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Capital inflows could thwart monetary policies by stimulating reckless lending and asset bubbles, resulting in financial instability. This study examines the effect of inward capital flows on financial stability in Nigeria, spanning over 2003 to 2019. The hypotheses were tested using Error Correction Mechanism (ECM). The findings indicate that the short runs deviations will adjust to their long-run equilibrium by 10.9 % quarterly. The findings show that inward FDI and inward portfolio investment have a positive effect on Nigeria’s financial stability, while other capital flows do not have a significant effect on Nigeria’s financial stability. Also, the analysis shows that controlling for macroeconomic factors such as GDP and inflation rate significantly affects Nigeria’s financial stability. Based on the findings, the study recommends that monetary authorities need to adopt and promote economic policies to increase FDI and entice portfolio investment with rewards such as better economic freedom and lower taxation to boost the country’s economy.

Literature reports that developed countries are expected to be in stage IV or V (high economic development) in the investment development path (IDP). Knowing the IDP stage of a country shows the cross-border attractiveness of the economy, the circuitousness of firms expanding beyond the home border, and an indication for the formulation of appropriate economic policies. As this theoretical proposition is based on the total economy, we investigated the plausibility of this theory for the agricultural sector in developed countries. Using the generalised least squares estimator, we employed data on 26 developed countries from 1990 to 2021. We found that developed countries’ agriculture is in the first phase of stage V. This is consistent with the theoretical background for developed countries regarding the total economy and demonstrates how the IDP theory for industrialised countries’ overall economies and their agricultural systems are compatible. Agricultural multinationals in developed countries must continue to get globalised through a more interlocking network of trans-border supportive arrangements such as production and market sharing. Moreover, additional acquisition of farm assets and development of the same would balance place-bound assets, leading to further fluctuation of the net outward foreign direct investment and creating smaller transient amplitudes of the curve.

Background We examined the investment development path (IDP) through the perspective of developing countries’ agricultural sector. Our analytical approach indirectly accounts for interactions among countries regarding cross-border resource transfers. Aside from providing knowledge on testing the IDP by inferential statistics, the information would be relevant for policymaking. Identifying the stage(s) in the IDP not only highlights the global appeal of agriculture but also guides firms seeking to expand beyond borders. This information is essential for developing an effective economic strategy. Methods We employed data from 1991 to 2021 for 55 countries from the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) and applied a fixed effects estimator corrected for serial correlation and non-constant variances. Results and conclusions We found that agriculture in developing countries is currently in stages I and II of the IDP. Broadly, agricultural production requires policies that would increase outward foreign direct investment and inward foreign direct investment. Domestic agricultural businesses in developing countries must develop capacity by learning from foreign multinationals. This would enable agricultural businesses to invest abroad. Such a move would lead to an increase in outward FDI. As this would have resulted from increased GDP per capita, it will lead to movement from the existing stage to higher ones.

Background We examined the investment development path (IDP) through the perspective of developing countries’ agricultural sector. Our analytical approach indirectly accounts for interactions among countries regarding cross-border resource transfers. Aside from providing knowledge on testing the IDP by inferential statistics, the information would be relevant for policymaking. Identifying the stage(s) in the IDP not only highlights the global appeal of agriculture but also guides firms seeking to expand beyond borders. This information is essential for developing an effective economic strategy. Methods We employed data from 1991 to 2021 for 55 countries from the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) and applied a fixed effects estimator corrected for serial correlation and non-constant variances. Results and conclusions We found that agriculture in developing countries is currently in stages I and II of the IDP. Broadly, agricultural production requires policies that would increase outward foreign direct investment and inward foreign direct investment. Domestic agricultural businesses in developing countries must develop capacity by learning from foreign multinationals. This would enable agricultural businesses to invest abroad. Such a move would lead to an increase in outward FDI. As this would have resulted from increased GDP per capita, it will lead to movement from the existing stage to higher ones.

