scholarly journals Institutional Quality and Foreign Direct Investment Inflows: Evidence from Cross-country Data with Policy Implication

2020 ◽  
Vol VIII (Issue 2) ◽  
pp. 302-316
Author(s):  
Chinmaya Behera ◽  
Bikash ◽  
Biswashree ◽  
Lopamudra
Keyword(s):  
Foreign Direct Investment ◽  
Policy Implication ◽  
Direct Investment ◽  
Institutional Quality ◽  
Cross Country ◽  
Foreign Direct Investment Inflows

scholarly journals THE ROLE OF POLITICAL STABILITY IN FOREIGN DIRECT INVESTMENT ATTRACTION: CROSS-COUNTRY ANALYSIS

2020 ◽  
Vol 1 ◽  
pp. 76-83
Author(s):  
Rogneda Groznykh ◽  
Oleg Mariev ◽  
Sergey Plotnikov ◽  
Maria Fominykh
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Positive Impact ◽  
Political Stability ◽  
Primary Objective ◽  
Fdi Inflows ◽  
Cross Country ◽  
The Impact ◽  
Foreign Direct Investment Inflows

This study is devoted to the evaluation and scrutiny of political stability as a determinant of foreign direct investment (FDI) inflows to different countries. The primary objective of the research is to estimate the impact and influence of various indicators of political stability on foreign direct investment inflows. The analysis is delivered based on a database on cross-country FDI inflows of 66 FDI-importer countries and 98 FDI-exporter countries, in the period between 2001-2018. This article uses the assumption that the impact of political stability might be different for both the groups of developed and developing countries. As the developed economies have higher political stability, they tend to attract larger amounts of foreign direct investment compared to developing economies, where the political situation can be less stable. Furthermore, the estimation applies the gravity approach, while the main method used for the econometric calculations is the Pseudo Poisson Maximum Likelihood (PPML) regression. The outcome revealed that in most cases the indicators of political stability had a positive impact on the foreign direct investment inflows. However, the results are not constant for all groups of countries. Therefore, if a developed country is an importer of investment, then most of the indicators of political stability become significant and have a positive influence on the foreign direct investment. At the same time, if the importer is a developing country, then for the investor-developed economy, political stability becomes a significant factor. Similarly, if the FDI-exporter is a developing economy, then determinants of political stability are insignificant. Based on these results, possible recommendations for refined government policies can be suggested.

scholarly journals Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies

2021 ◽  
Vol 13 (4) ◽  
pp. 1613
Author(s):  
Lian Xue ◽  
Mohammad Haseeb ◽  
Haider Mahmood ◽  
Tarek Tawfik Yousef Alkhateeb ◽  
Muntasir Murshed
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
South Asian ◽  
Direct Investment ◽  
Energy Use ◽  
Fossil Fuel ◽  
Institutional Quality ◽  
Ecological Footprints ◽  
Foreign Direct Investment Inflows

Fossil fuel-dependency has induced a trade-off between economic growth and environmental degradation across the developing nations in particular. Against this backdrop, this study aims to evaluate the impacts of renewable energy use on the ecological footprints in the context of four South Asian fossil fuel-dependent nations: Bangladesh, India, Pakistan, and Sri Lanka. The econometric analysis involves the use of recently developed methods that account for cross-sectional dependency, slope heterogeneity, and structural break issues in the data. The results reveal that renewable energy consumption reduces the ecological footprints while nonrenewable energy use boosts the ecological footprints. The results also confirm the validity of the environmental Kuznets curve and pollution haven hypotheses for the panel of the South Asian nations. Besides, foreign direct investment inflows are found to degrade the environment while higher institutional quality improves it. Furthermore, unidirectional causalities are run from overall energy use, economic growth, and institutional quality to ecological footprints. At the same time, bidirectional associations between foreign direct investment inflows and ecological footprints are also ascertained. The overall findings highlight the pertinence of reducing fossil fuel-dependency, enhancing economic growth, restricting dirty foreign direct investment inflows, and improving institutional quality to ensure environmental sustainability across South Asia.

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