“…In this paper, foreign direct investment is measured as the ratio of FDI stock to GDP (Mehic, Silajdzic, & Babic-Hodovic, 2013;Pegkas, 2015). Manufacturing (MAN) is included in the study because the variable is also considered as an engine of growth (Abbas, Azeem, Bakhsh, Fatima, & Samie, 2014;Szirmai & Verspagen, 2015).…”
Abstract:The relationship between foreign direct investment (FDI) and economic growth in recipient economies remains one of the hottest debates. As confirmed in the literature, many studies support the growth impact of FDI, but some do not. Cambodia, a war-torn economy, also depends on FDI as a driver of economic growth. In addition, the causal relationship between FDI and growth in Cambodia is not fully known. Therefore, this paper is an attempt to examine the causal link between the two variables over the period 1980-2014, using Granger causality test based on the vector error correction model. The empirical results provide strong evidence on the causal impact of FDI on Cambodia's economic growth (GDP). However, the study does not confirm causality to run from GDP to FDI. This can be concluded that the growth impact of FDI is sufficiently supported in Cambodia.
“…In this paper, foreign direct investment is measured as the ratio of FDI stock to GDP (Mehic, Silajdzic, & Babic-Hodovic, 2013;Pegkas, 2015). Manufacturing (MAN) is included in the study because the variable is also considered as an engine of growth (Abbas, Azeem, Bakhsh, Fatima, & Samie, 2014;Szirmai & Verspagen, 2015).…”
Abstract:The relationship between foreign direct investment (FDI) and economic growth in recipient economies remains one of the hottest debates. As confirmed in the literature, many studies support the growth impact of FDI, but some do not. Cambodia, a war-torn economy, also depends on FDI as a driver of economic growth. In addition, the causal relationship between FDI and growth in Cambodia is not fully known. Therefore, this paper is an attempt to examine the causal link between the two variables over the period 1980-2014, using Granger causality test based on the vector error correction model. The empirical results provide strong evidence on the causal impact of FDI on Cambodia's economic growth (GDP). However, the study does not confirm causality to run from GDP to FDI. This can be concluded that the growth impact of FDI is sufficiently supported in Cambodia.
“…The government has been regarded as one of the most important factors affecting MNE activities through such issues as local investment, production, and localization by laying down the so-called rules of the game, which constitute the political and legal environment (Mehic et al 2013). For example, MNEs may be exposed to risks in local markets including political havoc or abrupt and unilateral trade and investment regulation.…”
In this article, we attempt to identify key factors affecting local corporate social responsibility (CSR) practices by overseas subsidiaries of Korean multinational enterprises (MNEs) according to stakeholder theory. In this article, internal managers and the parent company (i.e., MNE) are considered as internal stakeholders in an organization; customers, government, local community, nongovernmental organizations (NGOs), and media are significant external stakeholders, as actors on the local society level. We test the relationship between local CSR practices and stakeholders by using multiple regression analysis (ordinary least squares [OLS] method). According to the results, parent company, government, and NGOs are verified as major factors that promote local CSR of subsidiaries, while the roles of internal managers, customers, local community, and media are not considered significant factors. Our research contributes to research flows regarding CSR and stakeholder theory and provides several practical implications for multinational enterprises.
“…This suggests that there are many determinants and their relations to FDI cited in the empirical studies. Mehic et al (2013) [28] assessed that the level of FDI impact on growth depends on the magnitude at which it (FDI) is being complemented or substituted with the host countries' domestic investment. This assertion clearly signifies that the quantity of FDI inflows will determined by the existing domestic investment, as the country with less domestic investment is likely to receive more FDI to increase 1 The sample countries are Botswana, Burkina Faso, Burundi, Central African Republic, Chad, Ethiopia, Lesotho, Malawi, Mali, Rwanda, Swaziland, Uganda, and Zambia.…”
The recognition of Foreign Direct Investment (FDI) as a source of funding to foster economic development in both developed and developing countries has been in ascendancy. The prime purpose of this study is to empirically investigate the determinants of FDI for the "landlocked countries" in Sub-Saharan Africa over the period 1995-2013. By employing panel data analysis, the result of the study revealed that domestic investment, trade (openness), human capital, political constraint, natural resource endowment and the market size (with the GDP growth as proxy) as having positive impact on determining FDI flow into the sample countries with only the countries' tax policies seen otherwise. Our study not only contributes to existing literature on FDI determinants by investigating landlocked countries of Sub-Saharan Africa (SSA) for the first time but also includes natural resources that the landlocked countries are endowed with, tax policies and political constraints in such countries for the stipulated period.
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