Search

The pollution haven hypothesis is widely used to explain the predatory relocation of foreign investors to emerging markets. However, the long-term effect of the pollution haven hypothesis remains a mystery, given the natural evolution of environmental regulations. This study proposes that the likelihood of foreign divestment in the emerging market increases when the regional environmental regulatory pressure becomes more stringent. Empirical support is obtained through a Cox proportional hazard model of 402 international joint ventures established in China in 2000, whose foreign divestment status is traced until 2017. The findings support the karmic debt of the pollution haven hypothesis; that is, foreign investors' focus on avoiding environmental regulatory costs by relocating to emerging markets in the short run will backfire in the long run unless they bring something of value to the host market. [ABSTRACT FROM AUTHOR]

When do political risks lead to divestment from a profitable market? Existing theories argue both that foreign investors may be sensitive to political tensions, but that they may only be sensitive to violent conflict. Using the crucial case of the US–China Trade War, we outline how political risks increased rates of exit among foreign firms while firm entrenchment mitigated these risks. Using a new dataset on all foreign-invested enterprises registered in China between 2017 and 2019, we implement triple interaction models to isolate the impact of increased political risks, investor national origin, and entrenchment on firm exit. Our findings show that heightened political risks during the trade war did increase firm exits by 34%–3% points over the pre-conflict baseline. Tariffs, the targeted effect of the trade war, increase US firm exits by 1% point. Firm exit is determined by the balance of heightened political risks against the availability of firm-level resources to mitigate these risks. These findings reconcile the conflicting expectations of the ‘business as usual’ and ‘follow the flag’ literatures about how firms respond to political risk, highlighting the tremendous collateral damage tariffs can cause in an age of global value chains.

This paper examines and forecasts the impact of foreign direct investment (FDI) on industrialization and industrial performance in Tanzania by using World Bank data spanning 1960 to 2020. The admixture time series analysis of Vector Autoregressive (VAR) and Vector Error Correction Model (VECM) has been extensively explored in order to provide accurate estimation. The need to examine FDI inflows is enormously based on domestic macroeconomic parameters that are stuck in many developing countries, including Tanzania, implying that FDI is necessary for growth and development now and in the future. According to the findings, FDI granger causes industrialization, and the more the sector thrives, the more granger causes FDI inflow. In the long run, FDI has a significant impact on Tanzanian industrialization growth, whereas the exchange rate (EXR) has a significant impact on industrialization growth in the short run. The study recommends the Bank of Tanzania to take appropriate measures to control poor-performing economic parameters such as the exchange rate, inflation, and the improvement of the money market in order to enhance capital availability and accessibility. [ABSTRACT FROM AUTHOR]

In the past three decades, Cuba has extended opportunities for Multinational Enterprises (MNEs) to establish operations within its predominantly centrally planned economy. Many MNEs have seized this opportunity and established their presence in Cuba, resulting in FDI inflows reaching up to 2 per cent of GDP in certain years. In our paper, we aim to assess the impact of MNEs' activity on local companies, with a specific focus on productivity spillover effects. Additionally, we analyze how institutional factors influence the strength of these effects. Our data collection involved conducting questionnaires and semi-structured interviews with MNEs operating in Cuba and experts on the Cuban economy. Our findings reveal that MNEs introduce new technology and knowledge to Cuba, thereby positively influencing the local development. We have confirmed the existence of vertical spillover effects, as certain MNEs provide direct assistance to local companies with whom they collaborate. The extent of these spillover effects is heavily contingent on Cuba's institutional framework. Local regulations mandate that MNEs cooperate with local companies for various operations, such as expanding product distribution across the country, thus amplifying the impact. Conversely, spillover effects through labor mobility are limited, as there is a low rate of transition from MNEs to local companies among the local workforce. Stringent legal constraints further hinder interaction between MNEs and the Cuban private sector, thereby limiting the broader spillover effects. [ABSTRACT FROM AUTHOR]

This article provides the first comprehensive empirical analysis of global profit repatriation as a mechanism of uneven development, thereby challenging the development model of Foreign Direct Investment. Between 2005 and 2020, transnational corporations repatriated an annual average of one trillion USD, corresponding each year to 4.2% of the global FDI stock. Net profit flows take on a centripetal form: the biggest net losers are middle‐income countries such as the Russian Federation, Brazil, and Nigeria; the winners are a few high‐income countries, above all the United States. By analysing the impact of profit repatriation on accumulation dynamics in net profit exporting and importing countries, and by examining the exploitative conditions under which profits are generated in the former, we situate our findings in current theoretical debates on uneven development and geographical transfer of value, as well as on the intertwining of capitalism's class and geographical antagonisms. [ABSTRACT FROM AUTHOR]

Following the paucity of evidence on the roles of foreign direct investment (FDI) inflow and trade openness in Africa's tourism development, particularly in the post-Global Financial Crisis era, this study examined the roles of FDI inflow and trade openness as drivers of international tourism demand in Africa. We also investigated how infrastructural development, terrorism, climatic conditions, and institutional quality influence the FDI-tourism and trade openness-tourism relationships in Africa. The system GMM modeling framework and a panel of 42 African countries were used. We find that FDI inflow has not contributed significantly to the growth of tourism demand in Africa. However, infrastructure and climatic conditions on the continent have the potential to positively influence the FDI-tourism relationship, while terrorism hampers it. We also find that trade openness impacts positively on international tourism demand in Africa, but this impact is mainly insignificant. The study made some policy recommendations based on these findings. [ABSTRACT FROM AUTHOR]

