The impact of outward foreign direct investment on China’s export: an analysis using two-tier stochastic frontier gravity model

Zhang, Song; Kalirajan, Kaliappa; Chen, Chunlai

doi:10.1080/13547860.2022.2029048

Cited by 3 publications

(5 citation statements)

References 44 publications

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“…Therefore, the investigators Pheang et al (2017) examined the Asian region employing panel data covering 2000 to 2014, employing the dynamic OLS and MOLS approaches, and concluded that FDI has a positive result on export. Zhang et al (2022) discovered a similar conclusion after analyzing 173 economies employing stochastic frontier gravity to evaluate the link between both of these metrics.…”

Section: Source: Author's Calculationsmentioning

confidence: 69%

Effects of Broadband and Telephone Subscription on Exports in New Global Era: Evidence from Southeast European Countries

Spahiu,

McArdle,

Spahiu

et al. 2024

CEBR

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The overall objective of the current research is to examine the influence of information technology components on the export-to-GDP ratio, especially focused on the changes caused by the events of the 20th century for Southeast European countries (SEC). The motivation for selecting these countries is to evaluate if they have achieved a sufficient level to adapt the digital developments. To overcome these challenges, the study used a hybrid technique, employing random (RE), fixed (FE) regression, and Arellano-Bond estimations on panel data gathered from 13 countries from 2006 to 2021. The results confirm that fixed broadband subscriptions (FBS), gross formation capital (GFC), and official exchange rate (ORE), have a strong positive effect on the export-to-GDP ratio. Additionally, fixed telephone subscriptions (FTS), foreign direct investments (FDI), and inflation (INF) have a significant negative impact on the exports-to-GDP ratio. The Arellano-Bond technique reveals that FBS, INF, and ORE have a positive effect on exports, whereas FTS, GFC, and FDI have a negative effect. The novelty of this research is that it uses data comparisons that do not have access to a single determination in the economy but are conditioned to advancement, especially concerning global markets and the exploitation of gaps created by changes in supply chains. Implications for the Central European audience: Depending on the results of the research, it is anticipated that the policy-making structures and other regulatory authorities will create a clear overview of the importance of digitization and its dynamics in the realization of exports and the mitigation of the trade deficit. These discoveries will encourage the highly empowered actors to redesign the policies that will affect the expansion and increase of the quality of the infrastructure of broadband and telephone subscriptions. By expanding and increasing the quality of the economic structure of the respective countries, they will be able to maximize the progress of the export value, which is almost one of the main goals of each country included in the analysis.

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Section: Source: Author's Calculationsmentioning

confidence: 69%

Effects of Broadband and Telephone Subscription on Exports in New Global Era: Evidence from Southeast European Countries

Spahiu,

McArdle,

Spahiu

et al. 2024

CEBR

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show abstract

“…In both China and Ghana, the GDPs are used as a measure of their size of market which often have its coefficients signed positive as it is believed that large size of market by host country encourage the participation of more inward and outward FDI (Fan et al, 2016;Song, 2018). The positive signed coefficient can also be related to the fact that greater opportunities of investments in host country can be linked with having a relatively bigger size of market as indicated by various Chinese investors (Shan et al, 2018;Mele & Quarto, 2017;Jiang & Liu, 2018).…”

Section: Determinants Of Frontiermentioning

confidence: 99%

“…The ratio of actual FDI to anticipated FDI is used to calculate China's FDI efficiency score (Song, 2018). In order to analyze how China's FDI performs in Ghana, the study estimated the efficiency scores of China's FDI using both stock and flow data from 2003 to 2020.…”

Section: The Performance Of China's Foreign Direct Investment In Ghanamentioning

confidence: 99%

“…Higher performance of FDI is usually associated with higher scores of efficiencies in which the inefficiency factors less affect the performance. However, higher performance of the FDI is more often associated with lower room of potential as a higher performance of FDI is said to be close to full potential (Armstrong, 2011;Song, 2018). Fan et al (2016) also highlighted that a lesser chance of improvement is the result of having a higher FDI performance as its associated with a level of FDI potential that is lesser in the future.…”

Section: The Performance Of China's Foreign Direct Investment In Ghanamentioning

confidence: 99%

“…. P. Nyamekye, T. Ze to improve is low as it has a lower potential level of FDI outflow in the future with its semi high efficiency score as explained bySong (2018). On the other hand, having a semi high efficiency score indicates that there is a semi high performance of China's FDI(Armstrong, 2011).…”

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confidence: 99%

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Measuring the Efficiency of China’s Foreign Direct Investment in Ghana

Nyamekye,

2024

OJBM

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This research examines the efficiency and influencing aspects of China's Foreign Direct Investment to Ghana using quarterly time series data from 2003 to 2020. To achieve the objectives of the study, a stochastic frontier model in which technical inefficiency impacts are specified to be a function of Economic Index variables is estimated using the generalized maximum likelihood approach. The mean technical efficiency of the Chinese FDI to Ghana is 0.80. The correlation analysis reveals apart from GDP per capita of China and Ghana, all other variables correlate positively with Chinese FDI to Ghana. The results from stochastic estimates show all frontier determinant factors are significant influencing factors of China's FDI to Ghana except Ghana's GDP per capita. However, Ghana's GDP, and China's GDP per capita had negative influence on China's FDI to Ghana while China's GDP, natural resource rents to GDP and Ghana's GDP per capita had positive impacts on China's FDI to Ghana. The analysis reveals that China's overall performance to Ghana is semi-highly efficient. The study suggests expansion and attractive pricing policies, and natural resource conservation program be put in place by the Ghanaian and Chinese government to attract more Foreign Direct Investment while preserving natural resources.

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The Impact of Outward Foreign Direct Investment on International Trade: A Systematic Literature Review

Wang,

Abdul Latiff

2024

Preprint

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The impact of outward foreign direct investment on China’s export: an analysis using two-tier stochastic frontier gravity model

Cited by 3 publications

References 44 publications

Effects of Broadband and Telephone Subscription on Exports in New Global Era: Evidence from Southeast European Countries

Effects of Broadband and Telephone Subscription on Exports in New Global Era: Evidence from Southeast European Countries

Measuring the Efficiency of China’s Foreign Direct Investment in Ghana

The Impact of Outward Foreign Direct Investment on International Trade: A Systematic Literature Review

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