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The focus in the large literature on distance measures has generally been on one or just a few of its many dimensions. When considering their effects, researchers typically use pairwise measures and do not consider their directionality. This article argues that simple pairwise measures are inadequate, and it introduces asymmetric effects of distances by considering home and host country institutional contexts in the analysis. Asserting significant differences in institutional development between emerging and advanced economies, the article examines the differing effects of seven distance measures based on economic development in home and host countries of foreign direct investment (FDI). A comprehensive data from 124 countries for 2013–2017 is used in analysing its location and size with an augmented gravity model of FDI stocks adopting a generalized linear regression estimation method. The results suggest the following: Home country context is not relevant for cultural, political, common spoken language or colonial relationship dimensions of distance. For multinationals from advanced economies considering advanced hosts for investment, cultural, educational and political distances are not relevant. When the same multinationals consider emerging hosts, these are significant dimensions. However, for an emerging country multinational considering other emerging hosts, all distance dimensions are relevant. [ABSTRACT FROM AUTHOR]

Using panel data of 20 industries in China from 2006 to 2019, this paper constructs a fixed effect model to study the impact of FDI (foreign direct investment) and foreign trade on China's industrial carbon emissions. We combine the panel threshold model to explore the impact mechanism of FDI and foreign trade on industrial carbon emissions under the difference of independent technological innovation. Research efforts has shown that FDI and foreign trade have a long-term promoting effect on industrial carbon emissions, indicating that the 'pollution shelter' hypothesis is valid in the context of China's industrial industry. The threshold regression indicates that with the increase of independent technological innovation, the increase in carbon emissions promoted by FDI while foreign trade decreases. When considering heterogeneity issues, FDI and foreign trade in moderately and heavily polluting industries significantly increase carbon emissions compared with lightly polluting industries; Compared with heavily polluting industries, moderately polluting industries have a more significant positive impact on carbon emissions from foreign trade. The research conclusion provides reference for reducing carbon emissions and improving environmental quality by emphasizing the industry structure of FDI and foreign trade, fully stimulating independent technological innovation, and creating an innovation atmosphere. [ABSTRACT FROM AUTHOR]

The primary determinants of business cycle synchronization among OECD countries and their interactions are examined using panel Granger causality tests, single-equation panel regressions, simultaneous equations model error component three-stage least squares (EC3SLS), and cross-sectional 3SLS econometric techniques. The sample spans the years 1990 through 2021. The results demonstrate the direct and indirect effects of the key macroeconomic variables on the synchronization of the business cycles of the sample economies, as well as the complementary and competing nature of these variables. The magnitude and significance of these macroeconomic factors in relation to the business cycle synchronization before and after the global financial crisis of 2009 are also examined in this study. Furthermore, the analysis supports the ex-post argument for entering the euro currency union. The study article contributes by providing direction for future empirical research on the sources and propagation mechanisms of international business cycle transmission. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) and regional development are mutually interwoven phenomena. This paper introduces an analytical framework to investigate the interaction mechanism between FDI and regional industrial structure. This framework posits first that FDI generally has a significant influence on the industrial structure in the region concerned, specifically through intervening mechanisms such as capital supply, active selection, passive competition, product linkage, imitation and demonstration and employee flows. Secondly, the industrial structure, in turn, also affects FDI flows through mechanisms including market demand, factor supply and policy or institutional factors. Finally, there are bi-directional interactions; using a spatial interaction framework, the present study applies and tests a simultaneous equation model and a spatial Durbin model to analyse empirical data from 15 urban regions in the Pearl River Delta mega-city region (PRD) in China spanning the period 2005–2018. The key findings from this multi-scalar analysis are: (i) there are substantial interactive effects between FDI and industrial structure, with the rationalisation and upgrading of the industrial structure significantly promoting FDI inflows into the PRD; (ii) FDI inflows, in turn, contribute to the reinforcement and upgrading of the industrial structure in the PRD; and (iii) the interactions between FDI and industrial structure exhibit significant spatial-economic growth effects. We also find that moderator factors, including independent R&D level, market size, marketisation level, labour cost, infrastructure and government expenditure, have discernible impacts on FDI inflows and the rationalisation and upscaling of the industrial-economic structure in the area concerned. Finally, we note that, in our study, significant spatial dependence effects among urban areas inside the PRD area are observed and modelled. The discussion of the empirical findings leads to the identification of several important policy implications and lessons for regional development strategies from an FDI perspective. [ABSTRACT FROM AUTHOR]

