The paper investigates the impact of foreign direct investment (FDI) on economic growth using detailed sectoral data for FDI inflows to Indonesia over the period 1997-2006. In the aggregate level, FDI is observed to have a positive effect on economic growth. However, when accounting for the different average growth performance across sectors, the beneficial impact of FDI is no longer apparent. ...

This paper aims to find out the relationship between inward FDI into China and China’s economic development. According to the descriptive analysis of FDI data from 1980 till 2007, we firstly found that there is a sectoral and regional biased distribution with regard to the inward FDI into China; we saw that the contribution of inward FDI to China’s economic development exhibits a reversed U sha...

Although FDI have been at the forefront of economic debate since a long time, economists have not yet developed a unified framework for their investigation. In this paper, we put forward the idea that an essential point to analyze FDI concerns their underpinning motives. Motives are at the core of FDI and FDI are only but one of different alternative means for firms to grasp an opportunity in a...

Sovereign wealth funds (SWFs) have emerged in developing Asia as a policy response to an unprecedented accumulation of foreign exchange (FX) reserves since 2000. At the same time, developing countries have become an increasingly important source of outward foreign direct investment (FDI). The central objective of this paper is to evaluate the prospects for SWFs to serve as a major conduit for t...

Choi (2009) offers a useful demonstration that Li and Resnick’s (2003) analysis of the effect of regime type on foreign direct investment (FDI) inflows is vulnerable to the impact of outliers. However, his first remedial method of controlling for outliers with a dummy variable leads to qualitatively the same findings of Li and Resnick. His second remedial method, a robust regression estimator, ...

We study the relationship between international migration and foreign direct investment (FDI), differentiating between the two modes of entry: greenfield FDI and cross-border mergers and acquisitions (M&A). Greenfield FDI is often favored over cross-border M&A (i.e., brownfield FDI) by host countries because it is associated with greater job creation and technology transfers. This implies highe...

Studies of foreign direct investment (FDI) distribution in the US is voluminous but such studies on a developing country are rare. We fill the void by analyzing the spatial and temporal variation in FDI among China’s 30 provinces. We believe this is the first study of its kind. Other than some “standard” results, our pooled regression finds that the cumulative FDI has a negative impact on the n...

In a global context foreign direct investment (FDI) and migration substitute one another in the matching process between workers and firms. However, as labor flows can lead to the formation of business networks, migration can actually facilitate FDI in the long-run. We first present a stylized model for a small open economy illustrating these offsetting effects. We then use U.S. data on bilater...

This study deals with foreign direct investment and its impact on economic growth in the context of Bangladesh. The main objective of our study is to evaluate the impact of FDI on the economy of Bangladesh based on the secondary data covering year 2013-2017. This study considers FDI as a dependent variable and GDP, export and investment as independent variables and is used as the indicators of ...

Traditionally, the cornerstones of Hungary’s competitiveness in FDI attraction have been favourable geographic location and availability a qualified cost-effective labour pool. Western countries are still far most important sources stock Hungary, however Japan is second largest investor among Asian nations. Most Japanese has concentrated automotive sector targeted Western, Central Northeast Hun...