Divestment is an inevitable decision by businesses including multinationals. Its implication for domestic investment has not been investigated especially in Eastern European countries. We used data on 23 Eastern European countries from 1991 to 2019 to assess the effect of outward and inward foreign direct divestment on domestic investment. We found that both outward foreign direct investment and inward foreign direct investment as well as their corresponding divestments crowd out domestic investment. The impact of outward foreign direct investment and its divestment crowd out domestic investment more than the crowding out effect of inward foreign direct investment and its divestment. The results of this study call for efforts to attract and retain inward foreign direct investment. These should build the respective Eastern European economies to an extent that the outward foreign direct investment and their divestment will not impact domestic investment as much as has been found. [ABSTRACT FROM AUTHOR]

Background We examined the investment development path (IDP) through the perspective of developing countries’ agricultural sector. Our analytical approach indirectly accounts for interactions among countries regarding cross-border resource transfers. Aside from providing knowledge on testing the IDP by inferential statistics, the information would be relevant for policymaking. Identifying the stage(s) in the IDP not only highlights the global appeal of agriculture but also guides firms seeking to expand beyond borders. This information is essential for developing an effective economic strategy. Methods We employed data from 1991 to 2021 for 55 countries from the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) and applied a fixed effects estimator corrected for serial correlation and non-constant variances. Results and conclusions We found that agriculture in developing countries is currently in stages I and II of the IDP. Broadly, agricultural production requires policies that would increase outward foreign direct investment and inward foreign direct investment. Domestic agricultural businesses in developing countries must develop capacity by learning from foreign multinationals. This would enable agricultural businesses to invest abroad. Such a move would lead to an increase in outward FDI. As this would have resulted from increased GDP per capita, it will lead to movement from the existing stage to higher ones.

Copyright of Management & Organization Review is the property of Cambridge University Press 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.)

Background: We examined the investment development path (IDP) through the perspective of developing countries’ agricultural sector. Our analytical approach indirectly accounts for interactions among countries regarding cross-border resource transfers. Aside from providing knowledge on testing the IDP by inferential statistics, the information would be relevant for policymaking. Identifying the stage(s) in the IDP not only highlights the global appeal of agriculture but also guides firms seeking to expand beyond borders. This information is essential for developing an effective economic strategy. Methods: We employed data from 1991 to 2021 for 55 countries from the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) and applied a fixed effects estimator corrected for serial correlation and non-constant variances. Results and conclusions: We found that agriculture in developing countries is currently in stages I and II of the IDP. Broadly, agricultural production requires policies that would increase outward foreign direct investment and inward foreign direct investment. Domestic agricultural businesses in developing countries must develop capacity by learning from foreign multinationals. This would enable agricultural businesses to invest abroad. Such a move would lead to an increase in outward FDI. As this would have resulted from increased GDP per capita, it will lead to movement from the existing stage to higher ones.

By exploring feasible pathways for coordinating the ecological environment and economic development, this study investigated the impact of FDI in the producer service sector (SFDI) on green total factor productivity (GTFP) across 20 provinces from 2006 to 2019 in China. We employed a panel data regression model and found that SFDI significantly promotes China's GTFP, verifying the existence of the "pollution halo" effects of SFDI in China, where GTFP is estimated by the global Malmquist–Luenberger productivity index based on the slack-based measure and directional distance function. We also employed mediating and moderating models to test the mechanism and found that SFDI can affect GTFP through competition, green innovation, and resource allocation mechanisms. Notably, the impact of SFDI on GTFP exhibits regional heterogeneity, with the strongest impact observed in the eastern region, followed by the western region, and the weakest in the central region. Further analysis reveals that the enhancement of environmental regulations and the level of factor marketization can amplify the influence of SFDI. Finally, we offer specific recommendations encompassing the enhancement of openness, improvement of factor markets, and strengthening of environmental regulations. [ABSTRACT FROM AUTHOR]

