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This paper studies the effects of foreign direct investment (FDI) on domestic terrorism. Using a cross-national, time-series analysis of 114 countries from 1991–2017, and employing structural equation modeling to test a number of mediating factors, we find that the impact of FDI on domestic terrorism depends on the host state's level of economic development. For host countries at higher-income levels, FDI boosts economic development and global integration promoting prosperity, increasing counterterrorism resources, and reducing the economic grievances that foster terrorism. Conversely, for lower-income host countries, increased FDI fuels higher domestic terrorism, as it intensifies clashes between traditional and modern elements within society, raises economic discrimination, heightens perceptions of economic insecurity, and subsequently leads to grievances directed against the state. Our results indicate a curvilinear relationship between FDI inflows and domestic terrorism, suggesting that FDI produces a double-edged sword between promoting economic development and increasing domestic terrorism in host states. [ABSTRACT FROM AUTHOR]

How does organized crime affect foreign direct investment (FDI) in developing countries? Some research examines the effects of crime, such as homicide rates, on FDI. However, we know little about how organized crime in particular might affect such investment. This paper examines organized crime and FDI in Mexican states between 2000 and 2018. This case is important because Mexico is one of the top global recipients of FDI. At the same time, criminal violence has killed hundreds of thousands of people in Mexico in recent years, and scholars seek to understand the violence's wider effects. We explain how organized crime competition, as opposed to crime generally, should shape investors' decisions. Analyses using original data on criminal organization territory find that higher numbers of criminal groups are associated with lower levels of new FDI. Other measures of crime, such as homicide rates or crime rates, are not associated with foreign investment. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) has been widely acknowledged as a prominent vehicle to transfer technology, increase productivity and promote economic growth in recipient countries. However, FDI's contribution to economic growth can be more or less pronounced across countries conditioned on the development strategy adopted. This paper theoretically and empirically explores the impact of FDI inflows on economic growth when a comparative advantage development strategy is followed and when it is defied. By employing cross‐country panel data evidence for 72 countries over the 1971–2019 period, the results suggest that FDI is an essential driver for economic growth. However, the greater the level of defiance from comparative advantages estimated by the technology choice index (TCI), the lower the FDI inflow contributes to economic growth. The findings are more significant for the instrumental variable approach postulating the potential endogeneity of FDI and TCI and decomposed FDI by sector. [ABSTRACT FROM AUTHOR]

This paper describes an empirical investigation to provide a more accurate and detailed picture of the relationship between education and the two core forms of international investment: foreign direct investment (FDI) and foreign portfolio investment (FPI). We found that human capital related to education can lay a foundation with policy and strategy implications for host country governments and multinational corporations. The analysis focused on developed countries belonging to the OECD, from 1960 to 2010, and employed a series of education variables across the main educational levels. The empirical findings suggest that FDI is affected by the secondary and tertiary levels while FPI is affected only by the tertiary. Also, the Schooling and Completion Ratios appear to have a major impact on the flow of both FDI and FPI. [ABSTRACT FROM AUTHOR]

Belt and Road Initiative (BRI) aspects, i.e. open trade (OT), foreign direct investment (FDI), capital formation, and information and communication technology (ICT) exports, are fundamental for any nation's sustainable Economic Development (ED). The paper seeks to examine the effect of those aspects on the ED of Saudi Arabia and other Middle East nations which participate in BRI. The study uses the yearly cross-sectional time-series data from 2013 to 2022. The dual-stage Generalized Method of Moments (GMM) is employed in the sample because the sum of parameters is smaller than the sum of moment clauses. The findings reveal that capital formation and FDI significantly and positively affect the ED, while OT and ICT exports negatively and insignificantly affect it. The general findings show that China's external FDI has increased the ED in Saudi Arabia and other Middle East nations whereas OT shows an insignificance as the majority of emerging nations should capitalize industrial development and hearten export expansion. This study is an initial effort to examine the relationships among BRI aspects and sustainable ED in Middle East Nations using the GMM method. [ABSTRACT FROM AUTHOR]

