Determinants of China’s outward foreign direct investment in Asia: a panel data analysis

Iqbal, Badar Alam; Sami, Shaista; Turay, Abdul M.

doi:10.1080/20954816.2019.1572354

Cited by 13 publications

(8 citation statements)

References 21 publications

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“…As suggested by Iqbal et al (2019), there are countries where outward FDI has been playing a significant role, whereas there are some which are benefitted by IFDI. In case of Bhutan, as per the analysis and findings it is noteworthy to know that the FDI unlike other countries have not given good fruits for the Bhutanese Economy.…”

Section: Discussion Conclusion and Way Forwardmentioning

confidence: 99%

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FDI, disinvestment and growth: an appraisal of Bhutanese economy

Ansari

Khan

2023

JCEFTS

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Purpose The purpose of this paper is to appraise the influence and challenges of direct disinvestment or through foreign direct investment (FDI) in the Kingdom of Bhutan, particularly to identify the inflow of disinterment post pandemic and how it can be improved. Design/methodology/approach The authors investigated the influence of FDI on Bhutan’s economy by analyzing secondary published data by Asian Development Bank and government agencies of Bhutan. To find out the role FDI has played in the growth of the Bhutanese Economy. Findings The FDI is not playing a major role in the nation’s economy so far. However, its potential cannot be ignored as there is a need for foreign currency and expertise in the country. Furthermore, government policies are directly influencing the inflow of foreign exchange that affects the Bhutan’s economy. FDI has not increased considerably because of self-imposed restrictions blocking government policies. Research limitations/implications This research is based on the data collected from secondary sources, which could be considered as the main limitation of this study. The Himalayan kingdom is not much open to the outside world in terms of the publication and availability of the data. Researchers put their best effort in retrieving secondary data from authentic sources. Practical implications This research has direct implications from an institutional perspective on the government policies and procedures. This study throws light on the elements that might help in improving Bhutan’s economy, employment and productivity for an overall development of economy. Social implications Bhutan and similar countries need to understand the pros and cons of having FDIs. This study might help the government and the civil society to understand the trends FDI has triggered in the nation over last 30 years, and will help them to make appropriate policies and regulations dealing with foreign investments. Originality/value This paper underwrites the influence of disinvestment on Bhutan’s economy, which can revolutionize business, entrepreneurship and institutions. This research was conducted by analyzing secondary data released by authorized agencies, which indicated the lower inflow of foreign exchange and how to improve further.

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Section: Discussion Conclusion and Way Forwardmentioning

confidence: 99%

“…Nevertheless, Bhutan has initiated many attractive schemes for attracting foreign exchange by building public awareness, streamlining processes and procedures for foreign investors. According to Iqbal et al (2019), the inflow of FDI in China has surpassed Japan and exceeded the level of inward FDI (IFDI).…”

Section: Introductionmentioning

confidence: 99%

FDI, disinvestment and growth: an appraisal of Bhutanese economy

Ansari

Khan

2023

JCEFTS

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“…Thirdly, the prior research also tends to focus on the trade that impacts FD (Chen and Wu, 1996; Colantone and Sleuwaegen, 2010; Borga et al , 2020; Alam Iqbal et al , 2019; Schmid and Morschett, 2020; Konara and Ganotakis, 2020; Nguyen et al , 2022). Trade is described in the literature as a country’s degree of openness, which is measured by the ratio of trade (imports and exports) to GDP.…”

Section: Literature Reviewmentioning

confidence: 99%

Food security and political instability-foreign divestment analysis

Subramaniam

Loganathan

Masron

2023

JCEFTS

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Purpose Prior studies have found evidence for the role of political instability on foreign divestment (FD) where a high level of instability encourages FD decisions. Therefore, this paper aims to examine how the food security level explains the linkage between political instability and FD. Design/methodology/approach The current study adopts the system generalised method of moment (GMM) to achieve accurate and reliable empirical evidence for 60 developing countries in the period 2011 to 2020. Findings The results demonstrated a negative and significant relationship between political instability and FD on food security. This suggests that political instability’s impact on divestment tends to be lower in countries with better levels of food security. Other controlled variables, such as economic growth, human capital and trade openness, also have a negative effect on FD, discouraging FD. Practical implications As a result, policymakers could take steps to ensure that food security levels reach acceptable levels, as food security has been linked to a country’s political stability. Originality/value To the authors limited knowledge, no studies have looked at the relationship between political instability and food security in determining a country’s FD. Our study aims to analyse this issue because the current global crisis, which is being caused by high food prices, will push millions of more people into severe poverty and exacerbate hunger and malnutrition

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“…Ren & Yang, 2020). However, research on Chinese OFDI from the perspective of host country’s infrastructure construction and institutional quality has attracted much attention recently (Iqbal et al, 2019; Y. Li & Rengifo, 2018; X.…”

Section: Introductionmentioning

confidence: 99%

An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects

Wang

Xin

2023

Sage Open

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In line with previous studies of the relationship between foreign direct investment (FDI) and global value chains (GVCs), this work uses national panel data of 31 countries along the Belt and Road (B&R countries) from 2010 to 2017 to study the impact of Chinese outside foreign direct investment (OFDI) on the GVC positions of B&R countries and examines the threshold effects of infrastructure level and institutional quality on that impact. The results show that the improvement of B&R countries’ GVC positions is related to Chinese OFDI, and Chinese OFDI has significantly positive dynamic effect on improving the GVC positions of B&R countries. Infrastructure level and institutional quality have double threshold effects upon the effect of Chinese OFDI on improving the GVC positions of B&R countries. When infrastructure level successively exceeds the two thresholds, the effect of Chinese OFDI on improving the GVC positions of B&R countries gradually increases, and when institutional quality successively exceeds the two thresholds, the effect of Chinese OFDI on improving the GVC positions of B&R countries gradually decreases. Our study proposes that under the Belt and Road Initiative, to improve the GVC positions of B&R countries, B&R countries should further strengthen their cooperation with China and continue to attract Chinese OFDI. Moreover, to better play the role of Chinese OFDI in enhancing the GVC positions of B&R countries, China should further strengthen the infrastructure connectivity construction with B&R countries and pay attention to the institutional quality of B&R countries when investing in them.

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Determinants of China’s outward foreign direct investment in Asia: a panel data analysis

Cited by 13 publications

References 21 publications

FDI, disinvestment and growth: an appraisal of Bhutanese economy

FDI, disinvestment and growth: an appraisal of Bhutanese economy

Food security and political instability-foreign divestment analysis

An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects

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