scholarly journals THE IMPACT OF REPETITIVE XENOPHOBIC ATTACKS ON FUTURE FOREIGN DIRECT INVESTMENT: A CASE OF SOUTH AFRICA

2021 ◽  
pp. 14-20
Author(s):  
Wellington Garikai Bonga
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Capital Inflows ◽  
Foreign Direct Investments ◽  
Investment Climate ◽  
Fdi Inflows ◽  
Long Term Impact ◽  
The Impact

The debate of the link between xenophobia and importance of foreign direct investment is of interest. A phrase says it all, “One cannot want foreign money and hate foreign businesses at the same time.” Does South Africa, as a country, love foreign investment, and by extension, foreign investors? A ‘yes’ and a ‘no’ answer will do for this question. Foreign direct investments are the most desirable form of capital inflows to emerging and developing countries. Many benefits are linked to accrue to a nation because of FDI inflows. FDI is climatic sensitive, and usually goes where it is wanted most and where conducive environment prevails. The South African nation is dominated by unending violence that also targets foreigners including their businesses. Effective policies to curb xenophobia seems to be lacking. There exist xenophobia denialism among the political leaders, making it more difficult to halt the problem. Letting the nation continue turning into a hostile destination for foreigners may pose a great investment challenge in the longer term. The path that South Africa is walking today, of protecting and failing to address issues of xenophobia, have a long term impact to investment in the country. Conflicts and violence attacks, hence xenophobia, continue to affect FDI flows several years into the future. The trend of net FDI has already shown a downward trend that may be attributed to issues of unrest persistent in the economy. The study strongly indicate that repetitive xenophobic attacks significantly impact future FDI inflows negatively. Immediate action is required to minimize the damage caused by xenophobia in the country. Investment climate restoration is required to ensure favorable economic growth path for the country. KEYWORDS: Economic Growth, Foreigners, Foreign Direct Investment, Instability, Investment, Investment Climate, Socio-economic Development, Violence, Xenophobia, South Africa

scholarly journals Impact of Foreign Direct Investment Inflows on Economic Growth; the Case of the Republic of Seychelles

2019 ◽  
Author(s):  
Yusheng Kong ◽  
Sampson Agyapong Atuahene ◽  
Geoffrey Bentum-Mican ◽  
Abigail Konadu Aboagye
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Square ◽  
Small Island ◽  
Host Countries ◽  
Fdi Inflows ◽  
Economic Trends ◽  
The Republic ◽  
The Impact

This paper aims to research whether there is link between FDI inflows and Economic growth in the Republic of Seychelles Island. The ordinary least square results obtained shows that in the impact of FDI inflows on economic growth is low. Small Island Developing States attracts less FDI inflow because they are limited to few resources that attracts overseas firms which results in retarded development. The research lighted that impact of foreign direct investment on host countries does not only depend on the quality and quantity of the FDI inflows but some other variables such as the internal policies and the management skills, market structures, economic trends among others.

scholarly journals INFLUENCE OF FINANCIAL INSTABILITY AND ECONOMIC GROWTH IN FOREIGN DIRECT INVESTMENT IN SOUTH AFRICA

2021 ◽  
pp. 25-31
Author(s):  
Badamasi Sani Mohammed ◽  
Sadun Naser Yassin Alheety ◽  
Zakarya Mohsen Al-Hodiany
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Financial Instability ◽  
Positive Contribution ◽  
Long Run ◽  
Prime Objective ◽  
The Impact ◽  
Bound Test

The prime objective of this paper is to study the impact of financial instability (FI) and economic growth (RGDPP) on foreign direct investment (FDI) in South Africa from 1970 to 2016 using Autoregressive Distributive Lag (ARDL) approach. Evidence from bound test reveals that FI, RGDPP, and FDI are cointegrated in the long run. Moreover, the result shows that financial instability and economic growth are positively significant and negatively insignificant influencing the foreign direct investment respectively. The study suggests that government should necessarily develop financial system to let economic growth make a positive contribution to foreign direct investment. KEYWORDS: financial Instability (FI); Economic growth (RGDPP); foreign direct Investment (FDI); Autoregressive Distributive Lag (ARDL)

The Impact of Foreign Direct Investment on the Economic Growth in Cambodia: Empirical Evidence

2018 ◽  
Vol 4 (5) ◽  
pp. 31-38 ◽  
Author(s):  
Khun Sokang
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Correlation Matrix ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Fdi Inflows ◽  
Analysis Techniques ◽  
The Impact

The foreign direct investment (FDI) inflows are often seen as an important catalyst for economic growth in developing countries. This study aims to investigate the impact of FDI on the economic growth of Cambodia by utilizing the time series data throughout 2006-2016. The correlation matrix and multiple regression analysis techniques were used to analyze the collected data. The results of the study reveal that FDI has a positive impact on the economic growth of Cambodia. The study recommends that government should bring reforms in the domestic market to attract more FDI in Cambodia.