Copyright of Pacha: Revista de Estudios Contemporáneos del Sur Global is the property of PACHA REVISTA DE ESTUDIOS CONTEMPORANEOS DEL SUR GLOBAL and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The decoupling of carbon emissions has also become the dependence of countries' development. Finance plays an important role in decoupling economic development from carbon emissions. This paper explores the impact of financial development in different regions on the decoupling of carbon emissions from economic growth, using the Tapio decoupling elastic model and the method of fully modified least squares (FMOLS) to study the impact of financial development on carbon emissions in six regional panels from 1995 to 2020: and Foreign direct investment (FDI), urbanization, population, and infrastructure as control variables. The results turn out that financial development will promote the decoupling of carbon emissions from economic growth in the ECA region. For EAP, SSA, AC, SA, and MENA regions, financial development will promote the growth of carbon emissions, and due to the different economic development dynamics of different countries, the positive effects of financial development on carbon emissions are heterogeneous. The impact of FDI, urbanization, and infrastructure on carbon emissions varies from region to region. The population will promote the growth of carbon emissions, regardless of the region. In addition, the ECA region is the most countries that has achieved the strong decoupling and is the first to realize the transition from weak decoupling to strong decoupling. Therefore,the ECA, EAP and AC region should accelerate the construction of a green financial system to promote the decoupling of economic growth and carbon emissions. The SSA, SA and MENA region should speed up the transformation of economic development mode and move towards weak decoupling or even strong decoupling. [ABSTRACT FROM AUTHOR]

While most studies in the existing literature focused on the direct relationship between FDI and innovation, this paper further analyzes whether governance in developing economies mediates this relationship. A 25-year cross-sectional time-series data from 1995 to 2019 were collected from the World Bank Development Indicators and the Worldwide Governance Indicators (2019) databases. This panel dataset was estimated using a system GMM. A novel finding emerged from the investigation: the positive impact of FDI on domestic innovation is mediated by two governance variables: voice and accountability and regulatory quality. This suggests that the impact of FDI on domestic innovation is strengthened when combined with the effects of mediating variables. The results imply that, in the absence of high governance quality, the traditional policy prescription--such as increasing government spending on R&D and education--may not be adequate to promote FDI's innovation spillovers. The findings suggest that governments in developing nations should work to improve the voice & accountability and regulatory quality indicators by ensuring that citizens take part in the decision-making to promote the flow of knowledge and information that fosters innovation. This will help to strengthen the influence of FDI on domestic innovations. In addition, the governments should foster an environment that is welcoming to foreign investment and implement the appropriate regulatory reforms, such as those that strengthen competition protection, property rights protection, and transparency in the operations of the organizations implementing policies. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) of multinational corporations (MNCs) from Central Europe have become more visible in the last decade, but many studies describing the role of talent management (TM), competency management (CM), and organizational leadership (OL) in MNCs have taken place in enterprises with headquarters in developed countries. The relationship between different variables in MNCs headquartered in less developed countries has not been satisfactorily explained in the scientific and professional literature. Hence, the main aim of this paper is based on the outcomes presentation of the relations between TM, CM, and the advancement level of OL practices in MNCs having their headquarters in less developed countries. The theoretical and empirical suppositions are based on two major concepts: resource-based views and a situational approach. The data were collected using the computer-assisted telephone interviewing (CATI) method in 200 nonfinancial enterprises with the domination of the Polish capital having foreign entities, inter alia, in Central and Western Europe. The conducted research shows that there is a relationship among TM, CM, and OL practices. Also, there are significant differences between companies depending on the duration of the MNC's operation on the market, the size of the organization, and the type of business profile. Whereas the assumptions have been based on a literature review, empirical research has not confirmed that there is a difference between foreign subsidiaries located in more and less developed countries (here, Central Europe and Western Europe). [ABSTRACT FROM AUTHOR]

Considering the uneven geography of foreign direct investment in Africa, this article examines political, demographic and infrastructural factors that have led six countries – Burundi, Central African Republic, Comoros, the Gambia, Guinea Bissau and São Tomé and Príncipe – to be the least attractive territories to the external capital. This paper investigates the extent to which political stability, qualification of labor, potential consumer market, regional integration, and infrastructure play a central role in attracting investments. It also debates Geography's role in investigating African countries' particularities to avoid common generalizations, which are still disseminated by Afro-Optimism and Afro-Pessimist perspectives. [ABSTRACT FROM AUTHOR]

Considering that foreign investments represent a significant generator with which enterprises and host countries can achieve their economic growth and development, the aim of this research is to determine the impact that foreign investments had on individual marketing planning processes (research and development, procurement policy, distribution and sales and post-sales policies) in Bosnian and Herzegovinian enterprises. The research results show that foreign investments determine changes in the process of planning sales activities, procurement activities, distribution and post-sales activities, while the changes are not statistically significant when it comes to research and development activities. The contribution of this paper is reflected in the evaluation of the results achieved by Bosnia and Herzegovina in terms of the inflow of FDI, and the analysis of the effects that FDI, realized in Bosnia and Herzegovina in the last five years, had on the processes of research and development, procurement, distribution, sales and post-sales policy of the recipients. [ABSTRACT FROM AUTHOR]

