scholarly journals Economic Effects of Inward Foreign Direct Investment in Myanmar

2020 ◽  
pp. 175-190
Author(s):  
Thet Mon Soe
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Oil And Gas ◽  
Regional Level ◽  
Growth Effect ◽  
Domestic Investment ◽  
Model Framework ◽  
Inward Foreign Direct Investment ◽  
Level Analysis

This paper aims to examine the effects of inward foreign direct investment (FDI) on economic growth and domestic investment at the regional-level and sectoral-levels of Myanmar economy, by applying a panel vector-autoregressive model framework. The major research questions are twofold: whether inward FDI causes economic growth or economic growth attracts inward FDI, and whether inward FDI crowds in or crowds out domestic investment. The main findings are summarized as follows. In the regional level analysis, there is a difference in the FDI-economic growth relationship between the FDI-intensive region and the FDI-less-intensive one. In the FDI-intensive region, the bidirectional FDI-economic growth relationship is found, supporting the both hypotheses of FDI-driven growth and growth-driven FDI, while the FDI-driven growth effect is larger than the growth-driven FDI one. In the FDI-less-intensive region, on the other hand, FDI deteriorates economic growth whereas economic growth still induces FDI. The difference in the FDI-economic growth relationship between the regions might come from the gap in agglomeration effects. In the sectoral level analysis, the crowd-in effect of FDI on domestic investment is found in the non-oil and gas sectors, since the FDI in the oil and gas sector has less linkages to domestic investment.

Autocratic time horizons and the growth effect of foreign direct investment

2019 ◽  
Vol 20 (3) ◽  
pp. 143-161 ◽  
Author(s):  
Daehee Bak ◽  
Chungshik Moon
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Influence ◽  
Policy Preferences ◽  
Growth Effect ◽  
Host Countries ◽  
Time Horizons ◽  
Fdi Spillovers ◽  
Positive Effect

AbstractThe positive influence of foreign direct investment (FDI) on host countries' economic growth has been widely debated. Given the mixed empirical evidence, scholars have sought to find the economic preconditions under which FDI spillovers are likely to occur and facilitate economic growth in the host countries. Those preconditions are not exogenously dictated but largely shaped by governments' policy preferences. Particularly in autocracies, an autocrat's policy preferences are the driving force that determines whether a host country is likely to be equipped with growth-friendly institutions and policies. We argue that such economic institutions and policies are dependent on the time horizons of autocrats in power. Our empirical analysis covering 64 autocratic countries from 1970 to 2005 supports our main argument that FDI has a positive effect on growth when autocratic time horizons are sufficiently long, and positive FDI spillovers mainly occur through the protection of property right institutions.

Do surges in foreign direct investment inflows lead to surges in economic growth? Evidence from developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jagadish Prasad Sahu
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Domestic Investment ◽  
Fdi Inflows ◽  
Content Type ◽  
Regression Methods ◽  
Recursive Bivariate Probit ◽  
Rapid Economic Growth

Purpose The purpose of this paper is to examine whether surge in foreign direct investment (FDI) inflows leads to surge in economic growth in 52 developing countries for the period 1990-2014. Design/methodology/approach The author used a threshold approach to identify surge incidences in gross domestic product (GDP) per capita growth rates and FDI inflows (measured as percentage of GDP) for each country included in the sample. Three different criteria are used to identify surge instances. As a preliminary analysis the author used the probit and complementary log–log regression methods to estimate the likelihood of growth surge occurrence. To correct the potential endogeneity problem the author jointly estimated the growth surge and FDI surge equations using the recursive bivariate probit (RBP) regression. Findings The author found that East Asia and the Pacific region has highest rate of growth surge incidences followed by South Asia. The results suggest that surge in FDI inflows significantly increases the likelihood of growth surge. The finding is robust to alternative surge definitions and methods of estimation. Practical implications The analysis reveals that inbound FDI flow is a critical driver of economic growth in developing countries. Large FDI inflows matters for achieving rapid economic growth. Therefore developing countries should adopt favourable policies to attract more FDI. Policymakers should focus on improving the investment climate of the country to boost domestic investment and to attract larger amount of FDI into the economy. Originality/value To the best of the author’s knowledge this is the first study to examine whether surge in FDI inflows stimulates surge in economic growth in developing countries. The analysis reveals that FDI surge is a robust predictor of rapid economic growth in developing countries.

