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Literature Review On Fdi and Economic Growth

This document provides an overview of writing a literature review on the relationship between foreign direct investment (FDI) and economic growth. It notes that such a literature review requires extensive research and critical analysis of a vast array of sources on theories, methodologies, findings and gaps. The process of navigating numerous sources and synthesizing information can be overwhelming. The document then offers the services of a company that specializes in assisting students with academic writing tasks such as literature reviews on FDI and economic growth.

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100% found this document useful (3 votes)
53 views7 pages

Literature Review On Fdi and Economic Growth

This document provides an overview of writing a literature review on the relationship between foreign direct investment (FDI) and economic growth. It notes that such a literature review requires extensive research and critical analysis of a vast array of sources on theories, methodologies, findings and gaps. The process of navigating numerous sources and synthesizing information can be overwhelming. The document then offers the services of a company that specializes in assisting students with academic writing tasks such as literature reviews on FDI and economic growth.

Uploaded by

aflsiqhah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Moreover, the study also shows that business freedom index and investment freedom index has a
positive effect on foreign direct investment at 5% significant level. Through interviews it is possible
to find out certain important things relevant to the studies that cannot be obtained or observed
directly. The overall effects of FDI including the size effects, structural effects and the technology
and skill effect will certainly improve on the welfare of the host economy and further enhance
growth. Policy recommendations for the host economy should thus focus on convergence of
procedures towards best practices, if they are to maximize on the benefits of FDI. The empirical
method was employed on a secondary time series data set during the period 1999-2018 to determine
the impact of economic freedom index and corruption perceptions index on foreign direct investment
in Vietnam by using the linear approach. Balanced regional development Job creation Economic
growth Economic diversification. Mobilizing International Resources for Development in the
ESCWA Region Riad Meddeb Division on Investment and Enterprise. The analysis of results
highlights various determinants and impact ofFDI. It explores the roles of government policies,
regulatory frameworks, and potential trade-offs, emphasizing the importance of a balanced approach
that harnesses the benefits of FDI while also tackling issues like income inequality, environmental
sustainability, and financial stability. The proposed study will discuss the causal relation between
stock price indices of the five developing nations and FDI. Lovei and Gentry (2002) talked about
FDI’s noteworthy role in privatization. These empirical chapters studied different hypotheses of the
relationship between FDI and economic growth. Today, most countries are inclined to attract FDI,
due to the expected favorable. Before examining the impact of FDI on the growth of the host
economy, it is important first to understand what we mean by Foreign Direct Investment. Monthly
data on FDI and the value of stock price indices will be considered. In his book, “Chinas offshore
investments: a network approach”, he explored the underlying principle behind FDI’s materialization
and development. Population Economic Conditions Lack of Natural Resources Community Facilities
Housing Needs Land Use. This paper discusses how population growth has varied throughout
history. Although, foreign direct investments may tend to create healthy external accounts, it should
be noted that the profits generated by TNCs are usually remitted back to foreign owners (IMF
1993). There might be too much traffic or a configuration error. The open door policy allows china
attract more FDI which is then used in enhancing the domestic manufacturing capabilities. It can
therefore be concluded that FDI effects on the economy differ across host countries depending on
their specific conditions. Within a new semi-endogenous growth model, the book illustrates the
impact of FDI on economic growth for every stage of development of a country. The study observes
the role of human capital and the interface of overseas investment with other determinants of
economic enlargement (Levy-Livermore, 1998, p. 87). Chinas offshore investment applies to the
structure of a network model of FDI. Flow of FDI for the past 15 years was taken for study( 2000-
2015). This effect was characterized by falling exports demand, foreign capital inflows in terms of
foreign direct investment (FDI), foreign aid inflows and remittances from African immigrants
working in the ICs. There has been a divergence of empirical findings on the effect of FDI on the
host economy. It has developed at an unparalleled pace for over a decade. In most circumstances, the
profits are often manipulated to a value lower than the actual amount in order for under taxation to
occur.