After successfully surviving and braving the harsh blazing winds coming in from the giant of the eastern hemisphere, US has somehow relegated itself to the same position again but this time with an enemy hell bent on reducing US to dust as far as its title as a superpower is concerned. China is not only reading United States really well to counter it but is bring proactive by anticipating its moves and neutralizing it. China and United States are up against each other in every single field and corner of the world. Wherever one lays foot, the other tries to hoist its flag there. This version of cold war has crept into the South America and Central America which are already suffering politically and economically. United States for a long time incentivized these states to sing its praises by concluding Free Trade Agreements with the Dominican Republic, Costa Rica, El Salvador, Nicaragua, Honduras, Panama, Peru and Mexico. Due to other commitments, the last few decades saw the demotion of these states in the list of US' priorities therefore limiting its role only to the promotion of security and democratic ideals. Meanwhile China used this opportunity to infiltrate deep into this region by striking Free Trade Agreements of its own with Brazil, Chile, Costa Rica, Per and Uruguay and is in talks with other countries one of which is Ecuador to join the list. This paper holds to pin point and then trace the path of these two major powers in navigating the Latin American front of the Cold War 2.0. It is set to be a qualitative study banking on primary and secondary data by accessing archives, journals, articles, newspaper, magazines, think tanks, policy makers etc. [ABSTRACT FROM AUTHOR]

With the introduction of democracy in 1994, South Africa was faced with significant issues that necessitated action to improve the levels of domestic and foreign direct investments required to accelerate economic growth. Moreover, the South African economy comprised a narrow range of exports and an over-dependence on primary production. These challenges hindered the growth within the country as well as the continent. The emergence of Special economic zones (SEZs) internationally as a policy to support industrial development targeted at incentivising economic and infrastructure development based on specific geographical areas and responding to the needs of a particular local area. This is especially useful when the government wants to extend incentives for particular activities outside designated zones. This paper is conceptual and seeks to make a critical analysis of the contribution of SEZ to the country's economy through the use of a literature review. The article further points out the extent to which jobs, foreign direct investments, and employment were triggered by SEZ use. [ABSTRACT FROM AUTHOR]

The aim of this paper is to investigate the deterministic relationships between foreign direct investment, official development assistance and economic growth for a selection of 20 African countries, under dynamic economic circumstances, over nineteen years presented by the periods before, during, and after the global financial crisis (2000-2018; 2000-2006; 2007-2010; 2011-2018) within the African context. We adopted the two-step system GMM model as an estimation technique to analyze economic data sourced from the World Bank's WDI database. We found that a positive deterministic relationship exists between FDI and economic growth in all the time periods (2000-2018) and for each individual period (2000-2006; 2011-2018) for the sampled countries. However, there is a negative relationship between FDI and economic growth during the global financial crisis (2007-2010) period. Further, no significant deterministic relationship exists between ODA and economic growth for the periods and countries under review. Based on our findings, we recommend that African countries should design investment strategies, favorable to both local and foreign investors and to move away from official development aid reliance. [ABSTRACT FROM AUTHOR]

The present paper investigates the effect of religious distance on the choice of location of Moroccan Multinational Enterprises (MNEs) when investing abroad. The main research hypothesis considers the religion as an element of the psychic distance between the home country and host countries that can affect the FDI location decision. The results of the Robust Weighted Least Squares (RWLS) estimation method using panel data of outward FDI flows from Morocco to 54 host countries from 2007 to 2020 show that the more the local Muslim population is important in the host country, the more it receives FDI from Morocco. The results of the study are highly relevant to policymakers as they prove that the religion is important for inward and outward foreign direct investment. On the one hand, policy makers in charge of FDI attractiveness in the host country have to adopt religious strategies accompanied by public-private partnerships to integrate main foreign religions to facilitate the integration of MNEs and reduce their transaction costs. On the other hand, policy makers in charge of promoting outward FDI from the home country have to establish a liaison office in host countries to support the MNEs and facilitate their internationalization process. [ABSTRACT FROM AUTHOR]

This study examines the long-run relationship between foreign direct investment (FDI), trade openness, and natural resource rents in Transcaucasian and Central Asian postcommunist countries. The paper deals with cross-sectional dependence, homogeneity restrictions, and panel unit root tests. The departure from earlier studies of the role of natural resources in attracting FDI is in the asymptotic theory of likelihood-based panel cointegration allowing for multiple cointegrating vectors. The results reveal that the variables cointegrate in six countries out of eight under review. This implies that natural resource rents and trade openness promote FDI. Policy implications and legal aspects are discussed. [ABSTRACT FROM AUTHOR]

