• Title/Summary/Keyword: Direct investment

Search Result 616, Processing Time 0.024 seconds

Prisma Statement: The Strategic Advantages and Disadvantages of Foreign Direct Investments (FDI)

  • Phouthakannha NANTHARATH
    • The Journal of Industrial Distribution & Business
    • /
    • v.14 no.10
    • /
    • pp.1-9
    • /
    • 2023
  • Purpose: In an increasingly globalized world, foreign direct investment (FDI) plays an essential role in the economic improvement of countries. This study aims to delve into the topic of overseas direct investment (FDI) and offer a complete analysis of its strategic advantages and disadvantages. By thoroughly examining the present literature, this study aims to discover and explore the diverse advantages and drawbacks. Research design, data and methodology: The information analysis system systematically and rigorously examined the selected studies. The evaluation will follow a thematic technique in which conventional subject matters and styles associated with FDI's strategic benefits and downsides can be recognized and synthesized. Data extraction contained relevant facts from the chosen research, along with the study objectives. Results: This study provides the findings of the, which explores the strategic advantages and disadvantages of foreign direct investments (FDI) primarily based on the evaluation of previous research. A comprehensive review of the identified benefits and drawbacks highlights their implications for businesses engaged in FDI. Conclusions: In sum, the findings offer valuable insights for practitioners, guiding their decision-making methods in the international commercial enterprise landscape. Organizations can function for fulfillment and sustainable development in the global marketplace by leveraging the advantages and effectively managing demanding situations.

Determinants of Foreign Direct Investment of Korean Firms: Types of FDI and Institutional Distance (한국기업의 해외직접투자 결정요인 분석: 투자유형과 제도적 거리)

  • Park, Young-Ryeol;Yang, Young Soo
    • International Area Studies Review
    • /
    • v.15 no.3
    • /
    • pp.429-449
    • /
    • 2011
  • This study investigated the determinants of the foreign direct investment (FDI) by the Korean firms. We focused on types of FDI such as market-seeking, efficiency-seeking, strategic asset-seeking, resource seeking investment and institutional distance including economic distance, political distance and cultural distance which were affecting Korean FDI decision. We tested our hypotheses using Korean FDI data collected between 1980 and 2010. The result showed that Korean FDI to be associated with market-seeking, efficiency-seeking, strategic asset-seeking investment, and institutional distance such as economic distance. We also examined Korean FDI before and after IMF, and the results indicated that before IMF, Korean FDI was associated with market-seeking and strategic asset-seeking investment. However, after IMF, Korean FDI was associated with market-seeking, efficiency-seeking, strategic asset-seeking investment, and institutional distance such as economic distance.

Design of active intelligent decision support system for investment evaluation

  • 조현석;서의호
    • Proceedings of the Korean Operations and Management Science Society Conference
    • /
    • 1996.10a
    • /
    • pp.214-217
    • /
    • 1996
  • Early decision support systems (DSS) were the "passive" decision support systems in the sense that the systems only able to do what the users explicitly direct them to do. But some researchers such as Raghav Rao et al. [51 showed architectures to suggest general idea of the innovative DSS systems which offer active form of decision support, say, "active Intelligent Decision Support Systems(active IDSS)". The system can perform not only what the users want to do but some voluntary (or involuntary) intelligent works. This paper presents the issues in the design of the active IDSS in the domain of investment evaluation, a domain area where few researchers have suggested frameworks or architectures to discriminate good investment from bad one. We propose a new paradigm, by utilizing historical investment results using neural network and Multivariate Discriminant Analysis(MDA), to identify goodness of investment. A new active IDSS architecture which consists of neural network, expert system and three components of the traditional passive DSS is suggested with some scenario based results.nario based results.