This study examines the relationship between foreign direct investment (FDI) and regional innovation relationship in Chinese cities from 2009 to 2018, considering the influence of local absorptive capacity (ABC). We employ spatial panel regression moderated models with an interaction term between ABC and FDI. Our findings reveal spatial correlation and heterogeneity in the impact of FDI on regional innovation. Across various ABC percentile points, both direct and indirect effects of FDI are significantly negative. However, incorporating the moderating variable ABC weakens the detrimental effect, and as ABC increases, the inhibitory effect dissipates, resulting in a positive impact on regional innovation. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) nowadays mostly corresponds to activities in urban areas. This study provides the first global analysis of the determinants of urban FDI (UFDI). We assemble and exploit a unique database on the location choices of multinational enterprises in urban areas worldwide to investigate the relevance of local, national, and dynamic drivers of cities' international attractiveness. We find that attractive cities are large, productive, endowed with transport infrastructure able to move goods and people within and beyond their borders, abundant in educated people, and embedded in attractive national spaces. Cities combining all these attributes tend to attract service activities. Attractiveness is persistent but can evolve depending on economic dynamism. A variance decomposition analysis indicates that the location choices of UFDI are mainly driven by city‐level determinants, notably transport infrastructure. [ABSTRACT FROM AUTHOR]

In this paper, we examine the persistence of benefits from foreign ownership, which informs the proper FDI policies. We exploit the divestment of foreign affiliates in South Korea from 2007 to 2019 as a quasi‐experiment to estimate such persistence of benefits. Our empirical analysis at firm‐level based on the propensity score reweighted difference‐in‐differences model leads to several conclusions. First, on average, the productivity benefit from foreign ownership does not persist after the divestment. Second, the productivity benefit of foreign ownership is persistent in firms with a higher absorptive capacity, measured by R&D intensity, intangible assets, and skilled workers. Such persistence is strengthened if the former foreign affiliate has a longer duration of ownership before the divestment. It suggests that absorptive capacity and time input are helpful for foreign affiliates to persistently absorb knowledge from their owners. Finally, we find that the productivity benefits of foreign ownership are less persistent at former foreign affiliates relying more on external trade. [ABSTRACT FROM AUTHOR]

AbstractThis study revisits research on Taxation and Foreign Direct Investments (FDI), highlighting their critical impact on economic growth and technological advancement in transitioning economies. Utilizing bibliometric analysis through the Proknow-C method, it delves into how taxation shapes FDI. The focus is on key areas such as determinants, countries, institutions, and incentives. It specifically acknowledges the scholarly contributions of Devereux M. P. among others. The study exposes the intricate dynamics between taxation and FDI, aiming to broaden the understanding and inform future research, with profound implications for developing effective policy-making in emerging economies. [ABSTRACT FROM AUTHOR]

This study examines the factors that affect Türkiye's outward foreign direct investment (TODI) in European Union (EU) countries across quantiles using a panel quantile regression to understand the factors that affect TODI in EU countries with the most and least direct investment from Türkiye. We document that determinants of TODI in EU countries show significant discrepancies across quantiles. Mainly, we find that the relationship between the political stability (PS) level in EU countries and TODI is positive and also stable across quantiles. We also see a strong positive and monotonically declining relationship between Türkiye's trade exports (EXP) and TODI. On the other hand, we do find that host country market size is negatively related to TODI with a declining slope across quantiles while labour resource endowments are positively related with a small variance across quantile. Overall, we provide policymakers with further information about the growing level of TODI in EU countries. Mainly, we recommend policy makers to make effective use of the relevant trade facilitation clauses in the EU customs union, expand the scale of Türkiye's trade exports to EU countries, deepen political relations, and strengthen reciprocal political trust. [ABSTRACT FROM AUTHOR]

This study explores the long-term interplay between trade policy, energy efficiency, and carbon dioxide (CO2) emissions in South Korea, using data spanning from 1985 to 2023. By applying the Fourier autoregressive distributed lag (FARDL) model, the analysis reveals that while trade liberalization initially leads to a 0.23% increase in CO2 emissions for each 1% rise in trade openness—driven by the energy demands of industrial expansion—integrating energy efficiency standards within trade agreements helps mitigate these effects over time; this results in a 0.26% reduction in emissions for every 1% improvement in energy efficiency. The study also highlights the dual role of foreign direct investment (FDI), which contributes to a short-term 0.08% rise in emissions but significantly reduces carbon intensity in the long term by facilitating the adoption of cleaner technologies. These findings underscore the importance of innovation and FDI in decoupling economic growth from environmental degradation. The study advocates for the incorporation of energy efficiency measures into trade agreements and the prioritization of green technologies, recommending strategies that could enable South Korea to reduce its CO2 emissions by up to 40% by 2030. This research positions South Korea as a key actor in achieving global climate goals while maintaining economic competitiveness, offering valuable insights into the balance between sustainable development and industrial growth. [ABSTRACT FROM AUTHOR]

This paper examines the nexus between carbon dioxide (CO2) emissions, electricity consumption, fossil fuels, foreign direct investment (FDI), gross domestic product (GDP), and renewable energy in the Philippines. This paper also explores the intricate relationships between carbon dioxide (CO2) emissions, electricity consumption, fossil fuel use, foreign direct investment (FDI), gross domestic product (GDP), and renewable energy in the Philippines. Utilizing time-series data from 1990 to 2022 and applying advanced econometric techniques such as vector error correction modeling (VECM) and Granger causality tests, the study reveals the significant impacts of economic growth and energy consumption on CO2 emissions. The findings highlight the crucial role of renewable energy in mitigating environmental degradation. Policy implications are discussed in the context of the Philippines' commitment to sustainable development and climate change mitigation, emphasizing the need for integrated policies that promote renewable energy and energy efficiency alongside economic growth. We use a comprehensive econometric analysis to understand these variables' dynamic interactions and causal relationships. The study employs time-series data from 1990 to 2022 and applies advanced econometric techniques, including vector error correction modeling (VECM) and Granger causality tests. The results highlight the significant impact of economic growth and energy consumption on CO2 emissions while also underscoring the critical role of renewable energy in mitigating environmental degradation. Policy implications are discussed considering the Philippines' commitment to sustainable development and climate change mitigation. [ABSTRACT FROM AUTHOR]