This paper studies the impact of foreign direct investment (FDI) on regional innovation, which is measured by patent applications and patent citations, based on city‐level data in China from 1995 to 2015. Using an instrumental variable approach, this paper demonstrates that FDI not only promotes the quantity of regional innovation, but also improves the quality of regional innovation in China. The findings are robust to various specifications of the empirical model and measurements. In addition, we highlight the channel of improving local absorptive capacity and market competition through which FDI exerts positive influence on regional innovation, and show that FDI acts as a substitute for local financial development to raise regional innovation. [ABSTRACT FROM AUTHOR]

Institutions are generally perceived as an important determinant of Foreign Direct Investment (FDI). Which institutions matter and why for FDI, remains however one of prominent questions in public policy debate amid complexities related to different institutional dimensions, and incomplete or even vague understanding of underlying mechanism(s) at work. In this paper we account for these ambiguities, and focus on institutions that reveal government efforts to design proper institutional and policy framework to attract FDI, as opposed to considering institutions in broader sense. Specifically, we contribute to FDI policy debate by analysing the impact of institutions measuring Investment policy and promotion on inward FDI flows in South East Europe (SEE). To this end we use a unique dataset that is comprised of specific, FDI related institutional indicators developed and published by the OECD. The results of this empirical investigation deeper our understanding on whether differences in FDI policies and institutional set-up across South East European (SEE) countries explain variations in inward FDI flows relaying on bilateral FDI flows and the gravity modelling technique. We bring novel evidence that investment policy efforts seemingly do pay off, highlighting the importance of progress and reforms embodied not only in FDI regulation, but also in FDI policy variables including FDI Promotion and Facilitation, Transparency, Privatisation policy and Public Private Partnership in attracting FDI in SEE. The analysed institutional effect properly accounts for the possible time-variant and context-dependant effect of institutions. The suggested importance of FDI policy variables seem valuable in terms of general FDI policy issues and trade-offs. [ABSTRACT FROM AUTHOR]

Investments in large‐scale land acquisition by foreigners, also referred to as land grabbing, are crucial to sub‐Saharan Africa's development. Land acquisition investments have attracted considerable attention in global development circles due to their potential positive (e.g., technology transfer, employment creation, infrastructure improvement, and global market integration) and negative (e.g., environmental degradation, food insecurity, displacement, and loss of livelihoods) impacts. The factors making land investments attractive to foreign investors are unclear. This paper examines country characteristics associated with land acquisitions in 20 sub‐Saharan African countries to provoke evidence‐based discussion. The paper estimates regression models of land acquisitions using country‐level data from 2010 to 2019 on demographic and economic conditions, natural resources, business practices and governance. The results reveal that the availability of land and water, corruption, days required to start a business, government effectiveness, cost of business startup and political stability are critical determinants of land acquisition investments in sub‐Saharan Africa. The paper recommends that African governments should: (1) strengthen regulatory frameworks on foreign direct investment in land; (2) scrutinize investors' business models, technical experience and knowledge of local culture; (3) undertake rigorous environmental and social impact assessments (ESIA) to weigh the long‐term cost‐benefits of LASLA projects; and (4) conduct transparent contract negotiations, taking political and economic power imbalances between parties into consideration. [ABSTRACT FROM AUTHOR]

Purpose – This paper examines the short- and long-run effects of foreign direct investment (FDI) on tax revenue in Ghana. Design/methodology/approach – The paper adopts the autoregressive distributed lag approach to estimate FDI’s long-run and short-run effects on tax revenue. The study uses time-series data from 1983 to 2019 for Ghana, mainly obtained from The Bank of Ghana, the World Bank and the IMF. Findings – The results show that, in the short-run, FDI has no significant effect on direct tax revenue and total tax revenue but significantly hurts indirect tax revenue. In the long run, however, the results show that FDI has significant positive effects on indirect tax revenue and total tax revenue but no significant effect on direct tax revenue. Originality/value – Empirical studies often fail to analyse the short-run and long-run effects of FDI on tax revenue. This study contributes to the mixed literature by analysing the short-run and long-run effects of FDI on tax revenue in an emerging market context. Additionally, this study employs three tax revenue measures in analysing the nexus.

Purpose This paper explores the relationship between exchange rates, exports, and foreign direct investment in South Africa. Methodology The paper utilized Johansen cointegration, vector error correction model (VECM), and Granger causality test on annual data from 1986 to 2022. Findings The study reveals a substantial causal relationship between the Real Exchange Rate (RER) and Real gross domestic product per capita (GDPPC). The RER implies that an increase in the value of the home currency causes a decline in exports (EXP). Disregarding the economic conditions in South Africa, in essence, only demonstrates that any upward or negative movement in RER causes GDPPC to grow or fall since any rand depreciation offers a pathway to reduce domestic imports while raising local exports, which leads to greater GDPPC. Conclusion This study concludes that adopting laws that support RER, exports, and foreign direct investment is important for South Africa's economic development. These policies can also be useful during national unrest, such as pandemics and emergencies. It is also important to consider the stability of domestic funds and how they affect foreign and domestic business sectors when developing a financial strategy and carefully managing foreign direct investment.

