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Understanding information and communication technology (ICT) adoption's particular effects on a nation like Bangladesh is critical because ICT adoption continues to play a significant role in promoting economic progress globally. By analysing the relationships between ICT use and economic growth in Bangladesh, this study examines data from 2002 through 2021 using a time series analysis. ICT export, gross capital formation, mobile cellular subscriptions, government budget allocation, and foreign direct investment are just a few of the independent variables the study takes into account in relation to ICT adoption. These factors were selected based on their applicability to the adoption of ICT and their potential impact on economic expansion. According to the results of the time series research, the ICT sector's growing exports have a favourable and considerable impact on long-term economic growth. Mobile cellular subscriptions negatively affect economic growth, with significant short-term impact and insignificant long-term effect. The influence of the government budget is detrimental but insignificant for both long-term and short-term economic growth. The study comes to the conclusion that Bangladesh's economic development is significantly benefited by the adoption of ICT. The study also highlights the significance of government assistance through budgetary allocation and strategies that draw in foreign direct investment. The results can direct the development of policies and evidence-based decision-making to use ICT adoption as an accelerator for sustained economic development in Bangladesh. [ABSTRACT FROM AUTHOR]

AbstractThis study aims to investigate how Foreign direct investment (FDI) and trade openness influenced economic growth in BRICS countries from 1990 to 2022, using the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) and System Generalized Method of Moments (System-GMM) methods. Our findings show that these two variables boost economic growth by 0.172, 0.021, 0.291, and 0.072%, respectively. Additionally, the results indicate that BRICS countries have demonstrated greater resilience in terms of FDI and trade before and after the COVID-19 pandemic and the Russia-Ukraine war, underscoring the effectiveness of their investment and trade policies in maintaining economic growth amidst global disruptions. [ABSTRACT FROM AUTHOR]

The collective GDP of the G20 nations constitutes over 80% of the global GDP, making them pivotal recipients of significant economic investments in various forms including foreign direct investments. This study delves into the dynamic interplay of ICT development and foreign direct investment (FDI) and GDP nexus among the G20 economies. A comprehensive index is constructed using PCA to gauge ICT development across economies. The study further examines the relationships among FDI, ICT development, and GDP using panel data spanning from 2000 to 2019. The study finds that in the absence of interaction, FDI alone does not exhibit a statistically significant impact on GDP. However, considering the interaction between FDI and ICT, a nuanced pattern emerges. The study discerns that the influence of FDI on GDP is contingent upon the maturity of a country's ICT sector. This suggests the need for policymakers to adopt a more focused approach, tailoring strategies to leverage the interdependence of FDI and ICT for optimal economic growth. [ABSTRACT FROM AUTHOR]

This article has examined the impact of selected macroeconomic variables on economic growth in the Bay of Bengal Initiative for Multi-sectoral, Technical and Economic Cooperation (BIMSTEC). Thus, quarterly data have been considered over a period from 2000 to 2021. The study has taken into consideration the Cobb-Douglas production function as a model specification to examine the above issue. It has been found that agricultural production is an important macroeconomic determinant to justify economic growth in BIMSTEC and its members. However, foreign direct investment is a significant macroeconomic factor for economic growth in BIMSTEC and also in India. Moreover, GDP in Bhutan, Sri Lanka and Thailand is positively and significantly affected by the balance of trade. [ABSTRACT FROM AUTHOR]

The impact of foreign-direct-investment (FDI) on economic-growth has been studied extensively. The results are, however, inconclusive due to the use of inappropriate methodology and/or the disregard of the absorptive capacity of the receiving country, which is particularly affected by the existence of FDI. Starting from an analytical growth-accounting framework to deduce the estimated specifications, an econometric analysis with panel data was conducted for 27 European Union countries over the period 2000–2019 to highlight the importance of FDI in improving factor efficiency and hence economic growth. The results also highlight the relevance of openness to international trade, imports of machinery and transport equipment, and domestic investment in R&D as facilitators of the process of technology absorption and knowledge diffusion from FDI. [ABSTRACT FROM AUTHOR]

Numerous research, economic theories, and real-life examples suggest that political variables significantly impact foreign direct investment (FDI) inflow. This research proposes to assess the impact of political factors of FDI inflow in Pakistan by applying the autoregressive distributed lag model simultaneous integration (ARDL) technique from 1990 to 2017. The dependent indicator is FDI, while the regressors are government effectiveness, regulatory quality, and political stability. The empirical evidence recommends that all political variables are significant in the short run and long run as they have an immense effect on FDI inflow in Pakistan. These outcomes will help policymakers devise a strategy to ensure that economic growth and policies for such political factors help boost FDI inflows to the host economy. [ABSTRACT FROM AUTHOR]

Bangladesh, being the fastest growing economy in the South Asian region, necessitates a comprehensive study to evaluate the influence of various socio-economic factors. The primary objective of this study is to get a comprehensive understanding of the concept of sustainable development and its relationship to carbon emissions. This analysis will specifically consider the current status of economic and anthropogenic activities within the context of Bangladesh. This research examines the aforementioned matter by utilizing the latest accessible yearly data spanning from 1990 to 2020, as well as employing advanced econometric models including the dynamic autoregressive distributed lag approach and frequency domain causality test. The analysis of empirical data reveals that the economic growth experienced in Bangladesh has yielded a discernible and favorable influence on the degradation of the environment, in both the immediate and extended periods. Nevertheless, it is crucial to acknowledge that the observed impact holds no statistical significance. Furthermore, it is apparent that energy consumption has a substantial impact on the escalation of carbon emissions, in both the immediate and prolonged periods. Additionally, the processes of industrialization and foreign direct investment have also exerted adverse effects on short-term carbon emissions. A frequency domain causality test is used in this work to do a robustness analysis and confirm that there are causal links between economic growth, energy use, development, and carbon emissions over a range of time frames, such as the short, middle, and long terms. The above studies have given us a lot of useful information about how economic growth, energy use, industrialization, and environmental sustainability all affect each other in Bangladesh. Bangladesh should prioritize the formulation of policies and regulations that are centered around specific goals. These objectives include: (a) enhancing government engagement in activities related to environmental innovation, (b) integrating ecologically sustainable development targets by adopting renewable energy sources, and (c) devising strategies and initiatives to attract foreign direct investment, facilitate knowledge exchange, and promote energy-efficient manufacturing to stimulate economic growth. [ABSTRACT FROM AUTHOR]

