scholarly journals Impact of Foreign Direct Investment (FDI) on Entrepreneurship Development in Jiangsu Province - China

2021 ◽  
pp. 202-212
Author(s):  
Michael Verner Menyah ◽  
Jincai Zhuang ◽  
Evelyn Sappor ◽  
Rejoice Akrashei
Keyword(s):  
Adverse Effect ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Social Scientist ◽  
Chinese Economy ◽  
Foreign Firms ◽  
Income Source ◽  
Entrepreneurship Development ◽  
Positive Effects ◽  
The Impact

Foreign Direct Investment (FDI) has served as a huge promoter of growth for many economies over the years, playing the role of supplementary income source for economies. The trend being identified now, however is that FDIs do come with adverse effect for host economies with one of the sector feeling the impact of the adverse impact being the local entrepreneurship. This study therefore measured the severity of the adverse effect of FDIs on the economy of China whiles also evaluating the contribution of FDIs to the overall economy using Sequential Explanatory Design (SED). Using Statistical Package for Social Scientist (SPSS), the researchers conducted statistical analysis like t-test, Correlation, Multiple Regression Analysis, R-Square, F-statistics and Variance Inflator Factors (VIF). The findings of the study revealed that FDIs indeed have both positive and negative implications for the Chinese economy. The positive effects come in the form of inspiring innovation and infrastructural development, influx of investment capital and the liberalization of the economy form monopolies and unfair trading The negative effect came in the form of stifling domestic entrepreneurship development as the foreign firms compete with local entrepreneurs for market, expertise, labor, capital and space for operation

scholarly journals The Impact of Foreign Direct Investment on the Romanian Labour Market: New Evidence from a Pooled Model

2017 ◽  
Vol 10 (1) ◽  
pp. 19-34
Author(s):  
Laura Diaconu Maxim ◽  
Daniel Sterbuleac
Keyword(s):  
Foreign Direct Investment ◽  
Labour Market ◽  
Direct Investment ◽  
Added Value ◽  
Foreign Firms ◽  
Net Income ◽  
Foreign Companies ◽  
Study Results ◽  
One Year ◽  
The Impact

Abstract The present paper presents a series of results concerning the labour market impact of the foreign direct investment (FDI) inflows in Romania, during the period 2005-2014. In order to reach this objective, we have conducted both an investigation of the specialized literature and an econometric analysis, based on a pooled OLS regression. The added value of this study results from the novelty aspects brought by the results, which indicate two new roles of FDI on the Romanian labour market: a potential “gap-widening” effect between the civil employment and number of employees and a “crawling” effect on the net income. Since the results showed a positive correlation between FDI and civil employment and also between FDI and the average number of employees, the first effect suggests that most of employees of the foreign firms work there less than one year. This may explain why foreign companies are not motivated to offer their employees much higher wages than the local firms and thus that the effect of FDI on nominal net income is very small (“crawling” effect).

Korea’s Foreign Direct Investment in the Automotive Industry in China

China Report ◽  
2018 ◽  
Vol 54 (2) ◽  
pp. 175-193 ◽  
Author(s):  
Jungmin Lee ◽  
Jai S. Mah
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Automotive Industry ◽  
Direct Investment ◽  
Policy Implications ◽  
Foreign Firms ◽  
Job Opportunities ◽  
Korean Firm ◽  
The Impact

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

The Impact of Foreign Direct Investment on Sectoral Adjustment in the Irish Economy

1997 ◽  
Vol 160 ◽  
pp. 76-86 ◽  
Author(s):  
Frances Ruane ◽  
Holger Görg
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Foreign Firms ◽  
Export Markets ◽  
Manufacturing Plants ◽  
Foreign Companies ◽  
Fiscal Incentives ◽  
The Republic ◽  
The Impact

Foreign direct investment (FDI) has played a crucial role in the overall development of the Irish economy over the past three decades, as the Republic of Ireland, hereafter referred to as Ireland, has pursued an industrial strategy characterised by (i) promoting export-led-growth in Irish manufacturing through various financial supports and fiscal incentives, and (ii) encouraging foreign companies to establish manufacturing plants in Ireland, producing specifically for export markets. The significance of FDI for the Irish economy is now reflected in, inter alia, the significant gap between GNP and GDP; in 1994, GNP was roughly 88 per cent of GDP in Ireland. As regards the manufacturing sector, the high shares of output and employment in foreign-owned companies in Ireland also indicate the importance of foreign firms. As we discuss in some detail in Section 3, foreign companies produced roughly 69 per cent of total net output and accounted for 45 per cent of employment in Irish manufacturing industries in 1993.