Based on the analysis framework of the general equilibrium model of trade environment effect constructed by Copeland and Taylor, this paper explained the mechanism of the effects of coordinated development of two-way FDI on carbon emissions, and then based on the data of two-way FDI and carbon emissions in 30 provinces in China from 2003 to 2020, the paper measured the carbon emission reduction effect of the coordinated development of two-way FDI in China by using the spatial panel model and moment estimation method generated by Han and Phillips and introduced the intermediary effect model to explore its impact mechanism. Moreover, the spatial spillover effect of the spatial model was investigated by applying partial differentiation. The study showed that: ① The coordinated development of China' s two-way FDI could significantly inhibit the improvement of the country' s carbon emission level. The spatial distribution and time path dependence of high and low carbon emission clusters were significant, and the results were still valid after robustness and endogenous tests. ② Heterogeneity analysis showed that coordinated development of two-way FDI in the eastern region had the most obvious carbon emission reduction effect, followed by the central region, while the regression results of the impact of the western region on carbon emissions were not significant. That was mainly related to the highest level of coordinated development of two-way FDI in the eastern region, followed by the central region, while the western region had been in a state of extreme imbalance. ③ The test result of the impact mechanism showed that coordinated development of two-way FDI, on the one hand, reduced carbon emissions by improving the capital-labor ratio, and on the other hand, had a positive impact on carbon emissions by promoting the expansion of industrial scale and the improvement of productive technology. However, under the combined effect of structural effect, scale effect, and technological effect, it ultimately had a significant inhibitory effect on carbon emissions. ④ The spatial spillover effect analysis found that the improvement in coordinated development of two-way FDI in China' s provinces inhibited not only the carbon emissions of their own regions, but also those of neighboring regions and even the whole country. In view of the above findings, we believe that we should do a good job of coordinating the development of two-way FDI, establish a long-term mechanism of coordinated regional economic development and joint pollution prevention and control, further tap the emission reduction effect of structural effects, and encourage and guide technological progress to focus on pollution control. [ABSTRACT FROM AUTHOR]

Foreign direct investment can be defined as an investment made by an entity (usually a company) incorporated in a home country in the business interests of a host country, in the form of either establishing new business operations or acquiring controlling interest in existing business assets. Foreign direct investment is expected to meet the following characteristics: (1) the capital movement is typically accompanied by further technological, material, information, financial or personnel flows; (2) the foreign direct investor effectively controls facilities abroad; and (3) the investor has a long-term interest in the host country.

This paper examines the impact of the interactive development of inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) [two-way foreign direct investment (FDI)] on regional environmental technology by using data from 30 provinces and cities in China from 2004 to 2017. To overcome the possible endogeneity problem of the model, the system generalized moment estimation method (system GMM) is used to estimate the model. The results show the following: First, two-way FDI could inhibit the progress of regional environmental technology. Second, the results of the regional heterogeneity test show that the development of two-way FDI interaction promotes the environmental technology in the eastern region, but inhibits the environmental technology in the central and western regions of China. Third, the heterogeneity test results of the two-way FDI interactive development degree show that the two-way FDI interactive development in China promotes environmental technology in high-interactive areas, but inhibits environmental technology in low-interactive areas. Finally, the results of the phased heterogeneity test show that as China’s two-way FDI interactive development gradually increases, its inhibitory effect on regional environmental technology gradually declines. Therefore, it is believed that in the future, China should further strengthen inward FDI and OFDI, realize the benign interaction of two-way FDI, and finally promote the progress of regional environmental technology.

