “share of investments in the health, physical culture, education” (negative influence have the largest t-values. Hence, these two factors influence the structural changes in investments most strongly The evaluation and analysis of the structural shifts may lead to conclusions regarding the efficiency of the structure investment and adjustment of the economic policy.

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

External Finance and the Foreign Direct Investment Decision: Evidence from Privately-Owned-Enterprises in China

OpenAIRE

Duanmu, J-L

2015-01-01

Access to external finance is found to be a statistically significant factor explaining the probability of privately owned enterprises (POEs) in China undertaking foreign direct investment (FDI). The significance of external finance is magnified in industries featuring a heavy dependence on external finance, high technology, low tangibility, and high inventory. The external finance and FDI linkage is weaker for POEs with group affiliation, but stronger for those with generous employment welfa...

TRADE AND FOREIGN DIRECT INVESTMENT MANAGEMENT STRATEGIES FOR U.S. PROCESSED FOOD FIRMS IN CHINA

OpenAIRE

Marchant, Mary A.; Saghaian, Sayed H.; Vickner, Steven S.

1999-01-01

This research examines the relationship between U.S. foreign direct investment (FDI) and exports of processed foods to China and identifies management strategies to enhance U.S. competitiveness. Two-stage least-squares empirical econometric results from a simultaneous equation system indicate that there exists a strong complementary relationship between U.S exports and FDI into China. Therefore, the appropriate managerial strategy to access Chinese processed foods markets is to increase overa...

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.

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.

Investing without credible inter-period regulations. A bargaining approach with application to investments in natural resources

International Nuclear Information System (INIS)

Nordal, Kjell Bjoern

2002-01-01

A government's lack of credibility when promising future taxation and regulation of foreign direct investment is often regarded as an obstacle to foreign investment. As shown in this paper, the total lack of inter-period credibility may not necessarily prevent investments from taking place. Both the government and the investor can benefit from negotiating a series of short-lived agreements in which the investor obtains a share of the revenue generated from previous investments against the undertaking of making new investments. This assumes that intra-period agreements are respected by the parties

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.

The globalization of U.S. business investment

OpenAIRE

Mark A. Wynne; Erasmus K. Kersting

2008-01-01

This paper documents some key facts about foreign direct investment flows by U.S. businesses overseas and foreign businesses in the United States. We show how the pattern of flows has evolved, examine the sources and destination of these flows, document associated employment and productivity gains, and show how investment-related sales compare with traditional exports. While the United States is a net debtor to the rest of the world, direct investment overseas by U.S. businesses exceeds direc...

Managing Security Risks in an Industrial Investment – Analysis Directions

Directory of Open Access Journals (Sweden)

Stefan Dragomir

2016-05-01

Full Text Available This paper achieved an analysis of some important management strategies for an investment, in correlation with index of global pollution. Environmental security assessment shall be determined taking into account the workplace security and effects on health, safety of workers in an industry investment. It is necessary to observe and collect a larger number of data generated by the development of an industrial process, so as to make a deep analysis on global pollution index and how it is affected industrial investment environment. This research shows how can the substances that infest the environment to produce much damage and influence the environmental factors (air, water, soil, landscape, fauna and flora. When we know the risks that characterize the plant equipment, we can protect the life and we can protect the environment for a sustainable development in the future.

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...

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

Directory of Open Access Journals (Sweden)

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.

The integration of Chinese and European renewable energy markets: The role of Chinese foreign direct investments

International Nuclear Information System (INIS)

Lv, Ping; Spigarelli, Francesca

2015-01-01

In the renewable energy (RE) sectors, foreign direct investments are becoming an important mean of regional integration between China and Europe, as a result of the combined effect of Europe–China dialog on energy issues; Chinese energy policy; and Chinese Go Global policy. Using a firm level data set from the Chinese Ministry of Commerce, we perform an analysis on location choice by Chinese RE firms from 2004 to 2013, within Europe. We depict a map of “where to where” (home province vs. host country) and “who to where” (firm level characteristics vs. host country), to find out how characteristics of home and host regions affecting the integration of Chinese and European RE markets. Main results are the following. Investment pairs in RE sectors reflect a duality: firms tend to seek countries with similar institutional environment, compared with their origin regions. Countries with weak and immature institutions are attractive for immature and inexperienced Chinese firms. Main features of Chinese investors are the following: private, non-listed firms, entering through greenfield, focusing on sales. Market-seeking investors tend to enter countries with both well-developed institutional environment and industry development base. R&D-oriented investments are more likely to flow to countries with well-developed institutional environment. -- Highlights: •A map of Where to Where of Chinese investments in Europe is depicted. •Characteristics of home and host regions affect Chinese integration in Europe. •Investment pairs in renewable energy sectors reflect a duality. •Chinese firms localize in EU countries with similar institutional environment. •Through a Who to Where analysis, key features of Chinese investors are outlined

