Foreign Direct Investment in the Arab World: An Analysis of Flows and an Evaluation of Country Specific Business Environment

2012 ◽  
Author(s):  
Abedelazez Safi
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Arab World ◽  
Business Environment ◽  
Country Specific

The Rise of Transnational Corporations from Developing Countries in the Second Half of the 20th Century

Istoriya ◽  
2021 ◽  
Vol 12 (11 (109)) ◽  
pp. 0
Author(s):  
Alexey Kuznetsov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
World Order ◽  
Developed Countries ◽  
Global South ◽  
Business Environment ◽  
Outward Foreign Direct Investment ◽  
Foreign Direct Investment Stock

The article highlights three stages of the formation of multinationals from developing countries. Although first Argentine TNCs appeared at the turn of the 19th — 20th centuries, in the majority of the Global South countries TNCs appeared in the 1960s — 1980s. With the collapse of the bipolar world order, which in many developing countries was accompanied by significant internal political and economic transformations, the second stage of foreign expansion of TNCs from the Global South began. Indeed, in 1990 they accounted for 6 % of global outward foreign direct investment stock, while the figure was 10 % by the end of 2005. We date the beginning of the third stage to the financial and economic crisis of 2007—2009, since multinationals from developing countries as a whole are more successfully overcoming the period of turbulence in the global economy. By the end of 2020, they accounted for 22 % of global outward foreign direct investment stock, and during the COVID-19 pandemic crisis they generally exported more than 50% of the capital. The modern foreign expansion of such TNCs has many reasons, differs greatly from country to country, and often differs slightly from the specifics of Western multinationals. At the same time, initially, “late internationalization” in developing countries had two main vectors — the use of new opportunities for South — South cooperation and overcoming, through the creation of subsidiaries in highly developed countries, the shortcomings of the business environment of “catching up” countries.

scholarly journals Improving the business environment in cities and municipalities in Serbia

2014 ◽  
pp. 105-118 ◽  
Author(s):  
Jelena Stankovic ◽  
Vesna Jankovic-Milic ◽  
Marija Radosavljevic
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Business Environment ◽  
Active Participation ◽  
Quality Of Services ◽  
Local Administration ◽  
Institutional Reforms ◽  
Criteria Importance ◽  
Key Questions

One of the ways to determine the benefits of a particular municipality and indicate its readiness to cooperate with potential investors is to promote standards of effective and transparent local administration. This task can be realized through the certification of cities and municipalities with a favorable business environment. Certification is a process that, among other things, allows the assessment of quality of services and information that municipalities provide for investors and businessmen. It is a process aiming at improvement of business environment in Serbia through institutional reforms with the active participation and cooperation of industry, municipalities and citizens. One of the key questions is to determine the importance of the criteria relevant for evaluating the attractiveness of municipality in terms of potential investors. Analysis of criteria importance for certification of cities and municipalities with a favorable business environment, shown in this paper, aims to identify those who have played a key role in the efficiency of municipalities and cities in attracting foreign direct investment. This paper presents three alternative ways of determining the importance of the criteria. The results of this analysis should indicate to the authorities of cities and municipalities possible ways of improving their position at the list of those with a favorable business environment.

scholarly journals Impact of foreign direct investment, remittances and official development assistance on economic growth: panel data approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amna Zardoub ◽  
Faouzi Sboui
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Development Assistance ◽  
Business Environment ◽  
Official Development Assistance ◽  
Financial Flows ◽  
Content Type

PurposeGlobalization occupies a central research activity and remains an increasingly controversial phenomenon in economics. This phenomenon corresponds to a subject that can be criticized through its impact on national economies. On the other hand, the world economy is evolving in a liberalized environment in which foreign direct investment plays a fundamental role in the economic development of each country. The advent of financial flows – FDI, remittances and official development assistance – can be a key factor in the development of the economy. The subject of this article is to analyses the effect of financial flows on economic growth in developing countries. Empirically, different approaches have been employed. As part of this work, an attempt was made to use a panel data approach. The results indicate ambiguous effects and confirm the results of previous work.Design/methodology/approachThe authors seek to study the effect of foreign direct investment, remittances and official development assistance (ODA) and some control variables i.e. domestic credit, life expectancy, gross fixed capital formation (GFCF), inflation and three institutional factors on economic growth in developing countries by adopting the panel data methodology. Then, the authors will discuss empirical tests to assess the econometric relevance of the model specification before presenting the analysis of the results and their interpretations that lead to economic policy implications. As part of this work, the authors have rolled panel data for developing countries at an annual frequency during the period from 1990 to 2016. In a first stage of empirical analysis, the authors will carry out a technical study of the heterogeneity test of the individual fixed effects of the countries. This kind of analysis makes it possible to identify the problems retained in the specific choice of econometric modeling to be undertaken in the specificities of the panel data.FindingsThe empirical results validate the hypotheses put forward and indicate the evidence of an ambiguous effect of financial flows on economic growth. The empirical findings from this analysis suggest the use of economic-type solutions to resolve some of the shortcomings encountered in terms of unexpected effects. Governments in these countries should improve the business environment by establishing a framework that further encourages domestic and foreign investment.Originality/valueIn this article, the authors adopt the panel data to study the links between financial flows and economic growth. The authors considered four groups of countries by income.

