scholarly journals DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THE VISEGRAD GROUP COUNTRIES AFTER THE EU ENLARGEMENT

2018 ◽  
Vol 24 (5) ◽  
pp. 1955-1978 ◽  
Author(s):  
Weihua Su ◽  
Dongcai Zhang ◽  
Chonghui Zhang ◽  
Josef Abrhám ◽  
Mihaela Simionescu ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Direct Investment ◽  
Labour Force ◽  
Eu Enlargement ◽  
The European Union ◽  
Macroeconomic Factors ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
Visegrad Group

Considering the role of foreign direct investment (FDI) inflows in the sustainable development of a country, the main aim of this paper is to identify some macroeconomic factors that positively or negatively influence FDI in Visegrad group countries after the European Union (EU) enlargement in 2004. We employed two types of approaches in our analysis: i) time series and ii) panel data approach. According to the generalized ridge regressions estimated in Bayesian framework, the perceived corruption was a factor that influenced FDI in all the countries. In Poland, Czech Republic and Slovakia corruption came through as a serious obstacle for FDIs since 2005, but this was not the case for Hungary. Even if Hungary is perceived as a country with high influence, foreign investors seem no to care about this fact and are more interested in the quality of human resources and the possibility to increase exports. Our panel approach based on a panel ARDL model identified a significant relationship between FDI, corruption index and labour force with advanced education however this causality was only detected in the long run. According to the Granger causality in panel, the attraction of FDI inflows succeeded in generating changes in total tax rate, but the issues related to corruption were not reduced at an acceptable level for foreign investors in Poland, Slovakia, and the Czech Republic.

scholarly journals Foreign Direct Investment in non-urban public transport in Visegrad Group (V4) countries

2018 ◽  
Vol 2018 (3) ◽  
pp. 8-20
Author(s):  
Zbigniew Taylor ◽  
Ariel Ciechański
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Public Transport ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Comprehensive Overview ◽  
Urban Public Transport ◽  
Visegrad Group

The purpose of this study is to investigate the changes and draw generalizations relating to the processes of foreign direct investments (FDI) in the non-urban public transport in the countries of the Visegrad Group (Poland, Czech Republic, Slovakia and Hungary), after 1989. The processes observed lead mainly to the so-called brownfield investments and cover both bus operators, as well as rail carriers. The focus is placed on comprehensive overview of the activities of the largest investor (the German national railway DB) existing in all four countries of the V4 Group, and leading railway services in the most of the described countries.

scholarly journals What worth is a BIT? Impact of BITs on FDI Inflows into India

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Anshuman Kamila ◽  
Mitali Chinara
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Best Practice ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
New Model ◽  
Indian Model Bit ◽  
The Government

Developing countries often consider foreign direct investment (FDI) as an engine to boost economic growth. Therefore they try to promote investment inflow by various means. One approach is to offer investment guarantees to foreign investors using Bilateral Investment Treaties (BITs). Following international best practice, India has signed a number of BITs to stimulate inflow of FDI. Till date, the Government of India has signed BITs with 83 countries. These BITs were largely negotiated on the basis of the Indian Model BIT of 1993. There have been recent moves that point in the direction of India fundamentally altering the text of its BITs with countries, including calling off existing BITs and approving a new model BIT. However, concerns have been raised as to the possible pernicious impact of these changes on the inflow of FDI into India. This paper investigates whether the concern is warranted at all – by asking if BITs significantly impact the inflow of FDI. It is established that BIT is indeed a veritable boost to FDI inflow, and the estimated coefficient remains significant and robust across econometric specifications. Therefore, a note of caution is sounded for the rejigging exercise involving BITs that has been initiated by India.

PROSPECTS OF CROSS-BORDER INVESTMENT COOPERATION BETWEEN UKRAINE AND HUNGARY

2017 ◽  
Author(s):  
Volodymyr Hoblyk ◽  
◽  
Maryna Resler ◽  
Yaroslava Demyan ◽  
◽  
...  
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Development Program ◽  
Retail Trade ◽  
Border Region ◽  
The European Union ◽  
Foreign Investors ◽  
Cross Border ◽  
The Cross

