This website uses cookies to ensure you have the best experience. Learn more

Foreign Direct Investment Essay

445 words - 2 pages

In the past, there are quite a number of studies that were carried out based on the endogenous growth theory. Mixed effects were generated where some of the studies reported positive relationship between inward FDI and economic growth of host country while the other studies generated the opposite results. Some studies even found that there is no relationship between the FDI and economic growth of host country. The past studies are carried out in various forms, which includes studies on sector level, country level, and cross-countries.One study focusing on Malaysia by Mun, Lin and ...view middle of the document...

The overall result found was that there is a positive relationship between FDI and economic growth and specifically, the economic growth in coastal provinces is affected more by FDI as compared to in inland provinces. This result also supported by (Vu and Noy, 2009) in which the authors carry out research on the relationship between FDI and economic growth using sectoral data of six country members of the OECD. The six countries include Germany, Spain, Netherlands, Denmark, United Kingdom, and The United States. The authors aim to find out the sectors specific impact of FDI on the developed countries' economic growth level. The empirical findings showed that overall FDI has positively affects the economic growth of the countries studied even though the effects seem to vary across countries and sectors. In Khaliq (2007), similar sectoral analysis was done on Indonesia to examine the impact of FDI on economic growth by using sectoral data for FDI inflows in the country over the period 1997-2006. The author found that in the overall, FDI shows positive effect on economic growth of Indonesia in the aggregate level. However, when the effect is examined across different sector, the results generated are mixed where very few sector show negative effect of inward FDI.

Other Essays Like foreign direct investment

Evaluating the Tax Incentives for Foreign Investors Policy

4086 words - 17 pages Evaluating the tax incentives for foreign investors policy Reporting to the Manufacturers league Executive Summary This report has been written in response to the government’s proposed tax incentive policy for foreign multi-national corporations to increase foreign direct investment within Australia. The report draws attention to the reasons behind the government’s proposal. These include the slow growth trends of the manufacturing

Fdi - an Analylsis Essay

790 words - 4 pages , creditors, Bonds, FRN and loans from Semi-Government Export Credit Agencies, IFC (W), BEG Germany, CDC, the UK and Nordic Investment Bank. These loans are procured in the market rate of interest. c) Non-resident Indian Deposits The NRIs can bring their savings to India to keep as a deposit in Banks in various accounts. In 2001-’02, the inflow of the NRI deposits was US $25,151 million. 2) Private Capital Flows a) Direct Foreign Investment

Using Foreign Exchange Reserves for Development

1964 words - 8 pages maintenance of foreign market in India Violation of FERA was a criminal offence where as violation of FEMA is a civil offence    Almost all current account transactions are free except a few FOREIGN DIRECT INVESTMENT Capital Account and its trends Capital Account  Capital account includes  Foreign Investment   Foreign Direct Investment Portfolio Investment   FIIs ADRs/GDRs     External

China Merger and Acquision

5275 words - 22 pages domestic companies limited by shares The 1994 Company Law authorized SOEs to organize themselves as joint-stock companies and authorized direct foreign investment in those companies. The Provisional Regulations on Utilization of Foreign Investment to Reorganize State-Owned Enterprises, promulgated by the State Economic and Trade Commission (SETC) in September 1998, set out approval procedures for such investments. The regulations add SETC

Do Foreign Banks Always Bring Positive Impacts Into the Domestic Banking Sector?

2007 words - 9 pages Do foreign banks always bring positive impacts into the domestic banking sector? Since the 1960s, foreign bank activities have grown quickly due to increased international trade flows, foreign direct investment activities, the globalization of capital markets and the liberalization of domestic financial markets. The increased presence of foreign banks raises questions about their effects on domestic banking sector. This paper aims to

Ratio Analysis

1144 words - 5 pages markets by establishing new foreign subsidiaries. • In general, any method of conducting business that requires a direct investment in foreign operations is referred to as a direct foreign investment (DFI). • The optimal international business method may depend on the characteristics of the MNC. Degree of International Business by MNCs Degree of International Business by MNCs Fore ign Sale s as a % of T otal Sales Fore ign A sse ts as a % of T