Several research efforts were dedicated to analysing the effects of foreign direct investment (FDI) inflows on gross domestic product (GDP) and employment in the host economies. The variations in the conclusions signal that other variables influence and moderate the effects of FDI on GDP and employment. Institutional elements receive limited research attention, despite their influence on the host economies. This paper investigates the moderating role of institutional elements in the FDI-host economies on FDI’s effects on GDP and employment with China and India as case studies. The approach utilises three principal methodologies. The first methodology presents an in-depth analysis of China and India, highlighting selected institutional elements with the potential to influence FDI’s effects. The second methodology confirms the presence of a positive correlation between FDI and GDP and a negative correlation between FDI and employment-to-population ratio (EPR) in both China and India. The FDI, GDP purchasing power parity per capita, and EPR datasets are extracted from the World Bank – DataBank World Development Indicators to ensure the consistency of the data. The results of the quantitative analysis validate the qualitative analysis. The qualitative analysis confirms the moderating role of the selected institutional elements with variations in direction and strength. Significant variations in FDI’s effects on GDP and employment are strongly related to variations in the institutions of governance. The institutions of governance include the functionality of the state organs, the efficiency of the legal system and enforcement of the rule of law, and the quality of implementation of FDI-supportive policies. The findings aim to increase the absorption of the positive effects of FDI on GDP and employment in the respective countries. The research is a cornerstone of in-depth future research into the following areas: the role of selective FDI and constructive conditional FDI policies, the functionality of judicial authority controls, and FDI favourable exchange rates and interest rates policies. The novelty and contribution of the paper lie in its comprehensive exploration of the moderating role of institutional elements on the effects of FDI on GDP and employment in host economies, with a specific focus on China and India. The paper contributes significantly to the academic literature on FDI and economic development by emphasising the importance of institutional factors and providing actionable insights for policymakers and researchers. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the threshold effect of inflation on the foreign direct investment (FDI) – economic growth nexus in sub-Saharan Africa using panel samples of countries that have adopted an inflation-targeting regime. The study sourced data from the World Bank’s World Development Indicators over a period of 1982–2020 and adopted the fixedeffect panel threshold model approach for its analysis. The findings reveal two separate thresholds of inflation in the FDI – growth nexus. The growth-enhancing effect of FDI is largely realized when inflation is below the optimal threshold level of 7.26%. Beyond the second threshold level of 16.49%, the beneficial effect of FDI on growth is seen to diminish in terms of effectsize. This study provides new insights into the growth effect of FDI and the role of inflation levels in this nexus. The thresholds of inflation and the attendant size-effect of FDI on growth can be benchmarks for Africa and other developing and emerging economies in assessing their situations. As African monetary authorities choose which inflation targets to set for their monetary policies, the findings raise significant implications for them. [ABSTRACT FROM AUTHOR]

CO2 emissions in Belt and Road Initiative (BRI) countries are precisely influenced by economic determinants, requiring a comprehensive perspective. The BRI can augment its prospects for sustainable development by acknowledging the obstacles it faces and promoting global collaboration. Examining the CO2 emission (CO2e) in BRI countries in response to economic determinants such as financial development (FD), income distribution (ID), foreign direct investment (FDI), economic complexity index (ECI), and economic growth (EG) will determine the study's long-term and short-term impacts. This study introduces a novel concept of CO2es by employing panel data from 1991 to 2020. Thus, the CD, Kao, Pedroni, FMOLS, and pooled mean group–autoregressive distributed lag (PMG-ARDL) tests are utilized to assess cointegration. According to empirical findings, economic determinants (ECI, EG, FDI, and ID) have a statistically significant short-run and long-run impact on CO2e in BRI countries. Policymakers in BRI countries should integrate monetary development, FDI, and CO2es to foster EG, attract FDI, and promote sustainable development through regulatory frameworks. [ABSTRACT FROM AUTHOR]

Has progress toward democracy affected the level of foreign direct investment (FDI) inflows to East Asia? Existing research presents conflicting theoretical perspectives on the effect of democratic institutions on FDI. One thread suggests that democratization will lead to more FDI inflows; a second argues for less; and a third argues there may be no effect. We explore whether political institutions impact FDI flows to East Asia by empirically assessing the relationship between the two phenomena. Using three-stage least-squares estimation to account for endogeneity and pooled annual time-series data from 1975 to 2018 for 13 East Asian countries, we find that democratic institutions are associated with higher levels of inward FDI. The results are robust across alternative measures of FDI and democracy. We conclude with a discussion of policy implications. [ABSTRACT FROM AUTHOR]

Does China's growing economic presence pose an opportunity or a threat to regional economic integration? The authors answer this question by analyzing longitudinal and cross-country evidence from three regions, Central, South, and Southeast Asia. A unique panel dataset detailing bilateral economic cooperation and each economy's political-economic factors from 2000 to 2019 was examined. This study concludes that (1) inbound foreign direct investment from China is positively associated with a country's intra-regional integration, (2) trade ties to China show a negative relationship with intra-regional integration, and (3) the level of a country's regional economic integration is conditioned by domestic economic and political factors such as transportation and information connectivity, per capita GDP, population size, trade openness, and public governance. This article contributes to the literature by using fresh cross-regional evidence to decipher the China effect on regional integration, embedding the political economy at both national and regional levels, and identifying variations and significance of various political-economic factors. [ABSTRACT FROM AUTHOR]

Jordan has made substantial strides in enhancing its economy by focusing on economic growth stimulants, which include financial development, foreign direct investment (FDI), and trade openness. However, these economic activities often lead to significant environmental risks. Despite their relevance, the existing literature has rarely examined the influence of these dynamics on environmental quality in the Middle East, particularly in Jordan. This study aims to investigate the influence of financial development, FDI, and trade openness on carbon dioxide (CO2) emissions in Jordan. To achieve this, the study employs the Autoregressive Distributed Lag (ARDL) technique and the Vector Error Correction Model (VECM) Granger causality approach, utilizing data sourced from the World Bank for the period from 1990 to 2022. The findings indicate that financial development, FDI, and trade openness positively impact CO2 emissions, thereby increasing environmental risks in both the short and long term. Additionally, there exists a bidirectional causal relationship between financial development and both FDI and trade openness, as well as between FDI and trade openness. It is imperative for Jordan to design strategies that balance economic growth with sustainable environmental practices. [ABSTRACT FROM AUTHOR]