Effect of Infrastructure and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa

2019 ◽  
Vol 11 (3) ◽  
pp. 183-201 ◽  
Author(s):  
Edward Nketiah-Amponsah ◽  
Bernard Sarpong
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Generalized Method Of Moments ◽  
Business Environment ◽  
Transport Infrastructure ◽  
Sub Saharan Africa ◽  
Economic Infrastructure ◽  
Sub Saharan

This article investigates the effect of infrastructure and foreign direct investment (FDI) on economic growth in Sub-Saharan Africa (SSA) using panel data on 46 countries covering the period 2003–2017. The data were analyzed using fixed effects, random effects, and system generalized method of moments (GMM) estimation techniques. Based on the system GMM estimates, the results indicate that a 1 percent improvement in electricity and transport infrastructure induces growth by 0.09 percent and 0.06 percent, respectively. Additionally, FDI proved to be growth enhancing only when interacted with infrastructure. The interactive effect of FDI and infrastructure improves economic growth by 0.016 percent. The results suggest that public provision of economic infrastructure reduces the cost of production for multinational enterprises, thus providing an incentive to increase investment in the domestic economy to sustain economic growth. The results also suggest that the impact of FDI on economic growth is maximized when some level of economic infrastructure is available. Our findings thus provide ample justification on the need for a significant government investment in infrastructure to provide a less costly business environment for both local and multinational enterprises to improve economic growth.

scholarly journals An extensive exploration of theories of foreign direct investment

2015 ◽  
Vol 5 (2) ◽  
pp. 77-83 ◽  
Author(s):  
Patricia Lindelwa Makoni
Keyword(s):  
Foreign Direct Investment ◽  
International Economics ◽  
Direct Investment ◽  
Market Imperfections ◽  
Industrial Economics ◽  
Specific Factors ◽  
Country Specific

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.

scholarly journals Influence of external factors on foreign direct investment flows using the example of the Visegrad Group and Serbia

2021 ◽  
Vol 69 (3-4) ◽  
pp. 80-94
Author(s):  
Aleksandar Kemiveš ◽  
Lidija Barjaktarović
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Regional Cooperation ◽  
Business Environment ◽  
External Factors ◽  
Foreign Direct Investments ◽  
Political Risks ◽  
The Republic ◽  
The Impact ◽  
Visegrad Group

This research paper examines the impact of external factors on the dynamics of foreign direct investment (FDI) trends in specific economies. The same subject will be analyzed through the examples of the Visegrad Group and the Republic of Serbia. The aim of the research is to determine the existence of a link between the impact of foreign direct investments on the growth and development of the economy observed through gross domestic product (GDP) in the 1990-2018 period. The results of the research indicate that Poland was the most successful in attracting and keeping FDI, compared to other countries. Further, the volume of FDI has been dependent on several external factors, such as overall business environment, economic crisis, political risks, positions in relevant institutions, pandemic, etc. Moreover, for the Republic of Serbia, it will be important that all stakeholders in the country have a proactive approach in order to keep FDI in the country. Finally, representatives of the authorities should be committed to fulfilling promised deals related to the regional cooperation and EU (European Union) accession and integration.

scholarly journals Growth of Foreign Direct Investment in Indian Textile Sector

2019 ◽  
Vol 8 (2S10) ◽  
pp. 222-227
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Business Environment ◽  
Stock Exchanges ◽  
Policy Regime ◽  
Oil Refineries ◽  
Foreign Companies ◽  
Tax Exemptions ◽  
The Government ◽  
Textile Sector

Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of India. Foreign companies invest in India to take advantage of relatively lower wages, special investment privileges such as tax exemptions, etc. For a country where foreign investments are being made, it also means achieving technical know-how and generating employment. The Indian government’s favorable policy regime and robust business environment have ensured that foreign capital keeps flowing into the country. The government has taken many initiatives in recent years such as relaxing FDI norms across sectors such as defence, PSU oil refineries, telecom, power exchanges, and stock exchanges, among others. The proposed paper deals with the structure and growth in FDI in Indian Textiles sector during the post reforms periods in India.

scholarly journals Economic Freedom, Macroeconomic Fundamentals and Foreign Direct Investment in Fast Emerging Brics and Malaysia

2013 ◽  
Author(s):  
Catherina S.F. Ho ◽  
Noryati Ahmad ◽  
Hayati Mohd Dahan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Freedom ◽  
Trade Openness ◽  
Emerging Countries ◽  
Policy Implications ◽  
Foreign Direct Investments ◽  
Critical Factors ◽  
Major Factors ◽  
Country Specific

This study investigates the major factors that determine the inflow of foreign direct investment (FDI) into fast emerging countries: Brazil, China, India, Russia, South Africa (BRICS) and Malaysia. Two sets of factors are identified: macroeconomic and country specific fundamentals. The period of analysis is 1977-2010. The study provides empirical evidence that economic growth, government consumption and trade openness are vital for FDI. In addition, country specific infrastructure quality and economic freedom are also critical factors in determining FDI for this group of countries. Our findings have significant policy implications for the growth and development of these countries, particularly through foreign direct investments.  

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