Attracting foreign direct investment (FDI) to post-conflict countries is difficult. After conflict ends, governments struggle to perfectly enforce the institutions which otherwise shield investors from political instability. Reflecting this governance problem, this article presents a new explanation linking United Nations (UN) peacekeeping operations to subnational allocations of FDI in post-conflict countries. I specifically argue that deployments of UN peacekeeping police credibly signal to foreign firms where future political instability is least likely to disrupt their operations. Data from Liberia's extractive sector support my argument. Increasing the local deployment of UN police encourages foreign firms to establish new natural resource concessions, particularly in areas where the government's capacity to uphold the rule of law is weak. [ABSTRACT FROM AUTHOR]

Access to reliable, affordable, sustainable, and modern energy, along with the empowerment and increased participation of women in decision-making and politics, are fundamental to achieving the Sustainable Development Goals (SDGs) set forth by the United Nations (UN). The UN accentuates the critical role of women in politics for the successful attainment of the SDGs. This study delves into this aspect by investigating the impact of female political representation on access to electricity. Additionally, the study examines the influence of government efficiency, foreign direct investment (FDI) inflows, urbanization, and economic growth in Nigeria, utilizing data spanning from 2003Q1 to 2021Q4. Employing advanced econometric techniques such as wavelet quantile regression, wavelet quantile correlation, and quantile-on-quantile Granger causality analysis, our analysis reveals noteworthy insights. Our findings reveal a correlation between heightened female political representation and decreased access to electricity in Nigeria. Additionally, we note the beneficial impacts of foreign direct investment (FDI) inflows, economic growth, and governmental efficiency on the accessibility of electricity. Furthermore, our quantile-on-quantile Granger causality analysis highlights the predictive capabilities of female political representation, urbanization, FDI, and economic growth regarding electricity accessibility in Nigeria. Drawing from the insights gleaned in our study, we have crafted substantial policy recommendations designed to tackle the identified challenges and promote advancements in both electricity access and women's political engagement. [ABSTRACT FROM AUTHOR]

This paper investigates the role of local human capital in facilitating the export diversification improvement effect of foreign direct investment (FDI) in African countries. To this end, we use a panel smooth transition regression (PSTR) model which is able to deal with the heterogeneity issue associated with the cross-country data. Based on a sample of 30 African countries over the period 1996–2019, the results show that there is a minimum threshold of human capital beyond which the export diversification enhancing effect of FDI is unlocked in African countries. In other words, only countries located above a certain threshold of human capital benefit from the positive effect of FDI on export diversification. These results suggest that policymakers in African countries should focus on improving the conditions for acquiring local human capital (education and health) in order to extract economic gains from FDI. [ABSTRACT FROM AUTHOR]

This study investigates the role of foreign direct investment (FDI) and its country-of-origin in technology transfer. Using data of 95 countries from 2008 to 2019, results indicate that net inflows of the FDI are positively related to technological transfer especially in developing countries. This is consistent with the findings that show fewer resources endowed countries benefited from advanced technologies and management know-how. Furthermore, results suggest different country-of-origin affects the technology transfer of the host economy differently. These results are consistent with studies that suggest the FDI origins are crucial to expose firms with variety of technologies and management practices. Results from quantile analysis prove that there is an existence of a threshold for the developed and developing countries to gain from the country-of-origin of the FDI. Therefore, we need to relook at the investment policies of the host countries to maximize the benefits from different sources of FDI. [ABSTRACT FROM AUTHOR]

The popularity of Foreign Direct Investment (FDI) stimulates research on its determinants. This paper highlights the importance of political determinants in explaining inward FDI variation across countries. Adopting the argument that no single theory exists for FDI, it identifies the political factors based on the results of related empirical studies. The literature review’s primary concern is to provide underpinnings for further research on inward FDI distribution in the contemporary international political scene. It sets up the theoretical links between political regimes, political determinants, and FDI. The paper focuses on the importance of specific political variables established in all political systems to influence foreign investors’ decision-making process. The distinguished determinants are property rights protection, the signing of Bilateral Investment Treaties (BITs), human rights, and quality of governance. [ABSTRACT FROM AUTHOR]

