Research on the relationship between provincial foreign direct investment and economic growth: An empirical study in Indonesia

Meivitawanli, Bryna

doi:10.14254/2071-8330.2021/14-1/17

Cited by 7 publications

(8 citation statements)

References 40 publications

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“…Satar's (2010) findings on the positive contribution of financial development and economic growth to FDI in Malaysia. Meivitawanli's (2021) study in Indonesia emphasizes the significance of market size in affecting FDI, while Shah, Ahmed, and Siddiqui's (2003) research in Pakistan explores the long-run relationship between FDI flows and various factors. According to Imran and Rashid's (2023) findings, economic stability emerges as a key theme in linking domestic GDP growth rate positively with FDI surge episodes and emphasizing the negative association with inflation.…”

Section: -Brief Literature Overviewmentioning

confidence: 99%

Exploring the Impact of Economic Indicators on Foreign Direct Investment: Case of Côte D'ivoire

OUATTARA

2024

Ijirme

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This paper examines the impact of economic indicators on foreign direct investment in Côte d'Ivoire, using data from 1970 to 2022 sourced from the World Bank database. The independent variables examined include Gross Domestic Product, inflation rate, exchange rate, trade openness, and government debt, while FDI serves as the dependent variable. Through rigorous statistical analysis, including Augmented Dickey-Fuller tests, Ordinary Least Squares analysis, Johansen cointegration analysis, and Granger causality tests, the results showed that GDP and inflation rate exhibit statistically significant positive effect on FDI, suggesting that economic growth and higher inflation rates may attract foreign investment. However, variables such as exchange rate, trade openness, and government debt do not show significant impacts on FDI. The study underscores the nuanced nature of FDI determinants in Côte d'Ivoire, emphasizing the need for tailored policy interventions to foster sustained economic growth and attract foreign investment. These outcomes help to a deeper understanding of the complex dynamics shaping FDI inflows in the region, providing valuable insights for policymakers, investors, and stakeholders alike

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Section: -Brief Literature Overviewmentioning

confidence: 99%

Exploring the Impact of Economic Indicators on Foreign Direct Investment: Case of Côte D'ivoire

OUATTARA

2024

Ijirme

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“…, 2021; Shanaev et al. , 2020; Meivitawanli, 2021). Other studies have used government response cues to explain the effect of COVID-19 on financial markets (Abdelkafi et al.…”

Section: Introductionmentioning

confidence: 99%

“…Several studies have analyzed the effects of the pandemic on FDI in the Asian context (Sookram et al, 2022;Siriopoulos et al, 2021;Shanaev et al, 2020;Meivitawanli, 2021). Other studies have used government response cues to explain the effect of COVID-19 on financial markets (Abdelkafi et al, 2022;Ben Romdhane and Mefteh, 2022;Ashraf, 2020;Narayan, 2020;Narayan et al, 2021).…”

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confidence: 99%

Impact of government responses to COVID-19 on the resilience of FDI attractiveness factors in the Asian region

Kammoun

Romdhane

2022

JEAS

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PurposeThe purpose of this paper is twofold. Firstly, the paper aims to determine the separate effects of the COVID-19 pandemic and government actions represented by the index of stringency, containment and economic support on the attractiveness of foreign direct investment (FDI). Secondly, the paper aims to explore the impact of the interactions between the COVID-19 epidemic and government interventions on FDI.Design/methodology/approachThe study uses a panel data set of 30 Asian countries during the two pandemic years 2020 and 2021 to investigate the effect of government actions on the resilience of FDI attractiveness factors.FindingsThe empirical results reveal the negative effect of COVID-19 on FDI inflows and attractiveness factors. However, government responses have a positive and statistically significant effect on the FDI attractiveness factors such as economic growth, trade openness and human and technological capital development and contribute to the economic recovery of the Asian region.Practical implicationsThe empirical findings can provide useful information for policymakers in designing macroeconomic policies and taking government measures to improve their investment environment and attract FDI.Originality/valueThe study shows that government responses, economic support, containment and health policies are effective in containing viruses, reducing the impact of the COVID-19 pandemic and strengthening resilience in FDI attractiveness factors. It also indicates that foreign investors are responding positively to government measures.

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“…On the other hand, the acquisition of the assets in another country with the aim of establishing a lasting interest in the management of a business enterprise in the host country could be having an offsetting or even a negative economic result [16]; [17]; [18]; [19]; [20], including its negative effect on green technology innovation [21], which combined with the overdevelopment of the financial sector could even de-stabilize an economy [22]; [23]. Furthermore, FDI, which aims to gain control over the company's operations and profits, is sensitive to foreign interests and can be overresponsive especially in periods of turbulence; for example, [24] has provided strong evidence that FDI is related with lower equity returns and low-cashflow rather than high-cashflow growth, questioning the long established views which consider market capitalization as a growth enhancer for an economy.…”

Section: Introduction and Brief Literature Reviewmentioning

confidence: 99%

An empirical study of the relationship between Foreign Direct Investments, Remittances, Political Stability and Economic Growth in Greece

Bantimaroudi¹,

Golitsis²,

Mitreva³

2023

JOE

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This study attempts to shed light on the relationship between FDI, remittances, Gross Fixed Capital Formation, political stability, inflation and economic growth for the case of Greece, using time-series data of annual frequency, covering the period from 1980 to 2018; the end date is the last year before the COVID-19 and the 2022 Russian Invasion of Ukraine which caused a structural break on the data set. After establishing that the investigated variables are stationary in level or in their differences, and once the Johansen test and the residuals based approach to cointegration are employed in capturing the cointegrating relations between them, we proceed with a robust VEC model and an ARDL with cointegration bounds, depending on the level of integration of the time series, to capture both the short-run and the long-run dynamics. The overall findings of both models are jointly analyzed, revealing that according to the ARDL model, FDI and economic growth are positively related in the short-run, but negatively related in the long-run. Moreover, the model indicates a negative short-and long-run relationship between remittances and economic growth, as well as a positive link between political stability and economic growth in Greece, as expected. The negative short-run relationship between remittances and economic growth is further supported by the VECM. Finally, both the VECM and ARDL indicate that GFCF and economic growth are positively related in the short-run, while the ARDL model reveals that this relationship exists in the long-run too.

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Research on the relationship between provincial foreign direct investment and economic growth: An empirical study in Indonesia

Cited by 7 publications

References 40 publications

Exploring the Impact of Economic Indicators on Foreign Direct Investment: Case of Côte D'ivoire

Exploring the Impact of Economic Indicators on Foreign Direct Investment: Case of Côte D'ivoire

Impact of government responses to COVID-19 on the resilience of FDI attractiveness factors in the Asian region

An empirical study of the relationship between Foreign Direct Investments, Remittances, Political Stability and Economic Growth in Greece

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