Hong Kong Firms in the ASEAN Region: Transnational Corporations and Foreign Direct Investment

1994 ◽  
Vol 26 (12) ◽  
pp. 1931-1956 ◽  
Author(s):  
W-C H Yeung
Keyword(s):  
Foreign Direct Investment ◽  
Hong Kong ◽  
Direct Investment ◽  
Secondary Data ◽  
Transnational Corporations ◽  
Equity Capital ◽  
Capital Inflows ◽  
Tertiary Sector ◽  
Secondary Data Sources ◽  
Asean Countries

Economic links between Hong Kong and the ASEAN (Association of South East Asian Nations) region are historically strong. In this paper, by means of extensive secondary data sources, some facets of these links in relation to the transnational operations of Hong Kong firms and their foreign direct investment (FDI) flows in ASEAN countries are examined. It is found that out of thirty leading Hong Kong transnational corporations (TNCs), nineteen have together more than forty-three operations in ASEAN. Hong Kong TNCs in the tertiary sector are particularly inclined to establish cross-border operations in the ASEAN region. Any explanation of the operations of these TNCs in ASEAN must take into consideration ongoing network relations embedded in peculiar historical contexts and geographical confines. In terms of equity capital inflows, Hong Kong FDI in the ASEAN region regained its momentum after 1985. Indonesia and Thailand are the most favoured destinations for Hong Kong FDI. In these two countries, Hong Kong FDI ranks, respectively, as the second and third largest foreign investment. Future studies need to address the issue of Hong Kong's uncertainty over the ‘1997’ question and of theory-building in international business.

scholarly journals Impact of Foreign Direct Investment on the Financial Performance of Listed Deposit Banks in Nigeria

2020 ◽  
Vol 11 (2) ◽  
pp. 323 ◽  
Author(s):  
Tony Ikechukwu Nwanji ◽  
Kerry E. Howell ◽  
Sainey Faye ◽  
Adegbola Olubukola Otekunrin ◽  
Damilola Felix Eluyela ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Financial Performance ◽  
Direct Investment ◽  
Positive Impact ◽  
Profit Maximization ◽  
Secondary Data ◽  
Equity Capital ◽  
Annual Reports ◽  
Outward Fdi ◽  
The Impact

In this study, we examine the impact of foreign direct investment (FDI) on the financial performance of Nigerian listed deposit banks. We collected secondary data from the annual reports and accounts of 14 banks between 2010 and 2017. We employed the Tobin Q quantitative method for the analysis. We adopted the theoretical framework of pecking order theory since the analysis of the impact of FDI on the financial performance of these banks are both inward and outward FDI. The Tobin Q method was used as the dependent variable and FDI as an independent variable. Board size, firm size, equity capital and reinvested earnings were all financial performance indicators employed to test the impact of FDI on the financial performance of the banks on understudy in Nigeria. The result of the data analysis and findings showed that FDI had contributed positively to the development and performance of the deposit banks over the period under consideration. Our theoretical findings suggest a positive relationship between FDI and profit maximization. This support the FDI theory that banks or organisations are financed partly with debt-equity, both used by the banks to balance the cost and benefit financing decisions by the management. In the case of the empirical findings, the results of hypothesis testing show a significant effect on the banks’ financial performances. Given these results, we conclude that FDI has made a positive impact on the development and financial performances of the listed deposit banks under study which resulted in some of the banks’ growth from local banks in Nigeria into some of the leading international banks in Africa.

scholarly journals The Influence of Inflation Level, Exchange Rate and Gross Domestic Product on Foreign Direct Investment in the ASEAN Countries on 2007 - 2018

2020 ◽  
Vol 5 (3) ◽  
Author(s):  
John FoEh ◽  
Ni Kadek Suryani ◽  
Shakti Silpama
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Inflation Rate ◽  
Random Effect ◽  
Secondary Data ◽  
Domestic Product ◽  
Brunei Darussalam ◽  
Asean Countries

This research aims to determine the effect of the inflation rate, exchange rate and gross domestic product to the foreign direct investment in the ASEAN countries in periods of 2007-2016. The object of this research is the foreign direct investment in 11 countries of ASEAN region such as; Brunei Darussalam, Philippines, Indonesia, Cambodia Laos, Malaysia, Myanmar, Singapore, Thailand, Timor-Leste and Vietnam. The data used are secondary data with analysis by a panel data regression model using with an estimated model of random effect which were processed by Eviews tools version 10. The results of this study indicate that simultaneously the inflation rate, exchange rate, and gross domestic product have a very significant effect to the foreign direct investment. Partially, the inflation rate has a significant negative effect on foreign direct investment, while the exchange rate has a significant positive effect on foreign direct investment. The further analysis showed that the gross domestic product has no significant effect on foreign direct investment.