With the lack of finance, many developing nations are struggling for investment in several areas to generate an opportunity for sustainable livelihood, and Foreign Direct Investment (FDI) emerged as an engine of economic growth, especially in developing nations. It helps to strengthen the economy by mainly promoting capital inflow and technical improvement into the recipient economies. However, some literatures found economic growth, responsible for the inflow of FDI. Therefore, this paper attempts to examine the causal relationship between FDI and Economic Growth in India. By running the Granger causality test in VECM settings, this study found, GDP causes inflow of FDI in India. [ABSTRACT FROM AUTHOR]

With the increase in economic growth, the world is facing serious challenges concerning environmental sustainability. Hence, the green economic growth is imperative for sustainable and inclusive development. The objective of this study is to contribute to the existing literature about the factors that influence green economic growth. The study investigates the role of green technology, green energy, foreign direct investment, and globalization on green economic growth in G7 countries. The data of the study is collected from WDI, KOF Swiss Economic Institute, and OECD database and the data period ranges from 1995 to 2020. The existence of cointegration between the variables of the study was tested by Westerlund's (Oxford Bull Econ Stat 69(6):709–748) cointegration test. Due to the presence of cross-sectional dependency, the study employed the cross-sectional autoregressive distributed lag (CS-ARDL) method to estimate the coefficients in the long and short run. The study also used a common correlated effect—mean group (CCEMG) estimator for robustness check. The findings of the study reveal that green energy and FDI positively contribute to green economic growth in the long and short run. The green technology also contributes positively to enhance green economic growth but only in long run. To accelerate green economic growth, G7 countries should incorporate policies promoting green energy and technology, while acquiring more foreign investments to ensure a sustainable development. [ABSTRACT FROM AUTHOR]

International trade and capital flows are the key macroeconomic indicators of a country's balance of payment, and they impact the real economy. This study estimates the long-run association between exports, imports, foreign direct investment (FDI) and economic growth since India's economic reform in 1991 until 2019. Johansen multivariate cointegration method has been adopted to study this association and to develop long-run cointegration model. The augmented Dickey–Fuller test results show that variables are non-stationary at level and stationary at first difference. The cointegration model suggests a long-run relationship among GDP per person employed (GDPPE), exports, imports and FDI. The result shows that exports are the major determinant and positively influences the GDPPE whereas imports and FDI negatively influence GDPPE. The imports affect GDPPE more negatively than FDI. The vector error correction model finds long-run causality from GDPPE, exports and imports towards FDI and short-run causality from GDPPE towards FDI, imports towards FDI and GDPPE towards exports. The policy focus should be on export promotion and to closely watch the causal effect of labour productivity on FDI and exports, and imports on FDI. [ABSTRACT FROM AUTHOR]

The growing demand for digitalization in different economic sectors has garnered considerable attention from researchers to explore the effects of Information and Communication Technology (ICT) on economic growth. In this study, we explore the direct and indirect effects of ICT on economic growth, through its interaction with institutional quality, financial development, research and development (R&D) expenditures, and foreign direct investment (FDI), for 13 emerging economies from 2000 to 2020. We find that ICT use has a significantly positive effect on economic growth. It is found that the interaction effects of ICT with financial development and R&D expenditures are favorable to economic growth, whereas ICT does not act synergistically with institutional quality and FDI. This implies that the emerging economies should increase R&D expenditures on ICT services and increase digitalization of the financial sector, along with advancing their ICT infrastructure, strengthening the institutional quality, and encouraging more FDI inflows to maintain their growth momentum. Abbreviations: ICT: nformation and Communication Technology; IMD: International Institute for Management Development; SDGs: Sustainable Development Goals; OECD: Organization for Economic Cooperation and Development; SAARC: South Asian Association for Regional Cooperation; SSA: Sub-Saharan Africa; MNCs: Multinational Companies; MENA: Middle East and North Africa; UNESCO: United Nations Educational, Scientific and Cultural Organization; ITU: International Telecommunication Union; IIEP: International Institute for Educational Planning; MSCI: Morgan Stanley Capital International; WDI: World Development Indicator; R&D: Research and Development; FD: Financial development; FDI: Foreign Direct Investment; IUIT: Individuals Using Internet; MBCS: Mobile Cellular Subscriptions; TO: Trade Openness; IQ: Institutional Quality [ABSTRACT FROM AUTHOR]

