Download or read book On the Causal Links Between FDI and Growth in Developing Countries written by Henrik Hansen and published by . This book was released on 2004 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Granger Causality Analysis Between Foreign Direct Investment and Economic Growth written by Sharmiladevi . and published by . This book was released on 2017 with total page 3 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreign Direct Investment is globally considered as an inevitable vehicle for the prospective development of developing countries. Governments across the globe are taking all possible efforts to pull in as much Foreign Direct Investment (FDI) as possible. Across countries it has proved significantly time and again that FDI enhances the development of the economy in many channels. This paper examines the existence of link between FDI and economic growth. Pair wise Granger Causality Analysis is used to study causality. Gross Domestic Product is proxied with Economic Growth. With two lags, our results suggest that there exists a bi directional relationship between lagged values of FDI and GDP.
Download or read book The Triangular Causal Links Between Economic Development FDI and Exports written by Andreas G. Georgantopoulos and published by . This book was released on 2019 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic development, foreign investments and trade are widely discussed by academics and scholars concentrating mainly on the deterministic relationship running from trade flows and foreign capital to economic growth. Nevertheless, it is the more contemporary studies that underline the possible reverse links. Originating from such a discussion, this study investigates the causal links between economic development, foreign capital penetration and foreign trade for a European Union candidate country, Turkey, during the period 1970-2009. Empirical findings on the long-term relationship between the tested variables are based on cointegration test. The Granger Causality test results using Vector Auto Regression (VAR) estimates and the Error Correction Model imply that there is no dynamic two-way causal link between GDP per capita, FDI flows and Exports for Turkey. However, results indicate unidirectional causalities running from FDI to GDP, exports to GDP and Exports to FDI. These triangular causal links highlight exports as a key variable for Turkey's economy. Collectively, results suggest that Turkey's capacity, to progress in economic development and to attract foreign capital investments will strongly depend on the country's efficiency to further develop and promote its exports.
Download or read book How Does Foreign Direct Investment Affect Economic Growth written by Mr.Eduardo Borensztein and published by International Monetary Fund. This book was released on 1994-09-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: We test the effect of foreign direct investment (FDI) on economic growth in a cross-country regression framework, utilizing data on FDI flows from industrial countries to 69 developing countries over the last two decades. Our results suggest that FDI is an important vehicle for the transfer of technology, contributing relatively more to growth than domestic investment. However, the higher productivity of FDI holds only when the host country has a minimum threshold stock of human capital. In addition, FDI has the effect of increasing total investment in the economy more than one for one, which suggests the predominance of complementarity effects with domestic firms.
Download or read book The Causal Relationship Between Information and Communication Technology and Foreign Direct Investment written by Roghieh Gholami and published by . This book was released on 2003 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book FDI Inflows Exports and Economic Growth in First and Second Generation ANIEs written by Yongkul Won and published by 대외경제정책연구원. This book was released on 2008 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using time-series and panel data from 1981 to 2005, this paper examines the Granger causality relations between GDP, exports, and FDI among the three first generation Asian newly industrializing economies (ANIEs): Korea, Taiwan, Singapore, and the four second generation Asian newly industrializing economies (ANIEs): Malaysia, the Philippines, and Thailand, in addition to China. We first show the difference between the first and second generation ANIEs in terms of real GDP per capita, trade structure, and inward FDI, and find some individual characters of each economy. After reviewing the current literature and testing the properties of individual time-series data, we estimate the VAR of the three variables to find various Granger causal relations for each of the seven economies. We found each country has different causality relations and does not yield general rules. We then construct the panel data of the three variables for the first generation ANIEs, the second generation ANIEs, and finally, all seven economies as a group. We then use the fixed effects and random effects approaches to estimate the panel data VAR equations for Granger causality tests. The panel data causality results reveal that there are bidirectional causality relations among all three variables for the three first generation ANIEs, but only a weak bidirectional causality between real exports and GDP for the four second generation ANIEs. However, when all seven ANIEs are grouped for panel data analysis, we found FDI has unidirectional effects on GDP directly and also indirectly through exports, exports also causes GDP, and there also exists bidirectional causality between exports and GDP for the group. Our results indicate that the panel data causality analysis has superior results over the time series causality analysis. Economic and policy implications of our analyses are then explored in the conclusions.