This paper examines the impact of per capita income, gross domestic product (GDP) growth, foreign direct investment (FDI), sectoral composition, and domestic credit on employment patterns in the Gulf Cooperation Council (GCC) countries from 2013 to 2023, based on "Okun's law". The dynamic data panel was analyzed using the generalized method of moments (GMM) and the ordinary least square (OLS) method. The research findings reveal that the agricultural sector's contributions have significantly influenced the employment patterns in GCC countries, emphasizing the traditional role of agriculture in creating job opportunities. However, the contribution of the services and industrial sectors has no significant impact on employment patterns. Domestic credit and FDI inflows have significantly influenced employment patterns in GCC countries, underscoring their vital role in sustaining long-term economic stability. Per capita income and GDP growth did not significantly impact the employment pattern in the GCC countries during the study period. This research provides valuable insights to policymakers, highlighting the need to focus on the services and industrial sectors to promote their contribution to employment in GCC countries. The research findings also augment the literature by identifying the key economic indicators contributing to GCC countries' employment creation. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) plays an important role in promoting industrial structure and curbing carbon emission. The study is based on panel data from 30 provinces in China from 2011 to 2021 and verifies the impact of FDI under environmental regulation on industrial structure upgrading and carbon emission. The empirical results show that FDI under environmental regulation can inhibit carbon emission and promote industrial structure upgrading. The carbon emission reduction effect and industrial structure upgrading effect of FDI show regional heterogeneity, with the strongest effect in the eastern region, followed by the central region, and no significant effect in the western region. The moderating effect examination of environmental regulation illustrates that formal and informal environmental regulation can effectively regulate the relationship between FDI and carbon emission, but due to differences in various factors such as economic development level and population quality, the moderating effect also exhibits regional heterogeneity. In the mechanism test, industrial structure upgrading plays a perfect mediating role in the path of FDI inhibiting carbon emission, and environmental regulation can further enhance the mediating effect of industrial structure upgrading. There is a threshold of industrial structure upgrading between FDI and carbon emission, and FDI can only suppress carbon emission after crossing the threshold of industrial structure upgrading. [ABSTRACT FROM AUTHOR]

Research on the institutional environment, corruption, and FDI highlights an important facilitating relationship between these factors. The effect of corruption on FDI vis-à-vis the grabbing hand vs. the helping hand hypotheses has been previously examined with suggestions that both hypotheses can co-exist under the assumption that the FDI-corruption relationship depends on the level of institutions. This study revisits this relationship for 34 African countries over the 2005 to 2019 period using the dynamic panel threshold model, which allows for an endogenous threshold variable. Previous studies that have examined this relationship using a threshold regression approach are either not based exclusively on African countries (where the implication of this relationship is more salient) or use a threshold regression that assumes exogeneity of the threshold variable. This study examines the facilitating nature of governance measures – political stability, government effectiveness, rule of law and regulatory quality – on the corruption-FDI relationship. The results indicate significant threshold effects and shows that while the grabbing hand hypothesis is consistent with the data irrespective of the institutional proxy used, the helping hand hypothesis is sensitive to the choice of governance. These results agree with the strand of literature that supports a weak helping hand hypothesis. [ABSTRACT FROM AUTHOR]

This study examined the impact of Foreign Direct Investment (FDI), trade openness, and remittances received on the novel misery index, a measure of macroeconomic dynamics, while considering heterogeneity in misery levels. It analyzed data from 1995 to 2022 across six economically uncomfortable East African Community (EAC) countries. Given the non-normal distribution of the data, a panel quantile regression model was employed to address both distributional and unobserved individual heterogeneity. The empirical findings indicated the weak negative effects of FDI in the lower misery index countries and stronger negative effects in the upper misery index countries. Trade openness shows stronger negative and statistically significant effects in lower misery countries, while its effects are negative but not significant in higher misery countries. Additionally, remittance inflows have a more pronounced positive impact in lower misery countries but show lesser positive effects in countries with higher misery levels. The results are robust even after accounting for additional controls, exclusion of regressors, outliers, and endogeneity issues, suggesting that foreign funds can enhance economic stability for those in misery. The study recommends promoting clean FDI in lower-meminous countries, beneficial trade agreements, and encouraging diaspora communities to advocate for productive remittances. [ABSTRACT FROM AUTHOR]

Stimulating sustainable FDI through the connection of financial development and its moderating relationships with environmental quality and regulatory quality emerges as a crucial agenda nowadays. This study investigates into this relationship using quarterly data from 1990Q1 to 2022Q4 for Canada; employing ARDL bound tests, Granger Causality, and FM-OLS econometric models. Foreign direct investment is the dependent variable of this study. The findings confirm significant long-run relationships among financial development, stock market development, and the moderating effects of environmental and regulatory quality on FDI inflows in the Canadian economy. Conversely, in the short run, financial development, stock market development, and economic growth exhibit bidirectional causal links with FDI, while environmental quality, regulatory quality, and trade openness demonstrate unidirectional causal links with FDI. The error correction mechanism indicates that all variables quickly return to equilibrium except trade openness. Robustness checks further confirm that all the variables have fully modified co-integrating relationship with FDI inflows including the moderating effects of environmental and regulatory quality which is the innovation in the FDI-Growth existing literature. Thus, policymakers are urged to prioritize environmental quality and regulatory quality, alongside other significant explanatory variables identified in this study to promote sustainable FDI inflows. [ABSTRACT FROM AUTHOR]

