FDI Inflow and Human Development: Analysis of FDI's Impact on Host Countries' Social Welfare and Infrastructure

Lehnert, Kevin; Benmamoun, Mamoun; Zhao, Hongxin

doi:10.1002/tie.21544

Cited by 68 publications

(66 citation statements)

References 81 publications

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“…FDI is a plus. Higher levels of FDI lead to rising incomes, higher standards of living and increased productivity (Lehnert, Mamoun, & Hongxin, ; Zhu & Tan, ) while lower levels of FDI appear to lead to economic stagnation. However, for DCs, the message is less clear; our empirical results show higher levels of FDI are likely to be related to greater trade deficits while lower levels of FDI tend to be related to trade surpluses.…”

Section: Discussionmentioning

confidence: 99%

Intermediary Products: FDI Strategies, Imports, Exports, and Trade Balances in Developed Economies

Napshin

Brouthers

2015

Thunderbird Intl Bus Rev

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Has the relationship between the dominant investment motives of multinational enterprises (MNEs) and national trade balances, imports, and exports changed over time? A 1996 study hypothesized and found that the MNE market versus resource seeking investment motives in developed countries (DCs) resulted in different aggregate impacts on national trade balances, imports, and exports. In this study, we ask whether the increased use of intermediary products, a major change in the way MNEs conduct business, affect the previously found patterns. Because firm‐level data on intermediary products is not widely available across countries, we indirectly test their impact, hypothesizing that the rise in use of intermediary products has changed MNE investment motives in DCs, resulting in stronger relationships between foreign direct investment (FDI) and imports/exports in high‐FDI DCs but weaker links between FDI and national trade balances. Implications and future research directions are discussed. © 2015 Wiley Periodicals, Inc.

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Section: Discussionmentioning

confidence: 99%

Intermediary Products: FDI Strategies, Imports, Exports, and Trade Balances in Developed Economies

Napshin

Brouthers

2015

Thunderbird Intl Bus Rev

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“…Two dependent variables are used in the analysis, notably Gross FDI and Net FDI. The choice of these dependent variables is in accordance with the underpinning literature which is based on four principal types of FDI, namely: the ratio of FDI net inflow as a percentage of GDP (Lehnert et al, 2013), net FDI flows as a percentage of GDP (Asiedu, 2002), unidirectional FDI inflow into recipient countries (Rogmans & Ebbers, 2013) and net FDI inflow (Jadhav, 2002 Akpan et al (2014) The summary statistics of the variables are presented in Table 3 below. It could be inferred from it that the variables are comparable.…”

Section: Datamentioning

confidence: 99%

Drivers of FDI in Fast Growing Developing Countries: Evidence from Bundling and Unbundling Governance

Asongu

Nwachukwu

2015

SSRN Journal

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“…The choice of dependent as well as explanatory variables also differs depending on the country/ies in focus. For the dependent variable, studies have used unidirectional FDI inflow to host countries (Rogmans & Ebbers, 2013), net FDI inflow (Jadhav, 2012), ratio of FDI inflow to GDP (Suliman & Mollick, 2009;Lehnert et al, 2013) and ratio of net FDI flows to GDP (Asiedu, 2002).…”

Section: Review Of Related Literaturementioning

confidence: 99%

Determinants of Foreign Direct Investment in Fast-Growing Economies: A Study of BRICS and MINT

2014

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This study employs panel analysis to examine the determinants of foreign direct investment (FDI) in Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, Nigeria, and Turkey (MINT) using data for eleven years i.e. 2001 -2011. First, it uses pooled time-series cross sectional analysis to estimate the model on determinants of FDI for three samples: BRICS only, MINT only, and BRICS and MINT combined; then, random effects model is also employed to estimate the model for BRICS and MINT combined. The results show that market size, infrastructure availability, and trade openness play the most significant roles in attracting FDI to BRICS and MINT while the roles of availability of natural resources and institutional quality are insignificant. Given that FDI inflow to a country has the potential of being mutually beneficial to the investing entity and host government, the challenge is on how BRICS and MINT can sustain the level of FDI inflow and ensure it results in economic growth and socioeconomic transformation. To sustain the level of FDI inflow, governments of BRICS and MINT need to ensure that their countries remain attractive for investment. BRICS and MINT also need to ensure that their economies absorb substantial skills and technology spillovers from FDI inflow to promote sustainable long-term economic growth by investing more in their human capital. The study is significant because it contributes to literature on determinants of FDI by extending the scope of previous studies which often focus only on BRICS.

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FDI Inflow and Human Development: Analysis of FDI's Impact on Host Countries' Social Welfare and Infrastructure

Abstract: We examine the impact of foreign direct investment (FDI)

Cited by 68 publications

References 81 publications

Intermediary Products: FDI Strategies, Imports, Exports, and Trade Balances in Developed Economies

Intermediary Products: FDI Strategies, Imports, Exports, and Trade Balances in Developed Economies

Drivers of FDI in Fast Growing Developing Countries: Evidence from Bundling and Unbundling Governance

Determinants of Foreign Direct Investment in Fast-Growing Economies: A Study of BRICS and MINT

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