FDI Outflows

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The Relationship between FDI outflows, Exports and GDP in India: An Application of the Autoregressive Distributed Lag Model

The Relationship between FDI outflows, Exports and GDP in India: An Application of the Autoregressive Distributed Lag Model

This study examines the long-run relationship between foreign direct investment outflows, exports and aggregate measure of GDP in India for the time period 1980 to 2014. In order to assess the long-run relationship, ARDL/Bounds testing approach to cointegration has been applied. At the end of the analysis, VAR Granger causality/Block exogeneity Wald test has also been applied to test for the causal relationship between the variables of interest. The results indicate that all the variables are cointegrated when FDI outflows have been taken as a dependent variable. The positive and statistically significant coefficient of export suggests that FDI outflows and export complement each other, both in the long and short-run. GDP is found to have a negative but statistically insignificant impact on FDI outflows. The dummy that is used to incorporate the shift in policy after the economic reforms of 1991 is found to have a positive but insignificant impact on FDI outflows. The results of the Granger causality test indicate a unidirectional causality running from exports to FDI outflows. A similar type of causality is found between exports and GDP running from GDP to exports. The results of the Granger causality test also suggest that there exists chain relationship among the variables i.e., GDP causes exports and exports, in turn,causes FDI outflows. It can be also inferred that export is a precondition for Indian firms to conduct overseas FDI operations. Keywords: ARDL cointegration, export, outbound FDI flows, causality, India

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Home market determinants of FDI outflows from developing and transition economies

Home market determinants of FDI outflows from developing and transition economies

ABSTRACT Outward foreign direct investments (FDI) from developing countries and transition economies have picked up in the last decade. This study examines the home country factors that determine the outward foreign investments from 65 developing and transition countries in the period 2000-2006. The main hypothesis tested is that the small market size, trade conditions, costs of production and local business conditions are the main drivers of outward FDI. In order to examine the effects of these factors, the fixed effects estimation technique is employed using variables that measure income, trade, infrastructure, labour market conditions and economic stability. Proxies for the institutional environment such as bureacracy, corruption, investment risk are also used to reflect both the political and economic push factors on FDI. The preliminary findings reveal that outward FDI from developing countries increases with foreign competition in the domestic market augmented by inward FDI. As government stability, investment profile and bureaucracy quality in the home country improves, outflows of capital decreases. In other words, developing country transnational corporations are formed as a result of escape response from the economic and political conditions in the home countries.

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FDI Outflows Trends and Patterns of Indian Companies

FDI Outflows Trends and Patterns of Indian Companies

The outflows of foreign direct investment in India have shown historic growth in the recent years. India has been one of the emerging economy of this century has made indispensible growth in terms of overseas FDI which benefits are linked to international economic integration. India is now world’s 21 st largest investor with an investment of over US $ 75 billion across the world over the past decade. In this context paper seeks to examine the trends of Indian overseas investment.

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Determinants of Turkish FDI abroad

Determinants of Turkish FDI abroad

There are some common points to be noted in all models. First of all, GDP of the destination country is always positive. Population, on the other hand, is negative when used together with GDP as in the first model but positive when used alone as the measure of market size. This is quite in line with expectations. As for GDP per capitas of both source and host countries concerned, we get surprising parameters. In all models GDP per capitas are negative with the source country parameter being greater than destination country coefficient. A negative parameter estimate for source country GDP per capita means that a one percent increase in Turkey’s GDP per capita decreases the FDI outflows from Turkey by quite a high amount. Since all cost variables that may induce vertical FDI are insignificant in most of the models apart from labour productivity, Turkish FDI seems to be mostly market seeking. The difference between the source and host country income parameters shows that one percent change in Turkish per capita income generates a larger impact on foreign investments than that of the destination countries. In other words, Turkish firms are actually substituting foreign markets instead of domestic markets. This finding promotes the idea that Turkish outward FDI is a result of the push-factors, a common assertion for developing country FDI outflows (UNCTAD, 2006).

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Foreign direct investment – a behavioural finance approach

Foreign direct investment – a behavioural finance approach

observations and 1,867 unique country pairs for FDI outflows and 11,903 observations and 1,789 unique country pairs for FDI inflows when only the positive FDI flows are considered. The dataset becomes 22,989 observations with 2,872 unique bilateral pairs for FDI outflows and 25,390 and 3,066 unique country pairs for FDI inflows when the zero FDI flows data are added for the analysis in chapter 7. The advantages of using panel data compared with cross section or time series data are numerous (Kennedy, 2003, p.302): it deals with heterogeneity in the micro units, it reduces the omitted variable bias, alleviates multicollinearity problems because it’s more informative, it allows for analysis of issues that cannot be done solely across section or time and finally it allows a dynamic analysis of the data that a single cross section or time series doesn’t. Data on all of the variables come from four different sources (full list of variables and data sources can be found in table 3.11, at the end of this chapter). Data on FDI flows are taken from the OECD, data on GDP, GDP per capita and exports and imports are from the World Bank, data on distances come from the French Centre for International Economic Studies (CEPII), and the data on the legal system origins of the countries come from professor Rafael La Porta’s datasets (1998;2008), the cultural distance index is taken from Geert Hofstede’s website and studies (1980; 1983; 2001) and Kogut and Singh (1988) while some of the variables I constructed myself.

