Search

Due to the importance of foreign direct investment (FDI), scholars are always keen to explore FDI determinants and analyze their implications. Nevertheless scholars have proposed mixed viewpoints of FDI and interpreted its determinants differently, which do not contribute to the knowledge advancement and amalgamation of FDI literatures. The current research, therefore, aims to advance the knowledge of FDI determinants in Nigeria through a new investigation on the key determinant factors affecting Nigeria's inward FDI. Data were collected from UNCTAD (1970-2014) and analyzed by auto-regressive distributed lag tests (ARDL). A comprehensive theory-based model was developed accounting for many variables, such as the interest rate, external debt, oil rents, the Gross Domestic Product (GDP) growth rate, trade and exchange rate volatility. The analysis of FDI determinants in the Nigerian economy yielded reliable, robust, and economically meaningful results thereby offering an insight into the driving factors of inward FDI. Findings indicate that the interest rate, external debt, oil rents, and GDP growth are all important determinants, possessing a long-run effect on FDI. Different from the literature, however, trade and exchange rate volatility are barely important to FDI. Several policy implications flow from the findings. From a policy point of view, regarding the GDP growth rate, there should be concerted efforts to boost the performance of the non-oil sector in Nigeria through more investments in the agricultural and industrial sectors making the growth of the economy spread across other sectors and, in turn, encouraging inward FDI in such areas. Countries such as Nigeria, endowed with natural resources, should pursue policies targeted at full deregulation (privatisation) of their natural resource sector to better utilize the abundance of their natural resources thereby attracting additional FDI. Nigeria should also pursue better debt management practices. When debts are acquired, they should be targeted towards future consumption and longer-term investments. Most importantly, as an import-dependent economy, the Nigerian government should also formulate export-driven and appropriate fiscal policies that will stabilize Nigeria's trade relationship with other world economies. The Nigerian government should create the necessary environment that will regulate macroeconomic and specifically monetary policy (interest rate) which is essential for the attraction of FDI inflows into the economy. Finally, Nigeria should ensure that the quality of exportable commodities is improved to enhance international competitiveness. JEL Classifications: E01, O19, Q34 Keywords: ARDL; Cointegration; Foreign Direct Investment; FDI; Model; Nigeria., INTRODUCTION Over the past three decades, Foreign Direct Investment (FDI) has been subjected to considerable scrutiny in terms of its potential benefits (e.g., on employment, knowledge and technological spillovers) and [...]

The purpose of this research is to assess the economic growth and sustainable development of Ethiopia. To what extent does the Chinese investment contribute to the overall economic development of Ethiopia after the Belt Road Initiative (BRI)? What are the main focus areas for development in the region and how does the BRI initiative connect people in the country? This research examines the development process through the use of a case study and discursive analysis to know the result of the investigation. The study is deeply elaborated and the technique adds analytical and qualitative methods. Furthermore, this research attempts to highlight the key approaches and concepts of Chinese engagement in Ethiopia as it attains development in several sectors through the BRI. The BRI is successfully pioneering transport systems, roads, railways, small industries, automotive sectors, and health development programs in Ethiopia. As result, the Chinese investments bring changes to the country after the successful launch of the BRI. Furthermore, the study concludes that there is a need to initiate numerous projects to improve human, social, and economic life in Ethiopia because the country is suffering from many internal problems and China has to work to eradicate recurring problems in the country. As an external actor, the role of China gains importance in Ethiopia in the context of the New Silk Road economic engagement in the African Continent., Author(s): Mukesh Shankar Bharti [sup.1] Author Affiliations: (1) grid.10706.30, 0000 0004 0498 924X, Centre for European Studies, School of International Studies, Jawaharlal Nehru University, , 110067, New Delhi, India Introduction [...]