The difference in the results from previous studies on the impact of inflation on poverty, coupled with an increase in the money supply from direct investment, inspired this research. This study aimed to ascertain how poverty, inflation, and foreign investment affect consumption spending in Indonesia based on 1997-2021 time series data. This study used Vector Autoregression estimation, utilizing data sources from the World Bank. The data will be processed with econometric models. From the study’s findings, it may be inferred that overall consumption affects inflation, which can be seen from the Granger causality test that shows that this variable has a one-way causal relationship. The results of the same test also show that FDI has an effect on total consumption and conversely consumption has an effect on FDI. However, the poverty variable does not affect total consumption and vice versa, because according to the causality test, the variable obtains an insignificant probability value. However, the VECM results explain that poverty has an effect on total consumption, and that the effect of consumption on inflation is due to the larger t-statistic value and has a positive relationship. This implies that the rate of inflation will increase the lower the level of consumption. However, the Impulse Reason test shows that poverty has a negative trend, as does the FDI variable. [ABSTRACT FROM AUTHOR]

Over the past three decades, there has been a significant increase in information and communication technology (ICT) investments around the world, resulting in a rise in the use of modern ICT packages. Sub‐Saharan African (SSA) countries, however, face different challenges. This study examines the relationship between ICT diffusion, foreign direct investment (FDI), trade openness, and economic globalization on inclusive growth for 48 SSA countries during 2005–2020. We use the modified generalized method of moments method for estimation. Empirical results reveal that ICT has a positive and significant influence on inclusive growth, while trade and economic globalization have a negative impact. FDI, on the other hand, has a favorable and considerable effect on inclusive growth. Inflation and vulnerable employment have negative impacts on inclusive growth, whereas social protection has a positive impact. From a policy standpoint, it is recommended that policymakers focus on enhancing ICT penetration in the region, particularly integrating ICT into the educational system to improve learning effectiveness and reduce research costs. Additionally, the interaction between economic globalization and ICT diffusion can enhance inclusive growth. Therefore, macroeconomic policies should promote ICT development, implement sound trade agreements, and attract capital inflows for inclusive economic growth. ICT diffusion is deemed both necessary and sufficient for SSA's advancement. [ABSTRACT FROM AUTHOR]

In this article, we apply dynamic panel techniques-specifically, Panel FMOLS, DOLS, and Panel ARDL-to analyze the effects of energy consumption, foreign direct investment, openness to trade, and consumption of renewable energy on economic development in the Commonwealth Independent States from 1992 to 2022. Results from using panel FMOLS, DOLS, and CCR models show that FDI, energy consumption, and renewable energy consumption all contribute favorably to economic development over the long term. However, there is a detrimental connection between the extent of trade openness and economic growth. Outcomes obtained by applying dynamic panel estimating approaches have also been validated by results from Quantile regression using the Method of Moments. In order to stimulate economic development, the empirical evidence suggests that the government should promote and support alternative sources of energy. Further policy consequences are investigated more thoroughly in the paper. [ABSTRACT FROM AUTHOR]

China-US Trade War is an International Trade situation where two of the most powerful economic country increasing their tariff for trading goods to each other. The War itself actually occur for a long time but not as escalated as of 2018 which was started by the US itself and its current President, Donald Trump. Many people concern that this war may affect the world economy development since both of the countries are being the source of trading for many countries. This paper will discuss about how The China-US Trade War can influence Indonesia Economics which will bring either opportunity or problem. Research in this paper discusses about Indonesian Economy ranging from exports, imports, exchange rates and FDI which may be affected by Trade War using Correlation Test as research methods. [ABSTRACT FROM AUTHOR]

This article compares different measures of democracy to determine how they impact breach of contract risk, especially in postcolonial states that are more likely to suffer from neopatrimonialism with their imported state apparatus. By demonstrating how the normative measure of democracy, which emphasises respect for civil liberties, is more impactful in reducing breach of contract risk than the procedural measure that emphasises institutions, this article highlights the nonoptimal consequences of institutionalised democratisation without the normative dimension. The main findings are that while there is significant variation between the normative and procedural measures of democracy, it is increases in the normative measure of democracy that better promote accountability and the rule of law, thereby more effectively reducing breach of contract risk. We conclude that democratic norms must parallel progress in democratic form so to enable better (lower) breach of contract risk. [ABSTRACT FROM AUTHOR]

International tourism and foreign direct investment (FDI) constitute the bedrock of economic vitality, propelling growth and progress in the economies. This study delves into the intricate relationships among international tourism, FDI, and economic growth within the context of Thailand. Nevertheless, a tourism development index is created by pooling distinct components of global tourism to evaluate the aggregate effect on economic growth. Using data from 1991 to 2021 and the ARDL bound testing approach to cointegration, this study indicates that international tourism and FDI have long-term positive impacts on Thailand's economic growth. The sensitivity and stability tests were used to assess the robustness of these results. The study's results promise to influence policy choices and shape industry approaches while enriching discussions on the economic impacts of the factors investigated. [ABSTRACT FROM AUTHOR]

Purpose: This study presents time-series data estimations on the association between the indicators of institutional environment and inward foreign direct investment (FDI) in India utilizing a comprehensive data set from 1996 to 2021. Design/methodology/approach: The study employs the nonlinear autoregressive distributive lag (NARDL) model. The asymmetric ARDL framework evaluates the existence of cointegration among the factors under study and highlights the underlying nonlinear effects that may exist in the long and short run. Findings: The significance of coefficients of negative shock to "control of corruption" and positive shock to "rule of law" is greater when compared to "government effectiveness, regulatory quality, political stability/absence of violence." The empirical outcomes suggest the positive influence of rule of law, political stability and government effectiveness on FDI inflows. A high "regulatory quality" is observed to deter foreign investment. The "voice and accountability" index and negative shocks to the "rule of law" are exhibited to have no substantial impact on the amount of FDI that the country receives. Originality/value: This study empirically examines the institutional determinants of FDI in India for a comprehensive period of 1996–2021. The study's findings imply that quality of the institutional environment has a significant bearing on India's inward FDI. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0375 [ABSTRACT FROM AUTHOR]