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European Union Foreign Direct Investment: Yearbook 2008: Data 2001 2006  2008 edition

European Union Foreign Direct Investment: Yearbook 2008: Data 2001-2006. 2008 edition

EU FDI outflows towards Latin America continued to decrease markedly during the period 2002-03, dropping from EUR 11.2 bn in 2002 to EUR 5.2 bn in 2003. In 2004, EU FDI flows to the region picked up, EUR 19.7 bn, but fell back to just over half that level in 2005 and remained there in 2006. This fall was mainly due to decreased investments (-88 %) in EU outflows to Mexico, due to the decrease in Spain's investments (EUR 200 mn in 2006 compared to EUR 7 bn in 2004). In addition, the Netherlands withdrew capital from all Latin American countries except Brazil, and contributed significantly to the trimming of EU investments in Latin America in 2006. Brazil was the main recipient of EU investments in Latin America in both 2005 and 2006, having Spain as the principal EU investor.

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Macroeconomic effects of capital flow structure in sub saharan Africa

Macroeconomic effects of capital flow structure in sub saharan Africa

The influence of capital flows on the macroeconomic stability has been a great concern and examining the effect is of great importance to the macroeconomic policies and risk aversion measures in the recipient countries. Therefore, this study quantitatively analyzed the influences of the capital flows on growth rate of output and inflation rate using several Structural Vector Autoregressive (SVAR) models. The study found that the capital flows have inconclusive effects on output and inflation in the selected African countries from 1985Q1 to 2015Q4. In addition, FDI inflows account for about 20 percent of the macroeconomic fluctuations in the sample period whereas FDI outflows contribute almost 9 percent. The FDI inflows contribute nearly 17 percent fluctuations in Nigeria’s economic growth, and 18 percent of unstable inflation rate in Burkina Faso. On the other hand, 3 percent of fluctuations in the growth of Nigerian economy is explained by its FDI outflows against 0.5 percent in other countries.

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European Union Foreign Direct Investment: Yearbook 2005: Data 1998 2003

European Union Foreign Direct Investment: Yearbook 2005: Data 1998 2003

EU FDI in emerging markets: flows fell by 11.6% in 2003 Data on the activity of European enterprises in the emerging mar- kets are monitored very closely by policy-makers and analysts. Compared to the high levels of investment that have been record- ed in those markets in the past years, constantly less EU FDI out- flows targeted the emerging markets. From 2001 onwards sharp decreases in EU FDI have been observed in almost all of the emerging markets’ constituent parts (Far East Asia, Latin America, MPCs) with the only exception in CEECR in 2003, in which EU out- flows grew by 201%. Particularly 2002 was characterised by the sharpest slump of EU FDI outflows in the emerging markets drop- ping from EUR 104 bn in 2001 to EUR 34 bn in 2002.

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European Union Foreign Direct Investment: Yearbook 2007: Data 2001 2005  2007 Edition

European Union Foreign Direct Investment: Yearbook 2007: Data 2001-2005. 2007 Edition

EU FDI outflows towards Latin America kept on decreasing noticeably during the period 2001-03, dropping from EUR 30 bn in 2001 to EUR 5 bn in 2003. In 2004 EU FDI flows to the region picked up, at EUR 19 bn, but halved in 2005. This fall was mainly induced by a massive drop (-77 %) in EU outflows to Mexico, which was caused by Spain (EUR 2.3 bn in 2005 compared to EUR 7.3 bn in 2004). In addition, Spain, by withdrawing capital from Argentina of EUR -1.4 bn, and the United Kingdom, with a disinvestment of EUR -1 bn in Colombia (99 % of the total EU investment in Colombia), contributed significantly to the trimming-down of EU investments in Latin America in 2005.

