...THE EMPIRICAL ANALYSIS OF IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA BY OKUNLOLA TUNDE S. MATRIC NO: 139191 September 2011 Being research work submitted to Department of Economics, Faculty of Social Sciences, University of Ibadan, in partial fulfillment of the requirement for the award of Bachelor of Science (B.Sc) in Economics CERCTIFICATION I hereby certify that this work was carried out by OKUNLOLA TUNDE S. of Matric No 139191 in the Department of Economics, Faculty of Social Sciences, University of Ibadan. …………………………………. ……………………………… Date Dr. B. Fowowe Supervisor DEDICATION My sole dedication goes to God almighty whose mercy has never ceased in changing me despite all odds, whose boundless love and vast grace is bringing to pass my childhood dreams and fantasies. ACKNOWLEDGMENT My deepest gratitude goes to my parents who always, tirelessly and sacrificially support me, trust me, care for me and love me despite all my short comings and even when it so difficult. May the lord reward you abundantly. And also to my supervisor, Dr. B. Fowowe, I say thank...
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...CHINA’S PROVINCIAL BUREAUCRATIC CORRUPTION ON FDI AND ECONOMIC GROWTH Ziwei Hao z_hao@mit.edu TA: Joaquin MIT Department of Economics, 14.05 Spring 2012 Word count: 5000 I. INTRODUCTION China’s economic achievement over the past three decades has been one of the most outstanding of our time. Since its “reform and opening-up policy” in 1978, foreign direct investment (FDI) has contributed a great deal to China’s economic growth by injecting capital into the economy, creating jobs, transferring technology and knowledge, enhancing trade, bringing in competition for local enterprises, improving the quality of local labor and intermediate goods suppliers, and connecting China’s gradually opening economy to the global market (Berthélemy and Démurger, 145). By the opening up of the country to FDI, China’s economic growth has averaged approximately 9% annually over the last 25 years (China Statistical Yearbook). With the introduction of FDI came a wave of corruption and bad governance, which may have hindered FDI’s effect on China’s economic growth. The reform in the market encouraged private institutions to compete for market share and resources. In order to rise to the top, these private intuitions required the help people in power who are not under heavy scrutiny. Local government officials were the perfect targets. With foreign capital in their hands, private intuitions sought out local government officials for help in exchange for bribery. These “favors”...
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...effects of foreign direct investment (FDI) on the economic growth of China. Such growth was achieved through China taking in tremendous amounts in FDI, increasing its productivity, especially in the export manufacturing sector of the economy. This paper provides mounting evidence that China’s growth has been largely fuelled by FDI through capital formation, export promotion, technological and skill transfer, increased tax revenues. Similarly, the creation of a larger middle class, encouragement of economic reforms and increased infrastructure spending has fueled the inflow of FDI into China further increasing the growth of China’s economic growth. FDI plays an extraordinary and growing role in global business. Tuan, C., & Ng, L.F-Y. (2007) pointed that FDI has fuelled economic growth in China by attracting capital investments and creation of employment; increasing manufacturing exports; bringing skilled labor and international brand names and transferring knowledge and technology to local economy. FDI has improved developments in infrastructure and expanded domestic market through job creation. The fixed capital investment in economic growth has been considered one of the basic principles in economic. FDI is of special interest for its supposed positive effects on growth (Qi, 2007). In 1980, the ratio of FDI inflow to China’s Gross Domestic Investment was negligible. It had increased to 7% by 1992, and up again to 36% by 2004 (Rising FDI into China: The Facts Behind the Numbers...
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...The issue of FDI, inclusive growth, and institutions which have been investigated in this dissertation is highly relevant for Indonesia because of three reasons. The first is: Indonesia faces high income inequality while it has high economic growth. This evidence indicates that Indonesia’s economy is not inclusive which means that many people are still excluded from economic activity. The second is: Indonesia still relies upon foreign investment to support the economy. Central government who is responsible for managing FDI provides policies to attract more FDI. However, some evidence in some part of Indonesia regions showed that high FDI did not ensure prosperity of those regions. The evidences also demonstrate that expected positive impacts...