This paper empirically investigates whether and how the level of GVC integration of a given market may explain the presence of foreign‐owned firms. Using firm‐level data from 28 European Union countries during the period 2008–2014, we provide evidence that a greater country‐sector‐level GVC participation, via both backward and forward linkages, exerts a positive effect on a firm's likelihood to receive FDI. These findings appear particularly strong for new EU Member States and services industries when looking at the differences across countries and sectors. Interestingly, when exploring the role of country‐sector position along the GVC, we find that FDI gains from backward GVC integration are more prominent if the markets are associated with the final stages of the supply chain, whereas those from forward GVC integration are greater when the markets are associated with the initial stages, in line with the smile curve hypothesis. [ABSTRACT FROM AUTHOR]

In this note we study how the share of workers in a corporation located in a high gender wage gap country impacts the wage gap in their home country operations. Our findings support the hypothesis that firms with strong intra-firm linkages to a high gender wage gap country also display a relatively large gender wage gap at home. [ABSTRACT FROM AUTHOR]

In the pursuit of sustainable economic development, this study investigates the nexus between carbon emissions, renewable energy utilization, trade openness, foreign direct investment and output volatility across selected East Asia–Pacific nations. Employing advanced ARDL bound tests, our results reveal a robust long-term relationship among these selected variables. Notably, our findings underscore the significant impact of carbon emissions on output volatility across all examined nations, except for Malaysia. Moreover, the study highlights the positive impact of renewable energy on output volatility, signaling a compelling imperative for policymakers to prioritize initiatives aimed at curbing carbon emissions and fostering the widespread adoption of renewable energy sources. [ABSTRACT FROM AUTHOR]

In this paper, we examine the effects of logistic infrastructures as determinants of foreign investment in Latin America and the Caribbean from 2008 to 2021. We analyze the data using panel data and a feasible generalized least squares model. Our findings indicate that FDI tends to flow to countries with adequate transport and telecommunications infrastructure, although the availability of an electricity grid suitable for the needs of investors is the most significant factor in Latin America. We also determined that there is a limit beyond which investment in transportation infrastructure does not contribute to attracting foreign investment. Furthermore, our analysis shows that the region attracts FDI due to new market opportunities and lower production costs. We also find that the economic opening in Latin America discourages investment by neighboring investors, highlighting the importance of policies that balance foreign capital attraction with respect to international agreements with neighboring countries.

Purpose – The purpose of this paper is to explore the viability of shifting foreign direct investment (FDI) from China to Central and Eastern European (CEE) countries in light of recent geopolitical and economic challenges. By analyzing case studies, it argues that CEE nations offer a compelling alternative for Western European businesses, with stronger intellectual property protection, political stability and alignment with European Union (EU) sustainability goals. The paper provides insights for firms and policymakers on mitigating risks and enhancing business operations by pivoting toward the CEE region, offering practical recommendations for adapting to shifting global trade dynamics. Design/methodology/approach – The design methodology uses the case study approach to analyze the shift of FDI from China to CEE. This method examines the geopolitical, economic and legal contexts influencing business decisions, using real-world examples of Western European companies that have made this transition. The case studies highlight key factors in decision-making and the benefits of relocating investments to the CEE region. Findings – The study identifies several advantages of the CEE region over China for Western European firms. These include geographic proximity, similarities in business values and purposes, environmental accountability, trustworthiness in business, enforceable noncompetition rules, lower risks of counterfeiting, reduced political and administrative risks, lower risks of intellectual property theft and reduced risks of negative publicity. Practical implications – The findings suggest that Western European firms should consider redirecting their FDI to the CEE region to mitigate risks associated with investing in China. This move could offer long-term benefits despite short-term complications. Originality/value – This paper contributes to the FDI theoretical framework by enhancing the cultural, administrative, geographic and economic (CAGE) distance framework. It provides a unique perspective on the shifting dynamics between Europe and China and highlights the potential of the CEE region as a viable alternative for FDI.

Information, communication, technology (ICT) and foreign direct investment plays a substantial role in various spheres of social and economic development. Therefore, changes in these variables can significantly impact a country’s economy. The current study aims to assess the implication of information and communication technology (ICT) and FDI on South African economic growth. To achieve this objective, the autoregressive distributed lag (ARDL) model and Error Correction Model (ECM) were applied to time series data over the period 1991 to 2021. Findings obtained from econometric modelling and analysis indicate that besides the positive effect of FDI on South African economic growth, all the analysed components of ICT namely mobile phone subscriptions, fixed phones, and internet subscriptions are drivers of economic growth in South Africa. Based on the findings, from the policy perspective, it was suggested that South African economic authorities increase and improve investment in the ICT infrastructure while also attracting more foreign investors. Additionally, to benefit from FDI and ICT’s drivers of economics, policymakers should endorse policies and strategies that enhance economic openness and the ICT’s resource allocation.

Abstract Stimulating sustainable FDI through the connection of financial development and its moderating relationships with environmental quality and regulatory quality emerges as a crucial agenda nowadays. This study investigates into this relationship using quarterly data from 1990Q1 to 2022Q4 for Canada; employing ARDL bound tests, Granger Causality, and FM-OLS econometric models. Foreign direct investment is the dependent variable of this study. The findings confirm significant long-run relationships among financial development, stock market development, and the moderating effects of environmental and regulatory quality on FDI inflows in the Canadian economy. Conversely, in the short run, financial development, stock market development, and economic growth exhibit bidirectional causal links with FDI, while environmental quality, regulatory quality, and trade openness demonstrate unidirectional causal links with FDI. The error correction mechanism indicates that all variables quickly return to equilibrium except trade openness. Robustness checks further confirm that all the variables have fully modified co-integrating relationship with FDI inflows including the moderating effects of environmental and regulatory quality which is the innovation in the FDI-Growth existing literature. Thus, policymakers are urged to prioritize environmental quality and regulatory quality, alongside other significant explanatory variables identified in this study to promote sustainable FDI inflows.