Chinese firms have become key players in the global economy. Their rise is a defining feature since the turn of the century. In this paper, we analyze the ascent of Chinese firms in global business, the factors behind their emergence and how they have disrupted the global competitive landscape. Through the empirical study of large samples of firms and the help of databases like Capital IQ, FdI Markets and SDC Platinum, the paper examines the revenue growth and global expansion of Chinese firms– highlighting, among others, trends in geographical and sectoral distribution and modes of entry in foreign markets. The paper pays also particular attention to the rise of Chinese firms as global innovators and includes several cases studies in key industries. The paper concludes that while Chinese firms’ global expansion benefited from a favorable global environment, the current trade wars and geopolitical tensions, may be more challenging.

The past decades have witnessed big changes in international trade with the rise of global value chains (GVCs). Some countries, such as China, Poland, and Vietnam rode the tide, while other countries, many in the Africa region, faltered. This paper studies the determinants of countries' GVC participation, based on a panel database of more than 100 countries from 1990 to 2015. Results from a three-pronged empirical approach show that factor endowments, geography, political stability, liberal trade policies, foreign direct investment and domestic industrial capacity are very important in determining GVC participation. These factors matter more for GVC trade than traditional trade. [ABSTRACT FROM AUTHOR]

The paper addresses an extremely current phenomenon: migration in opposite directions of FDI and labour, in context with the permanent need for economic growth and welfare. The analysis is carried out over a period of 12 years, in the context of setting objectives and working hypotheses regarding the realization of a correlation model of phenomena and optimization of migration flows in order to obtain welfare through economic development. The results of the research will reflect the relevance of the aggregation of the two migratory flows (FDI and labour) in order to obtain the financial leverage effect and the economic welfare in the analysed regions (EU, Germany and Romania).The conclusions of the study reflect the relevance of the method, the validity of the model and its relevance for the decision forums interested in the economic development and in increasing the population welfare. [ABSTRACT FROM AUTHOR]

This paper deals with the relationship between Foreign Direct Investment from China in Africa and the growth level in five African countries. Based on the high degrees of persistence observed in the data, we use techniques based on long memory models, and our results indicate that of the five countries examined, namely Kenya, Zimbabwe, Zambia, Nigeria and South Africa, only for Nigeria do we find a significant positive relationship between the two variables though under some assumptions, this evidence is also found in the cases of Kenya and South Africa. Several arguments are put forward at the end of the article to justify these results. [ABSTRACT FROM AUTHOR]

The relationship between economic integration and income inequality is extremely contentious due to its complicated impact across key channels of globalization. This paper analyses the distributional effects of globalization through foreign direct investment (FDI) inflow and foreign trade (FT) volume. Data collected from Vietnam over the 2006–16 period provide evidence in support of the government’s advocacy efforts to join the global economy. The two-step system generalized method of moments is used to construct the key estimate for this analysis with two cases: simultaneous effect and single causal effect. The findings show that while FDI worsens inequality, FT counteracts this effect to a greater magnitude, and the aggregate impact of globalization on inequality is negative. As openness is found to be generally beneficial to Vietnam’s economy in terms of income distribution, this study also examines potential policies related to the country’s globalization ambitions. [ABSTRACT FROM AUTHOR]

OBJECTIVE: A number of studies have dealt with the effects of economic integration on foreign direct investment, however without a comprehensive and simultaneous analysis of the overall positioning of these countries along the investment development path (IDP). In the current paper, a comparative analysis is conducted of IDPs of four Eastern European countries, both members and non-members of the European Union. The purpose of the paper is to determine the effect of economic integration on foreign direct investment (FDI) flows and on the movement of these Eastern European economies through their IDP stages. METHODS: An attempt is made to identify the positioning of the sample countries on the IDP, using trend estimation depicting the relationship between net outward investment (NOI) position per capita and gross domestic product (GDP) per capita, as well as detailed descriptive data on inward and outward FDI stocks and flows, subsequently supported with econometric analyses. RESULTS: While the findings point to a rather ambiguous effect of European Union (EU) membership on FDI growth and IDP trajectories, integration tends to exert a stronger effect on outward FDI than on inward FDI of member countries. CONTRIBUTION: The study's findings reveal the need to add new theoretical considerations to the interface between economic integration and the IDP model as well as formulate certain policy implications resulting there from. [ABSTRACT FROM AUTHOR]