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...together determine a certain ability of an individual to work: namely, skills, experiences and knowledge. Human capital can be developed through continuing education and attention to the health of an individual. The inclusion of human capital in the economic analysis is an important step. It is generally theorized that accumulation of human capital is a key driver of economic growth. According to economists, dissemination of knowledge to general population allows increasing returns and generates positive externalities. Therefore, it is a central concept of development economics that investment in human capital should be the foremost priority of developing countries. Foreign direct investment refers to international movement of capital across national boundaries. This may take the shape of creation of a subsidiary abroad or to exercise control on the management of a company in another country. The effects of FDI are generally considered to be highly positive on the growth of host country since it leads to transfer of technology and generation of employment in host countries. FDI has experienced strong growth since the mid-1980s and also contribute significantly to economic globalization. Foreign direct investment is also presumed to have positive outcomes for workers in the form of higher wages (Eicher &...
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...:ﺗﺌﻮری ﺣﺴﺎﺑﺪاری :)درﺟﮫ اول اھﻤﯿﺖ (ﻣﻨﺎﺑﻊ اﺻﻠﯽ ﺗﺌﻮری ﺣﺴﺎﺑﺪاری (ﺟﻠﺪ اول)، دﮐﺘﺮ ﺳﺎﺳﺎن ﻣﮭﺮاﻧﯽ، دﮐﺘﺮ ﮐﺮﻣﯽ، ﺳﯿﺪ ﻣﺼﻄﻔﯽ ﺳﯿﺪ ﺣﺴﯿﻨﯽ، اﻧﺘﺸﺎرات ﻧﮕﺎه داﻧﺶ (ﺟﻠﺪ دوم ھﻨﻮز ﻣﻨﺘﺸﺮ ﻧﺸﺪه .1 )اﺳﺖ )ﻧﻈﺮﯾﮫ ھﺎی ﺣﺴﺎﺑﺪاری ( ﺟﻠﺪ اول )، دﮐﺘﺮ ﺛﻘﻔﯽ ، اﻧﺘﺸﺎرات ﺗﺮﻣﮫ ( ﺟﻠﺪ دوم ھﻨﻮز ﻣﻨﺘﺸﺮ ﻧﺸﺪه اﺳﺖ .2 ﺗﺌﻮری ﺣﺴﺎﺑﺪاری، اﺳﮑﺎت، ﺗﺮﺟﻤﮫ دﮐﺘﺮ ﭘﺎرﺳﺎﯾﯿﺎن، اﻧﺘﺸﺎرات ﺗﺮﻣﮫ ﻓﺼﻮل ۱، ۲، ۳، ۴، ۵، ۶، ۸ ، ۹ .3 )ﻧﺸﺮﯾﮫ ۳۱۱ ﺳﺎزﻣﺎن ﺣﺴﺎﺑﺮﺳﯽ (ﻣﻔﺎھﯿﻢ ﻧﻈﺮی ﮔﺰارﺷﮕﺮی ﻣﺎﻟﯽ .4 ﺗﺌﻮری ﺣﺴﺎﺑﺪاری، واﺗﺲ و زﯾﻤﺮﻣﻦ، دﮐﺘﺮ ﭘﺎرﺳﺎﺋﯿﺎن، ﻓﺼﻮل ۴ و ۵ و ۷ .5 :درﺟﮫ دوم اھﻤﯿﺖ ﺗﺌﻮری ﺣﺴﺎﺑﺪاری، ھﻨﺪرﯾﮑﺴﻦ (ﺟﻠﺪ اول و دوم)، دﮐﺘﺮ ﻋﻠﯽ ﭘﺎرﺳﺎﯾﯿﺎن، اﻧﺘﺸﺎرات ﺗﺮﻣﮫ ﻓﺼﻮل ۲۱، ۲۲ و ۳۲ .1 