Determinants of Foreign Direct Investments: Dynamic Panel Data Evidence

Erdoğan, Mahmut; Ünver, Mustafa

doi:10.5539/ijef.v7n5p82

Cited by 34 publications

(26 citation statements)

References 61 publications

(93 reference statements)

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“…(1) large consumer market for both domestic and foreign products which can lead to an inflow of foreign direct investments (Bell et al, 2015;Erdogan and Unver, 2015;Nauman et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Population growth and human resource utilization nexus in Nigeria

Adeosun

Popogbe

2020

JHASS

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Purpose Population growth has remained a key issue facing developing economies in the world. While developed countries are experiencing diminished or negative population growth, many countries in sub-Saharan Africa including Nigeria are having population growth above the economic growth rate. With the deadline for the sustainable development goals approaching, attention is increasingly being focused on population growth and human capital development. Extant literature focused on population growth, human resource utilization and economic growth but this study aims to examine the effect of population growth on human resource utilization. Design/methodology/approach Using secondary data for the period 1990-2018, the study conducted unit root test and co-integration analyses to determine the stationarity and correlation in the long-run in the variables. The study used the error correction model to ascertain the speed at which shocks can be corrected in the long-run. Granger causality test was also carried out to ascertain the direction of causality among the variables. Findings The empirical results revealed that population growth has a negative and significant effect on human resource utilization. The study also revealed that unidirectional causality runs from employment rate to population growth rate and a unidirectional causality runs from employment growth rate to expected years of schooling. The Nigerian Government needs to not only control population growth but also focus on the quality of education. Originality/value The paper provides insights into the relationship between population growth and human capital utilization in Nigeria focusing on the 1986-2018 period.

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“…(1) large consumer market for both domestic and foreign products which can lead to an inflow of foreign direct investments (Bell et al, 2015;Erdogan and Unver, 2015;Nauman et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Population growth and human resource utilization nexus in Nigeria

Adeosun

Popogbe

2020

JHASS

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“…Accordingly, several studies have examined the consequence of corruption on FDI inflow with most of the outcomes supporting the gabbing hand view, while some works have validated the helping hand view and few others found insignificant relationship. For instance, studies such as Fung and Gracia-Herrero (2012), Dauti (2015), De Beule and Duanmu (2012), Amarandei (2013), Aziz and Mishra (2015), Júlio, Pinheiro-Alves and Tavares (2013), Al-Khouri and Khalik (2013), Kasasbeh, Mdanat and Khasawneh (2018), Osabutey and Okoro (2015), Ferreira and Ferreira (2016), Abala (2014), Ajide and Raheem (2016), Nnadi and Soobaroyen (2015), Epaphra and Massawe (2017), Jeong (2014), Quazi (2014), Azam and Ahmad (2013), Mathur and Singh (2013), Hossain and Rahman (2017), Castro and Nunes (2013), Morrissey and Udomkerdmongkol (2012), Kurul andYalta (2017), Hayakawa, Kimuri andLee (2013), Alemu (2012), Kimura and Lee (2013), Erdogan and Unver (2015), Hossain (2016), Udenze (2014) and Jalil, Qureshi and Feridun (2016) have reported that corruption is a grabbing hand which discourage FDI inflow. However, the works of Khan and Akbar (2013), Bellos and Subasat (2012), Quazi, Vemuri and Soliman (2014), Kolstad and Wiig (2013), Yang et al (2018), Różański and Sekuła (2016), Bellos (2013), Fung andGracia-Herrero (2012) and Helmy (2013) have submitted that corruption is ...…”

Section: Corruption and Foreign Direct Investmentmentioning

confidence: 99%

“…In addition, most of the studies utilized Ordinary Least Squares (OLS) technique, while some deployed Generalized Method of Moments (GMM) and other econometrics methods. For example, Osabutey and Okoro (2015), Nnadi and Soobaroyen (2015), De Beule and Duanmu (2012), Amarandei (2013), Jeong (2014), Azam and Ahmad (2013), Gani and Al-Abri (2013), Epaphra and Massawe (2017), Anyanwu (2012), Hossain and Rahman (2017), Godinez and Liu (2015), Saidi, Ochi and Ghandri (2013), Okafor (2015), Różański and Sekuła (2016), Udenze (2014), Alemu (2012), Smarzynska and Wei (2000), Erdogan and Unver (2015), Cleeve (2012), Gobinder andHaider (2014), Hakkala et al (2008), Al-Khouri and Khalik (2013), Jadhav (2012), Bellos and Subasat (2012), Hoa and Lin (2016), Khan and Akbar (2013) and Kolstad and Wiig (2013) utilized OLS regression method in their analysis of the relationship between corruption and FDI I inflow.…”

Section: Corruption and Foreign Direct Investmentmentioning

confidence: 99%

“…Within the framework of panel data analysis, Alemu (2012), Udenze (2014), Erdogan and Unver (2015), Jalil, Qureshi and Feridun (2016) and Hossain (2016) have also explored the corruption-FDI nexus using various econometric approaches. For instance, Alemu (2012) and Hossain (2016) employed REM and GLS techniques to examine 16 selected Asian economies between 1995 and 2009 and 48 countries from three regions of Asia, Africa and Latin America from 1998 to 2014, respectively.…”

Section: Corruption and Foreign Direct Investmentmentioning

confidence: 99%

“…On their part, Erdogan and Unver (2015) interrogated the role of corruption control among other determinants of FDI with FEM and GMM techniques in 88 selected countries spanning the period 1985 -2011. The authors reported that corruption restrains FDI inflow and control of corruption exert positive and significant influence on inflow of FDI.…”

Section: Corruption and Foreign Direct Investmentmentioning

confidence: 99%

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Corruption and Foreign Direct Investment: A Conceptual Review

Zangina

Hassan

Harun

2020

IPJAF

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This paper carefully reviews the empirical literature on the relationship of corruption and FDI inflow from 2000 to 2019 with a focus on more recent studies. Though corruption is not a new phenomenon, its pervasiveness in the contemporary era, as well as its role in modern economy, has continued to attract the interest of scholars and development institutions in recent times. Theoretically, there are two conflicting views on corruption. The “grabbing hand” hypothesis maintains that corruption raises the cost of transactions, risks and uncertainties which inhibits FDI inflow, while the “helping hand” hypothesis believes that corruption eases bureaucratic as well as regulatory hurdles and greases the wheels of commerce, thereby facilitating the inflow of FDI. Although the methodologies employed and the context of the various empirical investigations reviewed differ considerably, the paper has largely shown that there is no consensus on the nature of corruption-FDI nexus. While the outcomes of the studies are dominated by the validation of the “grabbing hand” hypothesis, some have supported the grease the view of the wheel, whereas few concluded on insignificant relationships between corruption and FDI inflow. These contradictory outcomes from various studies have prompted some scholars to examine the connection between some specific aspects of FDI with corruption in a more dynamic framework. Accordingly, the areas of concern from the review have been pointed out in the discussion of the findings. The paper has also documented the need for further studies in this area with relevant suggestions.

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