scholarly journals Identify Factors Affecting Foreign Direct Investment Capital In The Southern Key Economic Region

2019 ◽  
Vol 22 (2) ◽  
pp. 275-288
Author(s):  
Tran Thi Kim Dao ◽  
Nguyen Van Luan

This paper focuses on building research model and analyzing the main factors influencing foreign direct investment (FDI) attraction in the Southern Key Economic Region during the period of 2005 - 2016. Based on theories and empirical studies, the authors identified the key factors that affect FDI attraction in that area. Through the development of hypotheses, a quantitative research mode l with Stata software help ed to select an estimation method with reliable and effective test results. The selected research method was the estimation method according to 3 approaches: OLS (P OOLED Regress Model) the least estimation method, Fix Effect Model (FEM), and Random Effect Model (REM). The research model used was the Panel Data model. The author performed the test hypotheses for the factors affecting FDI attraction in the Southern Key Economic Region. After regression with 3 methods (POOLED, FEM, and REM), and using F-Test and Breusch Pagan Test, the aim was to estimate the efficiency of the model and consider the simultaneous effects of independent variables on the dependent variable. These include d the following factors: market size, infrastructure, labor force, quality of human resources, market openness, trade openness, and institutional quality. Examining the relationship between market size, infrastructure development, labor force, quality of human resources, trade openness and institutional quality of FDI attraction into the Southern Key Economic Region, the authors select ed the Pooled Regression Model. The results of this paper may partly help policymakers to have an overall vision and may contribute to the development of appropriate solutions and strategies to attract and effectively use foreign direct investment capital to promote the socio-economic development of the region. Furthermore, the findings may contribute to guidelines to attract and make better use of these funds in the future, better serving the economic development of this region.  

2020 ◽  
Vol 23 (3) ◽  
pp. 715
Author(s):  
Tran Thi Kim Dao ◽  
Nguyen Van Luan

Article “Identify Factors Affecting Foreign Direct Investment Capital In The Southern Key Economic Region” (DOI: https://doi.org/10.32508/stdj.v22i2.1051) by Tran Thi Kim Dao, Nguyen Van Luan is added the acknowledgement section as below:   ACKNOWLEDGEMENT This research is funded by Vietnam National University Ho Chi Minh City (VNU-HCM) under grant number C2019-34-02.


Author(s):  
Tania Megasari ◽  
Samsubar Saleh

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).


2015 ◽  
Vol 18 (3) ◽  
pp. 18-29
Author(s):  
Hung Van Pham

This paper evaluates the attraction of foreign direct investment (FDI) and its positive impacts on the socioeconomic growth in the special economic zones in Vietnam’s Southern Key Economic Region. Findings of the study confirm theories of FDI attraction. In particular, to promote the socioeconomic development in each area, it is necessary to improve the investment environment and enhance the FDI. Furthermore, the findings also provide researchers and policy makers a more comprehensive understanding about the current situation of the FDI attraction in the special economic zones in the Vietnam’s Southern Key Economic Region


2018 ◽  
Vol 16 (2) ◽  
pp. 103-123
Author(s):  
Soffi Setyoningrum

This study entittled "FACTORS AFFECTING FOREIGN DIRECT INVESTMENT(FDI) IN PURBALINGGA". The purpose of this study was to analyze some factorsaffecting foreign direct investment in Purbalingga. The study used independentvariables, including GDP, interest rates, inflation, labor costs,and infrastructureroads. The analysis tool used the classification assumptions and hypothesis testing.Data were used from 2001 to 2015. From the results of regression analysis, showedthat GDP, road 6infrastructure have a positive and significant impact. Interest ratesand labor costs have a negative and significant impact, while inflation wasseen not to have significant impact on foreign direct investment inflows. Theimplication of this study are goverment should increase productivity so the addedvalue generated can be increased, improving the quality of the workforce so asto create employment opportunities more widely to reduce unemployment, improvethe quality of development more adequate infrastructure of the whole area evenlyPurbalingga.Keywords: FDI, factors analysis, regression analysis.  


2018 ◽  
Vol 10 (4) ◽  
pp. 40
Author(s):  
Tékam Oumbé Honoré

This article seeks to study the effects of the development of the capital market and foreign direct investment (FDI) in the entrepreneurial process and economic growth. The technical methods used in this study are the panel-based dynamic estimation method of the Generalized Method of Moments (GMM) and the Calderon-Rossell model, in order to assess the relative impact of the development of capital markets on the entrepreneurial process in the CEMAC zone. The results show that capital market and capitalization initiatives can lead to an entrepreneurial process and economic growth in the CEMAC region. In addition, the incidence of corruption, the rule of law and the quality of the regulatory framework are identified as the most important institutional frameworks that determine the attractiveness of CEMAC countries to the inflow of FDI.