This study focuses on the challenge of accurately forecasting foreign direct investment (FDI) inflows to Bangladesh, which are crucial for the country's sustainable economic growth. Although Bangladesh has strong potential as an investment destination, recent FDI inflows have sharply declined due to global economic uncertainties and the impact of the COVID-19 pandemic. There is a clear gap in applying advanced forecasting models, particularly the autoregressive integrated moving average (ARIMA) model and machine learning techniques like random forest (RF), to predict FDI inflows in Bangladesh. This study aims to analyze and forecast FDI inflows in Bangladesh by employing a hybrid approach that integrates the ARIMA model and the RF algorithm. This study covers the period from 1986 to 2022. The analysis reveals that net FDI inflow in Bangladesh is integrated into the first order, and the ARIMA (3,1,2) model is identified as the most suitable based on the Akaike Information Criterion (AIC). Diagnostic tests confirm its consistency and appropriateness for forecasting net FDI inflows in the country. This study's findings indicate a decreasing trend in net FDI inflows over the forecasted period, with an average of USD 1664 million, similar to recent values. The results from the RF model also support these findings, projecting average net FDI values of USD 1588.99 million. To achieve the aims of Vision 2041, which include eradicating extreme poverty and becoming a high-economic nation, an increasing trend of FDI inflow is crucial. The current forecasting trends provide insights into the potential trajectory of FDI inflows in Bangladesh, highlighting the importance of attracting higher FDI to accomplish their economic goals. Additionally, strengthening bilateral investment agreements and leveraging technology transfer through FDI will also be essential for fostering sustainable economic growth. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) plays a critical role in economic growth and development. It is imperative to examine factors such as socioeconomic, political, and environmental factors that are responsible for determining the potential to attract foreign investment. The paper attempts to evaluate the attractiveness of FDI in India in other words, the potential of India to attract foreign direct investment. Secondly, the study investigates the role of FDI potential in the real FDI inflow in the country. The paper constructs a comprehensive index for the attractiveness of foreign direct investment for India, which reflects the preparedness or potential of the country to provide a conducive environment for foreign investments. The study adopts principal component analysis (PCA) to formulate an index that reflects socioeconomic, political, and environmental aspects of FDI. Appropriate indicators are used to reflect all the dimensions, such as social, political, environmental, economic, infrastructure, and human capital. By regressing the FDI potential index on the interest rate, final consumption, public–private partnership, and potential for FDI on actual FDI inflow, the role of FDI potential is highlighted. It is revealed that FDI potential and FDI inflows are significantly positively correlated as well as significantly positively determine the FDI inflows as revealed by the regression results. Therefore, infrastructure, socioeconomic factors, and human capital also ensure political stability and governance are favorable in promoting more FDI inflow. In addition, the policies favoring public–private partnership and supporting all dimensions of FDI potential index must be promoted. [ABSTRACT FROM AUTHOR]

Numerous studies have extensively investigated the influence of foreign direct investment (FDI) on China's economic development from diverse angles, encompassing technological innovation, industrial structure, environmental pollution, foreign trade, and more. However, there is a scarcity of studies that comprehensively examine the hollistic impact of FDI on China's present model of "high-quality" economic development. Therefore, this study proposes a multi-path mechanism using the partial least-squares structural equation modeling to investigate the direct and indirect effects of them from 2012 to 2021. The findings show that, in general, FDI has played a crucial role in promoting high-quality economic development of China nationally and regionally, such as innovative development, green development, shared development, foreign trade, and economic security. Meanwhile, FDI has had a negative impact on harmonized development. Moreover, FDI has had a negative impact on the foreign trade in the middle region; while, FDI has not promoted high-quality economic development directly in the western region. Therefore, a scientific understanding of the relative importance of different paths can help decision-makers make more valid decisions, such as scientifically guiding FDI into rural areas and the tertiary industry; encouraging FDI firms to export in the middle region, increasing the entry threshold for FDI in the west region. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to propose a framework for evaluating the relationship between China and Peru, drawing on dependency theory, against the backdrop of China's explicit policies towards foreign direct investment. It seeks to transcend traditional interpretations of this relationship in the literature that focuses on China as either hegemon or a South–South partner to Latin American countries to highlight a more nuanced relationship. Design/methodology/approach: The paper adopts a case study approach, focusing on China in Peru. The authors examine three areas of traditional, strategic and emerging industries drawing from Chinese national policies, reviewing these against characteristics of dependency: control of production, heterogeneity of actors, transfer of knowledge and delinking. Findings: The authors find that Chinese foreign direct investment (FDI) in Peru demonstrates mixed motives and collectively operates as an ambiguous player. Chinese firms appear to be willing to work with various actors, but this engagement does not translate into a decolonial development alternative in the absence of a Peruvian political will to delink and Chinese willingness to actively transfer control of production and knowledge. Originality/value: This paper contributes to existing literature on China in Latin America by evaluating Chinese outward FDI in Peru against China's strategic aims in terms of a re-evaluation of dependency theory. [ABSTRACT FROM AUTHOR]

This study examines the determinants of new firm creation in Africa, focusing on external and internal funding sources and their interactions. It also explores the influence of colonial history by separately analyzing former British and French colonies. The primary goal is to help fill crucial gaps in African literature on the determinants of entrepreneurship. Given Africa's widespread poverty and underdevelopment, understanding what drives entrepreneurship is essential for job creation and economic growth. The study reveals three key findings. First, at the full sample level, remittances are the only external financing source positively associated with new firm creation, while foreign aid and foreign direct investment obstacle it. Internal sources, like savings and credit, do not show significant effects. Second, the subsample analysis reveals heterogeneous results: former British colonies' funding sources align with the overall findings, while in former French colonies, only savings support entrepreneurship. Third, considering control variables, the subsample analysis indicates two distinct entrepreneurship models: opportunity-based in former British colonies and necessity-based in former French colonies. These findings are noteworthy and provide significant policy implications at both national and international levels. Crucially, the positive role of remittances in financing new business initiatives, confirms that migration serves as a mutually beneficial arrangement for both sending African countries and the host countries. [ABSTRACT FROM AUTHOR]

