FDI investment is a vital factor for the developing countries economic growth. Apart from working as a catalyst of increasing total output level, FDI is a source of clean energy, technology transfer and energy efficiency. There have been very limited studies on the impact of FDI on renewable energy consumption in the context of Bangladesh. In fact, to my best knowledge there hasn’t been any studies on Bangladesh regarding this relationship with recent data available. Therefore, the aim of this paper is to reveal the relationship between FDI and renewable energy consumption in Bangladesh with annual Data spanning from 1980 to 2016. Johansen’s cointegration test showed that variables are cointegrated in the long run. Through Vector Error Correction Model (VECM), the paper shows there is short run and long run causality between FDI and Renewable Energy Consumption and the causality is negative. Granger causality test reveals that the direction of causality is running from FDI to Renewable Energy Consumption. Policies regarding attracting more sectoral FDI should be considered to improve investment scenario in Renewable energy sector.

Current research examines the interdependence between foreign direct investment (FDI), financial development and economic growth. The relationship between the variables in question is studied with reference to transition economies (28 former centrally planned economies). The period of observation covers the transition from centrally planned to market economies 1989-2007. The relationship is analysed using panel data regression models, factor analysis and cointegration tests. The paper suggests that FDI and financial development exert a complementary effect on economic growth, although the latter appears to be insignificant. At the same time, the research provides evidence that FDI is likely to compensate the underdevelopment of financial sector. Powered by TCPDF (www.tcpdf.org)

This article applies the total investment model and 12-year (2008-2019) panel data of 11 countries in Central and Eastern Europe to examine the crowding-in or crowding- out effect of FDI on domestic investment. Moreover, in the empirical research, this article also tests the specific impact of the formation of FDI domestic capital in different economies and different periods in Central and Eastern Europe. Our research results show that FDI has no obvious crowding-in or crowding-out effect on the domestic investment of the total sample in the long term. In addition, FDI has a long-term crowding-out impact on domestic investment in underdeveloped economies and advanced economies in 11 countries. However, in the short term (2008-2012), FDI has a substantial and apparent crowding-in effect on domestic investment in underdeveloped economies. Furthermore, in the latter stage of the research period (2013-2019), FDI has no obvious crowding-in or crowding-out effect on domestic investment in the two different economies. This article also deeply analyzes the causes of the crowding-in or crowding-out effect of FDI and puts forward reasonable policy recommendations. Keywords: FDI, Crowding in, Domestic investment, underdeveloped economies.

Our research reveals the impact of foreign direct investment on the intensity of bilateral trade in the Central Eastern European (CEE) region, focusing on countries of Czech Republic, Hungary, Poland, Slovakia, Slovenia, and Estonia (CEE-6). Previous literature and research results indicate that there is a complementary or substitute relationship between FDI and trade. However, the studies of this subject on the CEE region are scarce. Our study employs the gravity model to analyze the impact of FDI on bilateral trade with panel data of each country from 2005 to 2019. Based on the panel data, we investigate the commercial integration among CEE-6 and with main EU commercial partners. Our results suggest a prevalence of complementary relationships in Hungary, Poland, Slovakia, and Slovenia, yet each country demonstrates the relationship through different facts. The complementary relationship is attributed to the prevalent vertical FDI in CEECs, especially in the automotive industry. However, Estonia displays a substitutive relationship between outward FDI and trade. Moreover, we find the commercial integration only exists among the Visegrad group.