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Foreign direct investment (FDI) plays an essential role in growing the economy, where this role runs through two things, namely capital accumulation and technology transfer. However, in the literature, previous research findings are still inconclusive to show positive contributions of FDI on economic growth. Furthermore, while the impact of FDI on economic growth has been studied using sectoral data, there has been less research done using data at the provincial and sectoral levels. This study aims to analyze the impact of foreign direct investment (FDI) on economic growth employing sectoral data at the provincial level (33 provinces) in Indonesia over 2010–2019. Based on the fixed effects estimator, our estimation results prove that, in general, FDI significantly positively impacts economic growth in the Indonesian provinces. We also find that FDI in the mining, manufacturing, water, gas and electricity, hotels and restaurants, and real estate sectors has a significant positive effect on economic growth. Meanwhile, only FDI in the agricultural sector has a significant negative impact. Our estimation results confirm that FDI in the manufacturing sector contributes positively and has a considerable impact. The results are robust to the GMM System estimator, which considers the endogeneity problem. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of Foreign Direct Investment inflows on economic growth in Türkiye. The study covers the period from 2006 Q2 to 2019 Q4. Time series datasets obtained from the CBT and FRED database are used for statistical analyses, including ADF, PP, Zivot Andrews Unit Root Tests, the ARDL bounds testing approach, and the Granger Causality tests, to fulfil the empirical part of the study. Based on the obtained findings, it was confirmed that, Foreign Direct Investment inflows have a positive impact on economic growth in Türkiye. Moreover, the results of the Granger causality analysis reveal a bidirectional relationship between FDI and GDP. [ABSTRACT FROM AUTHOR]

The aim of the article is to analyse the impact of foreign direct investments on GDP growth and the link between the COVID-19 pandemic and the economic growth of Central and Eastern European countries. The study has shown us that there is a positive impact between foreign direct investment inflows and GDP growth, and that variables such as exports, labour productivity and unemployment rate also positively influence the development of the countries under analysis. We used a panel regression model with fixed effects, which showed us the correlation between FDI inflows and GDP growth, from which we can see that the decreases in FDI caused by the pandemic, led to a decrease in the GDP growth rate and thus in the economic development of the Central and Eastern European countries. [ABSTRACT FROM AUTHOR]

We present a country-specific analysis on the effect of tourism on the economic growth of five small Pacific Island Countries (PICs) – Fiji, Samoa, Solomon Islands, Tonga and Vanuatu. The results show tourism development is growth-enhancing for all five countries. Foreign direct investment (FDI) is growth-enhancing for Fiji, Samoa, Solomon Islands and Vanuatu, and in the short run, a delayed negative association for Fiji and Vanuatu is found. Remittances are growth-retarding for Fiji, Samoa and Tonga, with a short-run delayed positive association for Fiji, Tonga and Samoa. Financial development is growth-retarding for Solomon Islands and Tonga, with a short-run positive association for Fiji and Samoa. While the results underscore the huge importance of tourism in generating growth and FDI in the Pacific, given the ongoing adverse effects of Coronavirus disease 2019 (COVID-19) pandemic, PICs will have to focus on alternative sectors to progress economic activities. Policy suggestions are discussed along these lines. [ABSTRACT FROM AUTHOR]

A significant component of economic growth (EG) is the enlightenment of the economy. Corruption slows down EG. Human civilization is influenced by corruption, a relic of an ancient occurrence in all countries worldwide. EG is negatively affected by corruption. In the presence of poor institutions, corruption slows the flow of foreign direct investment (FDI). In this analysis, FDI and institutions are studied using panel data. Drisc and Kraay and. fixed effects techniques are used to determine nexus. From 2005 to 2022, 53 developing countries are analyzed. EG is hindered by corruption, while FDIs boost it. In developing countries, more vital institutions contribute to decreasing EG. This suggests that countries should invest in developing strong economic and political institutions to benefit from FDI. Also, countries should focus on reducing corruption to encourage EG. Governments should also create incentives to attract FDI, such as lower taxes, improved infrastructure, and relaxed labor regulations. Finally, countries should put in place measures to protect FDI from political interference and instability. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the impact of innovation on three macroeconomic indicators: GDP, self-employment, and foreign direct investment (FDI). The study analyses a sample of 120 countries using the Global Innovation Index (GII) and its constituent sub-indices and pillars, which provide a holistic evaluation of national innovation. Gross domestic product (GDP) per capita measures a country's economic output, self-employment assesses entrepreneurial activity, and FDI indicates confidence in a country's economic prospects and innovation trends. This study analyzes the data using generalized-linear and panel-corrected standard-error models. The results show that innovation positively influences GDP, domestic institutional framework, local infrastructure, local knowledge and technology, and creative outputs. In contrast, innovation negatively correlates with domestic self-employment, often associated with necessity-driven entrepreneurship. The study concludes that innovation positively affects human resources, research, and creative outputs and has no significant impact on FDI. The findings suggest that a practical regulatory framework, institutional support, domestic human capital, research and development, infrastructure, technology, and creative outputs are essential for a vibrant economy. National innovation policies supporting the GII and its constituent factors can positively affect the economy while reducing self-employment. [ABSTRACT FROM AUTHOR]

This paper examines the role of Japanese direct investment in ASEAN and how that is associated with the growth of trade between these economic giants. ASEAN or Association of Southeast Asian Nations economies developed rapidly since the 1980s primarily due to the heavy inflows of foreign direct investments (FDIs). With the introduction of export-oriented industries (EOI), which was the Association's main development strategy in the late 1960s, the economies began punching above their weight globally in terms of their exports and FDI inflows. The region has been a leading destination of multinational enterprises for at least three decades. The main driver of growth and expansion of EOI industries and trade is the heavy inflow of Japanese FDI. However, the emergence of China as an economic powerhouse has affected the inflow of FDI into ASEAN as its traditional investors have begun to look to the former. The findings of this paper suggest that China's emergence has led to a decline in ASEAN's economic growth rate and dented the expansion of their manufacturing sector. [ABSTRACT FROM AUTHOR]