Abstract Bell’s palsy can reduce facial function and quality of life. Pregnancy may also be physically and psychologically challenging. This study investigates depression among pregnant and puerperal women with and without Bell’s palsy and if degree of facial palsy and depression was correlated. Thirty-one women with pregnancy-associated Bell’s and 31 women without Bell’s palsy were prospectively included and followed one year at two University Hospitals, Stockholm. Depression was assessed with Edinburgh Postnatal Depression Scale (EPDS). In women with Bell’s palsy, Facial Disability Index (FDI), Facial Clinimetric Evaluation (FaCE) scale, and Sunnybrook Facial Grading System (SFGS) were collected. The association between Bell’s palsy and EPDS ≥ 11 was assessed by logistic regression, and between EPDS and FDI, FaCE, and SFGS, respectively, by Spearman rank correlation. Median EDPS did not differ between groups (7.0 vs. 6.0, p = 0.74, one month, 6.5 vs. 6.0, p = 0.87, 12 months). EPDS at one month was correlated to FDI (p = 0.002) and FaCE (p = 0.004) and at 12 months to FDI (p = 0.009) but not to FaCE (p = 0.08). No correlation was found between EPDS and SFGS. In summary, no association appeared between pregnancy-associated Bell’s palsy and depression. Patient-reported function correlated well with depression in pregnancy-associated Bell’s palsy, while physician-reported facial function did not.

This paper focuses on asymmetric tax treaties and investigates from an empirical perspective the impact of OECD member states' double tax relief method and of treaty tax-sparing provisions on investments in developing countries, while considering network effects. Our results suggest that having a treaty between the OECD member state and the developing country, which improves the investor's conditions in terms of tax burden, by changing the unilateral tax relief method, increases FDI to the developing country. The positive effect prevails when investigated within investments made through the direct route from residence to source. Results suggest that OECD member states offer tax-sparing provisions mostly to less-developed economies, which already receive very low FDI. Finally, we extend the investigation to an analysis of the impact of residence countries' tax relief methods on source countries' domestic tax policy. Our results suggest that developing countries set higher CIT rates when the OECD member state relieves double taxation through the exemption method, as compared to when it offers a foreign tax credit. [ABSTRACT FROM AUTHOR]

The collective GDP of the G20 nations constitutes over 80% of the global GDP, making them pivotal recipients of significant economic investments in various forms including foreign direct investments. This study delves into the dynamic interplay of ICT development and foreign direct investment (FDI) and GDP nexus among the G20 economies. A comprehensive index is constructed using PCA to gauge ICT development across economies. The study further examines the relationships among FDI, ICT development, and GDP using panel data spanning from 2000 to 2019. The study finds that in the absence of interaction, FDI alone does not exhibit a statistically significant impact on GDP. However, considering the interaction between FDI and ICT, a nuanced pattern emerges. The study discerns that the influence of FDI on GDP is contingent upon the maturity of a country's ICT sector. This suggests the need for policymakers to adopt a more focused approach, tailoring strategies to leverage the interdependence of FDI and ICT for optimal economic growth.

This study provides a comparative analysis of the economic growth paths of Ukraine and Poland from a growth‑model perspective and determines how to calibrate Ukraine’s growth model to converge with Poland’s booming economy. The methodology comprises an approach to operationalizing growth models for GDP growth decomposition into “import‑adjusted” demand components, drawing on national input‑output data from 2000 to 2019. I found that from 2000 to 2003, both European economies relied on a combination of exports and domestic consumption. Expanded trade integration and an FDI boost after Poland joined the EU in 2004 spurred the Polish growth model’s shift to a distinctively export‑led, FDI‑driven strategy with accelerated GDP growth rates. In Ukraine, in the wake of the great financial crisis, I identified a transition to a consumption‑led growth model that, along with a declining investment component of aggregate demand, led to fading growth rates. An analysis of sectoral contributions to GDP growth revealed that avoiding deindustrialization in Poland underpinned the country’s export‑led strategy, unlike Ukraine, which underwent a key sectoral shift from manufacturing to a commodities‑based orientation after 2008. Both these economies demonstrated a high level of integration into global value chains, focusing on labor‑intensive manufacturing and services, but Poland has outperformed Ukraine in terms of share of high value‑added exports, which increased after EU accession. Following the Polish pattern, I propose that Ukraine’s growth model should activate the FDI driver of economic growth, upgrading the export structure and moving up value chains to unlock the country’s growth opportunities. The study represents the first comparison of Ukraine’s and Poland’s economic growth paths that traces the changes in dominant final demand components and macro‑sectors in the two countries’ economic growth profiles. This paper contributes to the comparative political economy literature on the growth models of peripheral economies, providing insights that can inform policies for growth model transformation.

