Economic Freedom and its Impact on Foreign Direct Investment: Global Overview

Singh, Devesh; Gál, Zoltán

doi:10.2478/revecp-2020-0004

Cited by 32 publications

(10 citation statements)

References 32 publications

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“…The four-panel group we use in this article is characterized by a similar economic structure, similar transformation of external factors, and similar economic development based on the (Economou, 2019;Sayari et al, 2018;Singh & Gal, 2020). The author empirically tested the relation among CO2, FDI, GDP per capita, and GVAs of four industrial sectors in EE, NE, SE, and WE regions are presented in Table 10,11,12,and 13.…”

Section: Resultsmentioning

confidence: 99%

“…The, disaggregated study of GVAs sector-wise is important as it can provide a precise relationship between each sector and its impact on CO2 emission. We considered a homogeneous panel of countries based on their similarity in basic economic structure and geographical proximity, the bifurcation of four groups is according to the (Singh & Gal, 2020). The findings of this study are immensely important to the design of European Union environmental policy to achieve the pledge of a significant reduction of CO2 emissions.…”

Section: Introductionmentioning

confidence: 99%

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The linkage between CO2, FDI, economic growth, and value-added: A European perspective

Singh

2021

Preprint

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This article aims to investigate the linkage among CO2 emissions, Foreign Direct Investment (FDI), economic growth, Gross Value Added (GVA) of different sectors namely agriculture, service, manufacturing, and resource extensive industries including construction sectors in four European regions Eastern Europe (EE), Southern Europe (SE), Northern Europe (NE) and Western Europe (WE). This article uses the 3SLS simultaneous equation estimation during the period of 2000 to 2018. This study is the extension of seeing the challenges in policy implication in reducing CO2 emission in technologically rich economies. This article concluded that the causality among variables CO2 emission, economic growth, FDI, and all four sectors GVA is varied according to the regions. However, the CO2 emission has bidirectional causality with each industrial sector's GVA.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The linkage between CO2, FDI, economic growth, and value-added: A European perspective

Singh

2021

Preprint

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“…Singh, D., and Gal, Z [30] examined the impact of economic freedom on foreign direct investment inflows on a large sample of eight groups (South Asia, East Asia and Latin America, Middle East and North Africa, Northern Europe, Southern Europe, Western Europe, Eastern Europe and Sub-Saharan Africa). They used data from the Heritage Foundation Index of Economic Freedom over the period 1999 to 2018 and went through the multiple regression of all components of the Index of Economic Freedom.…”

Section: Relationship Between Freedom Economic Fdi and Economic Growthmentioning

confidence: 99%

The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia

Hayet¹,

Naceur²

2021

HEP

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Economic freedom is one of the most important factors in increasing economic growth. Thus, it affects the spillover effects of FDI through the improvement of the absorption capacity in the host countries. In this context, this thesis aims to study the macroeconomic impact of economic freedom on foreign direct investment inflows by basing empirical evidence for data from Tunisia over a period from 1980 to 2017. Using the famous economic method of generalized moments (GMM), the results of the estimates show that FDI positively affects economic growth and requires a high level of economic freedom, and makes it possible to increase the absorption capacity in host countries and '' attract more investors. Economic freedom increases FDI inflows to 0.098 units. More precisely, Tunisia also refers to the positive impact of economic freedom on FDI.

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“…Currently, two widely accepted indices of economic freedom exist; the Fraser Institute index 1 and also the Heritage Foundation index 2 that implore similar measurement techniques in calibrating economic freedom. This study adopted the Heritage foundation index in line with most studies of economic freedom literature; Singh and Gál (2020). Doran According to the Heritage Foundation (2021), Miller, Terry, Anthony B. Kim, James M. Roberts, and Patrick Tyrrell.…”

Section: Introductionmentioning

confidence: 99%

Influence of Sector-Specific Components of Growth on Economic Freedom: Evidence from Sub-Saharan Africa

Musamba¹

2022

JEFMS

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Africa in general and precisely Sub-Saharan Africa (SSA) has been performing dismally in economic freedom determination parameters. This has substantially diminishes the probabilities of keeping up with other regions which have so far flourished in terms of sustainable economic and human development as highlighted through economic freedom index by the Heritage Foundation 2021. It is for this reason that this study purpose to investigate the influence of value added components of GDP on economic freedom. This is explored using a panel of 40 Sub-Saharan African (SSA) countries from 1995 to 2019. Using both conventional unit root and co-integration tests showed that all the series are stationary and co-integrated of order one I(1). Further estimations on the long-run relationship using dynamic panel econometric techniques key in accounting for panel data hiccups. Specifically, fixed effect and general method of moments which is adopted to discourse concerns of endogeneity and serial correlation commonly associated with panel data. Key significant results based on GMM indicate that both value added growth components of industry and service sectors positively and significantly influences economic freedom but the effect is negative regarding value added from agriculture sector. Inward FDI was equally found to positively influence for the overall score of economic freedom for SSA The practical implication is that for an increasing economic freedom, SSA economies or decision makers should gear for policies that improve industrial production by creating an enabling environment, encouraging the service sector through incentives and tax holidays, diversify agriculture and minimize wasteful FDI inflow. All these are critical in a bid to the realization of competitive economic freedom in SSA.

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Economic Freedom and its Impact on Foreign Direct Investment: Global Overview

Cited by 32 publications

References 32 publications

The linkage between CO2, FDI, economic growth, and value-added: A European perspective

The linkage between CO2, FDI, economic growth, and value-added: A European perspective

The Incidence of Economic Freedom and Foreign Direct Investment in Economic Growth: Empirical Evidence from Tunisia

Influence of Sector-Specific Components of Growth on Economic Freedom: Evidence from Sub-Saharan Africa

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