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

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

Directory of Open Access Journals (Sweden)

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

Investment under Uncertain Climate Policy

DEFF Research Database (Denmark)

Barradale, Merrill Jones

2014-01-01

This paper introduces the concept of payment probability as an important component of carbon risk (the financial risk associated with CO2 emissions under uncertain climate policy). In modeling power plant investment decisions, most existing literature uses the expected carbon price (e.g., the price...... actually be faced in the case of a particular investment. This concept helps explain both the surge of activity in 2005–2006 and the subsequent decline in interest in coal-fired power plant development in the U.S. The data for this case study comes from an extensive online survey of 700 U.S. energy...... design better incentives for investing in low-carbon technologies...

REDUCING COSTS OF TAX COMPLIANCE AND INVESTMENTS IN PUBLIC SYSTEM OF DIGITAL BOOKKEEPING – SPED – IN BRAZIL

Directory of Open Access Journals (Sweden)

Edson Sampaio de Lima

2016-04-01

Full Text Available The Public System of Digital Bookkeeping – SPED was developed with the intention of further integration between the tax administrations themselves, then between them and the taxpayers, through the use of technology and, consequently, socioeconomic data standard, in a single environment, raising the tax collection efficiency and reducing the costs of administration and compliance. This article intends to contribute to the analysis of public investments directed to the establishment and maintenance of the project, effectively resulted in a reduction in the costs of tax compliance, temporary and permanent. Survey method was used as a non-random mechanism for data collection, with a developed questionnaire containing 22 questions based on the prediction model regulatory impact developed and applied by the Australian Taxation Office – ATO in your country, adapted to identify cost reduction compliance related to three specific organizational aspects: People, Technology and Procurement of Consulting Services. The questionnaire was emailed to 20 people with executive position or managers directly involved in the project in SPED size businesses and distinct segment. Responded to the survey 20 of the 20 companies. The data collected were analyzed through descriptive and exploratory, in the latter case using the cluster analysis. The survey approach has met both the qualitative and the quantitative research. The results indicate that the SPED caused an increase in compliance costs temporary and permanent, mainly due to the implementation strategy defined and applied solely by the public administration. The analysis also allowed evidence that even if public investments directed to the implementation and maintenance of SPED are not comparatively similar to private investments directed to the same end, it shows a tendency to shift costs of administration for compliance costs for taxpayers.

IMPLICATIONS OF FOREIGN DIRECT INVESTMENTS ON SMALL ANS MEDIUM ENTERPRISES IN ROMANIA

Directory of Open Access Journals (Sweden)

Nicoleta, MIHAILĂ

2014-11-01

Full Text Available Foreign investments contribute massively to the increase of business profitability. Attraction and efficient allocation of capital inflows (mainly in the form of high quality investment made at microeconomic level represent the main “engine” for GDP growth in medium and long term. This will facilitate private sector access to finance investments, encourage technology transfer and innovation, promote technological parks and business incubators, stimulate innovation and entrepreneurship, support female entrepreneurship, increase efficiency and labor productivity for private companies , as well as management practices based on the principle of investing in people. Analysing the business environment involves, among other things, identifying and removing barriers that produce strain effects of overcoming difficulties for firms, respectively: - the desire that the investment in human capital would have immediate effects; - Insufficient correlation of wage increases and granting bonuses with increasing productivity; - Dialogue and partnerships with universities that could bring competitive advantage stands sometimes in incipient phases;

Is a management degree worth the investment for physicians? A survey of members of the American College of Physician Executives.