The article aims at defining the underlining meaning of International Investment Law and seek to evaluate its characteristics. Economic growth and social prosperity are fundamental necessities in developing and least developed countries. The Effective application of International Investment Laws requires integrating fundamental principles and regulatory reforms related to foreign investments by host countries. The article analyses the required effective means of utilizing international investment law and promoting foreign direct investments in developing countries. Furthermore, the discussion will outline the necessary investment environment required in developing countries to realize the benefits of foreign direct investments and conform to international investment practices. [ABSTRACT FROM AUTHOR]

Information communication technology (ICT) contributes to global social, political, and sustainable economic growth. In particular, ICT, foreign direct investment (FDI), and trade in green economic growth are imperative factor that contributes to the country's development. In this regard, this paper explores the relationship between ICT, FDI, and trade in green economic growth for a group of 53 Belt and Road Initiative (BRI) economies between 1990 and 2020. For empirical estimation, this study employs the generalized method of moment. Significantly, the results reveal that using ICT stimulates green economic growth in BRI countries by supporting the endogenous economic growth theory. The study shows claims that the interaction term of ICT with trade and ICT with FDI expedites the economic growth rate. Also, it reveals a positive and significant relationship between trade (exports and imports) and economic growth in BRI economies. It shows the positive and significant influence of ICT on FDI and its impact on economic growth in the long run. Further, it supports the positive effect of ICT on FDI inflows in the BRI economies. It concludes that more advancement in ICT can stimulate trade. Therefore, the BRI economies should further improve ICT as a profound tool that accelerates FDI inflows and stimulate trade for green economic growth. [ABSTRACT FROM AUTHOR]

By using spatial econometric models, this paper studies the impact of foreign direct investment (FDI) inflows and regional spatial factors on economic growth of 63 provinces in Vietnam over the period 2007–2018. Results show that, after controlling for the important factors of the growth model (human capital, physical capital, and institutional quality), FDI inflows have a rather limited direct and indirect impact in boosting economic growth of localities in Vietnam. Results from the estimation of spatial variables show three especially interesting key points: i) there is a close relationship in economic growth and economic shocks among neighbouring provinces; ii) capitals from state sector and domestic non-state sector of neighbouring provinces have a positive impact on economic growth in the host province; and iii) surprisingly, there is a trend of competition among neighbouring localities in attracting not only high-quality human resources but also in terms of untrained human resources. [ABSTRACT FROM AUTHOR]

Economic liberalization is essential in managing the country's wealth, income, and expenditure to maintain stable economic growth. However, the current global economic development tends to slow down due to the enormous challenges in achieving economic liberalization. The study's purpose is to provide an overview to the government about several factors that affect economic growth for G20 members and to find out strategies that can be applied to maintaining economic growth amidst the effects of liberalization, globalization, and free Trade for G20 members countries. Using the panel fixed effect model to estimate the impact of macroeconomic variables such as Trade, foreign direct investment, government spending, and Inflation on the G-20 members' economic growth from 2016 until 2020. The result shows a significant negative impact of selected macroeconomic variables such as Foreign Direct Investment, government expenditure, and Inflation on economic growth, except for trade. [ABSTRACT FROM AUTHOR]

To investigate the effects of the European Union's (EU) member nations' shared sovereignty on economic growth. The member nations have lost substantial political and economic independence (sovereignty) and democracy. Therefore, their governments cannot facilitate rapid economic growth in their countries, affecting the EU as a whole. Data from the World Bank, institutional research entities, and the EU were utilized. The dependent variable is economic growth, and the independent and moderating variables are mainly institutions and the European Sovereignty Index. Shared sovereignty and its specific categories and foreign direct investment (FDI) outflows negatively impact economic development in the EU. Shared sovereignty negatively moderates the relationship between political rights and economic development and between FDI outflows and economic development. Democracy in member nations is formal rather than real. The present study focused on the EU's problems rather than its achievements and empirically investigated the direct and moderating effects of national sovereignty and member-country institutions on member-country economic growth. This focus and the nature of the investigation constitute the originality of the present study and reduce the gap in the literature about the effects of sovereignty, institutions, and capital spillovers (FDI outflows) on economic growth in Europe. The value of the study is in its findings, which should trigger holistic research efforts on the pros and cons of the EU for Europe, democracy, the economy, and the world. [ABSTRACT FROM AUTHOR]

This research discovers how international tourism affects the economic growth of selected Asian states, e.g., Bangladesh, China, India, Pakistan, and Sri Lanka, throughout 2001–2019. To attain this objective, we have employed various regression estimation approaches, e.g., Fixed Effect Model (FEM) and Fully Modified Ordinary Least Square (FMOLS) technique. The statistical results of the applied techniques reveal that international tourism activities have a positive and significant effect on the GDP growth rate because such kinds of activities considerably contribute to creating opportunities that lead to hoist economic activities and economic growth. Moreover, an influx of tourism increases tourism activities and operations, which opens further doors to opportunities and generates revenue for the government. Similarly, the GDP per capita has been positively and significantly influenced by international tourism activities. The government and host country should emphasize the activities and operations regarding tourism and should also concentrate on the dynamic role, importance, and sensitivity of tourism operations in under-analyzed economies. This research brings a new arrangement of the variable, which has never been considered in prior literature. [ABSTRACT FROM AUTHOR]