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Determinants of Foreign Direct Investment in Ghana: A Sectoral Analysis

Determinants of Foreign Direct Investment in Ghana: A Sectoral Analysis

Among the theories of FDI, the Dunning Eclectic theory also known as the OLI framework provides the most vivid explanation to why firms and countries engage in foreign direct investment. This theory combines other theories of FDI such as the resource-based view theory and the institutional theory to some extent. The OLI framework explains that, Ownership (O), Locational (L), and Internalization (I) advantages are the key motivations for FDI. As indicated by Dunning (1977), the Ownership advantages represent the competitive strength or advantages possessed by a firm making investment into a new market. Superior brands, competent managerial and technological know- how are some of the resources which indicate a firm’s competitive advantage. The Locational (L) advantages outline the factors that make the host nation more attractive for FDI. These factors can be institutional (for example; favourable regulations and regulations) or economic factors (such as market size, inflation, exchange rates, lower labour cost, trade openness etc.). The other component of the OLI framework which is the Internalization (I) advantages explains the ability of firms to operate overseas without partnership through its resourced based advantages. The ownership advantages, the locational advantages and the internalization advantages of the OLI framework has been classified into market seeking, resource seeking and efficiency seeking, serving as the main motivations for FDI from both developing and advanced economies (Dunning, 1993). The Dunning Eclectic theory (OLI framework) has been noted as the classical framework by most studies (Tsikata et al., 2002; Demirhan & Masca, 2008; Zhang, 2011; Osei, 2014) in explaining the determinants of foreign direct investment.

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Changing Trends of FDI - FDI in Pension Funds

Changing Trends of FDI - FDI in Pension Funds

here are In 1997, the Indian retail sector witnessed the first footprints of FDI with 100% FDI being permitted in cash & carry wholesale trading under the government approval route, subsequently brought under the automatic route in 2006. As a step ahead, FDI in single brand retail was permitted to the extent of 51% in 2006, while FDI in multi-brand retail remained

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“ILLICIT FINANCIAL OUTFLOWS FROM AFRICA” MEASUREMENT AND DETERMINANTS

“ILLICIT FINANCIAL OUTFLOWS FROM AFRICA” MEASUREMENT AND DETERMINANTS

Illicit financial outflows can be defined as the capitals that leave from developing countries to tax havens and western economies as the consequence of political and economic instability and fear of taxation or confiscation. Nevertheless, the most important motivation of illicit flows appears to be the desire to hide accumulation of wealth generated by illegal activities such as corruption and tax evasion. African countries have experienced at least 610 Billions of dollars of illicit outflows over the period 2005-2014 (Global financial integrity, 2017). This huge outflow of financial resources could be used to finance productive investments, infrastructure, as well as social actions aimed to improve the life quality of millions of Africans. The main objectives of this paper are to analyze the evolution of illicit financial outflows from Africa and investigates their main determinant using a panel data model. The empirical analysis indicate that lack of governance and political instability are the main factors encouraging illicit outflows from Africa. Several actions can be undertaken by the government to reduce the magnitude of illicit flows. Indeed, governments must improve the transparency of financial transactions and tax information, enhance customs enforcement to detect intentional misinvoicing of trade transactions and finally require international companies to publicly declare all their financial operations and staff levels for each country where they operate.

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Alignment between Protostellar Outflows and Filamentary Structure

Alignment between Protostellar Outflows and Filamentary Structure

small scales it is feasible that the underlying structure, turbulence, and/or multiplicity could significantly alter the initial rotation axes. While random alignment is fa- vored in some models of turbulent accretion, even models with strong magnetic fields could result in random align- ment. Mouschovias & Morton (1985) suggested that for fragments linked by strong magnetic fields, the angular momentum orientation of the fragments depends solely on the shape of the magnetic flux tubes, which can have quite irregular shapes. If fragments in filaments are in- deed magnetically linked, our study suggests that the flux tubes connecting them are indeed irregular. The- oretical simulations have begun to incorporate gravity, turbulence, magnetic fields, and outflows to study the formation of filamentary complexes (e.g., Myers et al. 2014; Federrath 2016). Such simulations can supply a more robust expectation of the observed distribution of γ for a large sample of outflows and filaments.

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On the nucleation of dust in oxygen-rich stellar outflows

On the nucleation of dust in oxygen-rich stellar outflows

The kinetic approach used here to model particle formation in stellar outflows involves three stages. First, electronic structure calculations are used to determine energetically possible reaction pathways. Second, the molecular properties (rotational constants and vibrational frequencies) of stable intermediates and transition states are then used to calculate reaction rates over typically complex potential energy surfaces. Third, the resulting rate coefficients are employed in a model which couples gas-phase chemistry with particle growth kinetics in a stellar outflow. This model demonstrates that silicate formation in the gas phase is

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A distance-limited sample of massive molecular outflows

A distance-limited sample of massive molecular outflows

vided there was already an initial disruption. However, Fig- ure 13 (right), shows that the cores that do not contain outflows have turbulent kinetic energies that are consistent with those that do. This suggests that the core turbulence (on scales of ∼ 0.4 to ∼ 2 pc) is not driven by the local input from outflows. If the jets that accelerate the molecular flows tend to leave the dense cores, only a fraction of their momen- tum and energy might be deposited into the dense core gas, and this only in local regions. In the low-mass core, B59, Duarte-Cabral et al. (2012) see remnant U-shaped cavities and ridges that are a result of the direct impact of outflows on the less dense, local material. However, they also see other velocity structures in the C 18 O data of the denser core, e.g. gradients and infall motions, and although the outflows do have enough energy to fully drive the turbulence, it is not straightforward to conclude only that the outflows are the predominant production mechanism.