A shift in economic power from the developed world to emerging markets has seen the BRICS countries becoming the new growth centre of the world. In 2010, half of the total global foreign direct investment (FDI) flows went to emerging economies. A large portion of these FDI flows goes to the manufacturing industry with a quarter of the global GDP being generated by the production processes of multinational manufacturing enterprises (MMEs). The challenge for the BRICS countries will be to sustain their trend in FDI inflow. Previous studies on this topic focused on the determinants of FDI at country level as opposed to an industry specific focus. The outcome of this study assists MMEs in their entering decisions and policy makers in developing policies that create an enabling environment that will attract foreign capital.This research analyses the BRICS countries as potential destinations for FDI in the manufacturing industry. The analyses followed a three phased approach. The first phase identified the potential determinants of FDI to the manufacturing industry of the BRICS countries. The second phase either validated or disproved investor perceptions about the factors that would impact on the performance of an investment. In the third and final phase of the analysis, the competitiveness of the BRICS countries in attracting FDI to the manufacturing industry was assessed.The analysis of the three hypotheses contributed to the overarching theme of evaluating the BRICS countries as potential destinations for MMEs. The outcome of the analysis highlights that countries are unique and that investor perceptions about a country’s conditions and how this will impact on the performance of an investment are not always valid. In the overall analysis of the BRICS countries as potential destinations for FDI, the majority of the BRICS countries, with the exception of South Africa, are found to be competitive destinations for attracting FDI to the manufacturing industry. On the basis of the outcome of the analysis and the methodology followed in this study, a general model that can be used in future FDI research is suggested. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Foreign direct investment (FDI) is a source that improves the competiveness of the host country which can be further utilised to develop the country’s own resources and capabilities. In addition, non-affiliated local firms that do not have a foreign partner improve their performance due to the spillover effects gained either through the sharing of resources, learnings or due to the increase in competition. As such, FDI is seen as an important economic growth driver in developing economies since these economies struggle to compete in the global economy.The objective of this research is to determine whether foreign ownership in a developing economy is beneficial in terms of national competiveness; reducing the income gaps; improving employment opportunities; improving the financial performance of an acquired local firm and if the foreign parent introduces new technologies into the economy. Due to the mining- and manufacturing sector being the main recipients of FDI in South Africa and both having similar operations specifically being high capital and labour intensive, these sectors were chosen for the purpose of this research. The data sample was analysed using multiple regression as it is a flexible method of data analysis that may be appropriate whenever a quantitative dependent variable needs to be examined to find a relationship with two or more independent or explanatory variables.The results indicate significant benefits for the host economy in attracting FDI into the country. The benefits seemingly outweigh the costs and the presence of Multinational Corporations (MNCs) in South Africa will help it in elevating some of the socio-economic challengers like high unemployment rate and the shortage of skills through resource sharing with the MNCs. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

The purpose of this essay is to find how Location specific factors affect the FDI of MNEs.This is done through the use of Dunning's eclectic paradigm, mainly the L-factor of OLI. TheL-factor is then combined with market agglomeration and unexploited markets as aframework to find location as a motivator for companies´ FDI. We also use Dunning’s fourmotivations for FDI when trying to find how Location affected FDI.Three companies are interviewed in semi-structured interviews to ensure their views on thesubject can transpire but still keep them within the subject at hand. We found that all thecompanies we interviewed mainly looked for agglomerated markets, access to markets,customers and access to competent people within the markets when deciding which market tosettle in. We also found that unexploited markets were not something the companies weinterviewed were searching for nor valued highly in their investment decision. This has to dowith the fact that we only interviewed three companies and did not interview in a wideenough range of industries to be able to conclude our findings.

During the last 20 years there has been a rapid increase of Chinese foreign direct investment (FDI) in Africa. Through examination of published research, we discover that Chinese FDI does not appear to clearly follow traditional assumptions of FDI. Especially in relation to economic freedom. This uncertainty, combined with lacking empirical research and limited available data in the region, led us to the aim of this work. We have set out to examine whether economic freedom is a determinant of Chinese FDI in Africa. For this purpose, a biennial panel data study for the years 2009 to 2019 was constructed. Fixed effects models using indices for economic freedom and relevant control variables are employed. The results show that economic freedom as defined by the Fraser Institute has a negative effect on Chinese FDI. Further, high levels of regulation reduces Chinese FDI. These findings stand in contrast to traditional theory on FDI determinants.

China's emergence as one of the largest FDI source country has attracted global attention. There are many researches on the determinants and characteristics of China's outward FDI, but there are only few researches about China's outward FDI in CEE countries. Based on the dataset, which comprises data of 11 CEE EU member states over the period 2003-2014, this thesis investigates the determinants and patterns of China's outward FDI in CEE-11 countries by using a panel data technique. The regression results reveal that for the whole sample period, culture proximity and existing trade relation have significantly positive impacts and China's FDI in CEE-11 is negatively associated with the institution environment of host country. And the results also demonstrate that determinants of China's FDI in CEE-11 change over time. Besides, political relation is also an important influential factor and policy makers should put more effort to strengthen the bilateral cooperation.

Globalisation and trade integration have positioned Foreign Direct Investment (FDI) as a development imperative for many developing countries, including Southern African Development Community (SADC) economies. Despite concerted efforts both at individual country level and at regional level, FDI flows to the SADC region have declined compared to other regions in the world. The main reasons posited for SADC's inability to attract and retain FDI include negative risk perceptions; a weak ease of doing business environment, and endemic corruption. Hence, the study seeks to investigate the relationship between FDI inflows and corruption and ease of doing business in SADC. The research applies Generalised Method of Moments (GMM) analysis to all 16 SADC countries over a period of 2010 to 2019. The results show that although both corruption and ease of doing business are significantly and positively relate to FDI inflows in SADC, ease of doing business affects FDI to a greater extent compared to corruption. In addition, the inclusion of the interaction between corruption and ease of doing business shows that FDI inflows are more closely attracted by ease of doing business than by corruption.