Examining the determinants of inward FDI: Evidence from Norway

Boateng, Agyenim; Hua, Xiuping; Nisar, Shaista; Wu, Junjie

doi:10.1016/j.econmod.2015.02.018

Cited by 128 publications

(133 citation statements)

References 52 publications

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“…This result seems to be so appropriate for the sample of BRIC countries because it is anticipated that Brazil and Russia would be the most suppliers of raw materials while India and China would be the most suppliers of manufactured goods by 2050. The findings of the study were supporting predominant view of the past literatures including those of Pattayat (2016), Alshammari et al, (2015), Boateng et al (2015), Güriş and Gözgör (2015), Mora and Singh (2013) and Ghosh (2007). Moreover, the long run coefficient of 0.05 indicates that a one unit increase in trade openness will lead to an increase of FDIs in BRIC countries by 4.98% in the long run.…”

Section: Research Findingssupporting

confidence: 77%

“…Majority of the researchers concluded that countries with high trade openness are expected to have high inflows of FDI. According to Boateng et al (2015) liberalization of trade positively affects FDI inflows in Norway as it enhances the economic climate to attract foreign investments. The study tested a quarterly data set of various variables including trade openness on inward FDI into Norway in the 1986-2008 period using Ordinary Least Squares (OLS) method.…”

Section: Literature Reviewmentioning

confidence: 99%

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The effect of corruption, trade openness and political stability on foreign direct investment: Empirical evidence from BRIC countries

Abdella

2018

Int. j. adv. appl. sci.

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The decision of why a corporation would start or takeover a company in a foreign country rather than entering the foreign market through international trade has been a growing research topic for the last thirty years. This research aims to investigate the impact of corruption, trade openness, and political stability on foreign direct investments (FDI) in Brazil, Russia, India and China collectively. The study carried on the BRIC countries covered the period of 2002-2016, with total observations of 60 countriesyears. The dependent variable for this research is Foreign Direct Investments (FDIs) and the independent variables are Corruption, Trade Openness and Political Stability. The research has used Panel Fully Modified Ordinary Least Squares (FM-OLS) cointegrating regression model to analyse the relationships. The findings show that the independent variable (Corruption) places no significant effect on the Dependent Variable (FDIs) in the BRIC countries. While the other two Independent Variables (Trade Openness and Political Stability) place a significant effect on the Foreign Direct Investments in BRIC countries. Moreover, it was found out that the direction of the relationship for both independent variables was positive. In addition, specific Panel Unit Root tests and Cointegration test were applied to meet confirm the reliability of the FM-OLS for panel data collected. Thus, this research will help the policy makers and research community with the knowledge of new dimensions regarding the topic.

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Section: Research Findingssupporting

confidence: 77%

Section: Literature Reviewmentioning

confidence: 99%

The effect of corruption, trade openness and political stability on foreign direct investment: Empirical evidence from BRIC countries

Abdella

2018

Int. j. adv. appl. sci.

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“…This issue is explored in a more recent literature that explores the relationship between currency fluctuations and uncertainty that may deter FDI. Boateng et al (2015) have provided a recent example of this theme, arguing that, of the two competing effects that exchange rates may have on FDI, they expect the initial cost that is associated with currency appreciation to outweigh the potential for greater returns over time, though they acknowledge that this is an empirical question. Blonigen (1997) extended this argument, allowing for the possibility of different firms responding differently to shocks in currency movements.…”

Section: Importance Of Currency Fluctuationsmentioning

confidence: 99%

Brexit and Foreign Investment in the UK

Driffield

Karoglou

2018

Journal of the Royal Statistical Society Series A: Statistics in Society

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Summary We explore the likely effect of Brexit on inward foreign direct investment (FDI) through its possible effect on the benchmark variables that characterize the macroeconomy. For this we propose the use of a Markov regime switching structural vector auto‐regression to distinguish between the volatile and stable states of the economy and account, among other effects, for the contemporaneous effects that the frequency of FDI innately generates. Our findings suggest that, if Brexit triggers a sterling depreciation in the current economic climate, this will fuel a prolonged negative effect on FDI. FDI flows may be positively affected (at most) by a sterling depreciation after Brexit only if this event drives the UK economy to a period of highly volatile growth, inflation, interest and exchange rates: a scenario that is rather unlikely. And, even then, the sterling depreciation benefits would last for only a short period of time.

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“…Nevertheless, he implied that when controlling the effects of domestic investment and trade on FDI, it shows to be a significant determinant of growth for the period after 1995. Boateng et al (2015) used a quarterly data of macroeconomic policy over the period from 1986-2008 in Norway. FMOLS method inspected that the real GDP, the sector GDP, the trade openness and the exchange rate contribute positively and significantly to FDI inflows.…”

mentioning

confidence: 99%