Globalization is past its peak, we are told. The rise of populist anti-globalization movements and the return of geopolitical rivalries among great powers in the 2010s has put an end to free-wheeling corporate global capitalism. Or has it? This article summons available data on cross-border corporate investments at the level of countries (balance of payments), firms (subsidiaries and affiliates), and corporate managers (industry surveys). It pays special attention to the period between 2015 and 2021, which spans the election of President Trump and the outbreak of the Covid-19 pandemic that have unsettled global politics. We analyze global patterns in foreign direct investment positions and in particular the evolution of investments by US corporations in China, arguably a "most likely case" for deglobalization. Our analyses find no evidence that economic cross-border integration is in decline. The global allocation of corporate investments across the world's major economic regions has remained stable. US corporations have not notably reduced their global activities. If anything, their aggregate investment position in China has increased during the Trump administration's trade war. Overall, the results cast empirical doubts on prominent narratives about the state of the global economy. Geoeconomic transformations in world economic infrastructures may well be underway, but they are better understood as new and adapted forms of internationalization rather than the end of globalization. [ABSTRACT FROM AUTHOR]

China has entered a period of high-quality development. As an important feature of high-quality development, green total factor productivity (GTFP) has attracted much attention. With the opening-up and economic globalization, the Yangtze River Delta, one of the strongest and most technological regions in China, has been attracting an increasing amount of foreign direct investment (FDI). This study investigates if FDI is conducive to GTFP under the constraints of specific resources and a specific environment, which has important practical significance for the utilization of FDI in the Yangtze River Delta and China. Through a literature review and sorting the current FDI in the Yangtze River Delta, the GTFP and its decomposition indicators of 27 cities from 2004 to 2019 are calculated based on their energy consumption and pollution. Using the fixed-effects model and threshold model of panel data, this study tests whether FDI promotes GTFP and whether a nonlinear impact of FDI on GTFP exists. It finds that (1) the GTFP of most cities in the Yangtze River Delta improved during the sample period, but their annual growth declined. Technology is the dominant factor affecting the growth of GTFP. (2) FDI in the Yangtze River Delta has increased, and the investment structure has improved, but the distribution among cities is uneven. (3) The scale and quality of FDI have a positive impact on GTFP, which supports the "Pollution Halo" hypothesis. Economics, education, networks, and trade openness can promote the growth of GTFP, while environmental regulation, government intervention, and industrialization have a negative impact. (4) The quality of FDI, economics, the industrial structure, the environmental regulation, and the internet are each a significant single threshold characteristic for the impact of FDI on GTFP. When one of these factors is lower than a certain threshold, FDI has less impact on GTFP. When one exceeds a certain threshold, FDI's positive promotion effect on GTFP significantly improves. Based on the analysis, this study offers some suggestions. The government should improve the FDI selection mechanism based on realities, make appropriate environmental regulatory policies, strengthen the construction of networks, and improve the "Internet+" effect on productivity. [ABSTRACT FROM AUTHOR]

Foreign investment can mitigate the foreign exchange constraint of developing countries. It can also influence the economy's international competitiveness through appreciating or depreciating exchange rates. The exchange rate impact of domestic investment is also not straightforward and depends on some critical factors. These issues of investment often pose a policy dilemma. Against this backdrop, this paper assesses the relative impacts of foreign direct investment (FDI), domestic investment (DI), and external debt on India's real effective exchange rate and the rupee/dollar real rate for the liberalized regime for trade, investment, and exchange rates. The autoregressive distributed lag bounds testing approach to cointegration, followed by its error correction representation, finds that real exchange rate variations are associated with FDI, debt, DI, and some control variables. FDI and debt depreciate real exchange rates, indicating that these have not exacerbated the economy's international competitiveness. However, DI causes real appreciation. These findings are consistent across estimations involving alternative specifications of control variables. Offsetting impacts of FDI and DI is an interesting finding. This can stabilize the exchange rates by undermining appreciating or depreciating exchange rate trends. [ABSTRACT FROM AUTHOR]

This study explores the interconnections among industrialization, urbanization, Foreign Direct Investment (FDI), and carbon emissions (CO2e) across 31 OECD (Organization for Economic Cooperation and Development) countries from 1998 to 2020. In addition, it analyzes how education moderates these relationships. This study employs CO2e as the explained variable, while industrialization, urbanization, and FDI serve as explanatory variables, with education as a moderator. This research utilized Hierarchical regression analysis to examine how education moderates the associations among industrialization, urbanization, FDI, and CO2e. Additionally, to validate the reliability of our results, we utilized the Generalized Method of Moments (GMM). The results of this study imply that CO2e levels increase with the level of industrialization and urbanization. The pursuit of education also contributed to the increase in CO2e. Moreover, education and industrialization have detrimental effects on CO2e. To fill this gap in the existing literature, this study investigates the relationship between industrialization, urbanization, FDI, and CO2e, a domain with scarce empirical investigations. Furthermore, this study contributes uniquely to the literature by investigating the moderating influence of education on the relationships between independent variables and CO2e. This original aspect of this research aims to enhance our understanding of the complex connections between these factors. [ABSTRACT FROM AUTHOR]

Previous research shows that domestic unrest, and especially violent conflict, raises political risk and discourages foreign direct investment (FDI). However, prior work primarily has studied private Western multinational corporations, not authoritarian China, the second largest overseas investor, which has both state-owned enterprises (SOEs) and privately-owned enterprises (POEs). This paper investigates the effects of domestic conflict on overseas Chinese FDI. We first compare Chinese SOE and POE investments in host states facing political unrest. Next, we disaggregate political unrest, examining the effect of violent and non-violent campaigns on Chinese SOEs and POEs. We then disaggregate the sector of FDI inflows. Contrary to prior conflict studies, we find host states under political unrest, and specifically violent campaigns, attract Chinese SOEs no matter the economic sector, whereas POEs are more risk averse. Our findings show that Chinese SOEs favor higher risk investments, suggesting the need for theoretical nuance in the domestic conflict and FDI literature. [ABSTRACT FROM AUTHOR]