Americas have a mix of developing and developed economies. Thus, the pollution haven hypothesis (PHH) is expected in the developing countries of Latin America. Using the spatial Durbin model, the present study investigates the effects of foreign direct investment (FDI), exports, and imports on emissions in 18 Latin American countries from 1970 to 2019, including economic growth and the financial market development (FMD) in the model. The environmental Kuznets curve (EKC) is validated, and the region is found in the first stage of the EKC. Hence, Latin American economic growth has environmental consequences. Exports have a positive impact on home and neighboring countries' CO2 emissions and pollute the whole region, which validates the PHH. Imports could not affect the home economies but have positive environmental effects on neighboring economies and the entire Latin American region. The negative coefficient of imports is larger than the positive coefficient of exports. Therefore, the net effect of trade is environmentally pleasant in Latin America. Moreover, FDI has a statistically insignificant effect and the impact of FMD is positive on CO2 emissions. The study recommends caring the exporting, financial, and economic activities for a sustainable environment in Latin America. [ABSTRACT FROM AUTHOR]

Through some empirical studies, the flow of FDI and trade openness have proven to support economic growth in developing countries. This paper examines the significance of FDI and trade openness in five African countries (Ghana, Morocco, Kenya, Uganda, and Zambia). The study employed the panel data analysis method using data from the World Bank for the period 1994-2019 for the five selected countries. The result from the Random effect model indicated that FDI positively supports growth, whereas trade openness harms economic growth in these countries. The outcome further revealed that Uganda enjoys more significance than the other countries using the countries' dummies through the pooled model estimation. We recommend that various governments focus more on exports, reduce imports, attract more FDI through incentives, and create a regulatory environment that is friendly to FDI. [ABSTRACT FROM AUTHOR]

This study aims to identify the factors that influence economic growth for 16 countries located in Central and Eastern Europe, from 1995–2019. To obtain the research results, panel data analysis was used, based on econometric models that test the influence of human capital, foreign capital, and domestic capital on economic growth. The analytical data were collected from international databases (i.e.,the World Bank, IMF, and OECD) for the countries included in the study, considering the analyzed period. The main results show that economic growth is not influenced by the inflows of foreign capital, but by domestic investment and trade openness. [ABSTRACT FROM AUTHOR]

This empirical study examines the role of information and communication technology (ICT) in the relationship between FDI and environmental quality for six leading African economies from 1970 to 2020. The second-generation tests are used to determine the stationarity level of the variables. Furthermore, the Westerlund panel cointegration test confirms cointegration among the variables. For long-run association, CS-ARDL, which resolved the consequences of heterogeneity and cross-sectional dependency is used. The results of the study reveal that ICT, FDI, economic growth, and financial development degrade environmental quality. The interacting effect of ICT and FDI (ICT*FDI) leads to escalation of CO2 emissions thereby deteriorating the quality of the environment. The study recommends that African countries should promote FDI to support the inflow of green technologies to enhance environmental quality. The implementation of environmentally sustainable technology would help improve the quality of the environment, increase sustainability in the long term and conserve resources for future generation. [ABSTRACT FROM AUTHOR]

High energy production is the global requirement that is the demand of high economic growth in the country and needs regulators and recent researchers' emphasis. Therefore, the current study examines the impact of economic factors such as gross domestic product (GDP), national income, employment rate, foreign direct investment (FDI), and inflation and technological advancement on energy production in China. The present article has used the secondary data extracted from World Development Indicators (WDIs) from 1976 to 2020. The present research has employed the nonlinear autoregressive distributed lagged (NARDL) model to explore the association among the understudy constricts. The findings revealed that all the economic factors such as GDP, national income, employment rate, FDI, inflation, and technological advancement have a significant and positive association with energy production in China. This article guides the relevant authorities and policymakers in developing and implementing the policies related to generating high energy production using foremost economic factors. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) plays a paramount role in economic and social growth of every country. FDI acts as a source of external capital and helps in economic growth of the host country. Making decision for FDI during uncertain business environment is a challenge for all stakeholders. Therefore, in this study, we are proposing a decision making framework for FDI. Through literature review, we have identified the factors, on which FDI depends. A process‐based, multi‐criterion, integrated hierarchical approach for deciding about FDI, has been illustrated. In this study, five sectors are considered, that is, petroleum and natural resource, retailing and e‐commerce, healthcare, information technology, and road and highways for illustrating the proposed framework. It is observed that information technology sector has got top priority for FDI followed by retailing and e‐commerce and health care sector. Findings will help in taking appropriate decision by stakeholders for FDI. Ultimately it will also help in creating employment, economic growth, and welfare of society at large in the host country. [ABSTRACT FROM AUTHOR]

Attracting foreign investment is a viable means of ensuring the economic growth of any country. The relevance of the study is substantiated by the creation of a favorable investment climate in the country, which will allow the establishment of guarantees of protection of foreign investments and stability of the legal basis for entrepreneurship performance. The article aims to analyze and forecast the inflow of foreign direct investment (FDI) into Ukraine. In order to achieve the stated purpose, the econometric model was developed, which demonstrates the correlation between macroeconomic indicators, their characteristics and the amount of FDI. A set of general scientific and special research methods were used, in particular: induction and deduction, grouping, summarization, comparison, complex and systemic approaches. The article reveals the essence of foreign investment for the Ukrainian economy and defines the characteristics of FDI. The impact of FDI on the economy of Ukraine is analyzed in detail and the conditions for their attraction are substantiated. Using statistical methods, the structure and dynamics of FDI by types of economic activity and investor countries are investigated. The conducted research has shown that through the attraction of foreign direct investment economic growth, the well-being of the population, the reduction of foreign indebtedness and efficient state capital investments are ensured. Taking all this into account the necessary preconditions for the attraction of foreign direct investments into the Ukrainian economy were substantiated. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between total factor productivity, trade openness, and foreign direct investment to economic growth in 90 middle-income countries from 1990 to 2020. We employ the Generalized Method of Moments with country and period fixed effects to overcome heteroscedasticity and endogeneity issues. The findings indicate a percentage increase in net FDI inflows and Trade Openness improves economic growth by 0.13% and 0.19%, respectively. However, total factor productivity negatively impacts growth due to the improper allocation of resources across sectors. Our paper contributes policy implications to develop economies sustainably. Finally, our findings support comparative advantage (Ricardo, 2015), the internalization theory of Buckley and Casson (1976), and industrialization theories. [ABSTRACT FROM AUTHOR]