China's foreign direct investment is an important driving force for economic growth, which also aggravates carbon emissions. Based on China's provincial panel data from 2003 to 2018, this paper uses the panel-fixed effect model and panel threshold model to explore the impacts of two-way foreign direct investment on carbon emissions and analyze the threshold effects of different environmental regulations. The empirical results show that inward foreign direct investment (IFDI) has a significant inhibitory effect on carbon emissions, while outward foreign direct investment (OFDI) leads to the aggravation of carbon emissions. Considering regional heterogeneity, environmental regulation in high-carbon areas mainly affects local OFDI, and environmental regulation in low-carbon areas mainly inhibits carbon emissions by affecting IFDI. In addition, high-carbon regions can achieve the inhibition of OFDI on carbon emissions by strengthening command-and-control regulation and reducing the promotion of OFDI on carbon emissions by strengthening market incentive regulation and voluntary regulation. Meanwhile, excessive command-and-control regulation and market incentive regulation in low-carbon areas bring unexpected regulatory effects, but the inhibitory effect of IFDI on carbon emissions can be increased by strengthening voluntary regulation. [ABSTRACT FROM AUTHOR]

This paper investigates whether environmental regulations affect inward foreign direct investment (FDI). The identification strategy uses the reduction target policy for air pollutants during eleventh Five‐Year Plan period implemented by the Chinese government in 2006. Our difference‐in‐difference‐in‐differences estimation employs three‐dimension of variations; prefecture (i.e., high target prefectures vs. low target prefectures), industry (more polluting industries relative to less polluting ones), and year (i.e., before and after 2005). We find that tougher environmental regulations lead to less inward FDI through increasing the probability of exit and reducing the probability of entry of foreign invested enterprises. Mechanism analysis shows that foreign invested enterprises with relatively low productivity demonstrate strong negative response. This allocation of resource improves industry productivity. [ABSTRACT FROM AUTHOR]

While the influence of national institutions is well-documented, we theorize and investigate how sub-national institutions affect localization of foreign direct investment into a sub-national geographic area. Specifically, we examine the effect of county-level political ideology and party majority affiliation in the United States on inward foreign direct investment through foreign-sourced greenfield start-ups in that county. As predicted, in examination of 2,978 counties (94.7% of all US counties), the dichotomous majority party affiliation (Republican versus Democrat) differentially influenced foreign-sourced greenfields. Significantly decreased levels of foreign-sourced greenfields were experienced in counties during a Republican majority relative to Democratic, all else being held equal. [ABSTRACT FROM AUTHOR]

Inward foreign direct investment indirectly or directly affect economic growth through various means. For instance, the direct effect might be attributed to production factors, while information and communication technology changes are linked to the indirect effect. This study aimed to examine the impact of direct and indirect inward foreign investment and information and communication technology on Indonesian economic growth. The data was collected from the annual time series from 1994 to 2019. Furthermore, an autoregressive distributed lag model was used to analyze the data and provide accurate conclusions. The results showed that short-term and long-term inward foreign direct investment and information and communication technology significantly affects Indonesian economic growth. In the long term, the direct and indirect effects of inward foreign direct investment are negative and positive, respectively. However, the long-term effect of information and communication technology on economic growth is positive. [ABSTRACT FROM AUTHOR]

The few existing studies on the relationship between Aid for Trade (AfT) flows and inward foreign direct investment (FDI) tend to report a positive effect of total AfT flows, in particular of aid flows for building economic infrastructure, on FDI inflows. This article aims to complement these works by investigating whether the effect of AfT flows on inward FDI stock depends on recipient countries' level of export product concentration. Empirical analysis has shown that AfT flows exert a strong positive effect on inward FDI stock in countries that experience a high level of export product concentration. These findings are relevant for developing countries regarding the concentration of their export products on primary commodities and given the strong role of FDI flows for employment generation, economic growth, and development in these countries. [ABSTRACT FROM AUTHOR]

Definition: Foreign direct investment can be defined as an investment made by an entity (usually a company) incorporated in a home country in the business interests of a host country, in the form of either establishing new business operations or acquiring controlling interest in existing business assets. Foreign direct investment is expected to meet the following characteristics: (1) the capital movement is typically accompanied by further technological, material, information, financial or personnel flows; (2) the foreign direct investor effectively controls facilities abroad; and (3) the investor has a long-term interest in the host country. [ABSTRACT FROM AUTHOR]