In recent years, a number of countries with emerging economies have proceeded to use market-oriented strategies, deregulation and reforms in order to attract more foreign investors and attract foreign direct investment (FDI) inflows. The present paper aims to empirically investigate the role of governance in attracting FDI using panel data and comparing two groups of fast-growing emerging countries, namely BRIC (Brazil, Russia, India, China) and CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa). The study includes a panel data analysis using the latest available secondary data ranging from 2002 to 2019. Empirical models are extended and presented. The findings suggest that FDI inflows in BRICS are attracted by rule of law, regulatory quality, political stability and absence of violence, while CIVETS absorb FDI inflows due to control of corruption, political stability, absence of violence, regulatory quality and government effectiveness. The paper contributes to the existing literature since it is the first attempt to investigate the role of governance in attracting FDI in BRIC and CIVETS economies, taking into consideration other FDI determinants. To our knowledge, it is the first paper to study and compare FDI and institutional determinants in the specific groups of emerging countries. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) is often conceptualized as an element of geoeconomics, whereby states wield economic influence, build alliances, and shape the global political and economic landscape in their favor. Southeast Asia is no stranger to such tussles because of its strategic location in the middle of major trade routes. In recent years, China has emerged as a prominent player in the region, apparently upending the hitherto stable environment. This paper explores Chinese FDI entering Southeast Asia, comparing it to three more mature investors: Japan, Korea, and Taiwan. The similarities and differences between these four providers are illustrated through an analysis of their FDI patterns over the last 10–20 years. Two interrelated arguments are posited. Firstly, Chinese FDI is considerably “smaller” than popular rhetoric suggests. Secondly, Chinese FDI entering the region focuses mainly on tertiary industries such as real estate and general business services, unlike the manufacturing-heavy nature of Japanese, Korean, and Taiwanese FDI. Because of the rather distinct characteristics of these four FDI sources, it can be inferred that there has been relatively little direct competition between them. [ABSTRACT FROM AUTHOR]

Modern Regional Trade Agreements (RTAs) include, among other chapters, ones concerning sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT). Drawing on recent literature highlighting the relationship between "deep" RTAs and the global organisation of production, this paper empirically investigates whether these SPS and TBT provisions affect multinational production in the food, beverages and tobacco industry. To this end, we combine two different databases to estimate, in a panel gravity framework, both the intensive and extensive margins of multinational production. Because the extensive margin of multinational production may be persistent, a dynamic probit specification is used. Our results show that legally enforceable SPS sections in RTAs, in particular, influence multinational production, though with a rather differentiated pattern in terms of intensive and extensive margins; further, the impact changes depending on the country of origin and destination. [ABSTRACT FROM AUTHOR]

This paper investigates the asymmetric effects of fossil fuels, foreign direct investment (FDI), and globalization on the ecological footprint (EFP) in Mexico from 1975 to 2020. To this end, the Autoregressive Distributed Lag (ARDL), Nonlinear Autoregressive Distributed Lag (NARDL), and the wavelet coherence approach are conducted. Based on the outcomes of the ARDL method, economic growth and fossil fuel consumption lead to ecological degradation, while foreign direct investment improves environmental conditions. Globalization has no impact on the environment. The NARDL approach illustrates that a positive shock to fossil fuels, FDI, and globalization degrades the environment. The wavelet coherence results emphasize the adverse environmental influence of economic growth and fossil fuels. These results imply that the Mexican government should conduct its economic expansion considering the principle of sustainable development. In this context, policymakers should propagate carbon taxes and similar instruments to promote clean energy sources that can replace fossil fuels and are compatible with sustainable development policies. [ABSTRACT FROM AUTHOR]

The paper aims to analyse the impact of taxation policies in African countries on Moroccan foreign direct investment (FDI) using panel data from 29 African countries spanning the period 2005–2021, employing the Estimated Generalized Least Squares estimation method. The findings suggest that high total tax, profit tax, and other tax rates deter Moroccan multinational enterprises (MNEs) from investing in African countries. Conversely, fiscal incentives and reduced tax rates positively influence Moroccan FDI in African countries. Additionally, the results indicate that a high score for tax payment and tax rates positively influences Moroccan FDI in African countries, implying that high-quality taxation policies encourage Moroccan MNEs to invest in African economies. Furthermore, the study finds that the GDP of African economies positively moderates the effect of taxation on Moroccan FDI behaviour. This suggests that the larger the market size of a country, the less severe the negative impact of taxation on FDI. [ABSTRACT FROM AUTHOR]