This paper investigates the role of human capital and institutional quality in the nexus of foreign direct investment (FDI) and economic growth in 46 African countries between 2002 and 2018. Based on panel data modelling, the empirical findings suggest that FDI in itself does not promote economic growth in Africa; however, we observe that human capital and institutional quality play a supportive role in enhancing the positive spillover effect of FDI on economic growth in upper-middle-income countries in the region. The findings for low-income and lower-middle-income countries are mostly not significant. Given the initial conditions and absorptive capacity constraints in these countries, the positive spillover effects of FDI might be limited. From a policy perspective, the findings call for special attention by policymakers to improving the quality of their human capital and strengthening their institutions to maximize the benefits of FDI. Keywords: Africa, economic growth, foreign direct investment inflows, human capital, institutions JEL classification codes: F21, F43, J24, O43, O55, 1. Introduction Foreign direct investment (FDI) plays a critical role in growth in developing countries. It is a source of employment generation, skill acquisition and transfer of technology know-how, and [...]

As climate change, population growth, rising incomes and rapid urbanization increase the demand for food, the world is facing further pressure to enhance food security for all. Investment in agriculture and food systems is not only necessary but also critical. Foreign direct investment (FDI) is an important source to close the funding gap that developing countries face to increase food production and agricultural productivity. Yet, it poses serious challenges on domestic populations. The goal of this study is to investigate the effect of FDI in agriculture on food security in the host country. The empirical analysis employs a land access index by the International Fund for Agricultural Development (IFAD) to control for differences in land governance. Using data from 56 developing countries over a 16-year period, the empirical analysis finds evidence that FDI in agriculture has an inverse effect on food security in the host country. FDI has a more favourable impact where the land governance system is better. The findings call for an imperative role to governments for tenure reforms by formalization of customary rights to enhance tenure security for a more equitable access to land. It is also essential that good monitoring and impact assessment systems are developed to ensure transparency of the processes associated with agricultural investments. Keywords: developing countries, FDI, food security, land governance, tenure security JEL classification codes: F21, F63, Q15, 1. Introduction Food insecurity remains a major long-term concern and is expected to increase even more under the impacts of economic slowdown and downturns following the COVID-19 pandemic, ongoing conflicts [...]

This paper presents an empirical analysis on the extent to which a country's welfare spending influences foreign direct investment (FDI) decisions, particularly as they relate to relocations. We argue, and subsequently empirically test, that higher welfare spending by governments attracts foreign investment. Moreover, multinational enterprises (MNEs) located in high welfare spending countries have a lower likelihood of relocating to foreign markets compared with MNEs in countries with lower levels of welfare spending. Using data for MNEs in 27 OECD countries, our results show that MNE location decisions are positively related to welfare spending. These findings appear to be more pronounced for MNEs operating in high-tech rather than in low-tech manufacturing industries. Our results suggest that high welfare spending does deter FDI in the case of host developing economies, but that these effects are small. We suggest that this is a result of firms being more hesitant to invest in developing countries where they will be expected to contribute to welfare. This suggests that a degree of trust between firms and host country governments is required on institution building and the delivery of welfare. Our results suggest that the conventional wisdom of firms avoiding or relocating away from locations due to the associated additional costs of high welfare spending is questionable, but that firms need to be confident on the efficacy of this welfare expenditure. Keywords: globalization, institutions, multinational enterprises, relocation, welfare state JEL classification codes: F23, F68, H53, L23, P16, 1. Introduction Developed countries have experienced a rapid increase in international integration, as well as growing public sectors and expanding welfare states since the end of the Second World War. [...]

The relationship between economic integration and income inequality is extremely contentious due to its complicated impact across key channels of globalization. This paper analyses the distributional effects of globalization through [...]