Abstract The Sustainable Development Goals (SDGs) advocate for advancing green growth, a concept that balances economic prosperity with environmental protection. At the core of this vision are principles of sustainable consumption, production, and energy usage, all aimed at mitigating climate change and safeguarding ecosystems. This study investigates how technological innovation influences the relationship between Foreign Direct Investment (FDI) and green growth in OECD member countries. Specifically, we examine two facets of green growth: production-based CO2 productivity and demand-based CO2 productivity. We employ empirical analyses using the EKC and STIRPAT framework, which includes Ordinary Least Squares (OLS), smoothed instrumental-variables quantile regression (SIVQR), and System GMM methodologies, to uncover significant insights. Our analysis reveals that FDI impedes green growth, while technological innovation is pivotal in enhancing it. This pattern holds steady across various time frames and renewable energy sources. Furthermore, our findings indicate that combining FDI and technological advancement leads to heightened production-based CO2 productivity but diminished demand-based CO2 productivity. We also identify the presence of an environmental Kuznets curve for production-based CO2 productivity. Adding to significant scientific value by demonstrating how technological innovation moderates FDI's impact on green growth in OECD countries, we advocate for fostering collaborative partnerships between foreign investors and local innovators to leverage global expertise while advancing green objectives. Additionally, policy interventions should focus on stimulating demand for eco-friendly products and services to bolster demand-based CO2 productivity.

Abstract China ranks 160 out of 180 countries in terms of ecological efficiency, with an EPI score of 28.40 and a 10-year average change in score of 11.40. This article examines the impact of green finance and China’s natural resources on regional ecological efficiency using the Tobit regression model. The study uses the average yearly exchange rate to normalize dollar-related values and GDP to 2012 RMB using the price deflator. Variables used as explanatory tools include green financing, the availability of natural resources, and regional eco-efficiency. The results of the study imply that natural resources in eastern region of China are better managed as and have avoided the resource curse as compared to central and western regions. Resources temporarily support area economic and social growth. However, resource agglomeration locks many elements in the resource industry and degrades regional industrial development, generating environmental and social difficulties that may hinder regional economic progress. Given that Foreign Direct Investment (FDI) increases regional eco-efficiency after accounting for adjustment. The FDI positively correlated with ecological efficiency in the east zone, while central and western zones have negative correlations. The industrial development of the nation negatively impacts ecological efficiency in the East, Midwest, and West regions. Western results are distinctive, with ecological efficiency and regional economic growth frequently going hand in hand.

The aim of the article is to analyse the impact of foreign direct investments on GDP growth and the link between the COVID-19 pandemic and the economic growth of Central and Eastern European countries. The study has shown us that there is a positive impact between foreign direct investment inflows and GDP growth, and that variables such as exports, labour productivity and unemployment rate also positively influence the development of the countries under analysis. We used a panel regression model with fixed effects, which showed us the correlation between FDI inflows and GDP growth, from which we can see that the decreases in FDI caused by the pandemic, led to a decrease in the GDP growth rate and thus in the economic development of the Central and Eastern European countries.

Foreign Direct Investment (FDI) is one of the forms of international investment that has significantly contributed to the prosperity of the host country. However, with the growth of the economy, investment disputes have been on the rise, involving both investors and the host government. While Undang-Undang Nomor 25 Tahun 2007 provides sufficient legal safeguards to address potential conflicts between investors and the government, host countries often find it necessary to enter into specific agreements. Undang-undang Nomor 5 Tahun 1968, which ratified the ICSID (International Centre for Settlement of Investment Disputes) Convention, as a means to protect foreign investors from conflicts with the Indonesian government. This convention serves as a mechanism for dispute resolution and as an international policy instrument to promote economic development. The objective of this research is to elucidate the role and benefits of ICSID arbitration in resolving investment disputes in developing countries and to explain the mechanisms and procedures applied in resolving such disputes. This paper is the result of normative legal research, which examines legal rules relevant to the subject matter. ICSID aims to balance the interests of host states and foreign investors, offering an efficient mechanism for settling legal disputes in the field of foreign direct investment. The ICSID agreement essentially establishes the authority of ICSID to resolve disputes based on the written agreements of the parties involved.

The Human Development Index is a useful measure of a country’s overall prosperity and standard of living (HDI). The Human Development Index (HDI) provides data on the social and economic progress of a nation by accounting for variables such as life expectancy, education attainment, and per capita income. This research delves into the intricate correlation of a nation’s historical background, policy framework, and advancements on the Human Development Index. The remarkable journey of South Africa, from apartheid to inclusive growth, is an important example. The study uses an average yearly growth rate to examine how changes in political ideologies, ongoing development initiatives, and historical contexts of inequality have shaped South Africa’s HDI trajectory. By examining crucial turning points and policy influences, the study aims to reveal the complex relationship of factors affecting human development results. Despite improvement, challenges like unemployment and poverty continue. The study stresses the relevance of understanding historical context and policy changes in shaping HDI outcomes. Ultimately, the study emphasises the need of maintaining a long-term commitment to effective and inclusive human development policies. Understanding the complex relationship of factors influencing South Africa’s HDI will help policymakers make better informed decisions that will lead to a more prosperous and fair society for all South Africans.