FDI attraction has always been of special interest to governments in both developed and developing
countries. Download Free PDF View PDF IMPACT OF FDI ON INDIAN ECONOMY International
Research Journal Commerce arts science FDI playANnecessary rolein economicdevelopment of a
nation. In a closed economy, investment is financed exclusively by domestic savings since there has
been no access to foreign saving. Lovei and Gentry (2002) talked about FDI’s noteworthy role in
privatization. I- FDI trends in ESCWA region II- FDI and development: Challenges for ESCWA
countries. I. FDI TRENDS IN ESCWA REGION. Based on the findings we recommend that
policies that encourage foreign direct investment, moderate exchange rate depreciation and
increasing trade openness should be implemented. That is, any investment from a foreign firm with
the aim of acquiring a lasting management interest in the local firm that is being invested in (Brooks
et al. 2003). It can be synthesized from the existing literature that the FDI-growth relationship is far
from conclusive. Download Free PDF View PDF Impact of Foreign Direct Investment and Trade on
Economic Growth Agapi Somwaru Foreign direct investment (FDI) and trade are often seen as
important catalysts for economic growth in the developing countries. Through interviews researchers
get an access to a wide range of experiences, different kinds of circumstances and a range of
knowledge that could otherwise not be obtained. The main objective of this study was to find out the
major macroeconomic determinants of foreign direct investment in Ghana between the periods 1980
to 2012. We conduct also sub-regional and sub-period analysis in order to check the robustness of
the results. Accessibility, User Agreement, Privacy, Payments Terms of Use, Cookies, CA Privacy
Notice, Your Privacy Choices and AdChoice. In this paper, our aim is to point out the negative and
positive implications which affect the economic scenario and also measure the level of predominance
by the factors for economic contribution of particular country with special reference to India.
Download Free PDF View PDF The Determinants Of Industrialization: Empirical Evidence For
Africa Samouel Beji, Belhadj Aram In this paper, we run dynamic panel model describing the
relationship between industrialization and different socioeconomic, financial and institutional
determinants for 35 African countries over the period 1970-2012. Upload Read for free FAQ and
support Language (EN) Sign in Skip carousel Carousel Previous Carousel Next What is Scribd.
Ventura County Leadership Academy January 4 th, 2008 Jamshid Damooei, PhD School of Business
California Lutheran University. The qualitative research paper analyzed in this paper is “Risk, FDI
and Economic Growth: A Dynamic Panel Analysis of the Determinants and Growth impact of fdi in
Africa” by Kevin N. Theories and existing literature provide conflicting results concerning this
relationship. This study also suggests whether and which country should adopt FDI-led growth or
export-led growth. FDIs contribute to the economic development of host country in two main ways.
The empirical method was employed on a secondary time series data set during the period 1999-2018
to determine the impact of economic freedom index and corruption perceptions index on foreign
direct investment in Vietnam by using the linear approach. The elaborated discussionregarding the
Foreign Direct Investment isAN original contribution of this paper. Introduction. The onset of the
Cold War Its impact on American life at home Impact on American foreign policy “state of mutual
hostility short of direct armed confrontation”. Download Free PDF View PDF Accelerating
Economic Development and Improving the Current Account Balance: What Roles can Industrial
Policy Play in The Gambia European Scientific Journal ESJ The Gambia has been running continuous
current account deficits since the 1970s owing to large merchandise importation. Interviews enable
researchers to access the opinion of the people who are being interviewed and in this case it will
point out the trend in preferences. Instruments which will be used to collect the primary data will
include questionnaires and conducted through telephones and internet as the mediums of
communication. This paper analyzes the growth and development of FDI and it discussed the Indian
economic growth through FDI. The past quarter century has witnessed remarkable growth in FDIs
flow all over the world. Development Economics and its usefulness in this study.
It all depends on the host country’s characteristics. Baldwin et al. (1999) has however pointed out
that most of the potential benefits of FDI to the host economy results from the more indirect effects.
CCH ????????? Investing in Partnerships in China 2010. 1. ?. ???? Regulatory Overview. Further it
has been observed that year by year the FDI have shown the increasing trend in an economy. Before
examining the impact of FDI on the growth of the host economy, it is important first to understand
what we mean by Foreign Direct Investment. Capital development is a critical determinant of
monetary development. Spill over benefits have been identified by some studies while, on the other
hand, other researchers do not discern such benefits (Nunnenkamp 2002). The data for quantitative
research will be collected from the official websites of the stock price indices of the respective
developing nations. In doing so, we are able to determine whether devoting substantial resources to
attracting more of foreign capital may or may not be of significant benefits to the host economy. A
Longitudinal Disaggregated Panel Data Analysis Asrafuz zaman Download Free PDF View PDF
FOREIGN DIRECT INVESTMENT (FDI) AND THE GROWTH OF NON OIL SECTOR:
REVISITING THE NIGERAN EXPERIENCE. This paper analyzes the growth and development
of FDI and it discussed the Indian economic growth through FDI. Further, it can be argued that
effects are more pronounced if FDI is focused on technology intensive sectors. This paper deals with
review of literature since 1959, to study the relation between FDI and economic growth.