Poverty in Africa has long been a big concern that tremendous worldwide anti-poverty efforts have been poured into African countries. Suggested by the Big Push theory, outside capitals, such as foreign direct investment (FDI), foreign aid and concessional debts, should be encouraged to flow into poor countries to stimulate capital accumulation. This paper aims to examine if foreign aid and concessional debts can significantly attract FDI inflows to underdeveloped African countries. The study sample covers fifty African countries during the period 1993-2011. This study highlights the heterogeneity problems existing in the recipient countries, which varies with each other in terms of income levels, financial creditworthiness, and institutional conditions. For this reason, the sample countries are divided into two groups, IBRD and IDA countries, according to the World Bank's lending categories. Based on the F-test, Breusch-Pagan test, and Hausman test results, the random effects model is more efficient than pooled OLS and fixed effect model in the panel data analysis. In addition, this study applies GMM methodology to address the endogeneity problem existing in panel data analysis. Based on the Hansen test results, lagged FDI inflows and exogenous variables are justified to be introduced into the SYS-GMM as instruments. As expected, the main results generated from the analysis for IBRD countries and IDA countries are fairly diverse. Results developed by random effects model show that foreign aid and concessional debts have significant positive effects on FDI inflows for IDA countries. Neither foreign aid nor concessional debts are significantly related with FDI inflows for IBRD countries. The GMM generates similar results for IDA countries. In addition, the results suggest that previous FDI inflows have significant impact on current decisions. Hence, as suggested by the results, foreign help and capital resources should be diversified and allocated according to development levels of different countries. Foreign aid and concessional loans should be encouraged to invest in IDA countries so that FDI can be attracted to flow into recipient countries. For IBRD countries with higher level of development, economic growth plays a more important role in attracting FDI inflows. Keywords: foreign aid, FDI, concessional debts, IBRD countries, IDA countries, INTRODUCTION Africa has long been a continent suffering from wars, famine, and serious poverty. This perspective has slowly changed with the average 4.5 percent economic growth rate of African countries [...]

With the globalization of Chinese capital, economic statecraft has become an increasingly prominent component of China's foreign policy. In this article, I examine China's use of economic inducements in developed democracies, a topic of growing concern for policymakers, focusing on the case of Australia. I show how Beijing's attempts to coopt public voices and influence Australia's foreign policy using non-transparent political donations and academic funding generated a strong backlash. At the same time, economic interdependence has provided a buffering effect, with key domestic actors in Australia advocating for cooperative relations, although this effect can in turn be limited by Beijing's coercive economic tactics. My findings underline the reputational costs of certain approaches to economic statecraft, the value of building supportive coalitions, and the challenges faced by China's authoritarian state capitalist model. They also highlight the impacts of globalized Chinese capital in developed democracies, including the resilience and vulnerabilities inherent in democratic political processes. Keywords economic statecraft, China, Australia, inducements, political donations, economic interdependence, coercion, INTRODUCTION With the globalization of Chinese capital, there has been increasing attention among scholars and policymakers to the political and security implications for growing economic interdependence with China. Beyond investment [...]

What drives public discontent about Chinese investment on the ground? This study probes the 'ground truth' of public reaction in Zambia by documenting both the public perception and the actual impacts of Chinese investments. We find a 'reputation deficit' for Chinese investment: Zambians are significantly less likely to support Chinese investment than investment from other countries. Combining results from an original household survey, interview records, and official statistics, we examine the drivers of this reputation deficit. Chinese firms are no worse at generating employment or adhering to labor and environmental standards than Western corporations operating in Zambia, according to official statistics as well as public opinion. However, Chinese firms possess a lower degree of localization, specifically in managers' knowledge of local languages and the provision of culturally relevant benefits, and they are less likely to engage with the media. Our study highlights these previously overlooked causes of the reputation deficit. Keywords FDI, Chinese investment, public opinion, localization, Zambia, INTRODUCTION The first half of this special issue has focused on unpacking the supply side of China's outgoing capital. Next, in this article and that by Wong, we shift focus [...]

China's overcapacities in manufacturing industries, including pollution-intensive industries, served as an important motivation of the Belt and Road Initiative (BRI). The popular Pollution Haven Hypothesis (PHH) therefore expects that the initiative will lead to the relocation of polluting industries from China to the recipients. Focusing on the implementation by local governments, we argue that actual outcomes of the BRI depend on the way local states and businesses respond to the BRI in accordance with their preferences. Through investigating industries' actual responses to the BRI, we found that pollution-intensive industries have not relocated but rather expanded exports to the BRI countries. This has two implications: on the one hand, it alleviates the overcapacity issue in China and helps sustain the economic performance of the industry; on the other hand, it results in more pollution within Chinese borders and aggravates the environmental challenges facing the country. Keywords BRI, trade, foreign investment, environmental impacts, Belt and Road Initiative, INTRODUCTION The Belt and Road Initiative (BRI) was proposed in 2013 by President Xi Jinping as the key national strategy to strengthen economic integration and cooperation between China and countries [...]