Purpose: This paper examines the effects of technological infrastructure and a business-friendly environment on economic growth in the Arab world from 2004 to 2021 using a detailed panel data analysis approach. Design/Methodology/Approach: The study chooses the fixed effect model based on the Hausman test with additional diagnostic tests confirming the absence of serial correlation and heteroscedasticity employing fixed and random effect models on data from thirteen Arab countries. Findings: Findings reveal a negative relationship between ease of doing business and GDP growth (Gross Domestic Product) suggesting that improvements in the business environment paradoxically decrease economic growth. Conversely, a positive relationship exists between the human development index and economic growth underscoring the significance of human capital. Notably, no significant relationship is detected between technological infrastructure and economic growth. Conclusion: The study concludes that regulatory reforms and human capital investment are pivotal for economic growth in the Arab world challenging the assumed positive impact of ease of doing business on economic expansion. It underscores the need for a strategic focus on developing human resources and technological infrastructure to foster sustainable economic growth. Contribution to the Literature: This research contributes to the economic literature by highlighting the nuanced effects of the ease of doing business and the essential role of human capital in driving economic growth within the Arab region offering new insights for policymakers. [ABSTRACT FROM AUTHOR]

• Part of UN sustainable development goal 9 is upgrading production capabilities. • Increasing economic complexity is a key driver for sustainable economic growth. • Sequential model selection used for robust generalised method of moments estimation. • Chinese FDI evidently shows a positive impact on host countries' economic complexity. • Global policy makers should deepen their relationships with the belt and road. Upgrading the production capabilities in all countries is a target of the UN's 2030 Agenda for Sustainable Development Goal 9. Increasing economic complexity, that is, a country's ability to manufacture more sophisticated products and thus moving up the value chain, is a key driver for sustainable economic growth. This paper investigates whether Chinese Belt and Road investments have impacted the economic complexity of host countries — a topic not addressed in the literature to date, using a sequential generalised method of moments model selection approach. The research focuses on the countries whose economic complexities are below that of China. Our empirical results show significant positive effects of Chinese investments on such host countries' economic complexities. The inflows of Chinese investments have thus supported the upgrading of production capabilities in these countries. This is encouraging, especially for the Global South countries, to intensify their interactions with the Belt and Road initiative. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) has grown dramatically as a major form of international capital transfer over the past decades. The unprecedented growth of cross‐country FDI flows has been attributed to a rich set of economic, geographical and institutional factors. In this paper, Ι examine the role of financial system heterogeneity as a potential detrimental factor to FDI flows across OECD economies. To do so, Ι use a panel dataset of the most recently updated bilateral FDI data at the country level according to OECD BMD4 definition and construct measures of financial distance using a broad set of financial indicators. The econometric approach consists of a gravity‐style model, estimated according to the latest advancements in econometric techniques in order to avoid omitted variable bias. The results indicate that financial system similarity is associated with increased bilateral FDI flows, a conclusion that is robust across different estimation strategies and financial distance measures. This insightful policy implication for advanced economies is that the restructuring of the financial system and harmonisation to best practices can contribute to economic recovery through the FDI channel as well. Finally, the results highlight the importance for the full implementation of the Banking Union and the Capital Markets Union in the EU. [ABSTRACT FROM AUTHOR]

Copyright of Inönü University International Journal of Social Sciences / İnönü Üniversitesi Uluslararası Sosyal Bilimler Dergisi (INIJOSS) is the property of Inonu University International Journal of Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Research on the internationalization of small and medium enterprises based in emerging markets (EM-SMEs) is gaining momentum, yet, less is known about the specific factors that deter EM-SMEs' from internationalizing via foreign direct investment (FDI). In this paper, using institutional and organizational imprinting perspectives, we argue that EM-SMEs founded in the era prior to market liberalization are less likely to internationalize via FDI than those founded during or after market liberalization. We also argue that this effect is moderated by EM-SMEs' size and ownership dispersion. Our data used to test our hypotheses is based on 2277 SMEs from 14 emerging markets. Overall, we contribute to an improved understanding of the factors that determine the FDI-based internationalization of SMEs from emerging markets. [ABSTRACT FROM AUTHOR]

Distributional implications of capital account regulation is eminently context-specific. This paper examines the distributional effects of the openness of foreign direct investment (FDI) flows across 27 European countries in different economic environments around the Great Recession, covering the period 2007–2013. Our multi-level approach allows us to combine country-level variables and sociodemographic characteristics of individuals. The results highlight that the openness of FDI flows heterogeneously affects the income share of individual groups, favouring in particular the highest income classes. This finding seems to be driven by the educational level. We argue that even though highly educated individuals are present along the entire distribution, the highest income classes are especially favoured by the openness of FDI flows. This biased distributional effect of the openness of FDI flows persists throughout the years examined, regardless of the economic environment; this is due, in part, to the fact that the distribution of highly educated people is not sensitive to the business cycle. [ABSTRACT FROM AUTHOR]