Download or read book The Impact of Foreign Direct Investment and Export on Gross Domestic Products in Developing Countries written by Antoine Niyungeko and published by GRIN Verlag. This book was released on 2020-12-07 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scientific Study from the year 2020 in the subject Business economics - Investment and Finance, , language: English, abstract: This paper aims to investigate the relationship between foreign direct investment (FDI), export (EXP) and gross domestic product (GDP). The impact of interaction between EXP and FDI on GDP was also examined. For this purpose, quantitative approach was adopted. Secondary data for 49 countries whose gross national income per capita was less than 6 000 $ were collected. Spearman correlation, robust regression and causal mediation analysis were performed. Spearman correlation showed very strong correlation among GDP-FDI-EXP. Robust regression indicated that all regression coefficients are statistically significant indicating a positive moderation effect of the interaction between EXP and FDI on GDP. Causal mediation effect indicated that average causal mediated effect is statistically significant while average direct effect is not statistically significant, indicating full mediation. The effect of FDI on GDP is transmitted to GDP through increasing EXP. The effect of the interaction of FDI and GDI was found statistically significant. The results are consistent with empirical studies and existing theories.
Download or read book Consequences of FDI in Australia causal Links Between FDI Domestic Investment Economic Growth and Trade written by Isabel Faeth and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book FDI in Mauritius and Sub Saharan Africa Assessing the spillovers effect in a dynamic framework written by Dr Sheereen Banon Fauzel and published by Archers & Elevators Publishing House. This book was released on with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mechanisms of how FDI contributes to GDP in Asian Countries A study written by Antoine Niyungeko and published by GRIN Verlag. This book was released on 2021-03-03 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scientific Study from the year 2021 in the subject Business economics - Investment and Finance, grade: "-", , language: English, abstract: The study aims to analyze mechanisms by which foreign direct investment inflows (FDI) contributes to gross domestic product (GDP) in Asian countries. FDI is used as an independent variable. GDP is used as dependent variable. Export (EXP), house hold consumption (HHC), and gross capital formation (GCF) are used as mediator variables. Many studies analyzed direct relationships between FDI and GDP without explaining how FDI contributed to GDP. Therefore, little is known about the way FDI contributes to GDP in the receiving country. The study focuses on the question: What is the indirect relationship between FDI and GDP in Asian Countries? The novelty of this paper is to provide a deep understanding on how FDI is related to GDP in Asian countries which did not get much attention in prior literature. The study used causal mediation analysis with bootstrap procedure. Annual data 2018 related to FDI, GDP, EXP, HHC, and GCF were collected from the World Bank website. The impact of foreign direct investment on economy growth got much attention in all continents. The findings of the prior researches show mixed results. Some of them concluded that FDI has positive impact on GDP. While other concluded that FDI has negative effect on GDP. For instance, Raghuveer and Muthusamy (2019) investigated the relationship between FDI and economic growth in some Asian countries including Bangladesh, China, India, Lao PDR, Mongolia, Korea Republic and Sri Lanka. They used Ordinary Least Squares, Augmented Dicky-Fuller and Granger Causality test, and found that the effect of FDI inflow on economic growth was not the same in the analyzed countries. Diouf and Hai (2017) examined the effect of the interaction between FDI, trade openness and economic growth with by focusing on Asian FDI, trade and 13 West African countries covering the period 1980-2015. They used Fully Modified Ordinary Least Squares.
Download or read book Making It Big written by Andrea Ciani and published by World Bank Publications. This book was released on 2020-10-08 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic and social progress requires a diverse ecosystem of firms that play complementary roles. Making It Big: Why Developing Countries Need More Large Firms constitutes one of the most up-to-date assessments of how large firms are created in low- and middle-income countries and their role in development. It argues that large firms advance a range of development objectives in ways that other firms do not: large firms are more likely to innovate, export, and offer training and are more likely to adopt international standards of quality, among other contributions. Their particularities are closely associated with productivity advantages and translate into improved outcomes not only for their owners but also for their workers and for smaller enterprises in their value chains. The challenge for economic development, however, is that production does not reach economic scale in low- and middle-income countries. Why are large firms scarcer in developing countries? Drawing on a rare set of data from public and private sources, as well as proprietary data from the International Finance Corporation and case studies, this book shows that large firms are often born large—or with the attributes of largeness. In other words, what is distinct about them is often in place from day one of their operations. To fill the “missing top†? of the firm-size distribution with additional large firms, governments should support the creation of such firms by opening markets to greater competition. In low-income countries, this objective can be achieved through simple policy reorientation, such as breaking oligopolies, removing unnecessary restrictions to international trade and investment, and establishing strong rules to prevent the abuse of market power. Governments should also strive to ensure that private actors have the skills, technology, intelligence, infrastructure, and finance they need to create large ventures. Additionally, they should actively work to spread the benefits from production at scale across the largest possible number of market participants. This book seeks to bring frontier thinking and evidence on the role and origins of large firms to a wide range of readers, including academics, development practitioners and policy makers.