Purpose – This study empirically assessed the influence of foreign direct investment on the manufacturing sector growth in the Middle East and North African region using panel data of 18 countries covering the period of 1975–2017. Design/methodology/approach – The study employed Levin et al. (2002) test (LLC) and Im et al. (2003) panel unit root test. Furthermore, Kao’s cointegration test was applied to examine the long-run relationship between the variables. Both the Dynamic OLS and Fully modified OLS were used in estimating the short-run relationship. Findings – The results of the DOLS and FMOLS indicate that both inward and outward FDI influence the manufacturing sector growth positively. This shows that much of the manufacturing sector growth in the MENA region is driven by both inward and outward FDI. Our findings made a strong new proposition that aside from the negative influence proposed by Stevens and Lipsey (1992), outward FDI could also have a positive influence on the manufacturing sector of a country through effective utilization of domestic raw materials that are produced locally for production of goods in a foreign country. Practical implications – MENA countries should concentrate more on making policies that will encourage the effective utilization of domestic resources for outward foreign direct investment in other countries of the world as it has the capacity to boost the manufacturing sector growth. Also, policies that will attract more inflows of FDI in the region should be encouraged. Both inward and outward FDI should be considered as an integral part of MENA economic policy in order to spur the manufacturing sector growth. Originality/value – Previous empirical studies on the relationship between FDI and manufacturing sector growth have focused much on the influence of inward FDI. Thus, very little attention has been paid to the contribution that the outward FDI makes to the growth of the manufacturing sector of the host country. Our empirical study focused on the influence of both inward and outward FDI on the manufacturing sector growth with specific emphasis on the MENA region that remains the center of attraction of inward FDI and a source of inward FDI to most nonoil producing developing and developed countries given the oil-rich nature of the region.

Based on the panel data of 30 provinces (except for Tibet, Hong Kong, Macao, and Taiwan) in China from 2005 to 2016, a nonlinear threshold regression model and a carbon emission expansion models were constructed to empirically analyze the threshold effect of inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) on carbon dioxide emission intensity in China. The results show that (1) China's OFDI has increased carbon dioxide emission intensity while the IFDI has a significant inhibitory effect on carbon dioxide emission intensity. (2) The impact of the OFDI on carbon dioxide emission intensity gets influenced by the threshold effect of population size, economic development level, technology level, and environmental regulation. (3) The impact of the IFDI on carbon dioxide emission intensity also has threshold characteristics affected by population size, economic development level, and technological level. Hence, China should introduce more IFDI, optimize the structure of the OFDI, and exert its environmental improvement effect to satisfy the carbon emission reduction goal earlier. [ABSTRACT FROM AUTHOR]

Since preceding several decades, the carbon emissions based standard Environmental Kuznets Curve (EKC) has been tested and supported by a plethora of studies in countries around the globe. The current study estimated the inward foreign direct investment (IFDI)-augmented EKCs for China's 27 provincial divisions employing the advanced econometric methodologies involving cross-sectional dependence, slope heterogeneity, and second generation-based estimation procedures. The study has further contributed through a modification to "Stochastic Influence by Regression on Population, Affluence, and Technology" (STIRPAT) in terms of including IFDI to the standard model. Accordingly, this work estimated the standard EKC (involving economic development-carbon emissions linkage) as well as IFDI-carbon emissions linkage within the STIRPAT framework, by employing a panel vector error-correction-based estimation procedure. The findings revealed that (1) the conventional EKC estimates for national and regional samples (i.e., aggregate samples) presented linkages differing from the EKC links for the provincial divisions. It suggested that the EKC at the aggregated levels is likely the consequence of aggregation bias problem. (2) The links between IFDI (in power and non-power sector) and carbon emissions provided inverse U shape for the aggregate samples, while the provincial divisions presented heterogeneous results. This is perhaps because of the aggregation bias. Hence, the aggregation bias puzzle is unriddled. (3) Also, heterogeneous patterns are found in terms of turning points, degree of impact, and nature of the association of income and IFDI with carbon emissions. The meaningful policies can be extracted for the large countries encompassing varied economic development levels, such as China, if the EKC is evaluated at the disaggregate scales. [ABSTRACT FROM AUTHOR]