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Outflows and disks of brown dwarfs with SMA, CARMA and ALMA

Outflows and disks of brown dwarfs with SMA, CARMA and ALMA

Observations of the statistical properties of young brown dwarfs in different star-forming regions such as the initial mass function, velocity dispersion, multiplicity, accretion disks and jets (see [15] and references therein) have demonstrated that all these properties of BDs appear to form a continuum with those of low-mass stars. The first detections of bipolar molecular outflows from young BDs [23, 24] have indicated that the molecular outflow process occurs in BDs as a scaled-down version of that seen in low-mass stars. All these observations support the scenario that BDs form as low-mass stars do.

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Outflows and particle acceleration in the accretion disks of young stars

Outflows and particle acceleration in the accretion disks of young stars

Our calculations show that the MFT formed in the regions of e ffi cient magnetic field gener- ation rise with speeds up to 50 km s −1 from the accretion disks of young stars. We propose that the rising MFT can cause periodic outflows, as well as contribute to infrared variability of the accretion disks [8].

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The Nexus between Remittance Outflows and GCC Growth and Inflation

The Nexus between Remittance Outflows and GCC Growth and Inflation

Remittance outflows play a crucial role in the GCC economies and, therefore, it is important to study their effects on both economic growth and inflation. Using panel data for Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates over the period from 2004 to 2014, we show that growth in remittance outflows affect growth in real GDP only in the case of Saudi Arabia. For example, when growth in remittance outflows increases by 1 percentage point, then growth in real GDP declines by 0.139 percent. This is consistent with Alkhatlan (2013) study that remittance outflows adversely affect economic growth in Saudi Arabia. Other GCC countries including Bahrain, Kuwait, Oman, Qatar, and the UAE are much smaller than Saudi Arabia in terms of GDP and are still in the process of development. This may explain why real GDP growth rates in these countries are not affected by growth in remittance outflows.

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Advection-dominated accretion: Self-similarity and bipolar outflows

Advection-dominated accretion: Self-similarity and bipolar outflows

We feel that this scenario is a plausible and generic mechanism to produce outflows. For the mechanism to work, we require the outflowing material to re- main adiabatic and to retain its Bernoulli parameter long enough to be accelerated beyond the escape velocity. Given this requirement, we suggest that an outflow can be created merely with viscous and convective redistribution of energy in the manner we have described, without any additional agencies. Hydrodynamic models of outflows have been discussed before by Eggum, Coroniti & Katz (1988), Liang (1988) and Henriksen & Valls-Gabaud (1994). In the former two papers, the outflow is accelerated by radiation pressure, while magnetic stresses appear to play a role in the last work. Radiation and magnetic fields doubtless help, but we suggest that outflows are possible even without them.

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A study of chemistry, dynamics and dust in nova outflows

A study of chemistry, dynamics and dust in nova outflows

Hydrodynamic codes require considerable processor time as a result of their calculating the physical param eters a t each grid point many millions of times. For greater resolution more grid points are required and execution time increases in direct proportion. The addition of chemistry also adds to the com putational load as each chemical species is treated as a separate fluid element. If the environment being modelled is relatively homogeneous, the chemistry will be approxim ately in equilibrium throughout the grid and, providing there are no discontinuities in physics, the chemical time-step at each grid point will be large. Provided th a t this tim e-step is smaller than th a t of the dynamics, the la tte r will govern the overall speed of execution. However, in modelling nova outflows we introduce huge discontinuities in both the tem perature and density across the grid. The prime example is th a t of the interface between the expanding shell and the interstellar medium into which it is forced. Across this boundary the density may jum p seven or more orders of m agnitude whilst the gas tem perature jum ps from a few hundred or thousands to several million Kelvin. This is as a result of the strong non-adiabatic shock th a t develops where the high velocity and high density shell meets the static, low density ISM m aterial. W hilst in such extremely hot regions the chemistry is ‘turned off’ because the gas will be a plasm a and the gas-phase chemistry of no relevance, there may be other regions where the chemical tim e-step becomes very small and dominates, forcing the model to creep along with tiny steps, slowly working across difficult zones.

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