The tourism sector is one of the fastest-growing services sub-sectors worldwide and promises to unlock job opportunities and improve social inclusion outcomes in developing countries. We focused on the Southern African Development Community (SADC) region, which houses developing countries with high income inequality and constitutes attractive tourist centres in sub-Saharan Africa. We employed both the disaggregated and composite indicators of tourism development to investigate the tourism-income inequality nexus in the SADC region from 2010 to 2019. Utilizing the panel quantile regression approach, our overall results suggest that tourism development is inequality-worsening, and this is robust to both the composite tourism index and the individual tourism indicators (except in a few instances). While we established that net FDI inflows improve the inequality outcomes in the region, less corruption worsens inequality (except in a few cases). Accordingly, we offer relevant policy options for the governments of the SADC region. [ABSTRACT FROM AUTHOR]

The Sustainable Development Goals (SDGs) advocate for advancing green growth, a concept that balances economic prosperity with environmental protection. At the core of this vision are principles of sustainable consumption, production, and energy usage, all aimed at mitigating climate change and safeguarding ecosystems. This study investigates how technological innovation influences the relationship between Foreign Direct Investment (FDI) and green growth in OECD member countries. Specifically, we examine two facets of green growth: production-based CO2 productivity and demand-based CO2 productivity. We employ empirical analyses using the EKC and STIRPAT framework, which includes Ordinary Least Squares (OLS), smoothed instrumental-variables quantile regression (SIVQR), and System GMM methodologies, to uncover significant insights. Our analysis reveals that FDI impedes green growth, while technological innovation is pivotal in enhancing it. This pattern holds steady across various time frames and renewable energy sources. Furthermore, our findings indicate that combining FDI and technological advancement leads to heightened production-based CO2 productivity but diminished demand-based CO2 productivity. We also identify the presence of an environmental Kuznets curve for production-based CO2 productivity. Adding to significant scientific value by demonstrating how technological innovation moderates FDI's impact on green growth in OECD countries, we advocate for fostering collaborative partnerships between foreign investors and local innovators to leverage global expertise while advancing green objectives. Additionally, policy interventions should focus on stimulating demand for eco-friendly products and services to bolster demand-based CO2 productivity. [ABSTRACT FROM AUTHOR]

This paper proposes a new principal component analysis (PCA) scheme to perform fault detection and identification (FDI) for systems affected by process faults. In this scheme, a new modeling method which maximizes the model sensitivity to a certain process fault type is proposed. This method uses normal operating or known faulty data to build the PCA model and other faulty data to fix its structure. A new structuration method is proposed to identify the process fault. This method computes the common angles between the residual subspaces of the different modes. It generates a reduced set of detection indices that are sensitive to certain process faults and insensitive to others. The proposed FDI scheme is successfully applied to the Tenessee Eastman process (TEP) supposedly affected by several process faults. [ABSTRACT FROM AUTHOR]

The Human Development Index is a useful measure of a country's overall prosperity and standard of living (HDI). The Human Development Index (HDI) provides data on the social and economic progress of a nation by accounting for variables such as life expectancy, education attainment, and per capita income. This research delves into the intricate correlation of a nation's historical background, policy framework, and advancements on the Human Development Index. The remarkable journey of South Africa, from apartheid to inclusive growth, is an important example. The study uses an average yearly growth rate to examine how changes in political ideologies, ongoing development initiatives, and historical contexts of inequality have shaped South Africa's HDI trajectory. By examining crucial turning points and policy influences, the study aims to reveal the complex relationship of factors affecting human development results. Despite improvement, challenges like unemployment and poverty continue. The study stresses the relevance of understanding historical context and policy changes in shaping HDI outcomes. Ultimately, the study emphasises the need of maintaining a long-term commitment to effective and inclusive human development policies. Understanding the complex relationship of factors influencing South Africa's HDI will help policymakers make better informed decisions that will lead to a more prosperous and fair society for all South Africans. [ABSTRACT FROM AUTHOR]

• Nexus between the positioning of economies along Global Value Chains (GVCs) and within-country income inequality for 101 countries in 2003–2015. • Distinguish product-level from "functional" positioning of economies, the latter defined by the value-adding activities performed along GVCs. • A more upstream product-level positioning is associated with higher (lower) inequality in low- and middle- (high-) income countries. • Greater involvement of economies in pre- and post-production functions is associated with lower income disparities. • Results on the distributional effects of functional positioning are driven by low- and middle-income countries. This work addresses the nexus between Global Value Chains (GVCs) and within-country inequality by distinguishing two key dimensions: the "product-level positioning" of economies, i.e. their involvement in more upstream or downstream industries, and their "functional positioning", defined by the value-adding activities performed along GVCs. Using trade and FDI data on 101 countries in 2003–2015, we show that a more upstream product-level positioning is associated with higher inequality in low- and middle-income countries. This is consistent with these countries' greater involvement in industries supplying raw materials and energy inputs, characterised by a remarkable income polarisation. Conversely, a more downstream product-level positioning goes together with greater inequality in high-income countries, reflecting downward pressures on labour income due to massive outsourcing of inputs to foreign suppliers. As for functional positioning, we find that a greater involvement of economies in pre- and post-production stages is associated with lower income disparities, while a larger engagement in production operations goes together with higher inequality. This result is driven by low- and middle-income countries, suggesting that a greater involvement in knowledge-intensive GVC activities fosters technological upgrading in these economies, with beneficial effects also on the lower segments of the labour force. [ABSTRACT FROM AUTHOR]

With the widening saving-investment gap and the limited domestic financial resources to drive development imperatives in Sub-Saharan Africa (SSA), foreign direct investment (FDI) is considered a viable and sustainably promising option for boosting employment generation and closing gender gaps in employment. This paper provides critical insights into the gender and age-based employment effect of FDI in SSA and the role of institutional quality in shaping the relationship. The two-step generalized method of moments modelling framework was adopted to analyse relevant data of 29 SSA countries over the 2000-2021 period. The results revealed that FDI has a significant employment-enhancing effect irrespective of gender and age considerations. We also find that institutional quality amplifies this effect. Efforts should, therefore, be concentrated on improving institutional quality, the success of which will appeal to foreign investors and attract more foreign investments. [ABSTRACT FROM AUTHOR]