Because of rapid urbanisation and increasing food price volatility, Burkina Faso was compelled to prioritise boosting rice production, leading to a ten-year rice development project (NRDS), commencing in 2009. During the project, the country's rice production was 3.2 times higher, on average, than the previous decade, while funding to agriculture increased by 210 per cent. This study concerns the dynamics of funding in influencing rice production according to their sources, by uniquely examining mediation effects through cropland extension, rice yield, worker productivity and land productivity. No significant difference between public and private funding are found. Official development assistance and remittance are fully mediated by cropland extension and worker productivity improvement, while other funds are partially mediated. The NRDS might do well to address the disclosed shortcomings in this study, for example, the stagnation of rice yields may deteriorate the food security of the poor. [ABSTRACT FROM AUTHOR]

Given the importance of food security in the planning of developing countries such as Iran, as well as the significant role of the private sector in food investment, the present study examines the impact of technology spillovers on private sector investment in the agricultural food industries of Iran over a 30 - year period. Using a dynamic computable general equilibrium (DCGE) model and the 1390 social accounting matrix, the study evaluates the effects of technology spillovers, including three scenarios: doubling foreign direct investment, improving research and development through enhanced production efficiency considering a technology depreciation coefficient of 0.0062, and a 20% increase in imports of capital and intermediate goods on the private sector investment variable in the agricultural food industries, including four sectors: agriculture and horticulture, livestock, fisheries, and food industries. The results indicate that the first scenario will increase private sector investment in all four sectors. The second scenario does not lead to increased private sector investment in the four target sectors, while the third scenario will not have an impact on increasing private sector investment in the agricultural food industries except for fisheries. Therefore, it is recommended that necessary policies be implemented to attract foreign direct investment and restrict the import of intermediate goods to promote the development of the agricultural food industries in Iran. [ABSTRACT FROM AUTHOR]

• The influence of FDI and digitalisation on eco-innovation is tested for the EU. • Dynamic panel data estimation techniques are used for the years 2013 to 2022. • The eco-innovation index is used at aggregated and disaggregated levels. • Results show that the relationship between eco-innovation and FDI changes over time. • Digitalisation positively impacts eco-innovation, supporting the twin transition. This article analyses the influence of internationalisation and digitalisation on eco-innovation. Advanced panel data estimation techniques are employed using data from the 27 EU Member States between 2013 and 2022. The dynamic behaviour of internationalisation, more specifically Foreign Direct Investment (FDI), is tested, accounting for the endogeneity between innovation and international economic competition. Results reveal that the relationship between eco-innovation and FDI changes over time. At first, FDI has a negative impact on eco-innovation, but this effect becomes positive after two years. However, when analysing the data for eco-innovation at a disaggregated level, a potential delay in the influence of internationalisation on investments related to green research capabilities and resource efficiency outcomes is revealed. Results also consistently demonstrate a positive influence of digitalisation on eco-innovation, supporting the twin transition proposition of the digital shift complementing the transition towards low-carbon practices. Recommendations for policymakers and managers are provided at the end. [ABSTRACT FROM AUTHOR]

This paper examines the influence of economic policy uncertainty (EPU) on foreign direct investment (FDI). By utilizing a comprehensive dataset spanning 264 Chinese cities from 2005 to 2014, we uncover a negative relationship between EPU and FDI inflows. In addition, through heterogeneity tests, we demonstrate that this effect is more pronounced in cities characterized by a higher degree of marketization, stronger financial development, and a larger proportion of industrial production. Moreover, we observe that FDI exhibits greater sensitivity to EPU fluctuations following the 2008 Global Financial Crisis. To provide an explanation for these findings, we propose an open-economy model incorporating uncertainty. • We show the negative impact of rising EPU on FDI. • We use the data on province-level EPU and city-level FDI. • FDI is more sensitive to EPU in better developed cities. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Management & Economics Research is the property of Journal of Management & Economics Research 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.)

This paper examines the health status of developing nations in the context of liberalization. In the existing literature, trade openness and foreign direct investment (FDI) are often considered substitutes, with one being prioritized over the other to address health issues in developing countries (Chatterjee et al., 2022). Our study presents new evidence by viewing trade openness and FDI as complementary. Theoretically, we use a general equilibrium trade model based on the Heckscher-Ohlin-Samuelson-Venak framework, while static and dynamic panel data approaches are applied empirically. Our sample includes 51 developing countries across Asia, Africa, and Latin America from 1980 to 2019. The findings provide policy recommendations that emphasize trade liberalization to improve health outcomes, particularly life expectancy and infant mortality. Additionally, health-specific trade liberalization is suggested for African and Latin American nations, as economic growth through liberalization can strengthen domestic health infrastructure. [ABSTRACT FROM AUTHOR]

The study is to investigate how foreign direct investment (FDI) affects China's off-farm employment and per capita income of rural labourers and compare the effects in different regions. Based on panel data from 1997 to 2018 in 27 provinces and analysing the results of the simultaneous equations and dynamic generalized moment models with economic distances as extra instrumental variables, the study finds that FDI on average has played a significantly positive role in Chinese off-farm employment and per capita income of rural labourers. However, FDI has a much bigger impact on off-farm employment and per capita income of rural labourers in the coastal region than that in the inland region. In addition, we observe a positive off-farm employment and income effect of FDI with rural labour's education level playing a significantly positive moderating role. The impact mechanism test also shows that FDI's impact on off-farm employment and income is realized by stimulating the development of non-agricultural industries and directly creating jobs. These adjustments make a significant contribution to poverty reduction in rural China. China should further adjust the structure of FDI and optimize the regional distribution of foreign investment for promoting the overall transformation in rural China. [ABSTRACT FROM AUTHOR]

