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With the lack of finance, many developing nations are struggling for investment in several areas to generate an opportunity for sustainable livelihood, and Foreign Direct Investment (FDI) emerged as an engine of economic growth, especially in developing nations. It helps to strengthen the economy by mainly promoting capital inflow and technical improvement into the recipient economies. However, some literatures found economic growth, responsible for the inflow of FDI. Therefore, this paper attempts to examine the causal relationship between FDI and Economic Growth in India. By running the Granger causality test in VECM settings, this study found, GDP causes inflow of FDI in India. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to investigate the factors of technology diffusion in Saudi Arabia. It is a relevant study for Saudi Arabia, which has embarked on high gears of economic modernization that is supposed to be driven by technology and knowledge. Thus, an up-to-date research on the factors of technology diffusion in the country is expected to be of high-valued contribution. Design/methodology/approach -- It employs co-integration method to analyse the long run relations between the technology diffusion and its determinants. Findings -- The study finds that the international trade, particularly the oil sector trade, of the Saudi Arabia appears to play no relevant role in the international technology transfer for Saudi Arabia. The study confirms that technology is an endogenous variable in the presence of human capital; and that the higher levels of educational attainments are found to significantly improve factor productivity. The foreign direct investment (FDI) stock is confirmed to be a consistent and important factor in the process of technology diffusion. The capital goods imports and the domestic R&D expenditure are found to be negatively associated with the technology diffusion. Research limitations/implications -- The machine and transport equipment imports are used by the study as a measure of capital goods imports, and thus a better measure is needed in a further research. Similarly, the limited data on the domestic R&D expenditure has forced the author to rely on estimates and own calculations. Thus, these data limitations could not allow us to have better understanding of the impacts of capital goods imports and domestic R&D on the technology diffusion. Practical implications -- Human capital and FDIs are the key drivers the Saudi authorities should consider for transferring and diffusing technology in the country and expanding non-oil sources of economic growth. Originality/value -- This paper is a first of its kind for the case of Saudi Arabia to analyze the determinants of technology diffusion and investigate the role of the its oil sector trade in the technology diffusion. The oil sector trade is found insignificant in the international technology diffusion process; thus the authorities should refocus the oil sector trade towards technology localization and adoption to increase integrative by-product industries in the country. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between outward foreign direct investment (OFDI) and domestic investment (DI) in China using co-integration and Granger causality analyses (including bivariate and multivariate Granger causality models). The results suggest that the conclusions drawn from a bivariate model may not be valid because of the omission of important control variables. The results of the multivariate model show that there is a positive long-run unidirectional causal relationship running from OFDI to DI In the short run, DI and OFDI do not show Granger causality. [ABSTRACT FROM PUBLISHER]

This paper investigates the co-integration among export, gross domestic product, foreign direct investment and effective exchange rate for Bangladesh using annual data from 1994-2013.The paper uses time series econometrics tools to investigate the relationships. The study provides the evidence of stationary of time series variables. Study findings reveal that the co integration analysis shows that all the variables of the study are co-integrated at their differences meaning that there exists long run relationship among the variables. The short term discrepancies Error correction mechanism (ECM) was used. Pair wise causality analysis has been carried out to explore the causal relationship among the variables. [ABSTRACT FROM AUTHOR]