Demographic change, especially the ageing population and older people’s requirements. Furthermore,
it provides a list of theoretical determinants of FDI as well the impact of FDI on economic growth
and international trade. Upload Read for free FAQ and support Language (EN) Sign in Skip carousel
Carousel Previous Carousel Next What is Scribd. To maximize on the net benefits of FDI on the host
economy, it is imperative for the government to ensure best-practice policies towards. Nature of IIAs.
Two types Bilateral Investment Treaties Chapters in Free Trade Agreements Investors sue host State
Rights of foreign investors Right of State to regulate Quality of jurisprudence creates uncertainty.
Our main results are the following: (i) As generally found in the literature, Human capital, Labor
Market conditions, Real Effective Exchange Rate and GDP per capita are clear determinants of
industrialization in Africa; (ii) The determinants of industrialization vary between regions in the
continent and evolve over time; (iii) policy interdependencies are significant and positive for
industrialization in Africa. Whether the transnational players in the international economy could
contribute to the modernization of the economies of developing countries is also the point of concern
in this study. While FDI is expected to create positive impact on economy, it has also brought in
certain negative impact on Indian economy during the past few years. Nigeria, while continuing to
encourage inward FDI, efforts should be made to channel it into the manufacturing sector so as to
accelerate the diversification process. Key words: Foreign Direct Investment (FDI), Economic
growth and Domestic Investment (DI). This paper focuses on examining the effect of influx of
foreign investment on the growth of the host economy. To browse Academia.edu and the wider
internet faster and more securely, please take a few seconds to upgrade your browser. The section of
FDI into India on a business scale began in 1875 with starting investments in the field of mining, tea
house, railways, insurance, age and movement of power and rebate and retail trade. It implies that by
means of controlling parameters (for example, savings rates and population growth rates), poorer
nations will tend to develop faster and hence will come up to reach the levels of comfort enjoyed by
their affluent counterparts (Ray, 2007, pp. 1-2). In the literature, among the most-cited reasons for
Asia’s strong economic growth in the recent era has been the inflow of FDI into the region. Balanced
regional development Job creation Economic growth Economic diversification. Development
Economics is a topic that studies the economics of the developing nations.
The policy that will further make the economy more-import dependent will not augur well for the
economy. The results additionally conferred that Asian country have received most FDI inflows from
the Mauritius and followed by the Singapore. Balanced regional development Job creation Economic
growth Economic diversification. Additionally, this research delves into the policy implications of
FDI and addresses potential challenges associated with its influx. Upload Read for free FAQ and
support Language (EN) Sign in Skip carousel Carousel Previous Carousel Next What is Scribd. On
one hand, some scholars argue that foreign direct investment could stimulate technological change
through the adoption of foreign technology and know-how and technological spillovers, thus
boosting host country economies. The encouragement FDI is receiving from international operations
of multinational enterprises on the one side and governments on the other side diversified capital
flow internationally. This review paper makes an attempt to examine the nexus between FDI and
economic growth in recent literatures. The first empirical chapter attempted to find the answer to
these two questions: (a) does FDI contribute positively to GDP; and (b) does FDI really crowd out
DI in the host countries. For instance, it can be argued that FDI brings more spillover benefits to the
host economy only if the minimum threshold level of human capital and the host country itself is
more export oriented. The results show that FDI affect growth in all CEMAC countries except
Congo. Our analysis, based on cross sectional data of a sample of 66 developing counties over three
decades, indicates that FDI and trade contribute significantly towards advancing economic growth
in developing countries. Further it has been observed that year by year the FDI have shown the
increasing trend in an economy. That is, either through the structural change in markets or through
the transfer of technology and skills. While it is evident that inward FDI carries similar advantages,
external FDI driven by the privileges of the domestic firm, is incorporated into existing business
plans and polices. The present study is conducted to study the relationship and analyze the impact of
FDI on Indian economy. Lee, B-H, Organization for Economic Co-operation and Development
(2002) revealed about Koreas experience with external FDI. Specifically, policies like provision of
tax relief to manufacturers on importation of new technology and expatriate that will bring about
efficiency and effectiveness in productions. For instance, it is not always the case that FDI may
result in job creation. Standard belief was that growth of agricultural productivity was a prerequisite
for industrialization. Nature of IIAs. Two types Bilateral Investment Treaties Chapters in Free Trade
Agreements Investors sue host State Rights of foreign investors Right of State to regulate Quality of
jurisprudence creates uncertainty. Let us write or edit the research paper on your topic. Given the
above, there is an imperative need to ensure convergence of procedures towards best-practices so as
to maximize on FDI benefits in the host economy. Flow of FDI for the past 15 years was taken for
study( 2000-2015). FDI plays a multidimensional role in the overall development of any economy.