The Belt and Road Initiative (BRI), and China's state-led model for economic globalization more generally, have attracted controversy: Are state-led overseas investment and lending driven by strategic motives or market rationale? How have the recipient economies reacted to the influx of Chinese capital? This special issue sheds light on these questions by first outlining the fragmented state system driving the BRI, a system featuring both Beijing's strategic logic at the top and market considerations in policy implementation. The role of the state is unpacked further in China's globalizing coal industry and in the growth of Chinese industry export to BRI countries. Finally, the issue explores the mechanisms behind public backlash and political pushback facing China in Zambia and Australia. As the COVID-19 pandemic continues to shift China's relationship with the world, this special issue contributes to a more nuanced understanding of the modus operandi of Chinese capital going global. Keywords China, state capitalism, BRI, Go Out policy, reputation deficit, economic statecraft, debt traps, domestic drivers, policy process, INTRODUCTION Once one of the largest importers of foreign capital among emerging economies (Prasad and Wei 2007), China's outbound investment has risen significantly over the last two decades (Figure 1). [...]

Existent empirical literature illustrates that the effect of finance on productivity is a preposition too obvious to debate. In this study, I extend this preposition by examining for the first time how financial sector transparency led by the private (PrSLT) and public (PuSLT) sector influence national productivity across different contextual and continental setups. The study employs a two-step dynamic panel data of about 138 economies between 2004 and 2017. In modelling national productivity, I employed private and public sector-led financial transparencies as my variables of interest while using gross capital formation growth, human development index, gross savings, foreign direct investment, inflation, trade openness, population growth and domestic credit to private sector as our control variables. The national productivity model is implement in different contextual and continental setups such as economies with strong and weak institutional quality, economies with high and low central bank independence, developed and less developed economies, Africa, Asia, Europe, North and South America. In the full sample, the results suggest that both PrSLT and PuSLT promotes national productivity. This suggests that regardless of the whether private or public sector leads the implementation of transparency in the financial market, it enhances national productivity. However, within sub-samples, PrSLT is found to promote national productivity in low central bank independent and less developed economies while PuSLT promoted national productivity in strong institutional quality, high central bank independence economies as well as African and Asian economies. Interestingly, the results failed to find any significance difference in the effectiveness of PrSLT and PuSLT. Nevertheless, PuSLT is reported to be more consistent and persistent in promoting national productivity across many contextual and continental setups. These findings may imply that policymakers can rely on financial sector transparency to enhance national productivity per head. Again, economies must choose carefully between private and public sector-led financial transparencies since these transparencies may be more or less effective given the context and continent in which they exist. Similarly, improving the quality of institutional quality and central bank independence is also crucial in promoting the relationship between financial sector transparency and national productivity. JEL Classifications: F4, E6, O11 Keywords: Financial Sector Transparency; National Productivity; Private Sector; Public Sector Contact Author's Email Address: Email baahkusi@gmail.com, INTRODUCTION National productivity is argued to be essential for economic growth and welfare and may reflect the wellbeing of citizenry in an economy (Coccia, 2011). For instance, per capita gross [...]