INFO ARTHA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 119-132
Author(s):  
Gabriela Grace

The goal of this study is to identify the determinants of foreign direct investment in members of ASEAN countries (will be known as ASEAN-9 and ASEAN-7 from 1990 to 2017 by using Pooled Least Square as the model.The results show that market size, trade openness, infrastructure, research & development, and inflation have positive effects on inward FDI which can be considered as determinants of FDI. On the other hand, human capital and real interest rates show a negative sign.This study also discussed the FDI trend after the global finance crisis in 2008. The results indicate that the annual trend for FDI after 2008 is positive, which means there is no big impact from the global financial crisis of 2008 on FDI inflows.Based on the results, GDP, infrastructures, and trade openness become the important factors to attract foreign investors. Therefore, government can improve through policies, such as easing trade procedures, or improving the quantity and quality of the infrastructure.The difference finding is found on the negative result of human capital effect on inward FDI. Thus, the quality of human resources still needs improvement because it can improve thelow-tech into high-tech destination countries for FDI.


Ekonomika ◽  
2015 ◽  
Vol 94 (2) ◽  
pp. 7-27 ◽  
Author(s):  
Algirdas Miškinis ◽  
Ilma Juozėnaitė

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 Economic Cooperation and Development (OECD) databases. With the help of the VAR model it was determined that only the exchange rate had a significant impact on FDI in Greece. Exchange rate, trade openness and inflation had a slight impact on FDI in Ireland. GDP per capita, unit labor costs and inflation had a slight impact on FDI in the Netherlands. The introduction of euro and the financial crisis had a significant impact on FDI only in Greece. Furthermore, after comparison of public debt, the ease of doing business ranking, budget deficit and the corruption index among the countries, it was determined that the low level of FDI in Greece was caused by the unfavorable investment climate.


Author(s):  
Orshanska Marіana

The purpose of the article is to determine the nature, characteristics and keyproblems of the main types of economic and legal instruments for the realizationof foreign direct investment (FDI). the methodological basis of the study is asystematic approach to the processing and compilation of statistics and indicators,as well as methods for their comparison, analysis and synthesis and a method offorecasting decisions on the use of investment potential to increase the attractivenessand volume of FDI attraction. The scientific novelty of the research lies in theanalysis of greenfield and brownfield strategies as the main forms of FDIimplementation, the disclosure of the content and interpretation of data on thereal state of FDI attraction, the search for opportunities to improve the investmentclimate and effective mechanisms for attracting foreign investors. conclusions. Itis confirmed that the investment attractiveness and rating of the country in theinternational market are the main factors for attracting investors. Inaccessibleinfrastructure, inefficient judicial system, high level of corruption and imperfectlegislation are the main obstacles that need to be overcome in order to attractforeign investors’ funds, providing a full package of assistance and support ateach stage of the implementation of investment projects. Greenfield and brownfield(M&A) are the most effective forms of FDI in order to achieve high growth ratesof the domestic economy, improve the level of population well-being andinternationally enter Ukraine. An analysis of the statistics on the effectiveness ofinnovative enterprise development projects, the characteristics of economic andlegal instruments indicate the gradual improvement of the investment climate andthe promotion of FDI inflows into the region’s economy through the implementationof greenfield and brownfield strategies. Examples of effective implementation ofthese strategies in the creation of new enterprises, companies of foreignrepresentation, which are expanding their capacity and entering new domesticmarkets are given. Examples of the brownfield strategy have been analyzed torestart existing and high-quality structural and organizational changes in inefficiententerprises, which have given impetus to improving the economic environment,investment attractiveness of the economy of the region and the country as a whole.


2019 ◽  
Vol 118 (11) ◽  
pp. 552-562
Author(s):  
Nguyen Thi Ngan ◽  
Bui Huy Khoi

This research aims to assess the service quality of industrial parks (IP) in the view of FDI (foreign direct investment) firms in Vietnam. Data was collected from 270 FDI firms in Vietnam - Singapore Industrial Parks (VSIP) in Vietnam. The proposed research model was based on researches on service quality. Cronbach's Alpha Average Variance Extracted (Pvc),rho (ρA), and Composite Reliability (Pc) tested the reliability and validity of the scale. The analysis results showed that four factors were affecting the servicequality of industrial park in Vietnam being tangibleof VSIP, reliability of VSIP, the empathyof FDI investors, and their assurance. The responsivenessof VSIP did not affect the servicequality of the industrial park. Contents of the article focus on two main issues: the analysis framework of the quantitative model and implicating results todevelop the industrial park services. The limitation of the research was only in VSIP in Vietnam.


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