This paper empirically examines how financial sector development affects the FDIeconomic growth nexus in Guyana. The novelty is that we examine the relationship in a poor, Small Island Developing State (SIDS) with an underdeveloped financial sector, and where the bulk of FDI flows to the extractive sector. Using annual data from 1981 to 2014, and, both a VECM and ARDL framework that distinguishes among long-run and short-run causal impacts, we provide new insights on why FDI may have a smaller impact on economic growth in SIDS or resource-rich countries. Specifically, we find that FDI dampens long-run growth in Guyana, which is consistent with the extractive literature, but through interaction with the financial sector, FDI has a positive offsetting effect at all levels of financial development in the period under study. While our findings have several nuanced policy implications on how to maximize the developmental potential of FDI in Guyana, they may be relevant to other SIDS or resource-rich countries. [ABSTRACT FROM AUTHOR]

This study examines whether institutional quality, education levels and trade openness affect the relationship between sectoral‐ and industrial‐level foreign direct investment (FDI) inflows and economic growth. Previous studies highlight the heterogeneous effects of FDI at the sectoral‐ and industrial‐level suggesting the need to examine the growth effects of FDI at a disaggregated level. However, previous studies have not empirically explored the role of absorptive capacities at the industrial‐ and sectoral‐level. Consequently, using a sample of 36 Organisation for Economic Co‐operation and Development countries from 2000 to 2019, we examine the relationship using the system generalised method of moments estimator to control for endogeneity. Our results show that the magnitudinal effects of overall FDI is dampened as sectoral‐ and industrial‐effects are not considered. We find that both manufacturing and services FDI contributes to growth. However, the effect of manufacturing FDI is greater. Meanwhile, we find education levels to be an effective moderator for services FDI, while trade openness enhances the growth effects of manufacturing FDI more effectively. Institutional quality is shown to have a positive complementary effect across both sectors and certain industries. Policy implications are discussed. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the study is to examine the moderating impact of absorptive capacity on the foreign direct investment (FDI)–growth link using the data for the period 1995–2019. Design/methodology/approach: The authors apply the autoregressive distributed lag (ARDL) model and threshold analysis for empirical analysis. Findings: The findings indicate that the link between FDI and economic growth is influenced indirectly by absorptive capacities, such as financial development, institutional quality, technological capability, and trade openness. However, while examining the linear FDI–growth nexus, the authors noticed that human capital and infrastructure did not affect the relationship; when the non-linearity in the link is considered, the authors noted that all absorptive capacities (including human capital and infrastructure), when interacted with FDI, have a positive effect on growth. Furthermore, FDI stimulates growth if the absorptive capacities have exceeded a certain threshold level. Research limitations/implications: From a practical standpoint, it is reasonable to conclude that improving absorptive capacities is critical in order to perceive FDI as a growth driver. Originality/value: India has been able to position itself as a preferred destination for FDI (when the major economies are facing a sharp decline in FDI inflows) despite the Covid-19 pandemic. However, it still suffers from low growth. Although much of the literature admits that absorptive capacity is crucial for FDI to promote growth, no study in the case of India examines FDI–growth nexus conditioned upon absorptive capacity. Moreover, the authors have used threshold analysis for assessing the non-linearities in FDI–growth nexus contingent on absorptive capacity. [ABSTRACT FROM AUTHOR]

China Pakistan Economic Corridor (CPEC) is considered a massive investment that can change the economic scenario of Pakistan. The purpose of the study is to examine the contribution to the economic growth of the sectors where CPEC is investing. This research uses time-series data for 31 years to investigate the impact of macroeconomic variables like foreign direct investment (FDI), human capital investment (HCI), transport investment, and information communication technology (ICT) on the economic growth of Pakistan. The results of Fully Modified Ordinary Least Square Regression Specification (FMOLS) show a positive nexus between FDI, HCI, and economic growth while economic growth and ICT show a negative relationship. The results for the impact of transportation infrastructure on economic growth are statistically insignificant. This research suggests that an increased focus on building knowledge, expertise, and skillset of human resources will help in reaping the benefits of CPEC's investment. Future researchers can increase the period of the study to ascertain the implicit or explicit impact of CPEC on economic growth. The results also suggest that policymakers and researchers should focus on developing human capital to reap the investment benefits of CPEC. [ABSTRACT FROM AUTHOR]