The paper estimates the effect of corruption in the host country on flows of direct foreign investment (FDI), input and output. The objective is to demonstrate if corruption is a vehicle that attracts FDI or, on the contrary, it is a mechanism that inhibits these capitals. A panel methodology System of Generalized Methods of Moments (Sys-GMM) is used for 126 countries classified by the income level for the 1996-2016 period. It is shown that corruption has the effect of attracting inward-FDI and preventing outward-FDI, having a positive effect on net FDI. There is also a significant difference in the sensitivity of FDI to corruption among groups of countries.

We study the role of the strength of Intellectual Property Rights (IPR) law protection and enforcement in influencing horizontal productivity spillovers from inward FDI to domestic firms in host countries. While most WTO countries adopted strong IPR legislation due to exogenous pressure resulting from the signing of the Trade-Related Aspects of IPR (TRIPS) agreement, public IPR enforcement strength continues to vary significantly between countries. We meta-analyse 49 studies and find that public IPR enforcement strength has a direct positive effect on horizontal productivity spillovers from inward FDI to domestic firms and a negative moderating effect on the relationship between IPR law protection strength and horizontal productivity spillovers from inward FDI to domestic firms. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the paper is to examine the impact of inward and outward foreign direct investment on innovation performance of the Visegrad and Baltic countries. Methodology/Approach: The study follows an open-system approach to consider the determinants of national innovation performance, taking into account both inward and outward FDI. We use two-step analysis that combines panel data regression analysis with the design of two FDI – innovation performance matrixes. Findings: The results of the study provide evidence that only outward foreign direct investment of domestic firms contributes significantly to the innovation performance of these countries and that this effect is more visible in the case of the Visegrad countries. Research Limitation/Implication: The limitations of the study are associated in particular with the selection of SII as a measure of national innovation performance. The use of this indicator is also related to the relatively short period of availability of consistent data, especially in connection with changes in the methodology of SII calculation. Originality/Value of paper: The policy implications of the paper suggest the need for stronger support of domestic bearers of cross-border capital movements in an attempt to boost national innovation performance.

Background: We examined the investment development path (IDP) through the perspective of developing countries' agricultural sector. Our analytical approach indirectly accounts for interactions among countries regarding cross-border resource transfers. Aside from providing knowledge on testing the IDP by inferential statistics, the information would be relevant for policymaking. Identifying the stage(s) in the IDP not only highlights the global appeal of agriculture but also guides firms seeking to expand beyond borders. This information is essential for developing an effective economic strategy., Methods: We employed data from 1991 to 2021 for 55 countries from the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) and applied a fixed effects estimator corrected for serial correlation and non-constant variances., Results and Conclusions: We found that agriculture in developing countries is currently in stages I and II of the IDP. Broadly, agricultural production requires policies that would increase outward foreign direct investment and inward foreign direct investment. Domestic agricultural businesses in developing countries must develop capacity by learning from foreign multinationals. This would enable agricultural businesses to invest abroad. Such a move would lead to an increase in outward FDI. As this would have resulted from increased GDP per capita, it will lead to movement from the existing stage to higher ones., Competing Interests: No competing interests were disclosed., (Copyright: © 2024 Djokoto JG et al.)