The article examines the attraction of foreign investment in the Transcarpathian region within the cross-border region. Investment cooperation with the territories bordering the countries of the European Union - Poland, Romania, and Hungary - is analyzed. Slovakia. It is established that the most intensive cooperation is carried out in the Ukrainian-Hungarian cross-border region. In addition to foreign direct investment, Hungary provides both lending assistance and through Egan Ede's Economic Development Program, strengthening economic, cultural, and historical ties with its border areas. Using statistical methods, the inflow of foreign direct investment in the Transcarpathian region is analyzed. It is established that the total volume of foreign direct investment is 243 million US dollars, including from the countries of the European Union 225.3 million US dollars, which is 92.7% of the total. It is determined that the greatest interest among foreign investors by type of economic activity is as follows: industry - 77.3% (total), wholesale and retail trade - 5.2%, then - transport, agriculture, forestry and fisheries, construction, real estate transactions. The share of Hungarian investments in the Transcarpathian region is most significant among neighboring countries. The possibilities of using the experience of Hungary in the administrative-territorial and land reform and the possibility of applying it in territorial communities are considered. It is proposed to create an association of agricultural producers in the united communities with the participation of farmers, private farms, and foreign investors. The methodology and principles of creating the association are laid down. The study identified factors that hinder the process of investing and improving the investment climate in the cross-border region. The most important is the insufficient development of border infrastructure, inadequate institutional support for investment activities, low quality of human capital, the inertia of border business.

Investment Attractiveness of Visegrad Group Countries

2014 ◽  
pp. 740-775 ◽  
Author(s):  
Tomasz Dorożyński ◽  
Anetta Kuna-Marszałek
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Direct Investment ◽  
Economic Transformation ◽  
Geographic Proximity ◽  
The Czech Republic ◽  
Shared Experiences ◽  
Main Determinants ◽  
Political Economic ◽  
Visegrad Group

The aims of this chapter are to evaluate the main determinants of the inflow of FDI into selected countries of CEE and to examine the volume, dynamics, and structure of FDI inflow into these countries. Due to certain similarities, the authors focus the analysis on four countries: Poland, the Czech Republic, Hungary, and Slovakia. The reasons are geographic proximity, political, economic, and cultural similarities, as well as shared experiences of economic transformation. This chapter focuses on matters pertaining to foreign direct investment, mostly on the reasons motivating FDI inflow in light of selected studies and theories. The authors also provide characteristics of the dynamics and structure of FDI inflow into the V4 countries. The final part of the chapter compares investment attractiveness, the system of incentives, and identifies barriers facing investors in the analyzed countries.

Domestic arbitral institutions and foreign direct investment

2020 ◽  
Author(s):  
Weiwen Yin
Keyword(s):  
International Economic ◽  
Foreign Direct Investment ◽  
Dispute Resolution ◽  
Local Governments ◽  
Direct Investment ◽  
International Institutions ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
Domestic Firms ◽  
Institutional Variable

Abstract Existing literature focuses on how domestic and international institutions address investor–state disputes and attract foreign direct investment (FDI). However, contractual disputes between foreign and domestic firms are largely neglected. For foreign investors, dispute resolution mechanisms that can effectively resolve contractual disputes are very important as well. In this article, I examine the effect of institutions that conduct arbitrations for disputes between foreign and domestic firms on FDI inflows. Focusing on the within-country variation of China, I find that provinces with CIETAC (China International Economic and Trade Arbitration Commission) agencies receive a higher level of FDI. These agencies attract FDI because they can credibly signal that local governments are truly willing to treat foreign investors fairly when they have disputes with local firms. In sum, this article highlights an institutional variable that has received little attention in the literature on the politics of FDI.

scholarly journals Investment Policy of the European Union. Empirical Evidence of the Effects of Foreign Direct Investment on The European Union Economy

2021 ◽  
Vol 2021 (1) ◽  
pp. 1-10
Author(s):  
Corneliu Russu
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Empirical Studies ◽  
Investment Policy ◽  
The European Union ◽  
Foreign Investors ◽  
Community Economy ◽  
Definition Of ◽  
Main Effects

The paper deals with the evolution during a period of over 60 years of the investment policy of the European Union, pointing out the main moments that marked the steps taken towards the progressive shaping of an increasingly unitary character of this policy. The increase of the interest of foreign investors for strategic, sensitive sectors of the economy of the member countries determined, after 2017, a change in the philosophy of establishing and applying the Union's investment policy, materialized in the more precise definition of "foreign investor" and in implementing a more rigorous mechanism of control of foreign direct investment. Further on are presented the main effects of foreign investment in the Community economy, resulting from empirical studies on this topic, the conclusions reached by these studies being sometimes divergent.

scholarly journals Foreign Direct Investment and Trade—Between Complementarity and Substitution. Evidence from European Union Countries