Preferential trade agreements (PTAs) have spread rapidly around the world since the 1990s. In the Americas, the proliferation of trade agreements with countries from within and beyond the region have resulted in a 'spaghetti bowl' of overlapping rules and regulations, some of which address behind-the-border issues such as investment, competition, labor, and environmental standards. Earlier research has linked trade agreements to increased foreign investment inflows. This article argues instead that the effects of PTAs on FDI depend on the domestic institutional capacities of member countries. Domestic institutions condition the benefits and effectiveness of PTAs by influencing governments' external credibility as well as their ability to implement the agreements they sign. The empirical findings show that weak state capacity exacerbates the spaghetti-bowl effects of multiple, overlapping agreements. Moreover, it is not the quantity but the quality, and more specifically, the depth of trade agreements that matters for attracting FDI. Los acuerdos de libre comercio se han propagado rapidamente por el mundo a partir de los anos noventa. En las Americas, la proliferacion de acuerdos comerciales con paises dentro y fuera de la region ha resultado en un 'spaghetti bowl' de reglas y regulaciones paralelas y que se superponen. En este trabajo, argumentamos que el efecto de los acuerdos preferenciales de comercio (APC) sobre la IED depende de la calidad de las instituciones nacionales en los paises miembros. Las instituciones politicas de cada pais miembro afectan la credibilidad externa, asi tambien como su capacidad para implementar los acuerdos que firman, de esa forma condicionando los beneficios y la efectividad de los APC. De acuerdo con nuestro analisis empirico, la baja capacidad estatal exacerba efectos negativos del 'spaghetti bowl' comercial. Ademas, la calidad (o profundidad) de los APC importa mas que la cantidad. Los acuerdos comerciales profundos, que abarcan temas y regulaciones domesticos, tienden a atraer mayores flujos de IED que los acuerdos superficiales., Since the 1990s, preferential trade agreements (PTAs) have spread rapidly and widely throughout the world. At the time of writing, a total of 635 such agreements have been notified to [...]

This paper investigates the dynamic relationship between perceived corruption and foreign direct investment (FDI) in Egypt during the period 1970-2019. Using a novel back-casting methodology, it extrapolates perceived corruption time series between 1970 and 1980. The results of the Johansen cointegration technique and the multivariate vector error correction model show a positive relationship between perceived corruption and FDI, supporting the 'greasing the wheels' effect of corruption. This positive association can be explained by several factors, such as the cross-interdependence of rent-generating assets with perceived corruption and FDI, and the use of FDI data based on the balance of payments that has growing financial-flows and phantom-FDI components. The findings of this paper have important policy implications. Improving the fundamental governance structure in Egypt should be accompanied by a comprehensive investment facilitation strategy to compensate for the removal of 'grease' from the 'wheels'. Keywords: perceived corruption, FDI, VECM, back-casting, Egypt JEL classification numbers: F21, D73, O20, H54, 1. Introduction Since the 1980s, the globalization of foreign capital, particularly foreign direct investment (FDI) inflows, has increased significantly in developing countries (UNCTAD, 2020). Over the last 50 years, FDI [...]

The current stage of globalization Involves geographically dispersed research and development (R&D) investments that are not confined to advanced economies. These cross-border R&D investments are driven by multinational enterprises' (MNEs') strategies for exploring and/or exploiting foreign locations. In this paper, we analyse location choice and the moderating effect of project-level investment strategy (i.e. exploration or exploitation) and type of host economy (i.e. advanced or emerging) on the importance of the innovation framework and local innovation capabilities. Our analysis of 588 R&D-related foreign direct investment (FDI) projects in the pharmaceutical and biotech industries during the 2006-2016 period reveals that whereas a host country's innovation framework and capability overall do affect the location decision, their ultimate effects are conditional on the combination of project-level investment strategy and type of economy. Our findings have policy implications for FDI policies aiming at enhancing linkages between MNEs and local actors and national science, technology, innovation and educational policies and programmes. Keywords: emerging markets, innovation framework, innovation capabilities, investment strategy, R&D internationalization, location choice JEL classification numbers: L16, L21, L50, O32, O43, 1. Introduction The innovation activities of multinational enterprises (MNEs) today are dispersed globally and internationalized (D'Agostino, Laursen and Santangelo, 2013; UNCTAD, 2013). Since the turn of the millennium, emerging markets [...]