ﺗﺌﻮری ﺣﺴﺎﺑﺪاری، ﺑﻠﮑﻮﯾﯽ ، ﺗﺮﺟﻤﮫ دﮐﺘﺮ ﭘﺎرﺳﺎﯾﯿﺎن، اﻧﺘﺸﺎرات ﺗﺮﻣﮫ. ﻓﺼﻮل ۹ ، ۰۱، ۲۱ و ۴۱ .2 Munich Personal RePEc Archiveدﮐﺘﺮ ﮐﺮﻣﯽ و ﮐﺎﻣﺮان ﺗﺎﺟﯿﮏ، اﻧﺘﺸﺎرات ﻧﮕﺎه داﻧﺶ، ﻓﺼﻮل ۲ ، ۴ ، ۷ .3 ﺗﺌﻮری ﺣﺴﺎﺑﺪاری، وﻟﮏ ، ﺗﺮﺟﻤﮫ :درﺟﮫ ﺳﻮم اھﻤﯿﺖ ﺗﺌﻮری ﺣﺴﺎﺑﺪاری، ھﻨﺪرﯾﮑﺴﻦ (ﺟﻠﺪ اول)، دﮐﺘﺮ ﻋﻠﯽ ﭘﺎرﺳﺎﯾﯿﺎن، اﻧﺘﺸﺎرات ﺗﺮﻣﮫ ﻓﺼﻮل ۴، ۶، ۸، ۹ ، ۰۱ .1 ﺗﺌﻮری ﺣﺴﺎﺑﺪاری، ﺑﻠﮑﻮﯾﯽ ، ﺗﺮﺟﻤﮫ دﮐﺘﺮ ﭘﺎرﺳﺎﯾﯿﺎن، ﻓﺼﻮل ۵، ۶ و ۱۱ .2 ﺗﺌﻮری ﺣﺴﺎﺑﺪاری، اﺳﮑﺎت، ﺗﺮﺟﻤﮫ دﮐﺘﺮ ﭘﺎرﺳﺎﯾﯿﺎن، ﻓﺼﻮل ۰۱ و ۱۱ .3 :ﺣﺴﺎﺑﺪاری ﻣﺪﯾﺮﯾﺖ :)درﺟﮫ اول اھﻤﯿﺖ (ﻣﻨﺒﻊ اﺻﻠﯽ ﺣﺴﺎﺑﺪاری ﻣﺪﯾﺮﯾﺖ، دﮐﺘﺮ ﺳﺎﺳﺎن ﻣﮭﺮاﻧﯽ، دﮐﺘﺮ ﮐﺮﻣﯽ، ﻣﺤﻤﺪ ﻋﺒﺪزاده و اﻣﯿﺪ ﻓﺮﺟﯽ، اﻧﺘﺸﺎرات ﻧﮕﺎه داﻧﺶ .1 :درﺟﮫ دوم اھﻤﯿﺖ ﺣﺴﺎﺑﺪاری ﻣﺪﯾﺮﯾﺖ، دﮐﺘﺮ ﻧﯿﮑﺒﺨﺖ و زھﺮا دﯾﺎﻧﺘﯽ دﯾﻠﻤﯽ، ﻧﺸﺮ ﻣﮭﺮﺑﺎن ( ﻓﺼﻮل ھﺰﯾﻨﮫ ﯾﺎﺑﯽ ﮐﯿﻔﯿﺖ، ھﺰﯾﻨﮫ ﯾﺎﺑﯽ ھﺪف، ﺳﯿﺴﺘﻢ اﻗﺪام ﺑﮫ ھﻨﮕﺎم .1 ).ﺧﻮاﻧﺪه ﺷﻮد ﺣﺴﺎﺑﺪاری ﺻﻨﻌﺘﯽ ( ﺟﻠﺪ دوم)، ھﻮرن ﮔﺮن و ھﻤﮑﺎران، ﺗﺮﺟﻤﮫ دﮐﺘﺮ ﭘﺎرﺳﺎﯾﯿﺎن و ﻣﻮﺳﯽ ﺑﺰرگ اﺻﻞ (ﻓﺼﻮل ﺑﻮدﺟﮫ ﺟﺎﻣﻊ، ﺑﻮدﺟﮫ اﻧﻌﻄﺎف .2 )ﭘﺬﯾﺮ...
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...FDI IN ASEAN AND SAARC: A COMPARISON OF THE TWO MAJOR TRADING BLOCKS Foreign direct investment Foreign direct investment is a foreign investment that establishes a lasting interest in or effective management control over an enterprise. Foreign direct investment can include buying shares of an enterprise in another country, reinvesting earnings of a foreign- owned enterprise in the country where it is located, and parent firms extending loans to their foreign affiliates. International monetary fund (IMF) guidelines consider an investment to be a foreign direct investment if it accounts for at least 10 percent of the foreign firm's voting stock of shares. However, many countries set a higher threshold because 10 percent is often not enough to establish effective management control of a company or demonstrate an investor's lasting interest. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies. FDI is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. FDI usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward and outward, resulting in a net FDI inflow (positive or negative) and "stock...