FDI is viewed as a panacea for economic development of developing and emerging economies,
including India. For Later 0% 0% found this document useful, Mark this document as useful 0% 0%
found this document not useful, Mark this document as not useful Embed Share Print Download
now Jump to Page You are on page 1 of 12 Search inside document. Ventura County Leadership
Academy January 4 th, 2008 Jamshid Damooei, PhD School of Business California Lutheran
University. The proposed study aims to consider three regression equations to test the causality
between the stock price indices of the developing nations and FDI. Political subordination of India
was the best protection for the British and MNCs' market from Japanese competition.
Accordingly, it would seem that the inflows of FDI could only have an optimistic impact on the
growth rate of a poorer country. The entry of TNCs and the opening up of new business enterprises
will certainly increase the output and result in a net improvement in the welfare of the economy.
Scholars can use them for free to gain inspiration and new creative ideas for their writing
assignments. The Korean case study depicts that there is a large possibility for other rising economies
to achieve from FDI flows and that the primary costs from lost domestic investment are largely
overshadowed by the medium-term advantages. Direct effects of FDI on growth are not significant,
and we show that FDI is not only responsive to growth, but it is also likely to promote increases of
GDP through indirect channels as it spurs the formation of human capital and exports. In short, it
can be said that foreign direct investment basically depends on time-fluctuation and location-specific
aspects. The result showed that the first past year of foreign direct investment, the last two years of
exchange rate and trade openness were statistically significant. FDI is an important vehicle of
technology transfer from developed countries to developing countries. The proposed study will
discuss the causal relation between stock price indices of the five developing nations and FDI. For
this purpose, E-Views software package will be used in the proposed study. The open door policy
allows china attract more FDI which is then used in enhancing the domestic manufacturing
capabilities. We will be analyzing the causality between foreign direct investment and the stock
prices of 5 developing nations. Consistent with this findings; Mencinger (2003) and Djankov and
Hoekman (1999) noted that FDI had more negative than positive impacts to the economic growth of
the Central and Eastern European Countries. Theories and existing literature provide conflicting
results concerning this relationship. Clearly, it is an integral part to a more effective and open
international economic system. Nigeria, while continuing to encourage inward FDI, efforts should be
made to channel it into the manufacturing sector so as to accelerate the diversification process. There
is however no single FDI effect on the host economy. Whether the transnational players in the
international economy could contribute to the modernization of the economies of developing
countries is also the point of concern in this study. They include the augmentation of domestic capital
and the enhancement of efficiency through the transfer of new technology, marketing and managerial
skills, innovation, and best practices. The elaborated discussionregarding the Foreign Direct
Investment isAN original contribution of this paper. Baldwin et al. (1999) has however pointed out
that most of the potential benefits of FDI to the host economy results from the more indirect effects.
Foreign Direct Investment after Independence Up to August 1947, the policy of the Government of
India was one of permitting bona fide and unhindered inflow of foreign capital due to political
dependence. The impact was studied by testing the correlation with the country’s GDP and Stock
Market Indices. In most circumstances, the profits are often manipulated to a value lower than the
actual amount in order for under taxation to occur. Underpinned by the research outcome, we suggest
that policymakers implement EOI (export-oriented industrialization) and ISI (imports substitution
industrialization) industrialization strategy mix to expedite economic development, correct the long-
standing current account deficits and curb the currency depreciation. It provides a new source for
capital, can lead to technological up gradation, skill enhancement and allocative efficiency effects.