  • PDF

A Study on the Optimal Investment Method for Distribution Systems Interconnected with Dispersed Generations (분산전원이 연계된 배전계통의 최적 설비투자 방안에 관한 연구)

  • Rho, Dae-Seok
    • The Transactions of The Korean Institute of Electrical Engineers
    • /
    • v.57 no.12
    • /
    • pp.2179-2185
    • /
    • 2008
  • This paper deals with the optimal investment method for distribution facilities, based on the analytical approach for the reliability assessment in distribution systems interconnected with new dispersed generations. The existing approach can estimate the expected reliability performance of distribution systems by a direct assessment of the configuration of the systems using the reliability indexes such as NDP(Non-Delivery Power) and NDE(Non-Delivery Energy). The indexes can only consider the number and configuration of the load, but can not consider the characteristics of the load which is the one of the most important factor in the investment cost for the distribution systems. Therefore, this paper presents the new performance indexes for the investment of the distribution facilities considering both the expected interruption cost for the load section and the operation characteristics of dispersed generations. The results from a case study show that the proposed methods can be a practical tool for the voltage management in distribution systems including dispersed sources.

Investigating Foreign Direct Investment Attractive Factors of Korean Direct Investment into Vietnam

  • TA, Van Loi;LE, Quoc Hoi;NGUYEN, Thi Lien Huong;PHAN, Thuy Thao;DO, Anh Duc
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.7 no.6
    • /
    • pp.117-125
    • /
    • 2020
  • This paper aims to investigate FDI attractive factors, which are important to formulate policies to attract Korean direct investment into Vietnam. Based on the literature review and the results of interview with 27 Korean investors in Vietnam, we determined the model of variables attracting Korea's FDI into Vietnam. It is used to assess the impact of attractive factors belonging to three groups of variables to support investment decision; they are macroeconomics variables (including market size factor, labor cost factor, and market openness factor), policies variables (including monetary policy factor and tax rate gap factor), and microeconomics variables (geographic advantage factor representative by location). This research also utilized a relatively new quantitative research method based on the Autoregressive Distributed Lag model (ARDL) with the time data chain from 1995 to 2017 of Korean FDI into Vietnam. It analyzes long-term relationships between dependent variables and independent variables. The result of this study indicates that there are three positive factors (low wages, trade openness and government policy) explaining the FDI flows in the long term. The result also shows that incentive tax policy has had a positive impact on Korean FDI, which has satisfied the aim of seeking efficiency of Korean investors.

Foreign Direct Investment and Economic Growth: A Cross-Country Analysis (외국인 직접투자와 경제성장에 대한 다국가 분석)

  • Jeong, Dong-Won;Jeong, Kyong-Ho
    • Journal of the Korea Academia-Industrial cooperation Society
    • /
    • v.18 no.10
    • /
    • pp.588-596
    • /
    • 2017
  • Although many policy makers and scholars argue that foreign direct investment is crucial to the economic growth of developing countries, there is no universal agreement on the positive relationship between foreign direct investment inflows and economic growth. Using a cross-country analysis based on data from 88 countries for the years 1990-2015, this paper empirically explores the impact of FDI on economic growth. To this end, several versions of the neoclassical growth models, explicitly including FDI, are estimated. Subject to the appropriate caveats, the results provide further support for several key conclusions of former studies, including the inference that investment in physical capital, population growth, and human capital are important in accounting for economic growth across countries. The results show that FDI significantly contributes to economic growth in developing countries.

The Role of Investment Attraction in Vietnamese Industrial Parks and Economic Zones in the Process of International Economic Integration

  • Dzung, Nguyen Tien;Tuan, Nguyen Anh;Tinh, Do Phu Tran
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.4 no.3
    • /
    • pp.27-34
    • /
    • 2017
  • This study aims to assess the attraction of foreign direct investment in Vietnamese economic zones (including industrial zones and economic zones). The main research method used are synthesis and comparison analysis based on the data collected from the surveyed group comprising of enterprises operating in the economic zones in the Middle (Chu Lai, Nhon Hoi, Dung Quat) and the Southern (the largest island: Phu Quoc). After conducting surveys, research results show that there is a difference between the assessment and the level to meet the requirements of investors with business environment, expressed through the following criteria: (1) the infrastructure; (2) quality of public services; (3) preferential policies; (4) labor; (5) market; and (6) social services. Based on the assessment of the identified criteria, this paper had suggested six number of recommendations to promote the role of attracting foreign direct investment capital into the economic zones in Vietnam: (1) implementing the "one-stop-shop" policy; (2) continuing to improve the infrastructure of economic zones; (3) prevent and ensure the security of economic zones; (4) implementing vocational training activities to improve quality of human resources; (5) development of supporting industries; (6) raising the quality of capital invested in the economic zone.

