Foreign direct investment &amp; its correlation to economics: The case of Brazil

Dinç, Dilek Temiz; Gökmen, Aytaç

doi:10.1080/15475778.2019.1664216

Cited by 5 publications

(5 citation statements)

References 22 publications

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“…Furthermore, Naguib [ 41 ] and Chen-Chang Lo, Chi [ 42 ] discovered that in Haiti, FDI and economic growth do not significantly influence each other. In addition, the study by Dinç and Gökmen [ 40 ] found no positive causality between the two variables in the short run. In addition, there is a noticeable deficiency in research relevant to the topic on the majority of Latin American countries and North American non-sovereign states.…”

Section: Literature Reviewmentioning

confidence: 98%

“…Contradicting the findings of these studies, Al Nasser [ 38 ] found a uni-directional causality exists between the two variables, running from economic growth to FDI. Dinç and Gökmen [ 40 ] discovered that in Brazil, causality runs from a change in FDI to change in economic growth, in terms of GDP. Using the Granger causality test, Onafowora and Owoye [ 15 ] found that in Barbados and the Dominican Republic, a uni-directional causality exists from output growth to FDI, and from FDI to economic growth in the Caribbean nations of Jamaica and Trinidad and Tobago.…”

Section: Literature Reviewmentioning

confidence: 99%

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More than just investment: Causality analysis between foreign direct investment and economic growth

et al. 2022

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This study examines the causal nexus between Foreign Direct Investment (FDI) and the economic growth of seven (7) regions encompassing 117 countries. A more recent panel dataset over the period 2010–2020 was analysed using the Granger causality approach and panel VAR/block exogeneity test to conduct predictive analysis among the panel series. Wavelet coherence techniques too were adapted in bringing novelty and further justifications to the research in exploring the interaction effects of the variables, which are yet to be popularised in the studied discipline. The empirical results indicate the presence of bi-directional causality between FDI and economic growth globally and in the Asian region. In contrast, the causality is uni-directional in the American region. A non-directional causality was discovered in European, Oceanian, Mediterranean, and African regions, and the findings were consistent with the outcome of the wavelet coherence technique results. The study further classifies the regions into three cross-market categories such as developed, emerging and frontier markets. The results imply no causality for most developed and emerging economies in the regional analysis. Findings also provide insights for governments and policymakers worldwide to formulate policies on directing FDI flows and propositions for a host country to become a more conducive destination for FDI and accelerate economic growth.

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Section: Literature Reviewmentioning

confidence: 98%

Section: Literature Reviewmentioning

confidence: 99%

More than just investment: Causality analysis between foreign direct investment and economic growth

et al. 2022

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“…The concluded that FDI has a positive and statistically significant impact on economic growth. Dinç and Gökmen (2019), studied the relationship between FDI and economic growth for the Brazilian economy in the period 1970-2017. According to the results, there is a positive and meaningful causality relationship between FDI input and economic growth in the long term.…”

Section: Foreign Direct Investments (Fdi) and Economic Growthmentioning

confidence: 99%

Can money be compared to energy? Empirical analysis of making money with the E = mc2 logic

Karacan

Bariş

2022

International Journal of Social Sciences and Education Research

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In this study, the E = mc 2 principle that energy can be derived from mass and energy as itself was adapted for money. In the study, it was meant to provide a natural dimension to not using money other than the intent of exchange and the necessity of earning money by producing. To this end, the effect of foreign direct investments that are representing production and portfolio investments' effects on economic growth as representing monetary activities. The findings showed that both in the long and short term, there is a positive and significant relationship between FDI and economic growth. No such relationship has been found for portfolio investments. This result coincides with the E = mc 2 relationship.

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“…By depending on foreign capital and technology, emerging economies are exposed to the influence and exploitation by what are considered to be imperialist countries (Gordon & Webber, 2008). Foreign companies may invest in emerging economies looking for cheap labor and natural resources (Aleksynska & Havrylchyk, 2013; Dinç & Gökmen, 2019; Feng et al., 2018), and thus, host countries do not benefit from positive developmental effects, such as knowledge spillovers, productivity advancements, and human development improvements.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…There is a polarized debate in Latin America (LATAM) about the developmental effects of foreign companies. On the one hand, scholars from the Dependency School (Furtado, 1964(Furtado, , 1965Santos, 1970) have argued, based on case studies and historical examples, that foreign companies (a) tend to exploit cheap labor and natural resources in developing countries (Aleksynska & Havrylchyk, 2013;Dinç & Gökmen, 2019;Feng et al, 2018), (b) crowd out local companies and technologies (Reiter & Steensma, 2010;Shah et al, 2020), (c) are not interested in local development and in transferring economic gains to the home country (Zhao, Wong, et al, 2020), and (d) create technological and economic dependency (Pavlínek, 2018); resulting in foreign companies undermining socio-economic development.…”

Section: Introductionmentioning

confidence: 99%

Are foreign companies a blessing or a curse for local development in Brazil? It depends on the home country and host region's institutions

et al. 2021

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Latin America is an important destination for foreign direct investment (FDI). The debate on whether FDI is beneficial or harmful to the region is ongoing. Our study investigates how institutions from the home country and the host region affect the FDI‐human development nexus in Brazil. Specifically, we employ a unique data set comprising 92 municipalities and companies from 52 countries. We use threshold regressions to scrutinize the heterogeneous effects of FDI on the municipalities' income, education, health, and productivity levels. Our results indicate that locations with a high concentration of companies from countries with well‐developed institutions tend to experience a more positive effect of FDI on local development than regions with a high concentration of companies from emerging economies with less developed institutions. This effect is nonlinear, though, and more significant in institutionally weak regions. Our findings suggest that the FDI‐human development nexus is neither always positive or negative. Instead, it varies depending on which human development aspect is being analyzed and on institutions. Finally, we discuss policy implications for Brazil and Latin America.

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Foreign direct investment & its correlation to economics: The case of Brazil

Cited by 5 publications

References 22 publications

More than just investment: Causality analysis between foreign direct investment and economic growth

More than just investment: Causality analysis between foreign direct investment and economic growth

Can money be compared to energy? Empirical analysis of making money with the E = mc2 logic

Are foreign companies a blessing or a curse for local development in Brazil? It depends on the home country and host region's institutions

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