FDI is measured as total net inflows into each country, expressed in USD, representing cross-border investment activity. Gross fixed capital formation, a proxy for domestic investment, reflects the total value of fixed asset acquisitions and is also measured in USD. Trade openness is defined as ...
The results further emphasized that FDI net inflows are affected by tourist receipts of the previous year. Furthermore, causality testing among the variables is unidirectional; meaning only unemployment rate Granger causes FDI net inflows. It insinuates that unemployment should be addressed to the ...
I control for economic and institutional features of the host country: its (logged) Gross Domestic Product (GDP), per capita GDP, total trade, and net FDI inflows (both as GDP percentages). I include its Political Constraint (POLCON) III index, a binary indicator for democracy from Cheibub...
FDI: Foreign Direct Investment, net inflows (% of GDP). COR: Control of Corruption. GOE: Government Effectiveness. POS: Political Stability and Absence of Violence/Terrorism. REQ: Regulatory Quality, ROL: Rule of Law. VOA: Voice and Accountability. Source: Authors’ Compilation (WDI and WGI,...
The surge in Japanese OFDI, together with the fact that FDI outflows outweigh corresponding inflows by an order of magnitude, has resulted in a rapid net movement of Japanese productive capacity abroad. Japanese OFDI stock has noticeably increased during the last three decades, that is consistent ...
In order to reap the benefits of FDI governments of host countries need to implement some policies, such as improvements of the general macroeconomic and institutional frameworks; creation of a regulatory environment that is conducive to FDI inflows; and upgrading of infrastructure, technology and huma...
FDI inflows in 2002 were $328 million (compared with $ 58 million on a balance of payments basis reported by the Central Bank of Bangladesh). Half of it was financed by equity, 31 % by reinvested earnings and 19% by intra-company loans. While FDI flows have traditionally been concentrated...
(2023). FDI inflows, economic growth, and governance quality trilogy in developing countries: A panel VAR analysis. Bulletin of Economic Research, 75(2), 426–449. https://doi.org/10.1111/boer.12364 Article Google Scholar Shittu, W. O., Musibau, H. O., & Jimoh, S. O. (2022). ...
It would also mean that countries with bigger GDP size would have more FDI inflows. This finding is similar with the findings of other studies as well as the theo- retical predictions of the gravity model. In studies identified so far, the GDP size has a positive role in increasing FDI ...