Edna Solomon 27 November, 2006 ESDS International Annual Conference 2006. Objective. What is
the impact of FDI on Economic Growth. In this paper we will study about the macro and micro facts
and figures about the Indian FDI Policy in India. I. INTRODUCTION Foreign direct investment
(FDI) has assumed an imperative part during the time spent globalization amid the previous two
decades. Specifically, policies like provision of tax relief to manufacturers on importation of new
technology and expatriate that will bring about efficiency and effectiveness in productions.
Key words: Foreign Direct Investment (FDI), Economic growth and Domestic Investment (DI). This
is 100% legal. You may not submit downloaded papers as your own, that is cheating. Also you. The
data for quantitative research will be collected from the official websites of the stock price indices of
the respective developing nations. With the help of modern panel data econometrics it carries out the
strongly awaited empirical evidence of a growth enhancing effect of FDI in the transition countries,
and it explains for each country the actual growth contributions induced by FDI. Accessibility, User
Agreement, Privacy, Payments Terms of Use, Cookies, CA Privacy Notice, Your Privacy Choices
and AdChoice. The first empirical chapter attempted to find the answer to these two questions: (a)
does FDI contribute positively to GDP; and (b) does FDI really crowd out DI in the host countries.
Several theoretical and empirical studies have been conducted to investigate whether economic
growth is influenced by the FDI Inflows. The fast extension in FDI by multinational undertakings
since the mid-eighties might be ascribed to noteworthy changes in advances, more noteworthy
progression of exchange and investment administrations, and deregulation and privatization of
business sectors in numerous nations including creating nations like India. He suggests that TNCs
may thus employ strategies which may not necessarily coincide or be appropriate to welfare of the
host economy. The Korean case study depicts that there is a large possibility for other rising
economies to achieve from FDI flows and that the primary costs from lost domestic investment are
largely overshadowed by the medium-term advantages. In most circumstances, the profits are often
manipulated to a value lower than the actual amount in order for under taxation to occur. Despite the
significant rise in inflows of FDIs in the economies, namely, Nigeria, Tunisia, Egypt, and Algeria,
also recorded as the chief direct investment enterprises of the continent, the economic growth has
been quite low in comparison to other economies facilitating FDIs, such as Poland, Hungary and
other Western economies. In this paper, our aim is to point out the negative and positive implications
which affect the economic scenario and also measure the level of predominance by the factors for
economic contribution of particular country with special reference to India. You can download the
paper by clicking the button above. I- FDI trends in ESCWA region II- FDI and development:
Challenges for ESCWA countries. I. FDI TRENDS IN ESCWA REGION. The elaborated
discussionregarding the Foreign Direct Investment isAN original contribution of this paper.
Departing from this universal model, the book then investigates the impact of FDI on economic
growth for the transition countries of Central and Eastern Europe. FDI data maybe collected from
World Bank and IMF database of statistics. The study focuses on the impact of foreign direct
investment on the economic growth of. There might be too much traffic or a configuration error. We
can't connect to the server for this app or website at this time. The qualitative research paper
analyzed in this paper is “Risk, FDI and Economic Growth: A Dynamic Panel Analysis of the
Determinants and Growth impact of fdi in Africa” by Kevin N. Ownership, Locational Advantages
and Internalisation form the crux of fdi. Underpinned by the research outcome, we suggest that
policymakers implement EOI (export-oriented industrialization) and ISI (imports substitution
industrialization) industrialization strategy mix to expedite economic development, correct the long-
standing current account deficits and curb the currency depreciation. That is technology and skill
effect, size effect and structural effect as well. According to the study of Nguyen and Liu (2013)
suppose that almost all countries and territories around the world have been attracting a certain
amount of FDI, only differ in quality and quantity. Whether there is a positive or negative
association between FDI and the growth of the host economy is a fervently debated research
question. Development Economics and its usefulness in this study. Error: Try Again Ok Sell
Watchlist Expand Watch List Loading. The good news is that in case of the small and less developed
economies, they can take advantage of positive development outcomes of FDI which is equivalent to
the outcomes generated in more developed nations (Nunnenkamp, 2002, p. 31). A basic factor
accounting for the effect of FDI to be severely positive or negative depends upon the level of
competition in the markets in which the FDI is implanted.

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