Science.gov (United States)

Weeks, William B; Lazarus, Arthur; Wallace, Amy E

2008-01-01

In a survey of 568 physician members of the American College of Physician Executives (ACPE), most of whom had advanced management degrees (MBA, MMM, MPH), approximately 90% of respondents reported that their investment in the education was "worth it." The return on investment was independent of the quality of the academic institution, although primary care physicians stood to gain more relative to specialists. Salary comparisons showed that female physicians had approximately 20% lower incomes than male physicians, confirming the presence of a "glass ceiling" for female physician executives as seen in other medical specialties. These findings have implications for early and mid-career physicians and physician recruiters.

Foreign Direct Investment and Public Sector Management and ...

African Journals Online (AJOL)

The major finding using. GMM estimator ... international investment barriers for enacting entrée international markets. Thus, the private ..... thus, panel data accounts for individual heterogeneity and can control for any spurious ..... dependent variable has two lags for intention of capturing all the past information regarding the.

26 CFR 1.995-5 - Foreign investment attributable to producer's loans.

Science.gov (United States)

2010-04-01

... under the foreign direct investment program and the amounts described in subdivision (iv) of this... this subdivision of certain capital raised under the foreign direct investment program is the excess...-term borrowing (see 15 CFR 1000.324 1) for purposes of the foreign direct investment program (see 15...

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......This paper provides new evidence on the relationship between foreign direct investment (FDI) and the productivity of domestic firms. Using a specially designed survey on a sample of over 7,500 manufacturing firms in Vietnam we uncover some of the mechanisms that explain productivity spillovers from...

12 CFR 702.105 - Weighted-average life of investments.

Science.gov (United States)

2010-01-01

... investment funds. (1) For investments in registered investment companies (e.g., mutual funds) and collective investment funds, the weighted-average life is defined as the maximum weighted-average life disclosed, directly or indirectly, in the prospectus or trust instrument; (2) For investments in money market funds...

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

Directory of Open Access Journals (Sweden)

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.

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

Directory of Open Access Journals (Sweden)

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.

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...

THE EVOLUTION AND EFFECTS OF THE FOREIGN DIRECT INVESTMENTS IN ROMANIA

Directory of Open Access Journals (Sweden)

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.

Factors Attributing to Outwards Direct Investments from Developing Countries to Developed Countries: Evidence from China and India

Directory of Open Access Journals (Sweden)

Diyah Ayu Amalia Avina

2016-12-01

Full Text Available The purpose of this research is to explore the growing trend of outward foreign direct investments (OFDIs from developing countries to developed countries. Market-seeking and strategic asset explorations are the main motivations for conducting OFDIs in developed countries. Meanwhile, cross-border greenfield investments and cross-border mergers and acquisitions are the main entry strategies used by developing countries when penetrating the developed markets. Finally, this paper reveals mixed results about the explaining ability of John Dunning’s International Development Path (IDP theory on the patterns of selected developing markets' OFDIs to developed countries. On the one hand, China’s OFDIs follow the paths in the IDP theory. On the other hand, those of India do not confirm so.

Public funding and private investment for R&D: a survey in China's pharmaceutical industry.

Science.gov (United States)

Qiu, Lan; Chen, Zi-Ya; Lu, Deng-Yu; Hu, Hao; Wang, Yi-Tao

2014-06-13

In recent years, China has experienced tremendous growth in its pharmaceutical industry. Both the Chinese government and private investors are motivated to invest into pharmaceutical research and development (R&D). However, studies regarding the different behaviors of public and private investment in pharmaceutical R&D are scarce. Therefore, this paper aims to investigate the current situation of public funding and private investment into Chinese pharmaceutical R&D. The primary data used in the research were obtained from the China High-tech Industry Statistics Yearbook (2002-2012) and China Statistical Yearbook of Science and Technology (2002-2012). We analyzed public funding and private investment in five aspects: total investment in the industry, funding sources of the whole industry, differences between provinces, difference in subsectors, and private equity/venture capital investment. The vast majority of R&D investment was from private sources. There is a significantly positive correlation between public funding and private investment in different provinces of China. However, public funding was likely to be invested into less developed provinces with abundant natural herbal resources. Compared with the chemical medicine subsector, traditional Chinese medicine and biopharmaceutical subsectors obtained more public funding. Further, the effect of the government was focused on private equity and venture capital investment although private fund is the mainstream of this type of investment. Public funding and private investment play different but complementary roles in pharmaceutical R&D in China. While being less than private investment, public funding shows its significance in R&D investment. With rapid growth of the industry, the pharmaceutical R&D investment in China is expected to increase steadily from both public and private sources.