scholarly journals Foreign Direct Investment in India: Emerging Trends and Patterns

2020 ◽  
Vol 8 (3) ◽  
pp. 38-46
Author(s):  
P Rajesh
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Detailed Examination ◽  
Equity Capital ◽  
Fdi Inflows ◽  
Emerging Trends ◽  
The Impact

This paper examines the trends in foreign direct investment (FDI) in India during 1980-2018 and the emerging patterns of the FDI inflows in the country during the last two decades (i.e., 2000 - 2019). Our analysis, based on the secondary data collected from UNCTAD and DPIIT, reveals that the ongoing FDI liberalization measures started in India since 1991 have resulted in a dramatic upsurge in the FDI inflows as well as a stock of FDI in the country. The share of India in the global FDI inflows has increased in the post-liberalization period. Still, there was no perceptible increase in India’s share in the global FDI stock during this period. Detailed examination of the patterns of the FDI inflows in India revealed that the equity capital had been the largest component of the FDI in India.Moreover, its share in the total FDI inflows has been increasing during 2000 and 2019. Mauritius and Singapore have been the two important sources of FDI inflows into India, contributing more than half of the FDI flows during the last two decades; this was mainly because these countries were considered as tax heavens for investors from other counties for routing their investments to India. Sector-wise distribution of FDI in India during the last two decades of the post-liberalization period (i.e., during 2000 - 2019) has shown that the service sector has emerged the largest recipient of FDI replacing the manufacturing sector. Our analysis has clearly shown the impact of liberalization on enhancing the FDI flows as well as stock in India and also in changing patterns of FDI distribution in the country.

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

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

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

scholarly journals Agricultural Sector FDI and Economic Growth in Saarc Countries

2019 ◽  
Vol 8 (2S10) ◽  
pp. 116-121
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
South Asians ◽  
Secondary Data ◽  
Agricultural Products ◽  
Fdi Inflows ◽  
Important Relationship ◽  
The Relationship

The study seeks to establish the relationship between foreign direct investment to Saarc region agricultural sector and economic growth with secondary data. SAARC comprises 3% of the world's area, 21% of the world's population and 3.8% (US$2.9 trillion) making up a total of 3% of the world’s area. The country has second in all over the world in terms of agriculture position. The population obliquely all of the member states is over 1.7 billion, accounting for 21% of the world’s total population. In their 42% of the agricultural operation in SAARC nations and also 51% source of livelihood of the South Asians. The study has revealed that India alone accounts for 52 per cent of the agricultural products using the SAARC region peoples. For the present study, a total of 34 groups related to the agricultural products were selected out of the total groups. The techniques employed to analyze the data include descriptive statistic, correlation and linear forecast method. The study also revealed a positive and important relationship between economic growth and foreign direct investment flow to the agricultural sector. Thus, the study recommends that policy should focus on flexible trade policies to attract more foreign direct investment (FDI) inflows to SAARC nations. i.e. Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka including India

scholarly journals Foreign Direct Investment Led Growth Hypothesis and Economic Development in Nigeria

2021 ◽  
Vol 2 (4) ◽  
pp. 376-393
Author(s):  
Ubong Edem Effiong ◽  
Nora Francis Inyang
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Unit Root Test ◽  
Secondary Data ◽  
Short Term ◽  
Causality Test ◽  
Bounds Test ◽  
Growth Hypothesis

This study was an inquiry into the nexus of the foreign-direct investment (FDI) led growth hypothesis, and how it translates into the development of the Nigerian economy as of 1970 – 2018. The study utilized secondary data from the ‘World Development Indicators’ which were analysed using the Bounds test for cointegration and the ‘autoregressive distributed lag (ARDL) approach to divulge both the short-term cum the long-term influence of foreign direct investment net inflow on ‘economic development’ of Nigeria. The Bounds test was conducted after the unit root test revealed that the variables were stationary at mixed order of level and first difference. The outcome of the ARDL Bounds test supported confirmation of long-term association among the variables. The ARDL short-run error correction showed that 14.62% of the instability in the model was corrected yearly. In the short-term, it was discovered that FDI wielded a deleterious and substantial weight on ‘economic development of Nigeria. Meanwhile, the long-term estimates indicated that FDI influenced economic development positively, though not in a significant manner. The Granger causality test supported the fact that FDI causes ‘economic development’ in Nigeria. Given this potential of FDI exerting a positive effect on ‘economic development’, the paper recommended that bottlenecks inherent in FDI influxes in the country should be removed so as to reap the fullest benefits of such inflows in Nigeria.

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