THE RELATIVE CONTRIBUTIONS OF DOMESTIC AND FOREIGN DIRECT INVESTMENTS AND EXPORTS TO MALAYSIA'S ECONOMIC GROWTH

2015 ◽  
Vol 60 (02) ◽  
pp. 1550011 ◽  
Author(s):  
CHOR FOON TANG ◽  
EU CHYE TAN
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Impact ◽  
Empirical Studies ◽  
Decomposition Analysis ◽  
Variance Decomposition ◽  
Growth Effect ◽  
Foreign Direct Investments ◽  
Causality Test

The objective of this study is to assess the roles of domestic direct investment, foreign direct investment and exports as catalysts of Malaysia's economic growth using cointegration and Granger causality test techniques. To address the dynamics in the growth relationships, the study also performs time-varying regression and variance decomposition analyses. It covers the quarterly sample period from 1991:Q1 to 2010:Q2. The econometric results suggest that all the three variables have a positive impact on economic growth and thus are catalytic to economic growth. However, the growth effect of domestic direct investment is more stable than that of the other two growth determinants. Contrary to earlier empirical studies, the variance decomposition analysis herein reveals that domestic direct investment is the most important determinant of growth in the long-run (L-R) compared to exports and foreign direct investment.

scholarly journals Empirical Analysis of Determinants of Economic Growth: Evidence from SAARC Countries

2011 ◽  
Vol 3 (2) ◽  
pp. 115-121
Author(s):  
Muhammad Akram ◽  
Syed Shabihul Hassan . ◽  
Muhammad Farhan . ◽  
Hassan Mobeen Alam .
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
South Asian ◽  
Direct Investment ◽  
Regional Cooperation ◽  
Least Square ◽  
Domestic Investment ◽  
Ordinary Least Square ◽  
Total Debt ◽  
Determinants Of Economic Growth

This study investigates the factors that determine and enhance economic growth. The factors to determine the economic growth of South Asian Association for Regional Cooperation (SAARC) countries are foreign direct investment, total debt, gross domestic investment and inflation. Simple ordinary least square is applied to analyze the determinates of economic growth with the help of panel data for 39 years with annual frequency from 1971 to 2009. The economic growth may gain boost by the factors not only by these but also many others. In this study foreign direct investment and inflation are found having inverse relationship with economic growth while gross domestic investment and total debt are found positively associated with economic growth. This study may prove useful contribution for policy making for South Asian countries.

scholarly journals The role of foreign direct investment in economic growth of Nigeria

2020 ◽  
Vol 28 (2) ◽  
pp. 357-366
Author(s):  
Michael Madojemu
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Unit Root Test ◽  
Domestic Investment ◽  
Econometric Methods ◽  
Long Run ◽  
Security Challenges ◽  
Adf Test

The paper investigates the relevance of foreign direct investment (FDI) as a factor inhibiting economic growth in Nigeria. This paper inspects the sectorial influence of FDI in manufacturing, mining, oil and the telecommunications sectors on economic growth in Nigeria based on theoretical framework founded on the standard growth accounting theory, detailed analysis of the sectorial FDI over the period 1981 and 2017 was carried out. Various econometric methods are employed, such as the ADF test, Dickey and Fuller test (1979), PP test (Phillips and Perron, 1988) are used for the unit root test, and the Shahbaz and Rahman (2010) method is used for the long-run relationship between the foreign direct investment and economic growth. The paper also adapted the framework provided by M.B. Obwona (2004). The paper formalizes a mechanism of recommendations to allow for the influence of foreign direct investment in the transmission of socio-economic growth generated in Nigeria. In conclusion, government should provide an enabling environment that will encourage foreign investors to invest in Nigeria economy by addressing the security challenges in the country, understanding that investment friendly environment will improved regulatory framework as well as encourage domestic investment.

scholarly journals Pengaruh Foreign Direct Investment (FDI) Terhadap Pertumbuhan Ekonomi di Nusa Tenggara Barat Tahun 2010-2014

2017 ◽  
Vol 2 (2) ◽  
pp. 18-24
Author(s):  
Munyta Mentari ◽  
Abdul Ilman ◽  
Didi Suwardi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Capital Investment ◽  
Fixed Effect Model ◽  
Domestic Investment ◽  
Level Of Education ◽  
Domestic Capital ◽  
Level 3

This research aims to analyse the effect of Foreign Direct Investment (FDI) on the economic growth of West Nusa Tenggara (NTB) province within 2010-2014. The dependent variable is economic growth, meanwhile the independent variables are :  1)  FDI proxied from the percentage of foreign capital investment  towards  PDRB; 2) Schooling or level of education proxied from the percentage of  up to 15 years –old people who complete senior high school education level; 3) Domestic investment proxied from the percentage of  domestic capital investment towards PDRB; 4) The interaction of FDI and human capital (level of education) and the control variables which consist of APBD proxied from the percentage of APBD towards PDRB and inflation variable proxied from PDRB deflator. Data analysis used in this study is regression model of panel data. The data is obtained  from 10 districts and cities in  NTB province from 2010 to 2014. The chow test and hausman test resulted to use fixed effect model in that panel data regression procedure. The results show that FDI has a positive yet unsignificant effect on the economic growth with the confidence level of 95%. It is caused by the low level of technological transfer by the province human resources due to the domination of less educated workers.

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