Trade, Foreign Direct Investment and R&D Spillovers

Directory of Open Access Journals (Sweden)

Jaehwa Lee

2004-06-01

Full Text Available The paper examines the evidence of R & D spillovers through trade and foreign direct investment at the industrial sectoral level. Specifically, it focuses on the appropriate measure of foreign R&D stocks embodied in imports, and proposes an alternative measure to the traditional measure. With a new measure of foreign technology, this paper then empirically distinguishes between R&D spillovers from import volume and from import variety. Panel estimations with fixed effects use a data set comprised of eight sectors in the manufacturing industry of thirteen OECD countries from 1981 to 1999. This empirical work at disaggregated level has shown the evidence to generally support the role of manufacturing imports in the international diffusion of technology. In particular, the results imply that the impact of import variety proves stronger and more significant in investigating trade-related R&D spillovers. The evidence indicates the variety effect dominates the volume effect, and hence import variety proves more important in explaining trade-related technological diffusion. This paper also investigates R&D spillovers occurring simultaneously through trade and non-trade (i.e., FDI channels, Empirical results provide no strong evidence on R&D spillovers through FDI, although FDI is often considered as an important channel for technological diffusion. The evidence implies that the effect of trade channel dominates that of the FDI channel and finds that FDI only weakly affects domestic productivity.

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

Directory of Open Access Journals (Sweden)

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.

Exploiting stock data: a survey of state of the art computational techniques aimed at producing beliefs regarding investment portfolios

Directory of Open Access Journals (Sweden)

Mario Linares Vásquez

2008-01-01

Full Text Available Selecting an investment portfolio has inspired several models aimed at optimising the set of securities which an in-vesttor may select according to a number of specific decision criteria such as risk, expected return and planning hori-zon. The classical approach has been developed for supporting the two stages of portfolio selection and is supported by disciplines such as econometrics, technical analysis and corporative finance. However, with the emerging field of computational finance, new and interesting techniques have arisen in line with the need for the automatic processing of vast volumes of information. This paper surveys such new techniques which belong to the body of knowledge con-cerning computing and systems engineering, focusing on techniques particularly aimed at producing beliefs regar-ding investment portfolios.

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.

Multilateral negotiations in foreign investment

Directory of Open Access Journals (Sweden)

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.

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

Determinants of Foreign Direct Investment in Fast-Growing Economies: A Study of BRICS and MINT

OpenAIRE

Uduak, Akpan; Salisu, Isihak; Asongu, Simplice A.

2014-01-01

This study employs panel analysis to examine the determinants of foreign direct investment (FDI) in Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, Nigeria, and Turkey (MINT) using data for eleven years i.e. 2001 – 2011. First, it uses pooled time-series cross sectional analysis to estimate the model on determinants of FDI for three samples: BRICS only, MINT only, and BRICS and MINT combined; then, random effects model is also employed to estimate the model for B...

EVALUATION OF INVESTMENT ATTRACTIVENESS INDICATORS OF REGIONS IN UKRAINE

Directory of Open Access Journals (Sweden)

Vira Vartsaba

2017-12-01

Full Text Available The theoretical and methodological principles for assessing the investment attractiveness of the regions are the subject of the research. The aims of the research consist in improving the existing approach for measuring the level of investment attractiveness of territorial systems in the direction of taking into account the possible multicollinearity and determining the share of investment attractiveness factors in the aggregate indicator on the basis of calculated values of determination coefficients, which respectively provide to distinguish the priority directions in the formation of regional investment policy aimed at raising the level of investment attractiveness of regions of Ukraine. Methodology. The article deals with the research of theoretical and methodological approaches to the definition of investment attractiveness of Ukrainian regions by means of general scientific methods of analysis: systematization and generalization, induction, deduction. Results. To assess the investment climate in the regions of Ukraine, an improved existing approach for measuring the level of investment attractiveness of territorial systems is proposed in the direction of taking into account possible multicollinearity and determining the share of factors of investment attractiveness, which is based, in particular, on the selected indicators, in particular: the volume of direct foreign investments per capita (FORINV; per capita net exports (NETEXP; the number of economically active enterprises per 10 000 population (ENTRP; volumes of industrial production (PROM; population income (REV; volume of retail trade turnover per capita (TOV; volume of completed construction work (BUD. It is proved that the priority and intensity of influence on the indicator of investment into fixed capital per capita of factors of investment attractiveness varies for different regions of Ukraine, therefore, according to the conducted analysis, the investment attractiveness of the

