Economic growth in the presence of FDI: the perspective of newly industrializing economies

Yao, Shujie; Wei, Kailei; Guo, Feng; Lin, Shih‐Hsun

doi:10.1080/13504850600905022

Cited by 31 publications

(31 citation statements)

References 11 publications

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“…The results of empirical models reported by Zhang (2006), Yao and Wei (2007) confirm the existence of a positive FDI effect on the growth of the Chinese economy from the beginning of the 1980s and 1990s, as a result of the positive interaction between FDI and human capital that speeds up growth, and the stimulus to technological progress generated by FDI. Burke et al (2007), Barbosa and Eiriz (2007) confirm an overall predominance of the "spillover" effect over the "crowd-out" effect in United Kingdom and Portugal.…”

Section: Devaluation and Business Formation In Different Competitive supporting

confidence: 55%

“…As part of the strategies undertaken to encourage business formation, both developed and developing countries have fostered FDI on the basis of the existence of a "spillover" effect that adds more knowledge and demand for new products to local economies (Markusen and Venables, 1999;Barrios et al, 2005: Herrera-Echeverri et al, 2014. The results of Zhang (2006) and of Yao and Wei (2007) support a positive effect of FDI in the case of China, which since the 1980s and 1990s has initiated a strategy of devaluation of the yuan to boost the growth of its economy in the following years.…”

Section: Introductionmentioning

confidence: 95%

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Devaluation, Competitiveness and New Business Formation in Emerging Countries

Herrera-Echeverri

Haar

Jiménez

et al. 2015

J. Dev. Entrepreneurship

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In September 2010, Brazil’s Finance Minister, Guido Mantega, used the term “currency war” with reference to monetary policies implemented by different countries to generate an artificial devaluation of their currency and achieve a cheaper, more competitive domestic economy that may be attractive to foreign investors. Similar cases have been documented since the 1930’s Great Depression, when several countries abandoned the gold standard as backing for their currencies. More recently, a large-scale asset purchase by Japan’s Central Bank in 2013 was singled out as a strategy aimed at generating devaluation of the yen. This research uses statistics of new business formation density reported by Doing Business for 30 emerging countries in the period from 2004 through 2011 to evaluate the impact of devaluation measured by the behavior of the real effective exchange rate (REER) on the rate of new business formation (NBF). It is determined how variables associated with competitiveness affect the relationship between devaluation and business formation. Results show that devaluation has a positive effect on NBF in the short term, which gets diluted in the long term. Countries with greater competitiveness have less dependence on devaluation to increase the number of businesses.

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Section: Devaluation and Business Formation In Different Competitive supporting

confidence: 55%

Section: Introductionmentioning

confidence: 95%

Devaluation, Competitiveness and New Business Formation in Emerging Countries

Herrera-Echeverri

Haar

Jiménez

et al. 2015

J. Dev. Entrepreneurship

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“…Using sectoral data for a group of six OECD countries, Vu and Noy (2009) find that FDI significantly and positively affects economic growth both directly and through its interaction with labour. In their study of 29 provinces and municipalities in China over the period of 1979 to 2003, Yao and Wei (2007) conclude that FDI is a powerful driver of economic growth for newly industrialised economies. Many other studies that examine the implications of FDI on economic growth find that FDI contributes negatively to a country's economy.…”

Section: Literature Reviewmentioning

confidence: 99%

“…On the one hand, there are studies that find a positive relation between FDI and economic growth (see for example, de Mello 1999; Yao and Wei 2007;Vu and Noy 2009;among others). On the other hand, some studies have shown that FDI is negatively related to economic growth (Li and Liu 2005;Elia et al 2009;Doytch and Uctum 2011;among others).…”

Section: Introductionmentioning

confidence: 99%

FDI and Economic Growth — Does the Quality of Banking Development Matter?

Mohd

Low

Nor

et al. 2014

GADJAH MADA INT. J. BUS.