Aiu Fin630 Discussion Boards

1803 words - 8 pages . The general expansion into the other countries market in one reason to invest in another country because the other country can have other resources or technology (Ehrhardt, & Brigham, 2011). References Blonigen, B. A. (2006). Foreign Direct Investment Behavior of Multinational Corporations. Retrieved 17 June 2013 from The National Bureau of Economic Research: http://www.nber.org/reporter/winter06/blonigen.html. Ehrhardt, M. C., & Brigham, E

Balance of Payment

1239 words - 5 pages investment in business, real estate, bonds and stocks are documented. Also included are government-owned assets such as foreign reserves, gold, special drawing rights (SDRs) held with the International Monetary Fund (IMF), private assets held abroad and direct foreign investment. Assets owned by foreigners, private and official, are also recorded in the financial account. The financial account consist of four area of investment. The first is direct

Foreign Market Entry Modes

1216 words - 5 pages Name: 馮光合 Student ID: M0414102 Foreign market entry modes 1. Exporting: Exporting is the process of selling of goods and services produced in one country to other countries. There are two types of exporting: direct and indirect. * Direct Exports The most basic mode of exporting made by a (holding) company, capitalizing on economies of scale in production concentrated in the home country and affording better control over distribution

Greenfield Investment in Host Countries

2836 words - 12 pages Greenfield investment in host countries 1 Introduction Foreign direct investment (FDI), a most important product of economic globalization, has swept the world in the past few years. As an investment mode of FDI, greenfield investment refers to a kind of strategy that the multinational enterprises(MNEs) start new firms by constructing facilities in the host countries from the ground up (Wang & Wong, 2009). It flows to the host

Teaching Economics

873 words - 4 pages ' remittances (BoP; US dollar) in South Africa | 96620203344.5 | 104867148253.7 | Foreign direct investment; net (BoP; US dollar) in South Africa | 2754820696.8 | 11764417771.6 | Foreign direct investment; net inflows (BoP; US dollar) in South Africa | 5736933181.2 | 9644834927.1 | Foreign direct investment; net inflows in reporting economy (DRS; US dollar) in South Africa | 5736933181.2 | 9644834927.1 | Foreign direct investment; net inflows

Related Papers

Foreign Direct Investment Essay

1271 words - 6 pages Paul XXXXXX XXXXXXXXX University International Financial Markets: Foreign Direct Investment FIN630 – Global Financial Management March 17, 2011 Foreign Direct Investment: Vernon’s product life-cycle theory Raymond Vernon’s theory was different than the modern day theories of the 1960’s. Before Vernon, economists thought the reason a country traded with another was because of some advantage it had over the other for producing a

Statistical Analysis Of Foreign Direct Investment In India

2854 words - 12 pages employment, foreign investment also facilitates flow of sophisticated technology into the country and helps the industry to march into advanced technology. A favorable business environment fostered Indian economy after 1991, when the government of India opened the door for foreign capital in the way of direct investment and through foreign institutional investors. The policies drafted to stimulate the flow of foreign capital in to India

Foreign Investment And The Settlement Of Investment Disputes

1119 words - 5 pages and Members 32 5. Conclusion 35 Bibliography 38 Introduction In my thesis, my topic is foreign investment and the relating regulation system, aimed at increasing economics in the area of international relations. First, I would like to present the definition of foreign investment, since in the past decade, investment, especially foreign direct investment has come to play a major role in the internationalization of business

Investment Opportunities And Roles Of Public Relations And Advertising In Investment Promotion In Nigeria

593 words - 3 pages exploitation and export of natural gas, bitumen, limestone, coal, tin, columbite, gold, silver, lead-zinc, gypsum, glass sands, clays, asbestos, graphite, and iron ore, among others Power sector The power sector reform has moved the sector from the position of government ownership/management to a private-sector driven. Investment opportunities exist for power generation (gas, hydro, coal, wind, solar, etc) for local and foreign investors to