Free foreign direct investment is of great importance for economic growth and the development of emerging economies. Namely, foreign direct investments do not allow entry into unemployment, transfer of modern technology and knowledge, unless you want to increase competition in the domestic market, you can ask for encouragement of innovation, how to show productive and stable growth in developing countries. The rapid development of information and communication technology, as well as the impact on traffic infrastructure is functional if it needs to be adjusted to active foreign investment. The banking sector, on the other hand, occupies an important place within the financial system in the economic development. Thus, in the Republic of North Macedonia, the banking institutions participate with about 84% in the total assets of the financial system. Hence, the liquidity and reliability of banking institutions are crucial in terms of maintaining the stability of the financial sector. The changes that have affected the financial sector in the last few decades, as a result of the impact on deregulation, competition, consolidation process, globalization, technological changes has made possible the drastic transformation of banking institutions. Banks are responding to such changes by expanding their service offer, not only in the country but also abroad. Thus, the activists of modern banks are not limited to traditional banking activities, such as adjusting deposits and issuing loans, unless many other non-banking services are required. If modern banks have more compared to universal financial institutions, clean transformation should be aimed at: efficient implementation, optimization of the capital structure, strengthening measures due to weakness and so on. Given the preferred prospects for knowledge of foreign security investments for use in the economy, but also the role of the banking system in the economy, the main purpose of this doctoral dissertation will be to examine the factors in the banking sector in Republic of North Macedonia and foreign direct investments, for the period 2000 until 2018. Namely, the causal relationship is related to investments in foreign investments (FDI) and banking sector in Republic of North Macedonia, and on the other hand there are many choices and theoretical studies on mutual international investments and the economy. Therefore, in this doctoral dissertation I will try to determine whether total deposit, total loans and other activities of the banking sector and its performance have impact on the Foreign Direct investments. In order to achieve the required objectives, this study will use the Vector Error Correction Model (VECM). At the end of this dissertation, several measures and recommendations regarding the health efficiency of the banking sector will be given, through the implementation of operational innovations, which is essential for an attractive foreign investment. [ABSTRACT FROM AUTHOR]

The main objective of this paper is to examine the role of Foreign Direct Investment (FDI) in promoting the growth of the economy via export promotion by using the annual data from 1979–80 to 2000–01. This study uses the Johansen co-integration test and the results demonstrate that there is a long run relationship between Gross Domestic Product (GDP), FDI and Export (EX). The same relationship is also established when the Index of Industrial Production (IIP) replaces GDP. However, the positive elasticity coefficients between FDI, GDP and FDI, IIP are less than the positive elasticity coefficient between EX, GDP and EX, IIP. It implies that EX plays a comparatively better role in the growth of the Indian economy than FDI. Thus, on the eve of India's plan for further opening up of the economy, it is advisable to open up the export-oriented sectors so that a higher growth of the economy can be achieved through the growth of these sectors. [ABSTRACT FROM AUTHOR]

This paper analyzes the relationship between the net capital flow components and other fundamentals and the real exchange rate (RER) in India consequent for the liberalization of the capital account in 1990s for the period 1996- 1997 to 2012-13 using the Autoregressive Distributed Lag approach to co integration. The estimation includes net capital flow components: foreign direct investment (FDI) flows, foreign portfolio flows, debt creating flows and other capital flows, government consumption expenditure, change in foreign exchange reserves, and current account balance as explanatory variables for investigating the relationship with the RER. The empirical results indicate that FDI flows are not significantly associated with the real appreciation but portfolio flows and debt creating flows are associated with real appreciation in a statistically significant manner. Government consumption expenditure is not found to be significantly associated with real appreciation. Current Account Balance has a positive and statistically significant association with RER indicating that the outflows on account of current account deficits have been associated with depreciation of RER or prevention of the appreciation on account of capital flows. The change in foreign exchange reserves has a negative and statistically significant association with RER indicating that the accumulation of reserves by the Reserve Bank of India in the face of increasing net capital flows has prevented the appreciation of RER and mitigated their adverse consequences on the competitiveness of the Indian economy. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to investigate the effects of exchange rates on debtand equity-based foreign capital inflows in Turkey. For this purpose, long run coefficient values were estimated with Dynamic Ordinary Least Squares (DOLS) method using the monthly data of 1991:12-2019:10 period. According to the model estimation results, variables move together in the long run. However, the effect of exchange rate on debt-based foreign capital inflows is positive and the effect on equity-based foreign capital inflows is negative. These findings point out that in Turkey external debt burden is high, and the firms are orientation intensively outsourcing use. [ABSTRACT FROM AUTHOR]