Determinants of Foreign Direct Investment in South East European Countries and New Member States of European Union Countries

Directory of Open Access Journals (Sweden)

Bardhyl Dauti

2015-03-01

Full Text Available This paper accounts for the main determinants of Foreign Direct Investment flows to 5-SEEC and the 10-New Member States of the EU countries by using an augmented Gravity Model. The study takes into account country specific institutional factors that determine foreign investors’ decisions from 14 core European Union countries to invest into SEE-5 and EU-NMS-10 countries. From the results of the study we find that gravity factors and institutional related determinants like control of corruption, political stability, bilateral FDI agreement, WTO membership and transition progress appear to significantly determine inward FDI flows from core EU countries to host economies of South East European region and new European Union member states.

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.

THE INFLUENCE OF THE SIZE OF THE ECONOMY AND EUROPEAN INTEGRATION ON FOREIGN DIRECT INVESTMENTS IN THE CENTRAL, SOUTHEASTERN AND EASTERN EUROPEAN STATES 1994-2013

Directory of Open Access Journals (Sweden)

Petar Kurecic

2016-03-01

Full Text Available The paper studies the interdependence of the economy size and foreign direct investments (FDI in the transitional economies of Central, Southeastern and Eastern Europe. In the global capitalist economy, foreign direct investments (FDI represent one of the key determinants of economic growth. Among some transitional economies, in the last 20 years, FDI represented one of factors that increased the economic growth, and in other transitional economies, the influence of FDI was minor or even negligible. In the literature devoted to the influence of FDI on economies, the research about the determinants of geographical pattern of FDI distribution usually focuses on the factors that determine why some states manage to draw FDI in higher levels than some other states. Our research focused on the transitional economies of Central, Southeastern and Eastern Europe, which were for the most part of the last 20 years net receivers of the FDI. Only a couple of these countries in the years of the current economic crisis have experienced FDI net outflow. Among the states studied, we have equally studied the EU members, as well as the non-EU members. We have tried to find similarities and differences between these two groups of states in order to determine the influence of EU membership on FDI per capita and how it correlates with the size of the state’s economy. We have also tried to answer the question of how much the GDP growth rate correlates to the FDI net inflow share in GDP for EU and non-EU members. The methodology is based on the statistical correlation between FDI in current US dollars and GDP per capita in current US dollars (World Bank data for each represented state, through the surveyed period from 1994 until 2013. The statistical correlation matrix (Pearson method determined whether any correlation between the average GDP growth rate (chain index and the average share of FDI in GDP per each state exists for each state surveyed.

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)

Attractiveness of Central and Eastern European Countries for Foreign Direct Investment in the Context of European Integration: The Case of Estonia

OpenAIRE

Andresson, Kairi; Reiljan, Janno; Reiljan, Ele

2001-01-01

Foreign direct investment (FDI) flows in the world have increased rapidly during the last decade. Most of the FDI inflows are targeted to developed countries (78% in 1999, about fifth of the flows are going to developing countries and Central and Eastern European transition countries are the host countries for only 2% of the world FDI. The necessity of foreign investments in the transition countries is the result of industrial restructuring in post-socialist Eastern Europe and the Baltic coun...

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.

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.

49 CFR 80.11 - Investment-grade ratings.

Science.gov (United States)

2010-10-01

... 49 Transportation 1 2010-10-01 2010-10-01 false Investment-grade ratings. 80.11 Section 80.11... § 80.11 Investment-grade ratings. (a) At the time a project sponsor submits an application, the DOT... investment-grade rating. (b) The full funding of a secured (direct) loan, loan guarantee, or line of credit...

