Impact of institutional governance and state determinants on foreign direct investment in Asian economies

2021 ◽  
Author(s):  
Muhammad Ahsan Ali Raza ◽  
Chen Yan ◽  
Hafiz Syed Mohsin Abbas ◽  
Atta Ullah
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Governance ◽  
Asian Economies

Does foreign direct investment deepen the financial system in Southeast Asian economies?

2021 ◽  
pp. 100682
Author(s):  
Mollah Aminul Islam ◽  
Haiyun Liu ◽  
Muhammad Asif Khan ◽  
Md Tariqul Islam ◽  
Md Reza Sultanuzzaman
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Financial System ◽  
Southeast Asian ◽  
Asian Economies

scholarly journals The Giant Sucking Sound: Is China Diverting Foreign Direct Investment from Other Asian Economies?

2004 ◽  
Vol 3 (3) ◽  
pp. 122-140 ◽  
Author(s):  
Busakorn Chantasasawat ◽  
K. C. Fung ◽  
Hitomi Iizaka ◽  
Alan Siu
Keyword(s):  
Foreign Direct Investment ◽  
Random Effects ◽  
Direct Investment ◽  
Simultaneous Equation ◽  
Southeast Asian ◽  
Equation Model ◽  
Tax Rates ◽  
Simultaneous Equation Model ◽  
Corporate Tax ◽  
Asian Economies

This paper attempts to determine empirically whether China is taking foreign direct investment (FDI) away from other Asian economies (the “China effect”). A random-effects simultaneous equation model, controlling for the determinants of inward FDI of eight East and Southeast Asian economies over 1985–2001 and using China's inward FDI as an indicator of the China effect, indicates that China's FDI level is positively related to these economies' FDI levels and negatively related to their shares in FDI in Asia. Moreover, openness, corporate tax rates, and corruption can exert a greater influence on these countries' FDI than China's FDI.

Factors influencing foreign direct investment in South Asian economies

2017 ◽  
Vol 6 (1) ◽  
pp. 8-37 ◽  
Author(s):  
Bishnu Kumar Adhikary
Keyword(s):  
Foreign Direct Investment ◽  
Least Squares ◽  
South Asian ◽  
Financial Stability ◽  
Direct Investment ◽  
Ordinary Least Squares ◽  
Estimation Methods ◽  
Market Size ◽  
Content Type ◽  
Asian Economies

Purpose The purpose of this paper is to investigate the macroeconomic determinants of foreign direct investment (FDI) for the top five South Asian economies, namely, Bangladesh, India, Pakistan, Sri Lanka, and Nepal, and to examine whether these factors are the same for each. Design/methodology/approach This study employs fully modified ordinary least squares and two-stage least squares estimation methods. Findings This study shows that South Asian economies have a number of FDI determinants in common. For example, market size and human capital are the two most common factors attracting FDI in each country (except for Nepal, which revealed a negative correlation between FDI and market size). Other factors, such as infrastructure, domestic investment, lending rates, exchange rates, inflation, financial stability/crisis, and stock turnover entered into regression with both positive and negative signs, thereby indicating that the underlying theories on FDI do not provide a clear prediction of the direction of the effect of a particular variable on FDI. Research limitations/implications This paper studied the effects of demand-side factors on FDI. A comparative study of the supply-side factors may add further knowledge. Practical implications This paper provides evidence to show that the determinants of FDI are indeed country-specific. Thus, to design a suitable FDI policy, it would not be wise to solely rely on other economies’ FDI experiences. Originality/value This paper provides updated evidence on factors that are essential to promoting or deterring FDI in South Asian economies.

scholarly journals Trade, foreign direct investment and economic growth in Asian economies

2009 ◽  
Vol 41 (13) ◽  
pp. 1603-1612 ◽  
Author(s):  
Xiaohui Liu ◽  
Chang Shu ◽  
Peter Sinclair
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Asian Economies

Does infrastructure promote exports and foreign direct investment in selected Southeast Asian economies? An application of global infrastructure index

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faheem Ur Rehman ◽  
Abul Ala Noman
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Southeast Asian ◽  
Local Economy ◽  
Least Square ◽  
Infrastructure Development ◽  
Content Type ◽  
Long Run ◽  
Asian Economies ◽  
Short Run

PurposeInfrastructure deficiency in Southeast Asian countries is ever growing and touched to a level where it harms the local economy as well as the international sector of the country. The gap between demand and supply for infrastructure is constantly on the upswing. The purpose of this study to investigate the effect of infrastructure on exports and foreign direct investment (FDI) inflow in selected Southeast Asian economies.Design/methodology/approachThis study employs the pooled mean group (PMG) technique to velaborate that how the infrastructure affects export and FDI in the short run and long run during 1990–2018. For cointegration, Pedroni and Kao tests are used. Dynamic ordinary least square (DOLS) and the fully modified least squares (FMOLSs) estimators are employed for robustness check.FindingsThe findings support that aggregate and sub-indices of infrastructure significantly promote the export and FDI inflow in the long run. Also infrastructure, export and FDI inflow are cointegrated in the long run. FMOLS and DOLS found the most robust results.Originality/valueInfrastructure development in determining trade and FDI has established a significant deal of attention in the modern era where a plethora of research studies encourage the opinion that better infrastructure attracts FDI and enhances export. However, this study uses a global infrastructure index, which comprises the sub-indices like transport, telecommunication, energy and financial sector, which gives us a clear picture regarding how Southeast Asia can catch up FDI and export benefits through infrastructure.

scholarly journals Determinants of foreign direct investment and volatility in South East Asian economies

2009 ◽  
Vol 14 (3) ◽  
pp. 246-261 ◽  
Author(s):  
Krishna Chaitanya Vadlamannati ◽  
Artur Tamazian ◽  
Lokanandha Reddy Irala
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
East Asian ◽  
Asian Economies ◽  
East Asian Economies

Foreign direct investment, financial development and economic prosperity in major south Asian economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Narayan Sethi ◽  
Aurolipsa Das ◽  
Malayaranjan Sahoo ◽  
Saileja Mohanty ◽  
Padmaja Bhujabal
Keyword(s):  
Foreign Direct Investment ◽  
Financial Development ◽  
Free Trade ◽  
South Asian ◽  
Direct Investment ◽  
Gdp Per Capita ◽  
Content Type ◽  
Asian Economies ◽  
Short Run ◽  
Per Capita

PurposeThis paper empirically examines the relationship between foreign direct investment, financial development and other macroeconomic variables like trade openness, domestic investment and labour force and that of GDP per capita in select South Asian countries, i.e. India, Sri Lanka and Pakistan for the period 1990–2018.Design/methodology/approachThe study uses various econometrics tools such as Pedroni, Kao and Johansen–Fisher panel cointegration test, Panel FMOLS and DOLS and Granger causality in order to analyse the long-run and short-run dynamics among the variables under consideration.FindingsThe results of the panel data estimation techniques employed imply that there is a short-run causality running from GDP per capita to FDI and financial development, and results from FMOLS and DOLS indicate that FDI and financial development have positive impacts on GDP per capita in the countries under consideration.Originality/valueIn this paper, we use a dynamic macroeconomic modelling framework to examine the effect of FDI and financial development on per capita income in three major south Asian economies, which are categorized as three Non-Least Developed Contracting States under the South Asian Free Trade Area (SAFTA), 2006, established with an aim to facilitate free trade among them. Considering the diversity of the level of growth experienced by these economies, the study uses appropriate panel regression techniques. Therefore, in addition to proper formulation of policies directed towards scaling up of export and import levels, the respective authorities should also take care that the political stability and institutional quality are maintained.

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