Several studies, either theoretical or empirical, have analysed the possible connection either between foreign direct investment (FDI) and real exchange rates (RER) or between exports and RER. It is surprising, however, that the triangular relationship between exports, FDI and RER has not been thoroughly investigated. Using data from Vietnam, this paper attempts to fill this gap by econometrically investigating the linkages between these three variables in a co-integration framework. We find, firstly, that RER may directly affect the relative price of export goods and, secondly, that RER indirectly influences Vietnam's exports through FDI. [ABSTRACT FROM AUTHOR]

Despite the increase in tourism, the contribution of tourism to poverty reduction is questionable. Using secondary data with poverty index as a dependent variable, the effects of tourism value, total trade value, foreign direct investment, gross domestic product, and exchange rates were tested using econometric time series analysis for Tanzania from 1987 to 2020. The results for the long-run effects indicate all five variables significantly influence on human development as a proxy for poverty. Foreign direct investment has a negative effect, unlike the other variables. These results offer support to the Tourism Led Growth Hypothesis for a developing country like Tanzania in sub-Saharan Africa. Thus it is logical to continue promoting tourism in conjunction with the facilitation of export trade as a means of poverty reduction. Attracting foreign direct investments should continue but put into consideration policies, regulations, and the business environment that facilitate local business linkages with tourism which will reduce profit leakages. [ABSTRACT FROM AUTHOR]

For the past few years, Foreign Direct Investment (FDI) has become the indicator for Economic Growth, especially in emerging economies. This paper empirically investigates the determinants of FDI flows in India by employing the Auto Regressive Distributed Lag (ARDL) model. The result confirm the existence of a long run equilibrium between the FDI and five explanatory variables, namely exchange rate, Wholesale Price Index, Index of Industrial Production, Trade openness and dummy variable (financial crisis). India's Wholesale Price Index, Exchange Rate volatility and Index of Industrial Production have positively influence the flow of FDI in India and Trade Openness is negatively significant for the flow of FDI in India. The coefficient of the Error Correction Term (ECT) is highly significant with expected sign, which confirm the result of bound test for co-integration. The cumulative sum of recursive residual (CUSUM) test is used for measuring the stability of the model. [ABSTRACT FROM AUTHOR]

This article examines the linkages between inward FDI, services trade (export and import) and economic output using co-integration and VECM causality test. These linkages have been explored both at the aggregate and at the sectoral levels (manufacturing and services). The empirical findings confirm the long-run relationship among these variables. Causality results indicate the presence of bi-directional causal relationship between FDI and economic output as well as between services exports and economic output. The results also bring out feedback relationship between services export and FDI, reconfirming the presence of complementary relationship between the two. At the sectoral level, we find at least a unidirectional causality from FDI and services exports to both manufacturing and services output and also cross-sectoral spillover effects from manufacturing output to services output and vice versa. [ABSTRACT FROM AUTHOR]

This paper examines the causal links between foreign direct investment and economic growth in Nigeria during the period 1970-2008. The authors employed the Granger causality and Johansen co-integration techniques to analyze the relationship and direction of causality between the variables. The Johansen co-integration statistic indicates that the variables are co-integrated, and the granger causality statistic reveals a unidirectional causality running from foreign direct investment to economic growth. [ABSTRACT FROM AUTHOR]

In recent times, the collapse of more than seven banks in Ghana and the raising of the minimum capital by the Central Bank of Ghana, have led to the argument that the stock market is the next best capital market for raising long terms funds. This study employs the ARDL cointegration approach to examine the long and short‐term relationship between macroeconomic variables and stock market returns and development in Ghana. We found out that cointegration exist between the macroeconomic variables and stock market return and stock market development. The study revealed that log of the money supply, inflation rate and human capital has a negative impact on the stock market development whereas the log of foreign direct investment and interest rate has a positive impact on stock market development. [ABSTRACT FROM AUTHOR]