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...Economic Modelling 28 (2011) 1348–1353 Contents lists available at ScienceDirect Economic Modelling j o u r n a l h o m e p a g e : w w w. e l s ev i e r. c o m / l o c a t e / e c m o d Foreign direct investment and China's regional income inequality☆ Kang Yu a, Xian Xin b,c, Ping Guo a, Xiaoyun Liu d,⁎ a School of Economics and Management, Zhejiang Forestry University, Zhejiang, 311300, PR China Center for Rural Development Policy, China Agricultural University, Beijing, 100083, PR China c College of Economics and Management, China Agricultural University, Beijing, 100083, PR China d College of Humanities and Development Studies, China Agricultural University, Beijing, 100083, PR China b a r t i c l e i n f o a b s t r a c t China's widening regional income inequality coupled with its pronounced regional disparity in foreign direct investment stock since 1990 has claimed the attention of many scholars. While some researchers confirm regional disparity in China's foreign direct investment, others attribute the widening regional income inequality to this regional disparity. This paper thus assesses the impacts of China's stock of foreign direct investment on its regional income inequality using simultaneous equation model and the Shapley value regression-based decomposition approach. Our results suggest that China's stock of foreign direct investment has accounted for merely 2% of its regional income inequality. Furthermore, the contribution ratio of per...
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...Facts About and Impacts of FDI on China and the World Economy Yuqing Xing China: An International Journal, Volume 8, Number 2, September 2010, pp. 309-327 (Article) Published by NUS Press Pte Ltd DOI: 10.1353/chn.2010.0002 For additional information about this article http://muse.jhu.edu/journals/chn/summary/v008/8.2.xing.html Access Provided by Hamline University at 06/25/12 7:34PM GMT Facts About and Impacts of FDI on China and the World Economy Yuqing XING This paper provides a comprehensive review of foreign direct investment in China over the last three decades. It reviews the growth, sources and distribution of FDI in China and analyses factors determining FDI inflows. It summarises the contributions of FDI to the Chinese economy in terms of economic growth, total factor productivity, exports and technology progress. Finally, the paper discusses potential impacts of FDI in China on the rest of the world in terms of FDI-competing countries and FDI source countries. (FDI) among all developing countries, China received a cumulative total of USD854 billion in FDI from 1979 to 2008 and benefitted tremendously from both tangible and intangible assets associated with FDI inflows. In fact, in the modern history of economic development, no other country has ever benefitted, and continues to benefit, from FDI as much as China. There is a consensus among academic scholars specialising in the Chinese economy that, over the last three decades, FDI has been a critical engine...
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...Chapter 1: Introduction Introduction Over a decade, the consensus of economics growth remains the key focus for every nation notably in least development countries (LDC). Poverty eradication, income distribution and welfare enhancement often discussed widely by these nations. Economic growth is often seen as the 'holy grail' of economic policy. This simplistic emphasis on economic growth is often criticized because of the limitations of economic growth in improving living standards. Another question arise is does economic growth promote sustainable improvement on country development? Malaysia economy has been transformed from a protected low income supplier of raw materials to a middle income emerging multi-sector market economy in the past 20 years. This is driven by the export of manufacturing goods, particularly electronics and semiconductors, which constitute about 90% of exports. In this paper, the primary objective is to investigate what is the relationship between openness, inflation and FDI with economic growth. Export and import often plays pivotal role in determine the gross domestic product (GDP) in a nation. In particular, the research question to be outlined is how does openness, inflation and FDI affect economic growth. Multinational corporations (MNCs) are those organizations that own or controls productions of goods or services in one or more countries other than its home country. MNC plays major role in foreign aids recipient countries, it contribution to...
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...business in foreign markets. They ordinarily consist of a parent company located in the home country and at least 5 subsidiaries. These MNCs are company who deals with the globalization. They specialize in production and export those goods that they can produce with the highest relative efficiency and import those good that other nations can produce relatively more efficiently. The emergence and activities of MNCs played an important role and had impacted a huge extent on the concept of globalization. The MNCs create foreign direct investment (FDI), which is defined as a company from one country making a physical investment into building a factory in another country. The FDI are important to a country as it helps to attract the foreigners to invest in their local market which generate cash flow to country. Besides, it boasts the local market and yet increases the GDP of the country. Well, it is said that there are always two sides to a coin. FDI also bring trouble to country where the foreign investors do not have to be completely obedient to the economic policies of the country where they have invested their...