Building on a sociology theory of space, we conceptualize physical geography as separated from its constructed connotations and suggest that the impact of geographic location on countries' attraction for foreign direct investment (FDI) is contingent upon their constructed qualities--that is, their unilateral characteristics and connectivity to other countries. Quantile regression analyses confirm these predictions and show notable variations across the distribution of FDI. The findings show that geography is not destiny and should rather be treated as an endogenous country characteristic whose consequences for FDI are subject to actions of policymakers and firms. Subsequent analyses show that the level of economic development affects the relationships between the physical and constructed consequences of geography on FDI, introducing significant differences between developed and developing countries. We outline the role for policy in shaping the contingencies that affect the relationships between geographic location and FDI. Keywords: countries' geographic location, actual and constructed geographic space, sociology theory of space, quantile regression, connectivity, FDI policy JEL classification numbers: F21, C32, Does countries' location in relation to other countries affect their performance as hosts for foreign direct investment (FDI)? Although this is a fundamental question for the understanding of FDI patterns [...]

This article provides empirical evidence of the impact on Foreign Direct Investment (FDI) flows by the 1992 investment policy reforms in the Bahamas. While much analysis has been conducted to demonstrate the reliance of the Bahamian economy on FDI, little analysis has been conducted to demonstrate the determinants of FDI in the Bahamas or the impact of prior investment policy reforms on those FDI receipts. This analysis utilises an ordinary least squares (OLS) regression model of World Bank multivariate time series data for the Bahamas for the 1981 -2017 period and World Bank panel data for the Caribbean for the same period. Controlling for variables such as market size, market growth, wages, worker productivity, and infrastructure, findings suggest that the 1992 polig reform was significant in determining subsequent FDI receipts. The results also suggest that government should continue its reform and open up sectors where it has comparative and competitive advantages to reduce the growing negative impact of rising wages on FDI receipts and gross domestic product (GDP) growth. Keywords: Bahamas; FDI; Economic development; Economic growth; Policy reform Cet article foumit des preuves empiriques de l'impact sur les flux d'investissements directs etrangers (IDE) des reformes de la politique d'investissement de 1992 aux Bahamas. Si de nombreuses analyses ont ete menees pour demontrer la dependance de Feconomie des Bahamas a l'IED, peu d'analyses ont ete menees pour demontrer les determinants de l'IED aux Bahamas ou l'impact des reformes anterieures de la politique d'investissement sur ees recettes. Cette analyse utilise un modele de regression des moindres carres ordinaires (MCO) des donnees de series chronologiques multivariees de la Banque mondiale pour les Bahamas pour la periode 1981-2017 et des donnees de panel de la Banque mondiale pour les Caraibes pour la meme periode. Si l'on tient compte de variables telles que la taille du marche, la croissance du marche, les salaires, la productivite des travailleurs et I'infrastructure, les resultats suggerent que la reforme politique de 1992 a joue un role important dans la determination des recettes ulterieures d'IED. Les resultats suggerent egalement que le gouvernement devrait poursuivre sa reforme et ouvrir les secteurs ou il dispose d'avantages comparatifs et competitifs pour reduire l'impact negatif croissant de la hausse des salaires sur les recettes d'IDE et la croissance du produit interieur brut (PIB). Mots cles: Bahamas; IDE; Developpement economique; Croissance economique; Reforme des politiques Este documento proporciona evidencia empirica del impacto en los flujos de Inversion Extranjera Directa (IED) por las reformas de la politica de inversion de 1992 en las Bahamas. Si bien se han realizado muchos analisis para demostrar la dependencia de la economia de las Bahamas en la IED, se han realizado pocos analisis para demostrar los determinantes de la IED en las Bahamas o el impacto de reformas anteriores de la politica de inversion en esos ingresos de IED. Este analisis utiliza un modelo de regresion de minimos cuadrados ordinarios (MCO) de datos de series de tiempo multivariantes del Banco Mundial para las Bahamas para el periodo 1981-2017 y datos de panel del Banco Mundial para el Caribe para el mismo periodo. Al controlar variables como el tamano del mercado, el crecimiento del mercado, los salarios, la productividad de los trabajadores y la infraestructura, los hallazgos sugieren que la reforma de politica de 1992 fue significativa para determinar los ingresos posteriores de IED. Los resultados tambien sugieren que el gobierno deberia continuar su reforma y abrir los sectores en los que tiene ventajas comparativas y competitivas para reducir el creciente impacto negativo del aumento de los salarios en los ingresos de IED y el crecimiento del producto interno bruto (PIB). Palabras clave: Bahamas; IED; Desarrollo economico; Crecimiento economico; Reforma de politicas, In 1980 Ronald Reagan won the election in the United States of America to become the fortieth president during a period when the US economy was experiencing one of the [...]

