China’s outward foreign direct investment and exports diversification: an asymmetric analysis

Rehman, Faheem Ur; Ding, Yi-Bing; Noman, Abul Ala; Khan, Muhammad Asif

doi:10.1108/jcefts-12-2019-0065

Cited by 19 publications

(16 citation statements)

References 70 publications

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“…A structural break is an unstructured shock that has a long-term impact on the time series. Traditional testing would generally mistake the structural break for a unit root if this shock is not specifically taken into consideration [51,52]. As a result, the researchers utilized the Zivot-Andrew (ZA) unit root test, which is established after Zivot and Andrew [53].…”

Section: Resultsmentioning

confidence: 99%

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Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

et al. 2021

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This study explores the bicausality between institutional quality and FDI inflow both aggregated and sector-wise, i.e., the agricultural, manufacturing, and tertiary sectors in the Indian economy, by applying simulated autoregressive distributed lag (SARDL) dynamic new techniques, an extended variant of orthodox ARDL and NARDL. The study confirms that aggregated and sectorial FDI are enhanced by adequate institutional quality, and similarly, FDI promotes quality institutions. The nexus between institutional quality and FDI inflow is an inspiration for India to compete with developed economies by enhancing its institutional quality. The study observes cointegration and bidirectional causality between institutional quality and aggregated FDI.

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Section: Resultsmentioning

confidence: 99%

“…The counterfactual adjustment is explanatory and their impact on explained variables are graphically displayed. Just as in previous studies [50][51][52], the empirical findings on the basis of this new dynamic ARDL error correction equations are presented below:…”

Section: Econometric Methodologymentioning

confidence: 95%

Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

et al. 2021

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“…The optimum amount of trade occurs at the point of price equalization, meaning that trade would minimize the input price factor inequalities as input demand will increase, which were cheap before the trade. Import prices will increase (35) . Transport costs in this respect will decrease substantially or even swept off the comparative advantage by raising the commodity's final prices if trading partner countries manufacture their goods in home countries and Export them to the host nation then.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Study on Determinants of Trade Deficit in Selected SAARC Countries: The Role of Infrastructure

Khan¹,

Rehman²,

Hussain³

et al. 2021

IJED

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Purpose: Southern Asia economies, facing trade deficit in the last several years due to similar goods production and same export market, so there is a need to search out the way for trade reforms which affects the trade balance positively. The main purpose of this study is to examine the key determinants, most particularly the role of hard and soft infrastructure in trade deficit in South Asian for Regional Cooperation (SAARC) member economies. Methodology: The data were collected annual time series of 7 SAARC countries from 1990 to 2017. Different resources are used to collect data, like World development indicators, IMF and ICRG. This study applied several econometric tests, i.e., Panel Unit Root, panel-corrected standard error (PCSE), and Feasible Generalized Lease Square (FGLS). Finding: The econometric results show that the impact of aggregate infrastructure and all sub-indices (i.e., transport, telecommunication, energy and financial sector) on the trade deficit is positive and significant. The exchange rate's effect on the trade deficit is significant and negative while the financial deepening on trade is significant and negative. The impact of foreign direct investment (FDI) is negative and significant. The effect of domestic consumption on the trade deficit is positive and significant. Furthermore, the overall results recommended that the selected independent variables encourage exports and reduce the trade deficit in SAARC economies in the long run.

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“…Average of these six indices is taken and the data are collected from the International Country Risk Guide (ICRG). Further detail regarding the index of institutional quality can be seemed in the work of (Rehman et al , 2020d).…”

Section: Data Source and Estimation Strategymentioning

confidence: 99%

Does infrastructure promote exports and foreign direct investment in selected Southeast Asian economies? An application of global infrastructure index

Rehman

Noman

2020

JES

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PurposeInfrastructure deficiency in Southeast Asian countries is ever growing and touched to a level where it harms the local economy as well as the international sector of the country. The gap between demand and supply for infrastructure is constantly on the upswing. The purpose of this study to investigate the effect of infrastructure on exports and foreign direct investment (FDI) inflow in selected Southeast Asian economies.Design/methodology/approachThis study employs the pooled mean group (PMG) technique to velaborate that how the infrastructure affects export and FDI in the short run and long run during 1990–2018. For cointegration, Pedroni and Kao tests are used. Dynamic ordinary least square (DOLS) and the fully modified least squares (FMOLSs) estimators are employed for robustness check.FindingsThe findings support that aggregate and sub-indices of infrastructure significantly promote the export and FDI inflow in the long run. Also infrastructure, export and FDI inflow are cointegrated in the long run. FMOLS and DOLS found the most robust results.Originality/valueInfrastructure development in determining trade and FDI has established a significant deal of attention in the modern era where a plethora of research studies encourage the opinion that better infrastructure attracts FDI and enhances export. However, this study uses a global infrastructure index, which comprises the sub-indices like transport, telecommunication, energy and financial sector, which gives us a clear picture regarding how Southeast Asia can catch up FDI and export benefits through infrastructure.

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China’s outward foreign direct investment and exports diversification: an asymmetric analysis

Cited by 19 publications

References 70 publications

Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

Asymmetric and Symmetric Link between Quality of Institutions and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach

Study on Determinants of Trade Deficit in Selected SAARC Countries: The Role of Infrastructure

Does infrastructure promote exports and foreign direct investment in selected Southeast Asian economies? An application of global infrastructure index

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