Determinants of Locations of Foreign Direct Investment in China

2006 ◽  
Vol 2 (1) ◽  
pp. 95-119 ◽  
Author(s):  
Shaomin Li ◽  
Seung Ho Park
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agglomeration Economies ◽  
Local Economy ◽  
Foreign Firms ◽  
Legal Development ◽  
Domestic Firms ◽  
Positive Effects ◽  
Negative Effect ◽  
Investment In China

AbstractThis study examines the factors that affect the choice of location for foreign direct investment (FDI) in China. We identify three groups of factors that may affect the location choice by foreign firms: agglomeration economies, infrastructure, and institutional changes resulting from the economic reform. The study utilizes the most recent data from China's industrial census for the empirical testing. The findings show that agglomeration economies, in particular the clustering of foreign firms and domestic firms, exert the strongest effect on FDI location. Higher FDI concentration tends to attract more foreign firms. The clustering of domestic firms exerts a negative effect on FDI locations. Better infrastructure (electricity, telecommunications, and road) and greater institutional change (open policies, privatization, and legal development) also show positive effects on FDI location. The size of the local economy does not seem to affect the choice of location of FDI.

scholarly journals Foreign Direct Investment And Poverty Reduction

2017 ◽  
Vol 20 (2) ◽  
pp. 73-89 ◽  
Author(s):  
Mercy T. Magombeyi ◽  
Nicholas M. Odhiambo
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Empirical Relationship ◽  
Direct Impact ◽  
Detailed Review ◽  
Positive Effects ◽  
Insignificant Effect ◽  
Indirect Impact ◽  
The Impact

This paper provides a detailed survey of the literature on the impact of foreign direct investment (FDI) on poverty reduction, outlining the theoretical and empirical relationship between these variables. Although a number of studies have been done on the impact of FDI on poverty reduction, the majority of these studies have focused on the indirect impact of FDI on poverty reduction. The bulk of the literature reviewed supports the positive effects of foreign direct investment on poverty reduction, although a few studies have also found foreign direct investment to have an adverse or insignificant effect on poverty reduction. This study differs fundamentally from previous studies in that it focuses on the direct impact of FDI on poverty reduction, giving a detailed review of the nature of this relationship.

scholarly journals Environmental Regulation, Two-Way Foreign Direct Investment, and Green Innovation Efficiency in China’s Manufacturing Industry

2018 ◽  
Vol 15 (10) ◽  
pp. 2292 ◽  
Author(s):  
Zhijun Feng ◽  
Bo Zeng ◽  
Qian Ming
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Environmental Regulation ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Green Innovation ◽  
Negative Effects ◽  
Positive Effects ◽  
The Impact ◽  
Positive Effect

This paper adopts 2009 to 2015 panel data from 27 manufacturing industries in China. A Super-SBM model is used to measure the green innovation efficiency (GIE) of China’s manufacturing industry. A panel data model is then built to systematically examine the impact of environmental regulation (ER) and two-way foreign direct investment (FDI) on the GIE of China’s manufacturing industry under a unified analysis framework. The results are as follows: (1) the overall level of the green innovation efficiency in China’s manufacturing is low, and there is still great potential for improvement. Considering industry heterogeneity, the green innovation efficiency of patent-intensive manufacturing is significantly higher than that of non-patent-intensive manufacturing; (2) in terms of the whole manufacturing industry, ER and the interaction between ER and outward foreign direct investment (OFDI) have significantly negative effects on GIE, OFDI has significantly positive effects on GIE. (3) when considering industry heterogeneity, for patent-intensive manufacturing, ER and the interaction between ER and inward foreign direct investment (IFDI) have significantly negative effects on GIE, while IFDI has significantly positive effect on GIE. For non-patent-intensive manufacturing, ER and the interaction between ER and OFDI have significantly negative effects on GIE, while IFDI and the interaction between ER and IFDI have significantly positive effects on GIE.