This paper investigates macroeconomic interactions in sub-Saharan African (SSA) countries, and more specifically, in the franc CFA zone. The CFA monetary zone is a unique case study because it is the only one that uses a common currency pegged to another currency, namely the euro. Additionally, the SSA region is heavily dependent on raw commodities. How monetary policy constraints affect trade, competitiveness and growth level of commodity-dependent economies? We estimate a Panel Vector Auto-Regressive model using four key macroeconomic variables: growth, current account, real exchange rate, foreign direct investment and the terms of trade. The analysis relies on a sample of 25 SSA countries including 14 belonging to the CFA zone. Two key results emerge from our analysis. First, the results show that foreign investments in CFA countries fail to generate the same positive spillover effects in the extra-CFA countries, highlighting the adverse effect of capital flight. Secondly, this paper shows that the Marshall-Lerner condition is not verified in the CFA context. As a consequence, nominal devaluation could not be used to stimulate the CFA trade balance. In terms of public policy, the most efficient ways to address the challenges generated by raw commodity dependence are through the close monitoring of foreign inbound investments, as well as complimentary domestic investments dedicated to sectors contributing to diversification and long-term growth. Keywords Peg * CFA * Commodity * Investment * SSA JEL Classification C22 * E52 * F45 013 * Q02, Introduction Two African economic and monetary communities, the 'West African Economic and Monetary Union' (WAEMU) and the 'Central African Economic and Monetary Community' (CAEMC) have been using the franc CFA [...]

Using historical data from Nepal--one of the largest recipients of aid among South Asian countries--this paper investigates the link between foreign aid, growth, remittances and carbon dioxide (C[O.sub.2]) emissions. The investigation of this issue is particularly important, as policy makers in the least developed countries are increasingly concerned about growing reliance on energy imports, particularly fossil fuels, and increasing C[O.sub.2] emissions. Mounting energy consumption has not only made their economies vulnerable to environmental disasters and increased health costs, but also to external shocks due to frequent fluctuations in international market prices for petroleum products. Since available studies are largely based on cross-sectional data--which lump together countries with different characteristics--empirical evidence is contradictory. In-depth case studies of countries with different backgrounds would certainly provide better insights into the link between aid, growth, remittances and C[O.sub.2] emissions, and contribute to ongoing policy dialogue. Our empirical results, based on an in-depth case study of Nepal, suggest that more foreign aid and remittances reduce C[O.sub.2] emissions, whereas financial development and higher income increase C[O.sub.2] emissions. These findings point to the importance of market mechanisms for regulating financial development and higher income to control C[O.sub.2] emissions, without undermining competitiveness. Keywords: Foreign aid, Nepal, Energy consumption, Carbon dioxide emissions, Environmental disasters and economic costs, 1. INTRODUCTION There is growing literature on the relationship between remittances, energy consumption, and foreign direct investment (FDI), but little is known about the effect of foreign aid and remittances [...]