We consider a firm's incentive for foreign direct investment (FDI) and international technology licensing in a polluting industry. We explain the rationale and the welfare implications of complementarity between FDI and licensing, i.e., the firm's strategy of "FDI and licensing" (FL), which is empirically relevant but ignored in the literature. When the environmental tax cannot be committed, the firm adopts the licensing strategy if the pollution intensity is not high, and the licensing strategy may create lower consumer surplus and welfare compared to both FDI and FL. However, if the pollution intensity is high, the firm undertakes FL, which provide higher consumer surplus and welfare compared to both licensing and FDI. When the government can commit to the environmental tax, the firm always prefers FL. The host-country welfare is higher but the consumer surplus and world welfare may be lower under the committed tax policy compared to the non-committed tax policy. These results hold under Cournot competition and Stackelberg competition. We further show that FL can be the equilibrium strategy of the foreign firm if there is fixed-fee licensing instead of a two-part tariff licensing, which is considered in the main analysis. [ABSTRACT FROM AUTHOR]

This article investigates the Linder hypothesis for foreign direct investment (FDI) within the three‐way gravity framework, utilizing a newly compiled and extensive dataset encompassing greenfield and brownfield investment activities across diverse sectors from 2003 to 2018. The Linder hypothesis posits that multinational firms invest in countries with comparable income levels to their home country. Our primary findings affirm the relevance of the Linder hypothesis in the context of horizontal FDI. The influence of the Linder effect varies among sectors, with the service sector exhibiting the most pronounced effect, while no detectable effect is observable for the manufacturing sector. We also find that the Linder effect depends on the sector's position within the value chain and the degree of quality differentiation. Sectors closer to final consumer demand and those characterized by higher product differentiation exhibit greater exposure to the Linder effect. Additionally, our analysis reveals that the Linder effect is subject to variations based on the income levels of the host country and highlights the significance of consumer preferences in shaping FDI patterns. Our article underscores the pivotal role of industry dynamics, product quality considerations, and value chain positioning in influencing the Linder effect on FDI. [ABSTRACT FROM AUTHOR]

South Korea is considered one of the leading countries in innovation and research and development (R&D), in particular in renewable energy R&D efforts, but it is also one of the more polluting countries. So, understanding the interplay between these variables is of great interest. The main objective of this article is to examine the relationship between carbon dioxide (CO2) emissions, economic growth (GDP), renewable energy consumption (RE), foreign direct investment (FDI), home patents (HP), and foreign patents (FP) in South Korea using data ranging from 1980 to 2018. For this purpose, the autoregressive distributed lag (ARDL) approach and Granger causality tests were employed. Estimates of long-run elasticity point to a positive relationship between GDP and CO2 emissions. FP and RE have a negative influence on CO2 emissions but they have a favorable effect on GDP. FDI and HP have positive impacts on CO2 emissions. Granger causality outcomes demonstrate that CO2 emissions, GDP, RE, and FP have long-term bidirectional causal relationships. In the short-run, there are unidirectional causalities running from FP and FDI to RE and from FDI and HP to GDP. Besides, there is a bidirectional causality between GDP and RE. South Korea should continue to promote renewable energies and facilitate the use of foreign patents, particularly those relating to renewable energies. This will lead to a reduction in its carbon emissions while benefiting its economic growth. [ABSTRACT FROM AUTHOR]

In developing countries, foreign direct investment (FDI) plays a significant role in industrial catch-up concerning knowledge acquisition and technological innovation. The Chinese government's development strategy is vital in attracting FDI and green innovation (GI). This article investigates the moderating role of development strategy in the causal relationship between FDI and GI from the perspective of new structural economics. We find a U-shaped association between FDI and GI. Specifically, FDI inhibits GI at its low level, and FDI promotes GI with the accumulation of FDI capital. Therefore, cities with moderate catch-up strategies can maximize the impact of FDI on GI. Development strategies can also hinder the effects of FDI-driven GI in cities with a perfect market system while promoting them in cities with relatively backward, cleaner production technology. The development strategy not only has an impact on the FDI-driven GI effects in the region but also on the FDI-driven GI effects in the surrounding regions through the spatial spillover effect. These findings provide references on what type of FDI the government should introduce and how to guide the market to bring the GI effect of FDI into play. [ABSTRACT FROM AUTHOR]

Several large multinationals and a few local assemblers dominate the Indian automobile industry. The largest multinational, Maruti Suzuki, entered the Indian automobile industry with a policy of developing local automotive parts manufacturers to achieve high local content ratio. This study seeks to determine the extent to which foreign direct investment (FDI) in host countries contributes to the growth of automobile parts manufacturers. We use district‐level panel data from 2000 to 2008 to assess the linkage between the production of major automobile assemblers and the development of automotive parts suppliers located in the same and adjacent districts to those assemblers. Our regression results show the heterogeneity of the linkages, suggesting that the formation of industrial clusters by local parts suppliers and the expansion of their production capacity are likely to be key determinants of the success of FDI in the Indian automobile industry, rather than relying on in‐house parts production or imports. [ABSTRACT FROM AUTHOR]

The article analyzes the impact of TNCs on the economic growth of developing countries. The study used general scientific methods of analysis and synthesis, comparative method and method of data systematization. The information base of the study is based on scientific works of foreign and Ukrainian authors, statistical information of UNCTAD, and data from Internet resources. The geographical structure of TNCs’ activities is determined. It is found that today the largest number of TNCs among developing countries is concentrated in India and China. The positive and negative consequences of the impact of TNCs on the economies of developing countries and their social sphere are highlighted. The geographical distribution of foreign direct investment is analyzed in the context of the impact of TNC financial resources on developing countries. Foreign direct investment is a catalyst for the economic growth of developing countries, which is confirmed by the experience of a number of countries which have recently demonstrated high positive dynamics of their economic indicators and significant structural transformation in the modern course of their economies. The most striking examples in this regard are such countries as China, India, Brazil, Mexico, and others. The article suggests promising areas for strengthening the positive impact of TNCs on developing countries. The practical value of the article is that the recommendations set forth in it can be used by the management of TNCs and the government of developing countries.