Using Latin America as a research laboratory

2019 ◽  
Vol 27 (2) ◽  
pp. 122-140 ◽  
Author(s):  
Armando Borda Reyes ◽  
William Newburry ◽  
Jorge Carneiro ◽  
Carlos Cordova
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Latin American ◽  
Direct Investment ◽  
Trade Openness ◽  
Recipient Country ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to use Latin America as a laboratory to better understand the relationship between inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) (both in total as well as in regional flows) and also examine the moderating effect of trade openness on that relationship. Latin America is an ideal study context for this purpose because of the relative homogeneity of its countries, which reduces confounding effects and increases comparability. Design/methodology/approach This paper uses longitudinal panel regression models with moderation effects. Secondary data were gathered on IFDI (per country and per country-sector), OFDI (total per country and region-targeted per country) and on trade openness from 11 Latin American countries. Findings IFDI in natural resources is positively associated with OFDI in both overall total flows and regional flows. The effect of IFDI in manufacturing has a consistent negative effect on total OFDI. IFDI in services has positive effects on total OFDI. Additionally, trade openness moderates positively the relationship between total IFDI and both total OFDI and regional OFDI. As a consequence, the authors found evidence suggesting that the relation between IFDI and OFDI in Latin America is positively moderated by trade openness. Originality/value The authors explored the nature of the impact of IFDI on the capacity of the recipient country to compete abroad as expressed by its OFDI flows. Specifically, they elucidated whether trade openness can be considered a suitable mechanism for home country firms to leverage potential spillovers provided by foreign entrants.

scholarly journals THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH (A CAUSAL STUDY IN THE UNITED STATES)

2018 ◽  
Vol 4 (1) ◽  
Author(s):  
Donny Susilo
Keyword(s):  
United States ◽  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multiple Linear Regression Model ◽  
The United States ◽  
Ordinary Least Squares ◽  
Development Effort ◽  
Positive Effects ◽  
The Impact

<p>International investment is strategic step for country due to lack of capital and technology transfer and it is generally well known as Foreign Direct Investment (FDI). Many policy makers and academics contend that FDI can have important positive effects on a host country’s development effort. This research examines the impact of Foreign Direct Investment on Economic Growth in the United States by multiple linear regression model and its estimation using ordinary least squares (OLS). This research classifies all the sectors to be 10 sectors. This research uses data for the period 2000 –2017 and suggests that not all forms of foreign investment seem to be beneficial to host economies. Some sectors provide positive correlation to economic growth and some provides negative effect. Nevertheless, it is significant yet, this is because there is different characteristic between developed and developing countries. Economic growth in the U.S is mostly driven by personal consumption.</p>

scholarly journals Impact of Foreign Direct Investment (Fdi) On the Stock Market Performances in Nigeria (1985-2014)

2016 ◽  
Vol 3 (1) ◽  
pp. 36 ◽  
Author(s):  
Omodero Cordelia Onyinyechi ◽  
M.C. Ekwe
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
Price Index ◽  
Negative Impact ◽  
Least Square ◽  
Share Price ◽  
Real Effective Exchange Rate ◽  
Foreign Firms ◽  
The Impact

The study examined the impact of Foreign Direct Investment (FDI) on the stock market performances in Nigeria, from 1985 – 2014. The secondary data used were collected from IMF, International Financial Statistics (2015), CBN Statistical Books (2015). Multiple regression of least square estimation was the tool used to analyze the data in this study.  In the model, the FDI was regressed on RGDP, Consumer Price Index, Real effective exchange rate, Money supply (M2), Share price index, Treasury bill, Nigerian stock exchange transactions. The study revealed that FDI has an insignificant and negative impact on the economy and the macroeconomic variables that determine the performances of the Nigerian stock market. The paper therefore recommends policies that would encourage foreign firms operating in the oil and gas including the telecommunication and agricultural sectors to be listed since it would go a long way in attracting more FDI, leading to improvement in the stock market performances.

scholarly journals Foreign Direct Investment and Economic Growth of the Central and Southeast European Countries

2018 ◽  
Vol 15 (27) ◽  
Author(s):  
Vasilj Žarković ◽  
Dragan Gligorić ◽  
Nikola Žarković
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
European Integration ◽  
Direct Investment ◽  
The European Union ◽  
Economic Problems ◽  
Positive Effects ◽  
See Region ◽  
The Impact ◽  
Competitive Economy

Economic theory suggests that free capital flows increase the efficiency of the resource allocation and stimulate economic growth. Foreign direct investment (FDI) is seen as a remedy for all economic problems in countries that do not have a sufficient level of accumulation to start economic growth. According to economic criteria of Copenhagen, countries that are in the process of European integration should have a functioning market economy able to cope with competition and market forces within the European Union. The greatest expectations regarding the development of a competitive economy in the Southeast European (SEE) countries are precisely related to attraction and exploitation of the positive effects of FDI. This paper explores the impact of FDI on economic growth of the Central European (CE) countries and the SEE countries. The experience of the CE countries can be beneficial for the SEE countries following them in the process of European integration. The results show that FDI flows to the SEE region are significantly lower than to the CE region. Panel analysis has shown a statistically significant impact of FDI on economic growth inboth regions. However, in absolute terms the impact of FDI on economic growth inthe SEE region is almost negligible.

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