The objective of the study was to examine the determinants of Foreign Direct Investment (FDI) from 1985 to 2015 in an emerging economy, Ghana. The study used a robust OLS regression and a Granger Causality Test to test for causal effects on a longitudinal data of thirty years. The study found, using a robust OLS regression model that, Natural Resource Endowment, Government expenditure, External debt and Infrastructure has significant predictive effects on FDI although the effect were more profound for natural resources and government expenditure. Using a granger causality approach, interest rate, natural Resource Endowment, Government expenditure, inflation, Infrastructure and international reserves were observed to granger cause FDI. The study recommends that policyholders and the government should also put in place measures that would maintain natural resources and spend on improving infrastructure and development as these attract foreign investments into the country. [ABSTRACT FROM AUTHOR]

In this study, we attempt to provide underlying theoretical and empirical explanations for exchange rate appreciation due to foreign capital influx and aggregate demand conditions in the BRICS economies. The empirical analysis is based on a panel dataset of BRICS countries over the time period 1992-2013 to substantiate our theoretical findings. For panel co-integration, Pedroni and Johansen-Fisher panel co-integration tests are conducted to compare co-integration among panel countries. We also analyze the results from Dumitrescu-Hurlin panel causality test among variables and use Granger Causality to test for the causal patterns in each of the individual countries. Our findings showed that the exchange rate volatility is directly affected by the flows of FDI, GDP per capita, Capital formulation and House hold consumption. The results have profound implications in terms of exchange rate stability in the BRICS countries and associated risks. [ABSTRACT FROM AUTHOR]

The present study explores the impacts of foreign capital inflows in terms of external debt, foreign direct investment and worker's remittances on domestic investment in Pakistan economy for the period of 1972-2007. Since the study utilizes the time series data of the sample period so augmented Dickey-Fuller unit root test has been employed to find out each of the time series variables to be stationary at their first difference. The Johansen cointegration confirms two cointegrating vectors and all of explanatory variables show positive and significant impact on domestic investment in long run. The Granger causality test results, based on the VECM, confirm long run and short run causality from external debt, foreign direct invest and worker's remittances to domestic investment. The diagnostic and stability tests conclude the model to be valid and stable. The study also provides some policy recommendations. [ABSTRACT FROM AUTHOR]

This study aims to analyze the influence of the relationship between causal factors that affect the future equilibrium of the total final energy consumption in the construction sector of Thailand under the sustainable development policy for the period of 10 years (2019–2028). This analysis was achieved with the application of the Structure Equilibrium-Vector Autoregressive with Exogenous Variables model (SE-VARX model). This model was developed to fill research gaps and differs from those of previous studies. In the selection of variables, the study focused on Sustainable Development (SD)-based variables available through the lens of Thailand. The exogenous variables included real GDP, population growth, urbanization rate, industrial structure, oil price, foreign direct investment, international tourist arrivals, and total exports and imports. Every variable had a co-integration at level (1) and was used to structure the SE-VARX model. This particular model can effectively analyze the influence of the direct relationship and meet the criteria of goodness of fit without spuriousness. This SE-VARX model allowed us to discover that every variable in the model had an influence on the equilibrium change, where the real GDP is the fastest variable to adjust to the equilibrium while the total final energy consumption has the slowest adjustment ability. The SE-VARX model can be used to project the total final energy consumption, as verified by the performance test result. The test was measured based on the Mean Absolute Percentage Error (MAPE) and Root Mean Square Error (RMSE), and their results were 1.09% and 1.01%, respectively. This performance result had the highest value compared to other models in the past. Thus, the SE-VARX model is suitable for forecasting over the next 10 years (2019–2038). The results of this study reveal that the total final energy consumption in the construction sector of Thailand will exhibit a continuously increasing growth rate from 2019 to 2028, amounting to about 144.29% or equivalent to 364.01 ktoe. In addition, the study also found that future government plans may be difficult to achieve as planned. Therefore, the introduced model should be integrated into national development planning and strategies to achieve sustainable development in the future and to enable its application to other sectors. [ABSTRACT FROM AUTHOR]