scholarly journals Governance, Regulations, Trade Openness and FDI Inflows: Empirical Study

2015 ◽  
Vol 7 (12) ◽  
pp. 44 ◽  
Author(s):  
Marwan Ahmad Alshammari ◽  
Mosab Amjad Hammoudeh ◽  
Milos Pavlovic

Governance effectiveness and regulation quality have been drawing the attention in the international business arena, yet, there has not been a consensus findings regarding its potential impact on the FDI inflows. In this paper, we examine the possible links between the governments’ effectiveness and their regulation quality and the amount of FDI inflows using the existing literature and theories in the economic and international business fields. We find that regulation quality, control of corruption, and trade openness have mixed results, suggesting that further exploration is needed in this field. Results are explained and future directions are suggested based upon the empirical findings.

2015 ◽  
pp. 42-59
Author(s):  
Saba Ismail ◽  
Shahid Ahmed

The research objective of this paper is to explore the empirical linkages between economic growth and foreign direct investment (FDI), gross fixed capital formation (GFCF) and trade openness in India (TOP) over the period 1980 to 2013. The study reveals a positive relationship between economic growth and FDI, GFCF and TOP. This study establishes a strong unidirectional causal flow from changes in FDI, trade openness and capital formation to the economic growth rates of India. The impulse response function traces the positive influence of these macro variables on the GDP growth rates of India. The study also reveals that the volatility of GDP growth rates in India is mainly attributed to the variation in the level of GFCF and FDI. The study concludes that the FDI inflows and the size of capital formation are the main determinants of economic growth. In view of this, it is expected that the government of India should provide more policy focus on promoting FDI inflows and domestic capital formations to increase its economic growth in the long-term.


Author(s):  
Paul B. Paulus ◽  
Karen I. van der Zee ◽  
Jared B. Kenworthy

It is often presumed that diversity of group members will enhance group creativity. However, the evidence for this has been mixed. This chapter summarizes the state of the science in this area and provides an integrative framework based on the categorization elaboration model of van Knippenberg and colleagues. It focuses on the factors that influence the expression of diverse perspectives, attention to such expressions, the elaboration of the shared ideas, and how these lead to creative outcomes. It evaluates the importance of identity factors in this process and discusses the potential impact on both divergent and convergent creativity. It notes some of the gaps in the literature and suggests future directions.


2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.


Author(s):  
Zhuo Zhao ◽  
Yangmyung Ma ◽  
Adeel Mushtaq ◽  
Abdul M. Azam Rajper ◽  
Mahmoud Shehab ◽  
...  

Abstract Many countries have enacted a quick response to the unexpected COVID-19 pandemic by utilizing existing technologies. For example, robotics, artificial intelligence, and digital technology have been deployed in hospitals and public areas for maintaining social distancing, reducing person-to-person contact, enabling rapid diagnosis, tracking virus spread, and providing sanitation. In this paper, 163 news articles and scientific reports on COVID-19-related technology adoption were screened, shortlisted, categorized by application scenario, and reviewed for functionality. Technologies related to robots, artificial intelligence, and digital technology were selected from the pool of candidates, yielding a total of 50 applications for review. Each case was analyzed for its engineering characteristics and potential impact on the COVID-19 pandemic. Finally, challenges and future directions regarding the response to this pandemic and future pandemics were summarized and discussed.


2016 ◽  
Vol 8 (2) ◽  
pp. 93-110 ◽  
Author(s):  
Carol Teresa Wekesa ◽  
Nelson H. Wawire ◽  
George Kosimbei

Kenya’s foreign direct investment (FDI) inflows as a percentage of GDP have been increasing negligibly over the last 4 years, increasing from 0.4 per cent in 2010 to 0.9 per cent in 2013. And yet evidence shows that quality infrastructure lowers the cost of doing business and thus attracts FDI. Kenya has visible signs of infrastructure inadequacy and inefficiencies despite the fact that since the year 2000, there has been increased budgetary allocation to the infrastructure sector. This study, therefore, sought to determine the effects of transport, energy, communication and water and waste infrastructure development on FDI inflows in Kenya. The study used annual time series data sourced from Central Bank of Kenya, World Bank and the United Nations Conference on Trade and Development (UNCTAD). Using multiple regression analysis, it was established that improved transport infrastructure, communication infrastructure, water and waste infrastructure, exchange rate, economic growth and trade openness are important determinants of FDI inflows into Kenya. Hence, for Kenya to attract more FDI, continued infrastructural development is key since quality infrastructure affords investors a conducive investment climate in which to operate.