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This study examines the role of banking development quality in the FDI-growth nexus from 1998 to 2009. Banking development quality is measured using two standardized intermediation cost indicators and an index of banking development quality that is constructed based on the following indicators: overhead costs to total assets and net interest margin. The results for developed countries show that, on its own, FDI is negatively related to economic growth. However, when FDI is interacted with a banking development quality index, the quality of banking development is found to play a positive role in influencing the effects of FDI on economic growth. This suggests that the quality of banking development serves as an absorptive capacity that allows developed countries to benefit from the positive growth effects of FDI. On the contrary, for emerging countries, the findings indicate that banking development quality plays no role in influencing the impact of FDI on economic growth. This implies that the quality of banking development in emerging countries has yet to reach a level that allows it to importantly influence the growth effects of FDI.Abstrak: Penelitian ini menguji peran pengembangan kualitas perbankan di FDI -pertumbuhan perhubungan 1998-2009. Pengembangan kualitas perbankan diukur dengan menggunakan dua indikator intermediasi biaya standar dan indeks pembangunan kualitas perbankan yang dibangun berdasarkan indikator berikut: biaya overhead terhadap jumlah aktiva dan net interest margin. Hasil untuk negara maju menunjukkan bahwa dengan sendirinya, FDI berhubungan negatif dengan pertumbuhan ekonomi. Namun, ketika FDI berinteraksi dengan perbankan, indeks kualitas pembangunan perbankan ditemukan untuk memainkan peran positif dalam mempengaruhi efek FDI terhadap pertumbuhan ekonomi. Hal ini menunjukkan bahwa kualitas perkembangan perbankan berfungsi sebagai daya serap yang memungkinkan negara maju untuk mendapatkan keuntungan dari efek pertumbuhan positif FDI. Sebaliknya, bagi negara-negara berkembang, temuan menunjukkan bahwa kualitas perkembangan perbankan tidak memainkan peran dalam mempengaruhi dampak FDI terhadap pertumbuhan ekonomi. Ini berarti bahwa kualitas perkembangan perbankan di negara-negara berkembang belum mencapai tingkat yang memungkinkan untuk kepentingan mempengaruhi efek pertumbuhan FDI.

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“…Dari satu segi, terdapat kajian yang mendapati hubungan yang positif antara FDI dan pertumbuhan ekonomi (lihat untuk contoh, de Mello 1999;Yao Wei & 2007;Elsadig 2012). Sebaliknya, beberapa kajian yang lain telah menunjukkan bahawa hubungan FDI dan pertumbuhan ekonomi adalah negatif (lihat untuk contoh, Konings 2001;Elia et al 2009;Doytch & Uctum 2011).…”

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Pelaburan Langsung Asing, Pertumbuhan Ekonomi dan Kualiti Pembangunan Pasaran Saham: Analisis Panel

Nor¹,

Low²,

Nor³

2015

JEM

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This study examines the role of stock market development quality in enabling foreign Keywords: Foreign direct investment; stock market development quality; economic growth PENGENALANPelaburan langsung asing atau diringkaskan sebagai FDI, telah berfungsi sebagai satu bentuk pemindahan modal antarabangsa yang utama di kalangan negara maju dan membangun (Froot 1993). Sejak dua dekad yang lalu, pelbagai negara telah mengambil inisiatif yang bersungguh-sungguh untuk menggalakkan ekonomi mereka sebagai destinasi pelaburan langsung asing. UNCTAD (2010) telah melaporkan aliran FDI meningkat dengan ketara dalam ekonomi maju dan membangun yang menetapkan FDI sebagai pemacu utama untuk pembangunan ekonomi. FDI telah menjadi pembentukan modal pilihan dan dikenal pasti sebagai salah satu faktor yang paling penting yang menyumbang ke arah perkembangan ekonomi melalui pelbagai manfaat.

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Economic growth in the presence of FDI: the perspective of newly industrializing economies

Cited by 31 publications

References 11 publications

Devaluation, Competitiveness and New Business Formation in Emerging Countries

Devaluation, Competitiveness and New Business Formation in Emerging Countries

FDI and Economic Growth — Does the Quality of Banking Development Matter?

Pelaburan Langsung Asing, Pertumbuhan Ekonomi dan Kualiti Pembangunan Pasaran Saham: Analisis Panel

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