THEORETICAL QUESTIONS OF INVESTMENT RISK RESEARCH, ITS MAIN FEATURES AND CLASSIFICATION

Directory of Open Access Journals (Sweden)

I. A. Kadyrbaev

2016-01-01

Full Text Available The article examines framework methodology of investment risk. The subject of the study are the basic theoretical positions directly related to the economic category of "investment risk". The purpose of this writing is the improvement of the methodology of the study of investment risk in the investment activity. This objective is to define the tasks, which consist in the formulation of the concept of "investment risk", the development of investment risk classification to provide investors with effective protection against such risks. The implementation  of the tasks will create conditions for the growth of investments in Russia. Currently, effective investment strategy for such an increase, is among the priority directions of development of the Russian economy.The article deals with logically interrelated study of basic economic categories, influencing directly on the investment risk. Author provided classification of investments in accordance with the level of risk. Examine the matter of the financial-economic category of the concept of "investment risk" and the classification of investment risks. Specified main features of the investment risk, which allowed to reveal specifics, which consists in the redistribution of capital in various types of assets in order to maximize profits or to obtain significant social effect.

Foreign Direct Investments and the New Migration Pattern for Europe

Directory of Open Access Journals (Sweden)

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.

Norwegian Foreign Direct Investment : Destination Singapore Inc.

OpenAIRE

Hasli, Siri Hetle

2009-01-01

The growth and spread of FDI during the 20th century has been described as a significant economic-geographic development. Norwegian FDI has been increasing since the 1980s, but the large scale of it is a new phenomenon. Singapore is now the third most important host country for Norwegian FDI. This thesis is a study of Norwegian FDI in Singapore, and the research question is: Which economic and political factors do Norwegian companies regard as important when investing abroad, and to what degr...

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

Directory of Open Access Journals (Sweden)

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.

Application of the Beta Coefficient in the Market of Direct residential Real Estate Investments

Directory of Open Access Journals (Sweden)

Wolski Rafał

2014-07-01

Full Text Available The beta coefficient is one of the most popular indices used in contemporary finances. Despite the fact that there are justified doubts connected with its application, it is currently difficult to imagine a situation in which the cost of capital would be calculated without the use of the CAPM model. Thus, an attempt at answering the question whether and to what degree beta may be used in the real estate market constitutes an interesting problem. This is because on the one hand, the formal structure suggests that beta should not be used for assets which are not included in the benchmark but, on the other hand, such a benchmark should, at least theoretically, contain all market assets. Therefore, a decision was made to have a closer look at this issue, with the analysis of the possibility of using the beta coefficient in the residential real estate market set as the objective. Using the database of prices in the direct real estate investment created by the NBP, a comparison was conducted with regard to features of undertaken investments on the basis of an analysis of systematic risk calculated using selected indices available on the Polish market.

Attracting foreign direct investment under high risk and volatility of international financial markets

OpenAIRE

PARTACHI Ion; ARVINTE Vitalie

2009-01-01

International financial crisis caused significant reduction of investment flows, especially to emerging markets, vulnerable to external shocks and foreign exchange rate fluctuations. Under these conditions, decision factors are pushed to adopt changes in investment strategies in order to maintain competitiveness in attracting foreign investments needed to stabilize economy and continue development programs. Under the conditions of incertitude and high risks emerging economies adopted differen...

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

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...

Dynamics of Investment for Market-Oriented Farmers in Chile

NARCIS (Netherlands)

Reyes, A.; Kuyvenhoven, A.; Lensink, R.; Moll, H.A.J.

2012-01-01

Using panel data from a survey conducted in 2006 and 2008 of 177 market-oriented farmers in central Chile, we investigate investment under imperfect capital markets. Specifically we determine the impact of formal credit constraints on fixed investment. By controlling for endogeneity problems, we

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

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.

Examination of the Basement of Historic Buildings in Investment Activity

Directory of Open Access Journals (Sweden)

Ulybin Aleksey

2016-01-01

Full Text Available The process and methodology of the survey of basements rarely mentioned in the various construction rules and regulations. Basically describes the procedure of conducting a detailed survey of some of the individual elements. These surveys are fundamental in nature, include a large number of estimates and require significant financial and time costs. Usually the purpose of these surveys is to check the state of the building as a whole, it’s safe operation or before starting of reconstruction. In the process of selecting areas of investment activity such large-scale survey is not possible. Needed a quick and inexpensive method intended for decision about investment in a particular object. At the same time, the survey should cover all the elements of the basement significantly affect the cost of reconstruction of the basement associated with his penetration. The article presents the general conception of conducting a rapid survey. The described methods and technologies applicable to the examination for the purpose of making decisions about investments in reconstruction of a basement level rooms. The composition of the works and their sequence. A comparison of the advantages and disadvantages of different methods. The practical examples. Scheme of conducting a rapid survey of the basement. The article analyzes the materials used in the construction of historic buildings in St. Petersburg.