2021 ◽  
Vol 14 (11) ◽  
pp. 559
Author(s):  
Marian Catalin Voica ◽  
Mirela Panait ◽  
Eglantina Hysa ◽  
Arjona Cela ◽  
Otilia Manta
Keyword(s):  
European Union ◽  
Foreign Direct Investment ◽  
Foreign Trade ◽  
Direct Investment ◽  
Trade Flow ◽  
The European Union ◽  
Host Countries ◽  
Positive Effects ◽  
The Relationship ◽  
Visegrad Group

This aim of this work is to study the relationship between foreign direct investment (FDI) and trade. FDI is a driving force for economic growth for host countries. The positive effects of FDI are seen in many aspects of the economy. However, the implications of FDI on foreign trade are questionable. Therefore, this study uses a Granger causality technique to test whether the relationship between FDI and foreign trade is complementary or substitutive. The findings of this study indicate that this relationship appears to be complementary, and FDI investment does cause an increase in trade flow in the countries that are taken into consideration. This research aims to make a comparison between the relations of FDI flows of three groups of countries from the European Union (EU)—Romania and Bulgaria, the Visegrád Group and the Euro area—for the period of 2005 to 2019. However, the results indicate that this link between the variables is not yet found for the three group of countries, and further research is required in this aspect. This leads to the conclusion that the FDI impact on foreign trade of the host country depends on the type of investment and absorptive capacity of the receiver, the economic development of host and home countries, and not every type of FDI leads to more trade.

scholarly journals Foreign direct investment and the investment climate in South-East Europe

2004 ◽  
Vol 49 (163) ◽  
pp. 71-92 ◽  
Author(s):  
Slavica Penev ◽  
Matija Rojec
Keyword(s):  
Foreign Direct Investment ◽  
Regional Integration ◽  
Direct Investment ◽  
Investment Climate ◽  
The European Union ◽  
Fdi Inflows ◽  
East Europe ◽  
The Third ◽  
South East Europe ◽  
Countries In Transition

Foreign direct investment (FDI) has played an important role in the restructuring of economies of the new member countries of the European Union. FDI levels in South East Europe (SEE) are much lower than in the CEE countries in transition, what reduces the potential restructuring impact of FDI in SEE. The issue here is, how to strengthen FDI inflows in SEE. Along these lines, the aim of the paper is to analyze the countries of SEE as a location for FDI. In the first section we present the economic situation and trends in SEE countries, which are of specific relevance for investors from abroad. Second section deals with FDI trends and situation in SEE countries while the third section analyses individual elements of investment climate in SEE countries. In section four we argue that EU and regional integration processes in SEE are important for making the region a more attractive location for FDI.

scholarly journals The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran: A Case Study

2019 ◽  
Author(s):  
Mehdi Rasouli Ghahroudi ◽  
Li chy Chong
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Inflation Rate ◽  
Positive Impact ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Macroeconomic Determinants ◽  
The Impact ◽  
Moderating Role

In this paper, we examine the impact of the macroeconomic determinants of foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI inflows into Iran. The empirical results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run impact on FDI inflows in Iran. Our findings also show that GDP growth rate and trade openness have no significant effect on FDI. Our results indicate that sanctions do not have a significant moderating role in the relationship between macroeconomic factors and foreign direct investment. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanction has a positive impact on inflation rate and exchange rate in Iran. Finally, our findings show that sanctions have had a significant impact on Iran's economic growth in recent years due to increasing the severity level of sanctions.

Energy access and foreign direct investment in an emerging market: the Ghanaian perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Bugri Anarfo ◽  
Abel Mawuko Agoba ◽  
Yakubu Awudu Sare ◽  
Daniel Komla Gameti
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Practical Implication ◽  
Emerging Market ◽  
Least Square ◽  
Energy Access ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Content Type ◽  
The Impact

Purpose This study aims to investigate the impact of energy access on foreign direct investment (FDI) in an emerging market. Design/methodology/approach The study uses the two-stage least square instrumental variables estimation approach to compute the parameters of the model to account for any potential endogeneity and time persistence in energy access. Findings The results show that energy access significantly influences FDI inflows in Ghana. The results of the study also revealed that natural resources and macroeconomic variables such as real interest rate, gross domestic product growth rate are significant determinants of FDI inflows in Ghana. Practical implications The practical implication of this study is that there is a need for energy sector policy reforms in Ghana that would guarantee a secured and continued supply of energy to enhance energy access to boost FDI. Ghana should aim for a cost-effective, stable and environmentally friendly source of energy as an alternative to hydro energy as the main source of its power generation to promote FDI. Also, Ghana should initiate and implement policies aimed at creating an enabling and stable macroeconomic environment, as macroeconomic factors in this study are found to be drivers of FDI. Originality/value This study provides firsthand information on energy access and FDI from the Ghanaian perspective.

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