On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?

Asiedu, Elizabeth

doi:10.1016/s0305-750x(01)00100-0

Cited by 1,133 publications

(860 citation statements)

References 18 publications

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“…This appears contrary to previous findings (e.g. Asiedu, 2002). However, it is likely that for market-seeking FDI inflows the tariff jumping theory (Mundell, 1957) which argues that MNEs that seek to serve local markets may decide to set up subsidiaries in the host country when it is difficult for them to import products in that country, would explain the observed substitution tendency between trade and FDI (see Anyanwu, 2012;Grünfeld and Svindal, 2000).…”

Section: Effect Of Liberalization On Inward Fdicontrasting

confidence: 99%

Institutions and Foreign Direct Investment: Evidence from Sub-Saharan Africa Regions

Bbale¹,

Nnyanzi

2016

JSD

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The paper set out to investigate the nexus between institutional quality and inward FDI and how the presence of liberalization and financial development influence this linkage. We build on Dunning's eclectic paradigm that focuses on locational advantages. A fixed effects approach is employed and the estimation results confirm the crucial role of institutional quality in attracting FDI inflows. However the impact varies with the particular group. In particular, apart from SADC, institutional quality seems to matter significantly in all the other groups especially in EAC and ECOWAS. Additional findings reveal a mixed impact regarding the presence of financial development and liberalization in the institution-FDI nexus: While Trade liberalization policies seem to be at the forefront in ECOWAS and SADC groups, it is credit depth and capital account openness that appear to matter most in EAC. We confirm the resilience of inward FDI during the global crisis and document a positive significant relationship between FDI inflows on the one hand and host market size and infrastructure development on the other. While a one-size-fits-all-policy should be discouraged due to the heterogeneous nature of SSA countries, overall, a comprehensive set of policies designed with caution to improve the institutional quality, the financial system, trade openness and capital account liberalization would be valuable for attracting FDI inflows to SSA.

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Section: Effect Of Liberalization On Inward Fdicontrasting

confidence: 99%

Institutions and Foreign Direct Investment: Evidence from Sub-Saharan Africa Regions

Bbale¹,

Nnyanzi

2016

JSD

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“…There is an extensive literature on international financial flows to developing countries, mostly going beyond the core of this analysis (see e.g., Albuquerque, 2003;Asiedu, 2002;Bahmani-Oskooee, 1986;Barnett, 1993;Bird, 1981;Claessens and Schmukler, 2007;Fung, 2009;Gelos, Sahay, and Sandleris, 2011;Kasuga, 2007;Kim, 2000;Kinda, 2010;Knight, 1998;Laureti and Postiglione, 2005;McGillivray, 1989;Mishkin, 2009;Mody and Murshid, 2005;Munduch and Weinberg, 1979;Noorbakhsh, Paloni, and Youssef, 2001;Odedokun, 1996;Rao, 1997;Sadik and Bolbol, 2001;Singh and Zammit, 2000;Steel et al, 1997). …”

Section: Methodsologymentioning

confidence: 99%

Informing the Financing of Universal Energy Access: An Assessment of Current Flows

et al. 2011

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SummaryEnergy poverty is widely recognized as a major obstacle to economic and social development and poverty alleviation. To help inform the design of appropriate and effective policies to reduce energy poverty, we present a brief analysis of the current macro financial flows in the electricity and gas distribution sectors in developing countries. We build on the methodology used to quantify the flows of investment in the climate change area. This methodology relies on national gross fixed capital formation, overseas development assistance, and foreign direct investment. These high-level and aggregated investment figures provide a sense of scale to policy-makers, but are only a small part of the information required to design financial vehicles. In addition, these figures tend to mask numerous variations between sectors and countries, as well as trends and other temporal fluctuations. Nonetheless, for the poorest countries, one can conclude that the current flows are considerably short (at least five times) of what will be required to provide a basic level of access to clean, modern energy services to the "energy poor". Keywords: Energy Access, Energy Finance, Financial flows JEL Classification: Q4 Address for correspondence:Morgan Bazilian United Nations Industrial Development Organization Wagramerstr 5 P.O. Box 300 A-1400 Vienna Austria E-mail. m.bazilian@unido.org DisclaimerThis document represents work in progress and is intended to generate comment and discussion. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the United Nations Industrial Development Organization. This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as "developed", "industrialized" and "developing" are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Abstract:Energy poverty is widely recognized as a major obstacle to economic and social development and poverty alleviation. To help inform the design of appropriate and effective policies to reduce energy poverty, we present a brief analysis of the current macro financial flows in the electricity and gas distribution sectors in developing countries. We build on the methodology used to quantify the flows of investment in the climate change area. This methodology relies on national gross fixed capital formation, overseas development assistance, and foreign direct investment. These high-level and aggregated investment figures provide a sense of scale to policy-makers, but are onl...

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“…This in turn is an indicator of the purchasing power of the citizens and becomes important for the investors for giving priority to one country over other. (Asiedu, 2002;Callen, 2008). This means that a higher GRP per capita may attract more foreign direct investment into a country.…”

Section: Purchasing Powermentioning

confidence: 99%

“…Trade openness is commonly expected to be a positive determinant of FDI. Trade openness is proxied as the ratio of the Export plus Import divided by GDP (Asiedu, 2002;Sahoo, 2006). …”

Section: Trade Opennessmentioning

confidence: 99%

Determinants of Foreign Direct Investment in the Middle East Region: An Empirical Analysis

Hassan¹

2017

ASS

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The objective of the present study is to examine the Foreign Direct Investment (FDI) inflows in the Middle East region, and it also attempts to identify the potential determinants for the investment inflows. With this purpose taking assistance of public database such as the World Bank (WB), and the United Nations Conference on Trade and Development (UNCTAD) a panel econometric model has been specified and tested for a sample of 09countries over a period of 35 years . The result of the study shows Purchasing Power, Human Capital and Trade Openness as the key determinants of Inward FDI inflows for the growth and development of the Middle East region.

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On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?

Cited by 1,133 publications

References 18 publications

Institutions and Foreign Direct Investment: Evidence from Sub-Saharan Africa Regions

Institutions and Foreign Direct Investment: Evidence from Sub-Saharan Africa Regions

Informing the Financing of Universal Energy Access: An Assessment of Current Flows

Determinants of Foreign Direct Investment in the Middle East Region: An Empirical Analysis

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