Bu çalışma, 1994-2023 yılları arasında Türkiye'de doğrudan yabancı yatırım (DYY), gayrisafi yurtiçi hasıla (GSYH) büyümesi ve istihdam oranları arasındaki makroekonomik ilişkiyi incelemektedir. Araştırma, bu değişkenler arasındaki uzun dönemli ve nedensel dinamikleri araştırmak için durağanlık testleri, Johansen eşbütünleşme testleri ve nedensellik testleri dahil olmak üzere ekonometrik teknikleri kullanmaktadır. Bulgular, DYY girişlerinin GSYH büyümesinde önemli bir rol oynadığını göstermekte ve ekonomik kalkınmayı yönlendirmede dış sermaye ve bilgi akışının önemini vurgulayan içsel büyüme teorisini desteklemektedir. GSYH büyümesi ile DYY girişleri arasında güçlü bir nedensel ilişkinin bulunmaması, ekonomik genişlemenin tek başına yabancı yatırım için yeterli bir teşvik olmayabileceğini göstermektedir. Bu araştırma, aynı anda hem DYY çeken hem de yerli sanayileri destekleyen ve böylece rekabetçi ve yenilikçi bir ekonomik ortamı teşvik eden koordineli ekonomi politikalarının uygulanmasının önemini vurgulamaktadır. Makroekonomik perspektifleri bütünleştiren bu çalışma, stratejik yabancı yatırım yoluyla sürdürülebilir ekonomik büyüme ve istihdam elde etmek isteyen politika yapıcılar için değerli bilgiler sunmaktadır.

Abstract In the macro context of global climate change, given the profound challenges that the intensifying greenhouse effect poses to global ecological balance and sustainable economic and social development, the role of foreign direct investment (FDI) is increasingly acknowledged, particularly regarding its dual impact on the environment: while serving as a catalyst for economic growth, it might also exacerbate carbon emissions in host countries. This paper focuses on the panel data of 11 provinces and cities in the western region (excluding Xizang) from 2006 to 2021, calculates the implied carbon of foreign-invested enterprises in the western region, and explores the relationship between the implied carbon of foreign-invested enterprises in the western region and the economic development of the western region. The results indicate that from 2006 to 2021, the implied net carbon value of import and export trade of foreign-invested enterprises in the western region was greater than zero and roughly exhibited an upward trend year by year. FDI has an environmental deficit in terms of carbon emissions in the western region; FDI in the western region has a significant positive effect on the implied carbon emissions in import and export trade; The GDP of the western region has a significant positive effect on the implied carbon emissions of import and export trade. Therefore, this article puts forward corresponding suggestions from five aspects: policy incentives and regulatory constraints, technology research and innovation drive, clean energy development and resource recycling, international cooperation and regional linkage, and public awareness enhancement and cultural advocacy.

International trade is considered the central link in the complex system of contemporary international economic relations. It links all countries of the world in a unified economic system whose goal is to address economic problems at the international level through developing productive capacity, expanding employment opportunities, and enhancing the flow of production factors between countries to achieve economic growth. Our study aimed to clarify the considerable impact of some macroeconomic variables (exchange rate, gross domestic product, public spending, foreign direct investment) on foreign trade in Iraq and to determine the degree of relative importance of the macroeconomic variables affecting foreign trade in Iraq. The study followed the descriptive analytical approach by collecting data related to the study for the period from 2003 to 2020 and then analyzing the data obtained through artificial neural networks.

Understanding the relationship between foreign direct investment (FDI) inflows and economic growth is essential for enhancing output, introducing new technologies, and developing managerial capabilities. The study addresses a gap in the literature regarding FDI and economic growth in low- and middle-income European countries from 1995 to 2022. Employing various econometric methods, including Dynamic GMM, Hausman-Taylor IVs, Fixed Effects, Pooled OLS, and Random Effects, the analysis reveals a negative relationship between economic growth and FDI inflows. The finding suggests that FDI does not necessarily lead to improved economic performance. Additionally, trade openness negatively impacts FDI levels, while increased R&D and inflation positively influence these dynamics. The effects of tertiary education, ease of doing business, and corruption control are mixed, with strong rule of law being a significant attractor for FDI. These insights provide valuable guidance for policymakers in low- and middle-income European countries aiming to formulate effective strategies for attracting foreign investments and fostering economic growth.

There is no single theory that explains all the activities of multinational enterprises (MNEs). In this article, I briefly discuss selected theories relevant to developing countries and from a historical perspective. This theoretical literature review explains why international production takes place, explains the Mergers and Acquisitions (M&A) mode of entry for FDI, and demonstrates the relevance of the selected theories to M&A in Africa. The article concludes that developments in theories of FDI since the beginning of the 21st century no longer view FDI in aggregate form. To understand trends of FDI, researchers must draw from theories that consider entry mode-choice.