This paper investigates export spillovers from foreign direct investment on the exporting activities of domestic manufacturing firms in Kenya. Specifically, the paper aims at identifying the transmission channels through which foreign direct investment affects the export propensity and export intensity decisions of domestically-owned firms. The study also examines the importance of firm-level heterogeneity on the occurrence and behavior of spillover channels. The study uses a panel data set for manufacturing firms in Kenya, obtained from the World Bank Enterprise Surveys, conducted in three waves covering the period 2007-2018. Employing the Double-Hurdle model approach, and using the maximum likelihood estimation technique, we empirically demonstrate the relevance and significance of distinguishing three channels for intra-industry (horizontal) spillovers -- demonstration effects, information effects and competition effects channels and one channel for vertical spillovers, that is, backward linkage channel. Findings of this study shows that domestically-owned firms in Kenya experience significant positive export spillovers on their export participation decisions through the demonstration effects channel and significant negative spillovers via the competition effects channel. The findings also show significant positive export spillover effects on the export intensity decisions of domestically-owned firms via information and competition effects channels and significant negative export spillover effects via the backward linkages channel. The results further provide evidence that firms belonging to industries with low technological levels were unable to absorb spillover benefits from foreign presence via the demonstration effects channel. The results also indicate that small and medium firms were unable to reap export spillovers benefits via information effects and backward linkage channels. The findings have important policy implications for managers of firms and policymakers in Kenya and other developing countries. To enhance export-related spillover benefits, domestic firms need to enhance their absorptive capacities by upgrading their technical capacities and improving quality standards. Governments should facilitate the exchange of information on investor needs, their capacities and skills requirements, thus bridging information gaps between domestic suppliers and foreign investors in addition to supporting domestic market linkages. [ABSTRACT FROM AUTHOR]

This paper examines the extent to which host‐country institutions influence the relationship between inward foreign direct investment (FDI) and economic growth. We develop a theoretical model to analyse how different types of institutions condition the FDI‐growth relationship and use various institutional proxies to conduct threshold estimations on panel data for 51 developed and developing countries over the period 1991–2016. Our results consistently reveal a robust, contingent effect of political stability on the FDI‐growth nexus, suggesting that, among all the institutional factors considered, the absence of civil conflict or violence in the host economy is most critical in terms of yielding both direct and indirect growth‐enhancing benefits associated with technology transfer and spillover effects from FDI inflows. This finding is pertinent to both developed and developing countries, although the threshold level of political stability required to achieve sizeable growth benefits from FDI tends to be lower for developing countries. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to investigate the relationship between institutional quality and foreign direct investment (FDI) inflows using panel data of 42 G20 countries from 2005 to 2020. The results indicate a positive association between them. Mediating analyses reveal that institutional quality attracts FDI inflows by increasing trade openness, accelerating industrial structure optimization, and encouraging technological innovation. Furthermore, financial development, tax level, and natural resource abundance moderates the positive association between institutional quality and FDI inflows. Among them, financial development and natural resource abundance strengthen the promoting role of institutional quality in attracting FDI; the tax level weakens this process. These findings have implications for policymakers seeking to make full use of favourable institutions to achieve sustainable growth of FDI. [ABSTRACT FROM AUTHOR]

The study explores the influence of environmental risk (macroeconomic uncertainty and environmental sustainability risk) on the inflow of foreign direct investment (FDI), utilizing data from 37 economies in sub-Saharan Africa (SSA) from 1996 to 2019. The empirical analyses were carried out using Panel Corrected Standard Error (PCSE) estimation technique. The outcomes show that higher level of uncertainty in GDP growth, inflation uncertainty and financial development volatility induce more FDI inflows whilst uncertainty in exchange rate adversely impacts FDI inflows in SSA. The paper highlights how effectiveness of governance, stable political atmosphere and quality of regulatory structures moderate the relationship between environmental risk and FDI with striking varying outcomes. Consistent with the pollution haven hypothesis, the interactions between governance effectiveness, political stability, regulatory structures and environmental risk suggest that the sub-region is attracted to risk loving speculative investors who prefer poorly regulated and weak governance environment. From policy implication, the findings imply that FDI composition in the sub-region may have moved more towards the speculative type, which may not necessarily be classified as pro-growth in nature. [ABSTRACT FROM AUTHOR]