Determinants of FDI in developed and developing countries: a quantitative analysis using GMM

Saini, Neha; Singhania, Monica

doi:10.1108/jes-07-2016-0138

Cited by 166 publications

(146 citation statements)

References 103 publications

(97 reference statements)

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“…In the present empirical research, net FDI inflows as a percentage of GDP is defined as a dependent variable in line with a number of prior empirical works (Jensen, 2003;Ahlquist, 2006;Saini and Singhania, 2018). The annual number of SMEs is recognized as an independent variable in this investigation following Esther et al (2018).…”

Section: Data Sources and Research Variablesmentioning

confidence: 93%

The impact of the local SMEs sector on FDI and the mediating effect of IFRS adoption in developing economies: The case of Algeria

Zouita¹

2019

Int. j. adv. appl. sci.

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The present paper aims to empirically explore the impact of SMEs on foreign direct investment inflows and analyses the effect role of IFRS adoption on the relationship between the SMEs sector and foreign direct investment inflows in short and long run in Algeria during the period of 1970-2017. This investigation intends to fill a major gap regarding empirical literature on FDI drivers in developing countries. Using the ARDL bounds testing approach, the findings show a positive association between SMEs and foreign direct investment inflows in Algeria in the long-run. However, in terms of the role of IFRS adoption in mediating the impact of SMEs on FDI inflows in Algeria, our findings report a negative contribution of IFRS adoption of the association between SMEs and FDI inflows in both long and short run. These findings provide significant implications for regulators and policymakers in developing countries improve the business environment of their countries, manager and foreign investors in assessing the business environment in host countries and for both developing countries and academic research.

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Section: Data Sources and Research Variablesmentioning

confidence: 93%

The impact of the local SMEs sector on FDI and the mediating effect of IFRS adoption in developing economies: The case of Algeria

Zouita¹

2019

Int. j. adv. appl. sci.

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“…Following preceding empirical studies that addressed the same issue such as Saini and Singhania (2018) and Xuan (2018), we estimated, using the following equations, to determine the impacts of Malaysia's macroeconomic variables on inward FDI:…”

Section: Model and Theoretical Backgroundmentioning

confidence: 99%

Foreign direct investment inflows to Malaysia: Do macroeconomic policies matter?

Awad¹

2020

Journal of International Studies

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Malaysia plans to become a high-income economy in the coming years via what is called the ETP (Economic Transformation Program). To achieve this, Malaysia requires a sufficient level of foreign capital and thus is implementing appropriate investment initiatives to stimulate economic activity. So far, Malaysia has only been able to attract a small number of foreign investors. With a relatively small amount of FDI flowing into the country, the expectations of the Economic Transformation Program (ETP) that heavily rely on FDI may be challenged. The current paper analyses how selected macroeconomic factors might impact the flow of FDI into Malaysia. The ARDL (Auto-Regressive Distributed Lag) technique was used together with the VAR (Vector Autoregressive Model) on annual data (1970-2017). The study has found that over time, appreciation of the local currency, openness, inflation and labour cost had a significant negative impact on the inward flow of FDI. Conversely, over the longer term, real interest rate and GDP growth produced substantial positive effects on FDI. The findings suggest that when aiming to create an attractive for FDI environment, it is necessary for governments to closely consider macroeconomic policies that lower both production and transaction costs of multinational enterprises.

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“…Global financial crisis (GFC). Several studies approved that FDI was decreasing during the period of GFC (Avioutskii & Tensaout, 2016;Saini & Singhania, 2018). On the other side, few studies provided that FDI was negatively affected during the GFC times (Adhikary, 2017).…”

Section: Hypotheses Formulationmentioning

confidence: 99%

Determinants of Foreign Direct Investment in Gulf Cooperation Council (Gcc) Region

Alharthi¹

2018

Proceedings of the 10th Economics &Amp; Finance Conference, Rome

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This study aims to find the main determinants of foreign direct investment (FDI) in Gulf Cooperation Council (GCC) Region using a panel data from 1996-2016. The GCC region is facing new economic reforms as a result of low oil prices when oil is the main product of GDP in GCC. In addition, GCC impose tax in 2018 that would affect economy negatively due to lowering in purchase power. Based on lower prices of oil, Saudi Arabia released a plan called Vision 2030. This vision was announced in 26 April 2016 by Crown Prince Mohammad bin Salman. The main reason behind this vision is to diversify economy. The FDI is one of the most important indicators to realize this diversity of economy. In this study, the data was collected through the United Nations Conference of Trade and Development, World Bank and International Monetary Fund (IMF) databases. The data was analyzed through fixed-effects model and random-effects model. The GDP is found to have a significant and positive impact on FDI. The Arab Spring affected the FDI negatively and significantly through the period of the study.

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Determinants of FDI in developed and developing countries: a quantitative analysis using GMM

Cited by 166 publications

References 103 publications

The impact of the local SMEs sector on FDI and the mediating effect of IFRS adoption in developing economies: The case of Algeria

The impact of the local SMEs sector on FDI and the mediating effect of IFRS adoption in developing economies: The case of Algeria

Foreign direct investment inflows to Malaysia: Do macroeconomic policies matter?

Determinants of Foreign Direct Investment in Gulf Cooperation Council (Gcc) Region

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