Trade and foreign direct investment (FDI) could have environmental consequences for local and neighboring economies due to their spatial linkages and could also affect the production and consumption-based emissions. Hence, we examine their direct and spillover effects on territory-based CO2 (TCO2) and consumption-based CO2 (CCO2) emissions in GCC countries using a period 1990–2019 and spatial Durbin model (SDM). The empirical results have corroborated the presence of the environmental Kuznets curve (EKC) in an association of economic growth and emissions in both TCO2 and CCO2 models. Hence, economic growth has a positive relationship with CO2 emissions at the first phase of the EKC and has a negative relationship with CO2 emissions at the later stage of the EKC. The spillovers of economic growth were found the opposite in the case of TCO2 and insignificant in the case of CCO2. The effect of Financial Market Development (FMD) is found negative on TCO2 emissions and insignificant on CCO2 emissions. Exports have a positive direct effect on TCO2 emissions and have negative spillovers, direct, and total effects on CCO2 emissions. The positive direct effect of exports on TCO2 reflects that exports are raising TCO2 emissions in domestic economies. On the other hand, the negative direct effect of exports on CCO2 explains that exports are helping reduce CCO2 emissions in domestic economies. Moreover, negative spillovers of exports on CCO2 indicate that increasing exports of a GCC country helps reduce CCO2 emissions in neighboring countries. In addition, the negative total effect of exports on CCO2 implies that increasing exports reduce CCO2 emissions in the whole GCC region. Imports have positive spillovers and direct effects on TCO2 and have positive spillovers effects on CCO2 emissions. FDI has negative direct and spillover effects on CCO2 and positive spillover effects on TCO2. We suggest promoting FMD, FDI, and exports to have their positive ecological effects in GCC countries. [ABSTRACT FROM AUTHOR]

One of the concerns of governments in developing countries is to ensure energy independence by all means in order to boost economic growth. Particular attention is paid to renewable energies. This paper analyzes the contribution of foreign direct investment (FDI) to growth through the consumption of renewable energy. We use therefore a GMM estimation in system on panel data from 30 Sub-Saharan African countries over the period 2017 to 2021. The results show that the existence of the positive double causality between energy consumption and economic growth, are mixed for our sample. The results show also that, in presence of the foreign direct investments, the consumption of renewable energy positively affects the economic growth in sub-Saharan African countries. This effect prevails for all countries despite the heterogeneous levels of renewable energy consumption and the different transitions in the adoption of the consumption of these energies. Public policies should focus on the promotion of renewable energies consumption and investments in that way for a significant increase in the national product. [ABSTRACT FROM AUTHOR]

In this paper, the casual relationship between foreign direct investment (FDI) and economic growth in Kenya during the period 1980–2018 is examined. In an attempt to address the omission-of-variable bias, which has been detected in some previous studies, two variables, namely money supply and trade, are used as intermittent variables, thereby leading to a system of multivariate Granger-causality equations. Using the ARDL bounds testing approach, the results show that there is a unidirectional causal flow from economic growth to FDI in Kenya. These results apply, irrespective of whether the causality is conducted in the short run or in the long run. Based on these results, it can be concluded that the current burgeoning FDI inflows that Kenya has attracted in recent years are largely driven by the strong economic growth and prudent macroeconomic policies that the country has been pursuing in recent decades. Policy implications are discussed. [ABSTRACT FROM AUTHOR]

In line with the neoclassical growth theory, this study examines the complementary role of economic freedom and financial fragility in the foreign direct investment (FDI) – growth nexus for 36 Sub-Saharan (SSA) Africa countries spanning the period 1998 to 2016. The study hypothesises that for FDI to translate into growth, financial market development that account for fragility and economic freedom should be present in the host country. The uniqueness of this study lies in the use of financial market data that accounts for financial market fragility and aggregate score of economic freedom. Using fully modified ordinary least squares technique, the study reveals that economic freedom and a well-developed financial market complement FDI in promoting economic growth in SSA. This study highlights the need to strengthen the financial system and promote economic freedom to enhance FDI's effect on economic growth. [ABSTRACT FROM AUTHOR]

In Latin America, financial relations became more complicated and large companies were consolidated during the globalization phase. Interestingly, however, the capital market did not develop at the same pace, as the operations of large companies (multinationals and multilatinas) were not conducted via domestic financial institutions, but rather via bonds issued by international financial centers. In light of this, the article employs a panel data econometric model to measure the impact of capital flows (FDI and portfolio) on a set of financial and real sector indicators. Findings show that capital inflows did not contribute to financial development or economic growth. [ABSTRACT FROM AUTHOR]

This paper explores the advantages of international trade and foreign direct investment (FDI), which can be the main factors of transferring technology to economies. More specifically, it seeks the importance of international trade and FDI as the main channels of technology transfer between countries either in a region or at the international level. In this context, relevant spillovers arising from trade and FDI play important roles in achieving economic growth, capital accumulation and economic well-being, providing a path for sustainable development. The main goal of this paper is thus to investigate the possible implementation of regional economic through cooperation in trade and investment in a region such as the Economic Cooperation Organization (ECO). Accordingly, the country members can benefit from spillover effects on their economic growth, as a major factor to appoint sustainable development. The relevant methodology relies on estimation of a panel economic growth model in which we have used the obtained empirical results to assess the effects of trade and FDI spillovers on economic growth over the period 1995–2018. The empirical results have indicated significantly positive effects of the spillovers on economic growth of the ECO country members, as the case study, implying sustainable growth in the long run. [ABSTRACT FROM AUTHOR]

Purpose: International tourism and FDI inflows have generated detectable beneficial impacts on the economy of Estonia in the last decades. However, recently, poor international market conditions mostly caused by the trade war and COVID-19 pandemic have been a potential threat to these two factors. Besides, the poor performance of investments in recent years is behind the stagnation of productivity in Estonia. This study examines the dynamics of the effects of these factors on the rate of economic growth in Estonia and provides policy implications in line with sustained recovery. Design/methodology/approach: A nonlinear ARDL technique is employed in this study to investigate the long-run effects of FDI and the degree of tourism specialization on economic growth rate. Findings: Our findings indicate that the economic growth rate of Estonia in the long run has been positively affected by both the rate of FDI inflows and international tourism. Originality/value: This is the first study that employs a non-linear approach to investigate the dynamics of long-run effects of FDI and tourism specialization on the rate of economic growth in Estonia and provides policy implications in line with optimal growth strategy considering the economic structure, the current level of productivity and available potentials in this economy. [ABSTRACT FROM AUTHOR]

