The Syndrome of FDI and Economic Growth: Evidence from Latin American Countries

Rjoub, Husam; Alrub, Ahmad Abu; Soyer, Kemal; Hamdan, Sameer

doi:10.5171/2016.542185

Cited by 10 publications

(8 citation statements)

References 12 publications

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“…Rjoub et al (2017a) investigated the impact of FDI inflows on economic growth in landlocked countries in Sub-Saharan Africa to establish a positive nexus between the two variables. Rjoub et al (2016) assessed the connection between FDI and economic growth in Latin American countries to document that economic growth is affected positively by FDI inflows.…”

Section: Review Of Related Literaturementioning

confidence: 99%

Determinants of foreign direct investment in fast-growing economies: evidence from the BRICS and MINT countries

Asongu

Akpan²,

Isihak³

2018

Financ Innov

123

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Section: Review Of Related Literaturementioning

confidence: 99%

Determinants of foreign direct investment in fast-growing economies: evidence from the BRICS and MINT countries

Asongu

Akpan²,

Isihak³

2018

Financ Innov

123

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“…Debates regarding the reasons behind the disagreement between such authors are assumed to be because of the conceptual and empiric measurement of human capital and the form it should take to be a good representation. The number of years of being enrolled in school has been utilized as a measurement of human capital in various growth-related researches [77,82].…”

Section: Growth Theoriesmentioning

confidence: 99%

Applying an Evolutionary Growth Theory for Sustainable Economic Development: The Effect of International Students as Tourists

2020

Self Cite

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In this globalized era of strict competition, all actors in countries must focus on their strengths for continuous growth, which would presumably lead to sustainable economic development. Amongst the three components of sustainable development, this paper focuses on the economic and social aspects. Many countries are becoming service-oriented for economic growth. Education is a form of human capital investment which significantly contributes to countries’ national income via students, particularly international cross-border students in higher education institutions. While endogenous growth models dismiss the importance of governments in the growth process, in this paper, the Keynesian and new growth theories are combined to form an evolutionary growth theory. This research aims to analyze the short and long-term relationships between macroeconomic variables, international students, and their impact on the gross domestic product (GDP) of a small island with the intention of policy implications for stakeholders to reach or maintain sustainable economic development. Using an evolutionary growth theory with 34 years of time-series data on quarterly base, the vector autocorrection (VAR) model helps reveal the short and long-run relationships as well as impacts on the economy for sustainable economic growth. The results confirmed a long-run relationship via cointegration. Moreover, they approved bidirectional causality between student numbers, general secondary school enrolment, and GDP. Findings suggest significant implications for all stakeholders, particularly for higher education institutions, the government, and local citizens due to the importance of micro and macro-economic variables’ effect on GDP. The results prove that educated human capital contributes to economic growth. Governments should continue their existing strategy regarding secondary school enrolment rates as it is found to be the most effective variable in the long-run. As education, knowledge, and information transfer rises, it contributes to sustainable development through promoting social stability. Limitation of the unavailability of the total yearly population, GDP was opted instead of GDP per capita.

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“…Izuchukwu and Huiping (2011) found that the relationship is positive in Nigeria for 1980–2009. Rjoub et al (2016) report a positive FDI impact on growth in Latin American countries. In another study, Rjoub et al (2017b) found a positive and significant effect of FDI on growth in landlocked SSA countries.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Carkovic and Levine 2002 establish that the FDI effect on economic growth is dependent on sound policies. Izuchukwu and Huiping (2011) found that the relationship is positive in Nigeria for 1980. Rjoub et al (2016 report a positive FDI impact on growth in Latin American countries.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Foreign direct investment and economic growth. Analysis of sectoral foreign direct investment in Tanzania

Taylor

2020

African Development Review

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This paper assesses the role of foreign direct investment in economic growth by analyzing the contribution of sectoral external finance in Tanzania. Time series data from 1988 to 2017 and 1999 to 2017 for the general and sector-specific foreign finance respectively is studied using time series econometrics techniques. More specifically, the autoregressive distributive lag bound test for cointegration and error correction model are employed to evaluate the impact of sector foreign direct investment on growth. The diagnostic tests suggest that our models are free from instability, nonnormality, misspecification, heteroscedasticity, and serial correlation. Estimated long-and short-term coefficients show that the effect of the primary sector foreign direct investment is positive and statistically significant at the 10% and 5% significance levels, respectively. In contrast, that of the secondary and tertiary sectors is insignificant. The coefficient of the general foreign direct investment is found to be statistically insignificant. These results confirm that the type rather than the quantity of foreign direct investment may be more relevant in explaining economic growth. Other control variables exhibit their expected signs except that of openness to trade. Based on these findings, the study recommends more and strategic foreign direct investment incentives to the primary sector. K E Y W O R D S autoregressive distributive lag model, bounds test for cointegration and error correction model, foreign direct investment, gross domestic product How to cite this article: Taylor RS. Foreign direct investment and economic growth. Analysis of sectoral foreign direct investment in Tanzania.

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The Syndrome of FDI and Economic Growth: Evidence from Latin American Countries

Cited by 10 publications

References 12 publications

Determinants of foreign direct investment in fast-growing economies: evidence from the BRICS and MINT countries

Determinants of foreign direct investment in fast-growing economies: evidence from the BRICS and MINT countries

Applying an Evolutionary Growth Theory for Sustainable Economic Development: The Effect of International Students as Tourists

Foreign direct investment and economic growth. Analysis of sectoral foreign direct investment in Tanzania

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