A Study on the Impact of Foreign Direct Investment (FDI) on Indian Economy

2017 ◽  
Vol 3 (3) ◽  
Author(s):  
G. Suresh Babu ◽  
C. Sreeramulu
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Framework ◽  
Fdi Inflows ◽  
Internal Resources ◽  
Fund Flow ◽  
The Government ◽  
The Impact

Foreign Direct Investment (FDI) is fund flow between the countries in the form of inflow or outflow by which one can able to gain some benefit from their investment whereas another can exploit the opportunity to enhance the productivity and find out better position through performance. The effectiveness and efficiency depends upon the investors perception, if investment with the purpose of long term then it is contributes positively towards economy on the other hand if it is for short term for the purpose of making profit then it may be less significant. Depending on the industry sector and type of business, a foreign direct investment may be an attractive and viable option. Any decision on investing is thus a combination of an assessment of internal resources, competitiveness, and market analysis and market expectations. The FDI may also affect due to the Government trade barriers and policies for the foreign investments and leads to less or more effective towards contribution in economy as well as GDP of the economy Foreign direct investment (FDI) as a strategic component of investment is needed by India for achieving the economic reforms and maintains the pace of growth and development of the economy. The paces of FDI inflows in India initially were low due to regulatory policy framework but there is a sharp rise in investment flows from 2005 towards because of the new policy has broadened. Foreign direct investment (FDI) has been viewed as a power affecting economic growth (EG) directly and indirectly. The main purpose of the study is to analyse the impact of FDI on economic growth in India.

Foreign Direct Investment and Poverty Reduction

2017 ◽  
Vol 18 (2) ◽  
pp. 135-157 ◽  
Author(s):  
Manmohan Agarwal ◽  
Pragya Atri ◽  
Srikanta Kundu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Developing Economies ◽  
Capital Controls ◽  
Capital Inflows ◽  
Capital Account Liberalization ◽  
Fdi Inflows ◽  
The Impact ◽  
Free Movement Of Capital

It is widely proclaimed that capital account liberalization would immensely benefit developing economies because once capital controls are lifted, developing economies create a potential for movement of capital. And, this free movement of capital could possibly increase growth thereby lifting millions out of poverty. India has been gradually liberalizing since the 1980s and throughout more capital inflows were observed compared to outflows. Also, the composition of capital flows has been changing since the 1980s–with Foreign Direct Investment (FDI) inflows rising steadily post-1991compared to portfolio and debt flows. However, since 2000, FDI outflows from India were also witnessed. In this paper we empirically test the impact of FDI flows on poverty in India for 1980–2011. To provide a correct perspective to India’s performance we also analyze the link between FDI flows and poverty for SAARC countries. For a better understanding of how FDI flows impact poverty, we analyze the outflows and inflows separately. The results show both similarities and contrasts in the behaviour of India in comparison with the other SAARC countries.

Foreign Direct Investment in the Make in India Era

2021 ◽  
pp. 474-479
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Trade Openness ◽  
Fdi Inflows ◽  
Dummy Variable ◽  
The Government ◽  
Long Term Impact

The present study attempted to examine the recent effects of FDI on India's economic growth in the Make in India initiative (MII) launched by the government. The trends of FDI inflows in India showed that when the CAGR of FDI inflows was -2.78 percent from 2008 to 2014 (pre-Make in India), the CAGR of FDI inflows was 8.54 percent between 2014 to 2020 (Post-Make in India). Further, the OLS results showed that the variables such as FDI inflows, trade openness, and exchange rate significantly impact India's economic growth. The dummy variable that stood for the Make in India initiative had a statistically significant impact on growth. The predictions about FDI inflows showed an upward trajectory since 2021-2022, which suggested that India may have further scope to attract more FDI into the country if they continue to do reforms like before and enhance competitiveness, and FDI may have a long-term impact on GDP.

scholarly journals Foreign direct investment (FDI) and economic growth in China: vector autoregressive (VAR) analysis

2020 ◽  
Vol 80 ◽  
pp. 01002
Author(s):  
Pengfei Liu ◽  
Han-Sol Lee
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Chinese Economy ◽  
Series Data ◽  
Var Model ◽  
Fdi Inflows ◽  
Vector Autoregressive ◽  
Var Analysis ◽  
The Impact

This study examines the impact of foreign direct investment (FDI) on economic growth in China based on time series data for the period 1981-2018. For an empirical study, we used vector autoregressive (VAR) analysis. Before building our VAR model, we performed tests for unit root, normality, and heteroscedasticity to certify the data quality. The optimal lag 3 was selected using the Akaike information criterion (AIC), Schwartz (SC), and Hannan-Quinn (HQ) criteria. The Granger causality test is additionally performed. Based on the VAR model, we determined the impulse responses and variance decomposition of log FDI and log GDP in China. The results showed a positive and consistent impact of log FDI on China’s economic growth. The impact in the short-term is insignificant, as it is likely that there are multiple factors drive economic growth of China besides FDI inflows. However, the impact of FDI increases to a significant level in the long-term. Which indicates that FDI is one of the main factors to enhance Chinese economy. In conclusion, we suggest a policy implication how to sustain and promote the existing positive effects of FDI inflows on Chinese economy.

scholarly journals Foreign Direct Investment and Economic Growth in Albania

ECONOMICS ◽  
2015 ◽  
Vol 3 (2) ◽  
pp. 27-32 ◽  
Author(s):  
Ylvije Kraja Boriçi ◽  
Elezi Osmani
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Capital ◽  
Positive Impact ◽  
Capital Inflows ◽  
Foreign Direct Investments ◽  
Legislative Framework ◽  
Foreign Capital Inflows

Abstract Since the 1980s, foreign direct investment inflow (FDI) has grown significantly in most developing countries while pertaining Alania, foreign direct investment has started after the 1990s. A lot of developing countries have made policies aimed at reducing FDI barriers. Foreign capital globalization, particularly FDI inflow is increased significantly in developing countries, due to the fact that FDI is the most stable and prevalent component of foreign capital inflows (Adams, 2009) Foreign direct investments are a very important factor for the development of a country and Albania has still much to be done to encourage such investments, especially in the legislative framework. The authors are trying to give the answer to the question that how does foreign direct investment in the Albania affect the nation’s economy? The authors identify that foreign direct investment improves technology and has positive impact on economic growth. Because the overall theory is that FDI inflow enhances and sustains economic growth in the host country.

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