The Recent Evidence of Japanese Foreign Direct Investment (FDI): Focusing on Ownership Structure, Entry Mode, and Location Choices (아시아 금융위기 이후 일본의 외국인직접투자 변화: 진입모드, 소유구조, 입지선택에 관하여)

  • Park, Young-Ryeol;Kwak, Jooyoung;No, Jung-Hyun
    • International Area Studies Review
    • /
    • v.15 no.2
    • /
    • pp.3-23
    • /
    • 2011
  • Existing studies have argued that, compared to the 1990s, the Japanese foreign direct investment (FDI) in the 2000s became multi-faceted in terms of investment motivation, ownership structure and entry mode, and diversification strategy. We have conducted a cross-sectional analysis and compared our results with the recent findings. We have found that the Japanese FDI in the mid 2000s became globally focused and regionally diversified. Ownership strategy and entry mode of the Japanese FDI in the Asian countries shows a remarkable shift from joint venture to wholly-owned subsidiary. In contrast, the preference of greenfield investments was observed consistently across regions. It seems that, after the Asian financial crisis, the Japanese firms began to re-optimize global FDI strategy and to regionally differentiate investments.

Korean Fashion Firms' Entry into Foreign Markets: Empirical Analysis of Determinants of their Choice of Foreign Direct Investment Modes (한국 패션기업의 해외시장 진입방식 연구: 해외직접투자 유형의 결정요인 분석을 중심으로)

  • Kim, Hye-Yeong;Ra, Won-Chan
    • Korea Trade Review
    • /
    • v.42 no.1
    • /
    • pp.189-215
    • /
    • 2017
  • This study analyzes the determinants of the choice of foreign direct investment mode by Korean fashion firms in entering into foreign markets. We have established hypotheses regarding their choice among three classical entry modes including a wholly-owned subsidiary, a joint venture and an M&A based on factors such as the investing firm's size, international experience and international strategy type, host market potentials, cultural distance and foreign investment risk. By conducting multiple logistic regression over secondary data on 100 Korean fashion firms, we found that all variables but cultural distance were statistically significant. The results may contribute to advancing international business theory on the fashion industry and developing fashion firms' global strategy.

  • PDF

Foreign Remittances, Banking Sector Development and Private Sector Investment

  • GITHAIGA, Peter Nderitu
    • Asian Journal of Business Environment
    • /
    • v.10 no.1
    • /
    • pp.7-18
    • /
    • 2020
  • Purpose- This study seeks to investigate the impact of foreign remittances on private sector investment and the moderating role of banking sector development in Sub-Saharan African Countries. Research design, data, and methodology-The study has used a sample of 15 Sub-Saharan African countries and data for the years 1986 - 2017. Data was obtained from the World Bank Development Indicator (WDI) Database. Panel data diagnostic tests were conducted to ascertain the suitability of the data for regression analysis. The data was analyzed through descriptive and inferential statistics, while the hypothesis was tested through hierarchical regression analysis. Results- The finding of this study indicates that foreign remittances and banking sector development had a significant and positive effect on private investment in Sub-Saharan Africa. Besides, the banking sector development significantly moderated the foreign remittances and private sector investment relationship. Conclusions- Based on the results, the study concludes that banking sector development has an important influence on foreign remittances and private sector investment nexus. Due to the antagonistic interaction between foreign remittance and banking sector development, the study recommends the use of alternative ways of channeling remittances to private investment such as; issuance of diaspora bonds and appeal for direct investment by citizens living abroad.