El efecto de la incertidumbre en la inversión extranjera directa: el caso de México

Noria, Gabriela López; Fernández, Juan José Zamudio

doi:10.24201/ee.v33i1.355

Cited by 4 publications

(4 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Additionally, these results are in line with the research conducted by Noria and Fernández (2018), which states that global uncertainty has a negative and significant effect on Foreign Direct Investment in Mexico by emphasizing that uncertainty causing global shocks also reduces FDI in the manufacturing sector in Mexico (Noria and Fernández 2018), as well as the study by Lutfi et al (2022) in the context of Pakistan, which found that global uncertainty influences Foreign Direct Investment in Pakistan in both the long and short terms.…”

Section: The Association Between Wuc and Fdi Indonesiasupporting

confidence: 89%

Analysis of the Effect of Global Uncertainty and Financial Development on Foreign Direct Investment in Indonesia

Noviyanti,

Sugema,

Irawan

2023

JEKP

View full text Add to dashboard Cite

The world is currently facing unprecedented uncertainty in social, political, and economic aspects, which continuously evolve every year owing to extraordinary events that impact countries worldwide. In contrast, The growth strategy of a country organizes must include Foreign Direct Investment (FDI), especially in Indonesia. The fluctuation in foreign investment in Indonesia indicates that foreign investors also consider growing global uncertainty alongside the development of Indonesia’s financial sector. This study examines the relationship between global uncertainty and financial development on FDI in Indonesia from 1997 to 2020 using the Autoregressive Distributed Lag (ARDL) method. The results indicate that global uncertainty significantly negatively impacts Indonesia’s FDI in the short and long terms. However, global economic policy uncertainty positively influences Indonesia’s FDI in the long term. This indicates that Indonesia has become an attractive alternative for foreign investors during global economic policy uncertainty. Regarding financial development, the amount of credit provided by the domestic banking sector to the private sector in Indonesia positively influences Indonesia’s FDI in both the short and long terms. This demonstrates that Indonesia’s financial condition and infrastructure can determine foreign investors’ decisions to invest in Indonesia.

show abstract

Section: The Association Between Wuc and Fdi Indonesiasupporting

confidence: 89%

Analysis of the Effect of Global Uncertainty and Financial Development on Foreign Direct Investment in Indonesia

Noviyanti,

Sugema,

Irawan

2023

JEKP

View full text Add to dashboard Cite

show abstract

“…According to the theory of irreversible investment, future political and economic uncertainty will reduce the investment of risk-neutral firms, because rational multinational investors will consider that sunk costs cannot be recovered in the event of adverse market changes [38], and the higher the degree of irreversibility of investment, the greater the re-straining influence of geopolitical risk on transnational investment [22,39]. In other words, a stable macro-political and economic environment is essential to attract foreign direct investment flows into a country and thus promote its own economic growth [40,41]. Therefore, for policy makers, countries with a high dependence on export trade will pay more attention to political peace and stability in order to encourage the introduction of foreign capital, or formulate corresponding policies to provide security for transnational investors.…”

Section: Theoretical Basis and Research Assumptionsmentioning

confidence: 99%

The Influence of Geopolitical Risk on International Direct Investment and Its Countermeasures

Miao-zhi

Wang

2023

Sustainability

View full text Add to dashboard Cite

Recent years have seen frequent geopolitical conflicts and the world economy has fallen into a recession. In order to explore how wars, terrorist attacks and international tensions affect foreign direct investment (FDI), this paper uses the fixed-effect model to investigate the impact of geopolitical risks on FDI flows in 41 countries during 2003–2020 from the perspective of market seeking, natural resource seeking and strategic resource seeking. The results show that, on the whole, geopolitical risks can significantly inhibit the inflow of foreign direct investment and hinder the development of domestic economy. The market size, natural resources and science and technology of the host country are important factors to attract foreign investment. Trade dependence has a moderating effect on the negative impact of geopolitical risks. Countries that depend on international trade may eliminate geopolitical frictions through economic cooperation. The impact of geopolitical risk is heterogeneous in countries with different levels of economic development. The impact of geopolitical risk on foreign direct investment in developed economies is not significant.

show abstract

“…Aligned with the expectation, foreign investors tend to strategize their movement about whether they will be investing (Rodrigo & Randika, 2022). The negative effect of increasing uncertainty will be a matter for investment-determined countries because institutional quality and stable macroeconomic conditions are needed to attract FDI inflows and promote economic growth (Noria & Fernández, 2018).…”

Section: Discussionmentioning

confidence: 99%

Role of Socioeconomic Uncertainty on Foreign Direct Investment (FDI) Inflows and Economic Growth in ASEAN

Marasanti,

Verico

2023

J. ASEAN Studies

View full text Add to dashboard Cite

The interconnectedness begins with active trade and foreign investment flowing to the host country, making the economies in the world integrated into one another. Unfortunately, the rise of interconnectedness has sky-rocketed uncertainty. Economists then build the considered socioeconomic index, namely the World Uncertainty Index (WUI). This research aims to determine whether such an index can affect Foreign Direct Investment (FDI) inwards and economic growth, especially in ASEAN. We use yearly data of FDI inflows, economic growth, and WUI as a proxy for the global level of domestic uncertainty, inflation, and real effective exchange rate from 2015 to 2019 for each ASEAN member state. We estimate a System Generalized Method of Moments (Sys-GMM) to see the dynamic relationship and the short- and long-run effect of the socioeconomic uncertainty proxies with respect to FDI inflows and economic growth. The results show that the uncertainty index with respect to FDI inflows and growth has been negative and significant. Meanwhile, only FDI inflows sensitively respond to socioeconomic uncertainty in the long run, despite the growth for ASEAN member state.

show abstract

El efecto de la incertidumbre en la inversión extranjera directa: el caso de México

Cited by 4 publications

References 0 publications

Analysis of the Effect of Global Uncertainty and Financial Development on Foreign Direct Investment in Indonesia

Analysis of the Effect of Global Uncertainty and Financial Development on Foreign Direct Investment in Indonesia

The Influence of Geopolitical Risk on International Direct Investment and Its Countermeasures

Role of Socioeconomic Uncertainty on Foreign Direct Investment (FDI) Inflows and Economic Growth in ASEAN

Contact Info

Product

Resources

About