Vertical Foreign Direct Investment versus Outsourcing: A Welfare Comparison from the Perspective of a Host Country

OpenAIRE

Goswami, Arti Grover

2011-01-01

In the offshoring literature, there is a huge disconnect between the alternative modes of organizing offshore production and their relative welfare impact on a host country. We bridge this gap by comparing the welfare of a host country from vertical foreign direct investment (VFDI) vis-a-vis international outsourcing. Our model finds that the ability to maximize welfare in the alternative modes of organizing offshore production is contingent on the absorptive capacity of the host country. If ...

The Impact Analysis of Direct Public R&D and Innovation Investments in Turkish Space Sector

Science.gov (United States)

Kaya, Derya; Cakir, Serhat

2016-07-01

According to The Organisation for Economic Co-operation and Development (OECD), space sector plays a pivotal role in the functioning of modern societies and their economic development. It is in the scope of OECD's International Futures Programme. The global space economy, as defined by the OECD Space Forum, comprises the space industry's core activities in space manufacturing and in satellite operations, plus other consumer activities that have been derived over the years from governmental research and development. In 2013 commercial revenues generated by the space economy amounted to USD 256.2 billion globally that is huge amount of space investment in the world. Recently, Turkey has also entered to the sector and it has growing strategic interest in space. First satellite project was started with a technology transfer from UK by TUBITAK Space Technologies Research Institute in 2001 and it launched to its orbit in 2003. Then RASAT and GÖKTÜRK-2 satellites were developed and launched to their orbits respectively in 2011 and 2012. Today, we have other satellite projects that are going on, too. However, we do not have a mechanism or a model to assess the impacts of those projects. What kind of model can be used to measure the impact of direct public R&D and innovation investments in Turkish space sector? The aim of this study is to develop a model which would be useful for monitoring the performance of R&D and Innovation investments that are conducted through government policies and strategies and so on to give feedback for effective strategy making. When we look at the impact analysis studies in Turkey, we see a few such as TUBITAK (Özçelik and Taymaz, 2008; Erden, 2010; Tandoǧan, 2011), İşkur (World Bank Report, 2013), Ministry of Economy (TTGV, 2013), Development Agencies (İZKA, 2011; Elçi vd., 2011; Pınar, 2014; Meydan, 2014). There is need for a systematic approach to impact analysis. Since there is no data for this study, we would develop a model with

Investment Guarantees in the South African Life Insurance Industry ...

African Journals Online (AJOL)

This paper explores the risks faced by South African life insurance companies arising from the provision of investment guarantees in products sold. The current thinking and practice of the larger South African life insurance companies regarding investment guarantees is set out following their responses to a survey.

Testing evolutionary theories of discriminative grandparental investment.

Science.gov (United States)

Kaptijn, Ralf; Thomese, Fleur; Liefbroer, Aart C; Silverstein, Merril

2013-05-01

This study tests two evolutionary hypotheses on grandparental investments differentiated by the child's sex: the paternity uncertainty hypothesis and the Trivers-Willard hypothesis. Data are from two culturally different countries: the Dutch Longitudinal Aging Study Amsterdam (n=2375) and the Chinese Anhui Survey (n=4026). In the Netherlands, grandparental investments are biased towards daughters' children, which is in accordance with the paternity uncertainty hypothesis. But in China, grandparental investments are biased towards sons' children, which is in conflict with the paternity uncertainty hypothesis. This study found no support for the Trivers-Willard hypothesis. These results raise doubts over the relevance of paternity uncertainty as an explanation of a grandparental investment bias towards daughters' children that is often found in Western populations. The results suggest that discriminative grandparental investments are better understood as the outcome of cultural prescriptions and economic motives.