2021 ◽  
Vol 7 (2) ◽  
pp. 263-272
Author(s):  
Sulaman Hafeez Siddiqui ◽  
Sohail Saeed ◽  
Areeba Khan ◽  
Hina Bhatti

Purpose: The benefits of Information and Communication Technologies (ICTs) in environmental resource management has been a topic of hot discussion for the policymakers across the world.  For the purpose, the government of Pakistan took initiative in 2018 to use technology for the country’s social welfare, financial benefits and to enhance environmental sustainability and named it as “Digital Pakistan Initiative”.Design/Methodology/Approach: For analysis, this study took CO2 emissions as the dependent variable and ICT, FDI inflows, and Trade Openness as independent variables. Data were collected on bimonthly basis from 2004 through 2019, and analyzed employing ARDL approach. Main purpose of the study was to examine the short-run and long-run relationship among carbon emissions and ICT, FDI Inflows and Trade Openness.Findings: The findings show that there exists a short-run relationship among all the variables; however, FDI inflows and trade openness have a significant relationship with CO2 emissions. The results also exhibit that there is no long-run relationship between CO2 emissions, FDI inflows, and Trade openness while ICT has an insignificant long-run relationship with CO2 emissions. With the increase of information and communication, the country’s environmental sustainability is also increased. Implications/Originality/Value: The current study was based on least considered variables and the pioneer in testing the complex relationship through VAR estimation.


Author(s):  
Tania Megasari ◽  
Samsubar Saleh

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).


2017 ◽  
Vol 65 (1-4) ◽  
pp. 172-192
Author(s):  
Rajneesh

This article examines the existence of a long-run relationship between energy intensity, trade openness, structure of the economy and FDI inflows in India from 1973 to 2013 using auto regressive distributive lag (ARDL) bounds test methodology. The results indicate that (a) there is a long-run cointegration among the analysed variables and (b) an increase in trade openness, share of services in gross domestic product (GDP) and share of FDI in domestic investments results in lowering energy intensity. The study also finds that the magnitude of impact of the share of industry in increasing energy intensity in India outweighs the combined energy intensity lowering impact of trade openness, share of services and share of FDI. The study validates tenets of the theory of heterogeneity of firms in international trade and pitches for including ‘energy intensity’ as a policy parameter in promoting ‘energy-frugal’ technologies via Make-in-India initiative, trade and FDI policies.


2022 ◽  
pp. 097226292110662
Author(s):  
Isha Jaswal ◽  
Badri Narayanan G ◽  
Shanu Jain

Ever since the liberation of trade policies in India, Foreign Direct Investments (FDI) has been crucial in the growth of the economy, both at the macro as well as sector level. The association between FDI and economic growth is an area of interest globally. The investment decisions are affected by several national and international events that add to the volatility of the number of inflows. COVID-19 pandemic severely impacted the intensity of FDI inflows. But the strong resilience by our government manifested in crucial policy reforms and proactive decision-making minimized the impact. This article examines the potential impact of FDI on crucial macroeconomic variables using the Computable General Equilibrium (CGE) Model. Introducing the policy shock of $90 billion into the model, an increase of 5.68% per annum in GDP is estimated. Findings indicate that the impact of FDI shall be favourable to a large number of sectors mainly metals, construction, motor vehicle, computers, and electronics in terms of increased output, exports, and employment opportunities. The study offers logical implications for the policymakers to continue strengthening their moves to attract FDI.


Sign in / Sign up

Export Citation Format

Share Document