Does quality of innovation, culture and governance drive FDI?: Evidence from emerging markets

Kayalvizhi, P.N.; Thenmozhi, M.

doi:10.1016/j.ememar.2017.11.007

Cited by 77 publications

(77 citation statements)

References 45 publications

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“…In line with earlier studies [2,41,57,61,69], inflows of FDI were considered. Furthermore, we comprise measures set out in the 2030 Agenda for Sustainable Development [48], relating to poverty [13], inequality of income distribution [59,112], education [3,13,20,34,39,[41][42][43]46,52,71,112,118], innovation [14,28,65,104], transport infrastructure [3,13,52,114], information technology [13,28], institutional quality [2,[13][14][15][18][19][20]28,39,41,42,44,46,52,107,115,11...…”

Section: Sample Selection and Variablesmentioning

confidence: 99%

“…The most common methods identified in the literature concerning the influence of FDI on economic growth are panel data fixed-effects and random-effects estimations [1,2,13,28,41,53,64,65,69,107,114], as well as the generalized method of moments [9,18,[41][42][43][44][45]71,72,113,117]. Current paper employs the first approach, the econometric specifications being depicted as follows:…”

Section: Quantitative Techniquesmentioning

confidence: 99%

“…Likewise, FDI has an crucial role in the enhancement and structural recovery of the CEECs [27]. However, emerging states with matching economic and state governance structures fail to entice a comparable level of inward FDI due to unproductive business setting [28]. These states should counterbalance the compromise from the advantages that ensue from FDI, such as technology transfer and employment, with the costs allied with increased short-term flows [29].…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries

2019

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This study aims to examine the link between foreign direct investment (FDI) inflows and economic growth, also considering several institutional quality variables, as well as sustainable development goals (SDGs) set in the 2030 Agenda for Sustainable Development. By estimating panel data regression models for a sample of 11 Central and Eastern European countries, from 2003 to 2016, the empirical outcomes provide support for a non-linear relationship between FDI and gross domestic product per capita. Regarding institutional quality, it is found that control of corruption, government effectiveness, regulatory quality, rule of law, and voice and accountability positively influence growth, while political stability and absence of violence/terrorism is not statistically significant. Moreover, SDGs such as poverty, income distribution, education, innovation, transport infrastructure, and information technology are noteworthy drivers of growth. The outcomes of panel fully modified and dynamic ordinary least squares partly confirm the findings. The panel vector error-correction model Granger causalities provide support for a short-run one-way causal association running from FDI to growth and a long-run two-way causal connection among FDI and growth. Furthermore, in the long run, unidirectional causal relationships running from each institutional quality indicator to economic growth and FDI are set out.

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Section: Sample Selection and Variablesmentioning

confidence: 99%

Section: Quantitative Techniquesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries

2019

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“…On the basis of the above, can be noticed that most recent and relevant research efforts to uncover the relationship between corruption and business innovation have been made with reference to emerging economies (Alam, Uddin, & Yazdifar, 2019;Yu, Guo, Lettic, & Barnes, 2019;Xie, Qi, & Zhu, 2018;Wen, Zheng, Feng, Chen, & Chang, 2018;Gan & Xu, 2018;Tomaszewski, 2018;Uberti, 2018;Tian, Ruan, & Xiang, 2017;Gang & Go, 2017). Also, based on a database for 22 emerging countries for the period 1996-2014, Kayalvizhi and Thenmozhi (2018) have proven the role of innovation as an important factor to attract foreign direct investment in emerging countries.…”

Section: Introductionmentioning

confidence: 99%

Does Corruption Affects Business Innovation? Insights From Emerging Countries

Pirtea

Sipos

Ionescu

2019

Journal of Business Economics and Management

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There are very different outcomes in the literature regarding the influences of corruption on business innovation and also arguments for both "sanding the wheels" and "greasing the wheels" approaches. The main goal pursued in this paper is to broaden the understanding of the corruption influence on business innovation, considering seven representative dimensions of corruption at governmental structures and institutions' level and also four relevant dimensions of business innovation, less approached so far. The originality and relevance of this paper are based on that these seven different dimensions of corruption are targeting three characteristic features of it, as bribery's prevalence, the bribery's spread and the companies' propensity to offer gifts for overcoming the bureaucratic pressures. Moreover, the four different new dimensions of business innovation are targeting the company's propensity for innovating and strengthening its image and the way of connecting with business partners in a changing business environment. Considering an extensive data set for 110 emergent countries from four continents for the period between 2002 and 2014 and using the generalized linear model framework, this research study is emphasizing that corruption at governmental structures and institutional level has a significant negative impact on business innovation, adversely affecting innovation perspectives.

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“…Also, the assistance in technological support in developing economies is always a factor attracting FDI in these economies. Apart from that, it aids to create an impact on the governance of the economy as analyzed by Kayalvizhi, et al (2018). Sector-specific usage of FDI has also been observed in recent times.…”

Section: Introductionmentioning

confidence: 96%

Gross National Income Growth and Foreign Direct Investment: Causation in the presence of Crisis in India

Chowdhury¹

2019

IJITEE

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Gross National Income (GNI) of an economy explicates the standard of living of the population residing in a country. The growth in GNI indicates a successful development for a nation. In this paper, an interrelation between GNI growth and Foreign Direct Investment (FDI) has been discussed in the presence of Indian economic crisis by implementing the Auto Regressive Distributed Lag (ARDL) Modelling approach. The data are ranging from the time of 1991 to 2017. The relationship is judged at the background of economic liberalization of India. The result shows that there exists a long-run impact of FDI on GNI growth. The existence of cointegration further necessitates the existence of short-run causality. In the short run, GNI growth Granger causes FDI. This proves that the model is significant for discussion both for the long and short run. The error correction term signifies that there exists a ninety-seven percent chance of the model to move back to its long-run equilibrium from short-run shocks. The reliability and stability of the whole model are judged by implementing CUCUM and CUSUMQ test. Finally, in conclusion, the model chosen for the study has indicated a few policy implications required for enhancing the GNI growth of India to fight back the situation of crisis.

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Does quality of innovation, culture and governance drive FDI?: Evidence from emerging markets

Cited by 77 publications

References 45 publications

Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries

Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries

Does Corruption Affects Business Innovation? Insights From Emerging Countries

Gross National Income Growth and Foreign Direct Investment: Causation in the presence of Crisis in India

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