This paper examines the determinants of foreign direct investment (FDI) from Singapore to two main host destinations: China and Hong Kong. It allows policy makers and researchers to understand the differences/similarities in the determinants of FDI from Singapore to a developing country, China, and a developed country, Hong Kong. Annual time series data covers the period 1994 to 2014 is used. Commonly used determinants, such as gross domestic product per capita of a host country, gross domestic product per capita of Singapore, real interest rate of a host country and trade openness of a host country are utilized to study Singapore's outward FDI (OFDI). Because the sample has only 21 observations, autoregressive distributed lag based bounds testing approach to cointegration developed by Pesaran, Shin & Smith (2001) is used to estimate cointegrating regression among these variables. This approach is an appropriate econometric estimation technique because the estimated long-run coefficients obtained from the reparameterization of an ARDL model are super-consistent even in small sample size. The main findings show that gross domestic product per capita of a host country attracts FDI from Singapore to each of these countries. It is also observed that higher interest rates in these two host countries attract Singapore's FDI. The degree of openness of China influences the flows of Singapore's FDI to China positively, but not for Hong Kong. It is a surprise that this empirical study is unable to find evidence that gross domestic product per capita of Singapore has an influence on its own FDI outflows. The overall results reveal that the motives of multinational corporations (MNCs) from Singapore to invest abroad typically differ between developing and developed economies, depending upon their respective competitive advantages. In general, MNCs invest in more advanced economies, such as Hong Kong, due to its purchasing power and market potential. Same goes for the developing markets, such as China, that consists of cheaper labor and large market opportunities. For the developing economies, trade liberalization is proved to be the pull factor that attracts MNCs. The more open an economy, the greater the attraction it has to MNCs. JEL Classifications: C22, F21 Keywords: Outward foreign direct investment, cointegration, China, Hong Kong, INTRODUCTION During the last few decades, Singapore being a city-state nation has created one of Asia's great success stories. It experiences a rapid transformation from an entrepot during the mid [...]

This study examines the energy efficiency transitions in China using provincial data covering the period 2003-2015. Sustainable progress in energy efficiency achievement is beneficial to energy security and the achievement of the Paris Agreement. This article combines the stochastic frontier method with the panel Markov-switching regression to model energy efficiency transitions. The estimated energy efficiency scores show significant regional and provincial heterogeneity. Also, while human capital development, urbanization, and foreign direct investment promote energy efficiency, price and income per capita reduce it. The transition probabilities indicate that the high energy-efficient state is less sustainable, and the movement towards the frontier seems less persistent than movement from the frontier. Thus, it appears that China is not making sustainable progress in energy efficiency. The unsustainable nature of the high energy-efficient state suggests that in China, there are weak energy efficiency efforts and energy efficiency policies lack robustness. Keywords: Energy efficiency transitions, Panel Markov, Stochastic frontier, China, 1. INTRODUCTION China has made significant economic progress since 1950, and this has raised energy consumption and carbon dioxide emissions. For example, in 2014, China's total energy consumption (i.e. 2.97 [...]

We examine the creation of a low-cost, optimal risk portfolio that individual investors can easily construct and manage. We consider five index mutual funds and three precious metals that are easily traded by investors. Collectively, the mutual funds track the returns of the entire U.S. equity market, 98 percent of foreign stocks, U.S. investment grade bonds, all domestic REITs and emerging markets. The three precious metals are gold, platinum and palladium. Because these mutual funds are available in ETF form, we provide optimization results with and without short selling. Optimization results differ greatly from conventional wisdom regarding optimal asset allocation. This actual portfolio may be as close to the theoretical market portfolio as is achievable in practice., Introduction Investors face a formidable challenge when deciding how to best allocate their investable assets. This challenge is not only theoretically important, but many studies find asset allocation to be [...]

After restoration of its independence in 1991, Azerbaijan became an important and active player in the region due to its oil and gas reserves and its geopolitical location. As it can be predicted, Azerbaijan soon attracted Transnational Corporations (TNCs) which were seeking natural resources. In 1994, the Contract of the Century (BTC) was signed between partner countries, and Azerbaijan got start towards a rapidly flourishing country. However, today there is an economic crisis since its economy mainly depends on oil and gas exports. The paper reviews three types of FDIs, analysis which kind of FDI is beneficial for Azerbaijan and seeks for opportunities and possibilities to divert FDI inflows to the development of non-oil sector, such as agriculture, tourism and updating soviet ventures in industry. Keywords: Transnational Corporations, Oil-sector, non-oil sector, FDI, Azerbaijan, economic development, economic crisis, agriculture, tourism, Introduction Azerbaijan got its independence after the collapse of the USST after 71 years in 1991. Right after gaining independence, the young country found himself in a war with another [...]