Download or read book Causal Relationship Between Foreign Direct Investment and Growth written by Vijayakumar Narayanamoorthy and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we examine the causal relationship between Foreign Direct Investment (FDI) and Growth of the BRICS countries. We employed Industrial Production Index (IPI) as a measure of Economic Growth. The stationarity of the data series are checked using Augmented Dickey Fuller (ADF) Test and tested for the existence of co-integration. Johansen Co-integration model found that the Brazil alone co-integrated among the selected countries at levels. The Vector Error Correction Model (VECM) employed to trace the existence of long run relationship. The results of VECM found that Growth leads FDI bi-directionally for Brazil, Russia and South Africa and FDI leads Growth uni-directionally for India and China respectively.
Download or read book Foreign Direct Investment and Economic Development in Africa written by Hugh Dang and published by Cambridge Scholars Publishing. This book was released on 2019-01-17 with total page 489 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores several aspects of foreign direct investment (FDI) and their linkages to African economies. It will appeal to policy makers, development agency professionals and researchers, based as it is on stylized facts and rigorous analytical studies. The reader will find state-of-the-art analyses on FDI-related topics throughout the chapters. Policy makers and development professionals will find in this book a useful guide to draw sound policies based on facts and rigorous analyses.
Download or read book Financial Markets FDI and Economic Growth written by Shady Kholdy and published by . This book was released on 2008 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates various links between financial markets, FDI and the economic growth. Our results, using a panel of 25 countries over the period of 1975-2002 and the Granger causality model, reveal bi-directional links between financial markets and economic growth. We find that initially in countries with low GDP per capita economic growth stimulate financial development; however, the direction of causality reverses for countries with higher GDP per capita. We also find bi-directional causality between financial markets and FDI in countries with relatively higher GDP per capita and more developed financial markets. However, our results suggest that FDI can not induce economic growth.
Download or read book Does Foreign Direct Investment Promote Development written by Theodore H. Moran and published by Peterson Institute. This book was released on 2005 with total page 442 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume gathers the cutting edge of new research on foreign direct investment and host country economic performance, and presents the most sophisticated critiques of current and past inquiries. It presents new results, concludes with an analysis of the implications for contemporary policy debates, and proposed new avenues for future research.
Download or read book Reviewing Impacts of Foreign Direct Investments on the Macroeconomic Performance of Developing Countries written by Issam A.W. Mohamed and published by . This book was released on 2015 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Throughout the past two decades, many countries around the world have experienced substantial growth in their economies, driven by inflow of the foreign capital especially in the form of foreign direct investment (FDI). The share of net FDI in world GDP has grown five-fold through recent years, making the impact and consequences of FDI on economic growth a subject of ever-growing interest. The paper contributes in this context, by analyzing the impacts of impact of foreign direct investment on economic growth, if any, in Sudan during the period (1982-2007), also to investigate how to attract the required flow of FDI that is enough to fill saving-investment gap to sustain economic growth. With the hypothesis that sustained efforts to promote political and macroeconomic stability and implement essential structural reforms, and the policies of aligning some emerging markets has encouraged the inflow of FDI to Sudan in different sectors. The important findings are that FDI helps to promote economic growth in the Sudan, i.e. there is clear evidence of a one-way causality from FDI to economic growth for the whole period, in the sense that FDI have a significant positive effect on the GDP Growth, for it promotes exports and so balance of payments, provision of job opportunities and enhancing the quality of labor and production. However, the study finds that it is difficult to construct accurate and comparable measures of FDI data by sector for the Sudan as in most developing countries over several decades. Moreover, the tendency of major sources to present FDI data in broad aggregates limits the study of effects or impacts. The main recommendations are that the investment climate in the country must be improved through appropriate measures to keep pace with global economics developments, Government needed to establish a proper investment map serving the objectives of economic growth and developments consists of all data that may needed by foreign investors, supported by the necessary infrastructures. Government must develop and improve the periodic statistics concerning investment, foreign capital flows and sources of capital. Future researches in this area should analyze the causal link in a multivariate VAR analysis to account for other vital determinants of FDI and GDP growth.
Download or read book FDI Spillovers Financial Markets and Economic Development written by Laura Alfaro and published by International Monetary Fund. This book was released on 2003-09-01 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the role financial markets play in the relationship between foreign direct investment (FDI) and economic development. We model an economy with a continuum of agents indexed by their level of ability. Agents can either work for the foreign company or undertake entrepreneurial activities, which are subject to a fixed cost. Better financial markets allow agents to take advantage of knowledge spillovers from FDI, magnifying the output effects of FDI. Empirically, we show that well-developed financial markets allow significant gains from FDI, while FDI alone plays an ambiguous role in contributing to development.
