An empirical analysis of the relationship between FDI and economic growth in Tanzania

Mwakabungu, Benedict Huruma Peter; Kauangal, Jignesh

doi:10.1080/23322039.2023.2204606

Cited by 9 publications

(6 citation statements)

References 74 publications

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“…Marasco et al, 2023;Fazaalloh, 2024, andSarker, 2024). The findings of Mwakabungu and Kauangal (2023) research reveal a positive and statistically significant unidirectional causality from FDI inflows to economic growth. Regarding unemployment, the negative effect of iFDI on unemployment is defined by Alfalih (2024), etc.…”

Section: Discussionmentioning

confidence: 79%

“…Marasco et al (2023), Fazaalloh (2024), and Sarker (2024 found strong evidence that FDI is positively associated with growth in the host country. Also, the findings of Mwakabungu and Kauangal (2023) study reveal a positive and statistically significant unidirectional causality from FDI inflows to economic growth in both long and short run. A conventional approach says that inward FDI increases economic growth and is related to growing employment (Rizvi & Nishat, 2009).…”

Section: Literature Reviewmentioning

confidence: 73%

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Assessing the effect of trade and FDI on growth-unemployment nexus

Aleksandravičienė,

Butkus,

Kadisa

2024

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Research background: Unemployment is a huge topic for policymakers, scholars, and, in general, society. Historically, there have always been a lot of discussions about this phenomenon. It is already acknowledged that unemployment is closely related to economic activity: when the economy is growing, more people are employed, and when economic activity is low, employment decreases, and unemployment rises. This relation is well-researched in the framework of Okun’s law. However, it is far less known how this relationship holds if international economic relations are introduced. Thus, the motivation for the research was to examine the role of international trade and foreign direct investment (FDI) on the growth-unemployment nexus. Purpose of the article: To assess how trade and FDI affect growth and gender-, age-, and educational attainment level-specific unemployment relationship and on what scale this effect varies over different business cycle phases. Methods: Scientific literature review, comparative analysis, and panel regression. Findings & value added: Given the lack of research examining what effect FDI and trade have on the growth-unemployment nexus, this paper estimates modified Okun’s equation on the European Union (EU) countries (EU–28, by the composition of the EU until 31/01/2020) for the period from 2000 to 2019 while incorporating international aspects that can have an impact on this nexus. Also, this study develops a specification that can be useful to monitor the potentially different effects of FDI and trade on the growth-unemployment nexus during different business cycle phases. The estimations of the panel regression for unemployment disaggregated by age, gender and education level has showed that import, export, inward FDI, and outward FDI have a negative effect on the growth-unemployment nexus. It means that with an increase in the intensity of international economic relations, the influence of gross domestic product (GDP) growth on unemployment becomes less significant. Thus, the effectiveness of expansionary fiscal policy to reduce unemployment becomes less effective in more open economies, which in the case of the EU are the smallest member states with relatively small domestic markets.

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Section: Discussionmentioning

confidence: 79%

Section: Literature Reviewmentioning

confidence: 73%

Assessing the effect of trade and FDI on growth-unemployment nexus

Aleksandravičienė,

Butkus,

Kadisa

2024

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“…Public spending on infrastructure and public goods supplements private investments, as theorized by the crowding-in and crowding-out acceleration theories. The allocation of capital and the management of economic resources are made possible by the insights provided by these ideas on the connection between investment and economic growth (Marashdeh & Al-Malkawi, 2014;Mwakabungu & Kauangal, 2023;Tang & Chng, 2012).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The Solow model, on the other hand, incorporates both human labor and technological advancement into the expansion process, stressing the significance of technological advancement to both rapid expansion and sustained development. The Keynesian-inspired Solow model of economic growth accounts for the longterm effects of population, technical advances, and savings on output and growth (Khathlan, 2014;Mwakabungu & Kauangal, 2023). This research uses the most recent time series data from 1998 to 2022 to examine a thorough multivariate causal link between mutual investment, numbers of subscribers, domestic assets, foreign assets, total assets of funds, unemployment rate, GDP, inflation rate, and Tadawul all share index.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…In developing countries like Saudi Arabia, domestic investment has been a major driver of economic growth. Recent decades have seen a meteoric rise in foreign direct investment (FDI) as a direct result of rising investment needs and the subsequent need to fuel economic expansion (Mwakabungu & Kauangal, 2023). The FDI is seen as a form of technology transfer since multinational corporations (MNCs) share their expertise with emerging nations.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Investment Funds on Economic Growth in Saudi Arabia: A Multivariate Analysis

Althobaiti

2024

Proceedings of Twenty First AIMS International Conference on Management

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This study assesses the impact of mutual investment funds on Saudi Arabia's economic growth from 1998 to 2022, focusing on GDP, unemployment, inflation, and the Tadawul stock exchange. Multivariate Analysis of Variance shows a positive correlation between investment fund variables and key economic indicators, even during financial crises. The findings underscore the significance of monitoring these variables for informed policymaking and investment strategies. Despite study limitations, it emphasizes the need for future research to explore additional determinants and external influences on investment funds, enriching the existing body of knowledge on the subject and guiding comprehensive economic planning.

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The impact of artificial intelligence (AI) on employment and economic growth in BRICS: Does the moderating role of governance Matter?

Saba,

Ngepah

2024

Research in Globalization

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An empirical analysis of the relationship between FDI and economic growth in Tanzania

Cited by 9 publications

References 74 publications

Assessing the effect of trade and FDI on growth-unemployment nexus

Assessing the effect of trade and FDI on growth-unemployment nexus

The Impact of Investment Funds on Economic Growth in Saudi Arabia: A Multivariate Analysis

The impact of artificial intelligence (AI) on employment and economic growth in BRICS: Does the moderating role of governance Matter?

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