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...MIDDLE EAST TECHNICAL UNIVERSITY THE FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN TURKISH ECONOMY A TERM PAPER SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS OF THE COURSE ECON 466 DEPARTMENT OF ECONOMICS BY VEYSEL ERDEM TORAMAN FALL, 2012 ABSTRACT This paper elaborates on the foreign direct investment and the economic growth in the Turkish economy by surveying literature and constructing empirical analysis. The Turkish economy and its brief history with foreign direct investment is analyzed following and both empirical studies and researches showed that the low and inadequate levels of foreign direct investment in Turkey has no effect on economic growth. 1. INTRODUCTION In simplest economic terms, investment is what makes the economy grow in terms of inputs of production, technology and other instruments causing the production process to occur. An in a globalized worlds of ours, the investment could be foreign or domestic whether the economy is not eligible to support their own, open to trade or highly geopolitical. Foreign investment may bring foreign currency, technology transfer, skilled labor etc. and all of those are crucial for a country to grow in both financial and real terms. In other words, in today’s world, for most of the countries, attracting and getting foreign direct investment is very important. There are economies that have almost 20-25% of their GDP’s as foreign investment. The types of this foreign investment may be direct...
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...Foreign direct investment And Economic Growth in Bangladesh Internship program at Brac Bank Ltd. Internship Report On “Foreign direct investment And Economic Growth in Bangladesh and Internship program at Brac Bank Ltd.” The Internship report is submitted to the Department of Finance, University of Dhaka for the partial fulfillment of the requirement of BBA program. Submitted to: Department of Finance University of Dhaka Supervised by: Mohammad Jahangir Alam Chowdhury Professor Department of Finance University of Dhaka Submitted by: Zarin Tasnim ID: 17-009 Section: A Department of Finance University of Dhaka Signature of the Supervisor Date of Submission: 7th May, 2015 Letter of Transmittal 7th May, 2015 Mohammad Jahangir Alam Chowdhury Professor Department of Finance University of Dhaka Subject: Submission of Internship Report on Foreign direct investment and Economic Growth in Bangladesh. Dear Sir, It is an absolute pleasure for me to submit the Internship Report titled “Foreign direct investment and Economic Growth in Bangladesh” as a significant part of the BBA program. While making this report, I have experienced a fair knowledge about Foreign direct investment and economy of Bangladesh and its impact on the growth of Bangladesh. I have tried my best to follow your guidelines in every aspect of preparing this report. I have collected what I believed...
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...Foreign Direct Assessment: Analyzing the Mobility of FDI Models in Emerging Markets Kyle Himmelwright & Damian Zaccaria, Villanova Business School In this article, the authors will explore foreign direct investment in emerging markets. Applying a two prong investment model, they’ll assess three emerging Southeast Asian marketplaces; Indonesia, Thailand, and Malaysia. Additionally, they’ll explore the impact a variety of explicit and implicit factors have on the outcome. The research will indicate which of the three markets has the most potential for investment. Keywords: Foreign Direct Investment (FDI), emerging markets, investment, economic factors, growth, defense Foreign direct investment (FDI) plays a prominent and growing role in the global marketplace. FDI is defined as an investment made by a company or entity based in another country. The investment provides the firm with an opportunity to access new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing (Goingglobal.com 2015). Accurately assessing marketplace factors is essential when evaluating whether to invest in a foreign market, especially when it comes to making decisions requiring foresight and conviction. “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” Rupert Murdoch’s quote concisely illustrates the current state of the global marketplace; it simply isn't as big as...
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...Application of Endogenous Growth Model to the Economy of Pakistan: A Cointegration Approach Haider Mahmood (Corresponding Author) Research Scholar, National College of Business Administration and Economics, Lahore, Pakistan. E-mail: mic6699@gmail.com Amatul R. Chaudhary Director School of Economics, National College of Business Administration & Economics, Lahore, Pakistan Abstract During the last few decades, governments of developing countries have increasingly viewed foreign direct investment (FDIs) as a catalyst for economic growth. This study investigates the impact of FDI on economic growth of Pakistan by using Endogenous Growth Model. Out of a number of variables affecting economic growth, few have been taken into our model e.g. Foreign Direct Investment (FDI), Domestic Savings, Employed Labour Force, Capital Formation, Human Capital Index and Balance of Trade. The study examines the causality among economic Growth and all variables mentioned above over the period 1972-2005 using Johansen‟s maximum likelihood co-integration test and multivariate Granger causality test developed by Yamamoto and Toda (1995). The results of Granger causality indicated that in the short run, economic growth is caused by FDIs, domestic savings, human capital index, employed labour force and balance of trade. Keywords: Foreign Direct Investment, Economic Growth, Causality, Human Capital Index. 1. Introduction During the recent decades, Foreign Direct Investment (FDI) as a growth-enhancing component...
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