Developing countries like Pakistan majorly depend on fossil fuels for achieving higher economic growth but have sloppy environmental rules and regulations in order to attract foreign direct investment (FDI). As a result, energy consumption is considered the primary cause of environmental degradation. Besides CO2 emission, environmental degradation is also associated with emission of sulfur dioxide (SO2). The purpose of this study was to investigate the relationship among SO2 emissions, energy consumption, economic growth, and FDI in Pakistan. By applying the 3SLS method, study has estimated the scale effect, composition effect, and technique effect. The scale effect and technique effect findings indicated that capital stock, FDI, and SO2 emissions all had a significant impact on GDP. When the capital accumulation effects of FDI were considered, the relationship between FDI and stock of capital was found to be positive. According to the technique effect results, FDI, population density, and energy consumption were all significantly related to SO2 emissions. The study came to a conclusion with significant policy implications. [ABSTRACT FROM AUTHOR]

This study examines the dynamic interactions among foreign direct investment (FDI), economic growth (GDPG), and real exchange rate (RER) in Ghana using time series data over the period 1996 to 2018, and two econometric models: a trivariate VAR and the ARDL bound test. The results reveal that no long-run relationship exists among the variables. However, a positive causal shock flows from both FDI and RER to GDPG. Also, the response of FDI to the shock in RER is positive. Therefore, it is recommended that the government implements policies that will ensure optimal balance in this nexus since a close and inter-reliant link exists among the variables. [ABSTRACT FROM AUTHOR]

The impact of foreign direct investments on the economy of the host country is indisputable. They affect national production, its volume and structure, trade (imports and exports), the local market and competition, employment and income, innovation and technological development, etc. Their effects are evident at company (micro), state (macro) and regional levels. The article analyzes the significance of Germany and the direct investments of German origin for our economy, as well as the impact of Aurubis Bulgaria as the largest German investment through direct, indirect and multiplier effects on the metallurgical industry in Bulgaria and the company’s role in the economic growth of the country. [ABSTRACT FROM AUTHOR]

This study empirically investigates the possible role of institutional quality in absorbing foreign direct investment (FDI) flows' spillovers for growth in a group of Arab countries. The analysis is performed by employing system GMM estimation in panel data comprising 11 Arab countries over the period 1988–2012. It develops overall indexes of doing business and economic freedom indicators using the principal components analysis (PCA) as weights. The study finds that the quality of institutions plays an important role in enhancing economic growth via indirect impact by absorbing spillovers of FDI inflows. On the one hand, the study reveals that greater macroeconomic stability and financial development have a positive influence on growth. The results of this study have several implications for policy makers. [ABSTRACT FROM AUTHOR]

Foreign direct investments can exert ambiguous effects on the environmental quality of the host economies. At the same time, terrorism is a worldwide phenomenon that affects human life, FDI inflows, economic growth, and, most importantly, environmental well-being. Hence, it can be expected that there are relationships between terrorism, foreign direct investment inflows, and carbon dioxide emissions. However, in the previous literature, less attention has been given to explore these nexuses. In addition, the possible non-linearities in data are also mostly ignored in the preceding related studies. Against this backdrop, this paper explores the linear and non-linear influences of terrorism and foreign direct investment inflows on carbon dioxide emissions, controlling for energy consumption and economic growth within the model, on carbon dioxide emissions in the context of ten global economies that are most impacted by terrorism. To this end, we used the data from 1973 to 2016 and deployed the linear and non-linear autoregressive distributed lag methods to scrutinize the environmental impacts of the explanatory variables of concern. The results confirmed the presence of non-linearities in the relationships between terrorism, inflows of foreign direct investments, and carbon dioxide emissions. Furthermore, the findings revealed that the positive shocks to terrorism and foreign direct investment inflows significantly deteriorate the environment with a dominating effect. Unlike the previous studies, this current study validates the pollution haven hypothesis for the sample economies. Energy consumption and economic growth were also evidenced to exacerbate the carbon dioxide emission levels in all selected countries. Based on these results, we recommend that our sample economies should focus on promoting education, employment, economic stability, and public awareness to eradicate terrorism which, in turn, can mitigate the emissions of carbon dioxide further. In addition, stringent environmental regulations on foreign direct investment inflows are required to reduce the adverse environmental effects of such sources of foreign finance. Furthermore, the international firms should be encouraged to invest in cleaner technologies by offering them tax benefits and other financial incentives. [ABSTRACT FROM AUTHOR]

This paper investigates how typical macroeconomic indicators affect the economic growth of Western Balkans countries. A static panel empirical investigation for the period 2010 to 2019 has been conducted using GDP growth rate as the dependent variable, while independent variables in focus include foreign direct investments, remittances, unemployment rate, population growth rate, and control of corruption. The most interesting finding is that a rising share of remittances positively affects economic growth. This might indicate that even when remittances are used for non-investment purposes, they might increase domestic production of consumption and intermediate goods. There is also evidence of a non-linear relationship between FDI and economic growth, which may be a consequence of undeveloped capacities to use the positive side of FDI. To foster economic growth policy-makers should focus on reforms that target sectors that show sharp declines in FDI and remittances inflows, including also a need for better control of corruption in the region. [ABSTRACT FROM AUTHOR]