Economic Growth and Capital Investment: The Empirical Evidence

Zomchak, Larysa; Nehrey, Maryna

doi:10.1007/978-3-031-04809-8_59

Cited by 11 publications

(2 citation statements)

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“…FDI is important in supporting the country's export activities. Capital flows from FDI can significantly strengthen the country's balance of payments since it generates foreign exchange profits through various mechanisms (Zomchak & Nehrey, 2022). FDI often leads to export-oriented industrial growth, increasing the volume of domestic exports and the associated income in foreign currency.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Diversifying products through FDI can help beneficiary countries reduce dependence on a limited number of sectors or products and make their economies more resilient. FDI can help reduce unemployment in host countries by creating new jobs, creating foreign businesses, and expanding existing ones(Zomchak & Nehrey, 2022). FDI contributes to the development of global supply chains by developing new production facilities, obtaining raw materials from different countries, and facilitating the cross-border movement of goods.…”

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confidence: 99%

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Impact of Foreign Direct Investment on Host Country’s Development: A Case Study

Tvaronavičienė,

Šimelytė,

Burinskienė

et al. 2024

Business, Management and Economics Engineering

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Purpose is to assess the impact of the inward Nordic foreign direct investment on Lithuania’s exports. Research methodology – this research applied correlation and regression analysis, as well as the Augmented Dickey–Fuller test and the Granger causality test were used. Findings proved that interlinkages between Lithuanian exports and foreign direct investment from the different Nordic countries might vary from weak (Iceland and Denmark) to strong (Norway, Sweden, Finland). Research limitations – greater availability of a statistical dataset covering the classification of foreign direct investment according to the investing country and the distribution of these investments and gross domestic product by economic activity would allow a more accurate assessment of the relationship between Scandinavian foreign direct investment inflows in individual economic sectors and the economic indicators of these sectors. Practical implications – based on the research results, Lithuania has the potential to stimulate exports from inward Nordic foreign direct investment, especially Norwegian foreign direct investment in manufacturing. Originality/Value – this study contributes to the internationalization theory by extending it from the sectorial angle, especially emphasizing the need to analyze the impact of foreign direct investment from a single country on the host economy and its economic structure.

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Section: Literature Reviewmentioning

confidence: 99%

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confidence: 99%