Truth Behind Economic Performance, Natural Resources and Attracting Foreign Direct Investment

Directory of Open Access Journals (Sweden)

Arthelo P. Palma

2016-10-01

Full Text Available Using a preliminary investigation and analysis on the latest data on GDP (Gross Domestic Product performance, GOI (Global Opportunity Index, Vulnerability Score, Readiness Score, and the number of resources of economic importance, exploratory or preliminary SEM (structural equation modelling was prompted on the recent available data of the 131 countries (n=131. The model was robust, addressing concerns about multivariate assumptions and other measures on the goodness of fit. It was found that the number of natural resources of economic importance plays a large role in the GDP performance. Thus, the preliminary symptom of Dutch disease continues to manifest for as long as each country aims for development, with their resources as ultimate enticing factors for foreign direct investment (FDI. In addition, economic growth is so far observed to be associated with the vulnerability of the country to climate change. Finally, economic growth was found to be linked to the negative impacts argued by the dependency theory. Implication on governance was discussed.

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.

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

Directory of Open Access Journals (Sweden)

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.

Foreign direct investment, development, and overshoot.

Science.gov (United States)

McKinney, Laura A

2014-09-01

Overshoot of the earth's carrying capacity is an acute concern for sustainability initiatives that seek to equalize access to the natural resources that are requisite to meet the basic needs of humanity. Demands on nature that exceed ecological capacities compromise critical ecosystem functions that provision the inputs necessary for life. This paper draws on concepts and analytical frameworks from the natural, physical, and social sciences to assess the drivers of sustainability at the global and national level. Integrative theoretical predictions are tested in a structural equation model that advances empirical research on overshoot and outflows of foreign investments that is relatively lacking in the literature. Findings highlight the differential impacts of key aspects of economic globalization on both development and overshoot across nations. Copyright © 2014 Elsevier Inc. All rights reserved.

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 �

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

Directory of Open Access Journals (Sweden)

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.

Public funding and private investment for R&D: a survey in China’s pharmaceutical industry

Science.gov (United States)

2014-01-01

Background In recent years, China has experienced tremendous growth in its pharmaceutical industry. Both the Chinese government and private investors are motivated to invest into pharmaceutical research and development (R&D). However, studies regarding the different behaviors of public and private investment in pharmaceutical R&D are scarce. Therefore, this paper aims to investigate the current situation of public funding and private investment into Chinese pharmaceutical R&D. Methods The primary data used in the research were obtained from the China High-tech Industry Statistics Yearbook (2002–2012) and China Statistical Yearbook of Science and Technology (2002–2012). We analyzed public funding and private investment in five aspects: total investment in the industry, funding sources of the whole industry, differences between provinces, difference in subsectors, and private equity/venture capital investment. Results The vast majority of R&D investment was from private sources. There is a significantly positive correlation between public funding and private investment in different provinces of China. However, public funding was likely to be invested into less developed provinces with abundant natural herbal resources. Compared with the chemical medicine subsector, traditional Chinese medicine and biopharmaceutical subsectors obtained more public funding. Further, the effect of the government was focused on private equity and venture capital investment although private fund is the mainstream of this type of investment. Conclusions Public funding and private investment play different but complementary roles in pharmaceutical R&D in China. While being less than private investment, public funding shows its significance in R&D investment. With rapid growth of the industry, the pharmaceutical R&D investment in China is expected to increase steadily from both public and private sources. PMID:24925505

A Conceptualized Investment Model of Crowdfunding

DEFF Research Database (Denmark)

Tomczak, A.; Brem, Alexander

2013-01-01

Crowdfunding is growing in popularity as a new form of both investment opportunity and source of venture capital. This article takes a view on whether crowdfunding is a replacement or an addition to traditional seed capital sources in the early stages of a new venture. With access to angel...... investment decreasing since the financial crisis of 2008, crowdfunding is of great importance to start-ups seeking starting capital. However, little effort has been made to define the investment model of crowdfunding with both crowdfunder and crowdfundee in mind. Drawing on an in-depth review of current...... literature on crowdfunding, this article creates an investment model of crowdfunding with various reward models available to investor and investee in mind. This article provides an extensive survey of the environment of crowdfunding based on current literature. It offers a jumping off point and a thorough...

Reform of investment policy in the function of sustainable development with special emphasis on investment in information technologies