This paper presents a fresh understanding of the vigorous connection between inward FDI, renewable energy consumption, economic growth and carbon emission in the Chinese economy employing novel Morlet wavelet analysis. Wavelet correlation, continuous wavelet transform and partial and the multiple wavelet coherence analyses are applied on variables under study for data acquired during the period 1979 to 2017. The outcome of these analyses reveals that the connections among the variables progress over frequency and time. From the frequency domain point of view, the current study discovers noteworthy wavelet coherence and robust lead and lag linkages, although time domain reveals inconsistent associations among the considered variables. The wavelet analysis according to economic point of view supports that inward foreign direct investment (FDI) and renewable energy consumption help to enhance economic condition in Chinese economy. The results also suggested that inward FDI enhances the environmental degradation in medium and long run in China. The results emphasize the significance of having organized strategies by the policymakers to cope with huge environmental degradation occurred for a couple of decades in China. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the paper is to examine the impact of inward and outward foreign direct investment on innovation performance of the Visegrad and Baltic countries. Methodology/Approach: The study follows an open-system approach to consider the determinants of national innovation performance, taking into account both inward and outward FDI. We use two-step analysis that combines panel data regression analysis with the design of two FDI - innovation performance matrixes. Findings: The results of the study provide evidence that only outward foreign direct investment of domestic firms contributes significantly to the innovation performance of these countries and that this effect is more visible in the case of the Visegrad countries. Research Limitation/Implication: The limitations of the study are associated in particular with the selection of SII as a measure of national innovation performance. The use of this indicator is also related to the relatively short period of availability of consistent data, especially in connection with changes in the methodology of SII calculation. Originality/Value of paper: The policy implications of the paper suggest the need for stronger support of domestic bearers of cross-border capital movements in an attempt to boost national innovation performance. [ABSTRACT FROM AUTHOR]

We use annual data over the 2002–2016 period with Panel Smooth Transition Regression model to examine how the 2008 global financial crisis affected the relationship between FDI inflows into developed, developing, and transition host countries and host country corruption levels. We also partitioned the data for each type of host into corruption regimes (low, moderate, and high) and examined the results separately for each regime. Our results indicate that the crisis altered the FDI inflows/corruption relationships and generally depend on the development level of the host country and corruption regimes. In addition, our evidence suggests a strong correlation between selected host country macroeconomic variables like financial depth, gross capital formation, and FDI outflows and sample variables. In turn, the crisis also affects these variables. Factor analysis results using all sample variables and separately for donor/aid recipient countries indicate the emergence of a few key factors (host country economic environment, host country international involvement, and host country economic growth potential) that are also affected by the crisis. Our analysis strongly suggests that the FDI/corruption is a complex one and corruption prone host countries must consider improvements to corruption, financial depth and domestic gross capital simultaneously to attract FDI inflows. [ABSTRACT FROM AUTHOR]

This paper uses Chinese firm-level data from 2001 to 2007 and applies a propensity score matching method combined with a difference-in-differences approach to examine the direct causal link between inward foreign direct investment (FDI) and various aspects of Chinese firms' performance. We divide China into four economic regions and subdivide the origin of foreign investment into HMT investment (within the Greater China Area) and other foreign investment (outside the Greater China Area). The results indicate that the progress of the IFDI market in China is not evenly balanced within the four economic regions, while the different origins of foreign investment produce different effects. [ABSTRACT FROM AUTHOR]

This paper estimates and compares the spatial spillovers from both inward and outward foreign direct investment (FDI) to the innovation activities of indigenous firms, in particular, the innovation input and output. This analytical study is based on a firm-level spatial dynamic regression, which is, for the first time, conducted on a large-scale firm-level panel in the FDI literature. Using data from Shandong province in China over the period 2002–07, we find that both inward FDI (IFDI) and outward FDI (OFDI) significantly stimulate innovation activities of domestic firms. More importantly, the spillover effect from OFDI is much larger than that from IFDI. The results tend to support the going-out strategy of the Chinese government. [ABSTRACT FROM AUTHOR]

Grey relational analysis (GRA) model is an important part of grey system theory, which is used to ascertain the relational grade between an influential factor and the major behavior factor. Most of GRA models are mainly applied to the field in which the behavior factor and influential factor are the cross-sectional or time series data in a given system. However, owing to the panel data contains plenty information including individual and time characteristics, the traditional GRA model cannot be applied to panel data analysis. To overcome this drawback, the grey matrix relational analysis model is applied to measure the similarity of panel data from two dimensions of individual and time on the basis of the definition of the matrix sequence of a discrete data sequence. This paper examines the determinants of inward foreign direct investment (IFDI) in China using grey matrix relational analysis model. The study finds that the GDP per capita, enrollment of regular institutions of higher education, and internal expenditure on R&D are the key factors of IFDI.

Mugabe's forced resignation and subsequent policy changes provide prospects for increased inflows of foreign direct investment (FDI) to Zimbabwe. This study employs a System of Innovation (SoI) framework to highlight post-independence Zimbabwe's technology situation, which has generally deteriorated. It further explores whether and how inward FDI post-Mugabe's era can be directed towards technology catch-up. The quality of inward FDI, policy and institutional frameworks and the new government's posture on innovation will largely determine whether and how technology will catch up. Directing inward FDI towards technology catch-up and innovation in general can affect Zimbabwe's industrial productivity, economic growth and ultimately development. Explicit FDI and innovation policies are encouraged. [ABSTRACT FROM AUTHOR]

This paper examines the spillover effects of inward foreign direct investment (FDI) on the entrepreneurial activities of new firm creation through both industrial and geographical linkages. Using a dataset of 44,434 newly created small firms in 234 regions of South Korea in 2000-2004, this study finds that while the spillover impacts of FDI in the low-tech industry are positive and significant across almost all four possible combinations of the intra-/inter-regional and intra-/inter-sectoral channels, the impacts in the high-tech industry are largely intra-sectoral within the host region and across neighboring regions. Moreover, all statistically significant spillover effects follow an inverted 'U'-shaped curvilinear trend. [ABSTRACT FROM AUTHOR]

While the rapid development of two-way foreign direct investment (FDI) has boosted China's economic growth, its impact on environmental quality is uncertain. Based on provincial panel data from China covering the period from 2002 to 2020, this paper proposes an environmental quality assessment index system for China from two aspects: environmentally cleaner production and environmental end treatment. The comprehensive environmental quality index (EQI), environmentally cleaner production index (EPI), and environmental end treatment index (ETI) were all measured, with the geographic information system tool and Dagum Gini coefficient used to analyse the indicators' differences using a system-generalised method-of-moments (SYS-GMM) estimation to study the impact of two-way FDI on environmental quality in various regions across China. The results demonstrate that during the sample period, inward FDI positively impacted environmental quality and cleaner production but had a negative impact on environmental end treatment. Outward FDI significantly promoted EQI, EPI, and ETI, and the interaction between inward FDI and outward FDI positively impacted environmental quality and environmentally cleaner production, while it negatively impacted environmental end treatment. This indicates that under two-way FDI, China's relationship with environmental quality has gradually evolved from 'pollution first and then treatment' to 'green development of cleaner production'.

Copyright of Journal of Northeastern University (Social Science) / Dongbei Daxue Xuebao (Shehui Kexue Ban) is the property of Dongbei Daxue 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.)

Economic modernisation in Russia will require rapid and sustained productivity growth. The available evidence suggests that a key ingredient of productivity growth is an increase in the intensity of economic competition. This article considers the role that Russia's accession to the World Trade Organization (WTO) might play in increasing competition in the Russian economy and, in turn, facilitating economic modernisation. It is argued that while WTO accession provides an opportunity to help those in favour of a competition-based model of economic modernisation in Russia, accession without any corresponding reform of the existing system of political economy in Russia will be unlikely to yield significant results. [ABSTRACT FROM AUTHOR]

Copyright of Regional Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The Investment Development Path paradigm, pioneered by Dunning as an extension of his OIL eclectic paradigm of international production states that the Net Outward Investment (NOI, defined as outward minus inward foreign direct investment) of a country depends on its level of economic development, through several stages. Testing for this hypothesis in the case of nine countries from the Middle East and North Africa between 1986 and 2010, the authors find some evidence in support of this theory through a U-shaped relationship between NOI and GDP per capita. Conclusions are drawn regarding the future evolution of investment flows to and from this region. [ABSTRACT FROM AUTHOR]