• The Journal of Information Technology
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• v.3 no.4
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• pp.73-88
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• 2000

As the globalization of world market proceeds, the importance of foreign direct investment grows bigger than before A comparative analysis on foreign direct investments among developed and developing countries makes clear that every county has different incentives for foreign direct investments. This implies a country should improve environments on her appropriate field, to induce foreign direct investments, The openness of other capital markets such as bank loans and portfolio investments turns out to have no direct effects on the foreign direct investments.

• East Asian Economic Review
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• v.23 no.2
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• pp.111-147
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• 2019

Singapore's inward and outward investments with industrialized countries in both manufacturing and service sectors were skill seeking while outward investments to developing countries were labor seeking. Applying the Knowledge-Capital model, it was found that services Foreign Direct Investment is sensitive to skill differences. A ten-percent decline in skill differences with industrialized countries resulted in a 4.25 percent rise in inbound manufacturing and 1.48 percent rise in inbound services investments. Meanwhile, a ten-percent increase in skill differences with developing countries resulted in a 30 percent rise in outbound manufacturing and 0.38 percent rise in services investments. Furthermore, when services are distinguished by skill-intensity, the impact of relative skill endowments on inbound Foreign Direct Investment in skill-intensive services is significantly different from the impact on other services. However, when services are disaggregated by "proximity" needs, we do not find any significant difference in the impact of relative skill endowments on Foreign Direct Investment.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.4
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• pp.121-131
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• 2020

This study aims to investigate the interplay between education and local roads on Foreign Direct Investment (FDI) in the Philippines, using economic growth as an instrument. The study used the quantitative research design applying both descriptive and inferential statistics. A combination of Two Stage Least Square Regression Model and three approaches in Panel Regression Model such as Pooled Least Square, Fixed Effect Model, and Random Effect Model were utilized in order to study the effects of education and local roads on foreign direct investment of the Philippines. Based on Fixed Effect regression results, higher education graduates and local road investments, as conditioned by economic growth, were significant factors in order to increase the foreign direct investment in the Philippines. Accordingly, a unit increase in higher education graduates, as conditioned by economic growth, leads to 8.758 unit increases in the foreign direct investment. While, a unit increased in local road investments, as conditioned by economic growth, leads to a 0.002 decrease in foreign direct investment. The regression results of the study suggest that the Foreign Direct Investment in the regions such as CAR, I, II, IV-B, V, VIII, IX, X, XI, XII, XIII, and ARMM are higher compared to Region IV-A.

• The Journal of Industrial Distribution & Business
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• v.14 no.10
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• pp.1-9
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• 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.

• Journal of Distribution Science
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• v.20 no.7
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• pp.23-33
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• 2022

Purpose: Although foreign capital flows have played a vital role in fostering the economic growth in recipient countries, there are some concerns about the adverse impact of international capital flows on the banking stability. Hence, the study revisits this issue to explore the relationship between the different types of foreign investments and banking stability in ASEAN region. Research design, data and methodology: Based on the bank-level data of 96 commercial banks and country-level in six ASEAN countries from 2008 to 2019, we perform the multivariate regression analysis and provide a variety of robustness tests. Results: Our empirical evidence shows the volatility of foreign portfolio investments has significantly negative effect on the banking stability, besides that of foreign other investments has the similar influence but the result is relatively less pronounced in some robustness tests. Additionally, increasing trade cooperation and international distribution may lead countries to face higher risk of banking instability driven from these international investments. Meanwhile, the impact of foreign direct investments is positive, but the evidence is the least obvious. Conclusions: Our findings suggest policy-makers in ASEAN and emerging nations as a whole should carefully consider when building policies-related to mitigate the adverse impact of foreign capital flows.

• Asia Pacific Journal of Business Review
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• v.5 no.1
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• pp.11-19
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• 2020

This study is a review on Risk analysis of foreign direct investments in innovative projects of Uzbekistan. The study will examine SWOT and PESTL analysis as an effective situation analysis tool which plays an important role in the fields of management, marketing, and in any fields of requiring strategic planning. SWOT is an analysis method used to evaluate the 'strengths', 'weaknesses', 'opportunities', 'threats' and PESTL is an analysis tool used for measuring the 'political', 'economical', 'social', 'technological' and 'low' risks involved in a various sphere of economy. In this study, firstly the essence of SWOT and PESTL analysis is explained, secondly the components of SWOT and PESTL analysis is examined. The paper includes risk analysis for further investigation to innovation sector of Uzbekistan economy.

• Asia Pacific Journal of Business Review
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• v.5 no.2
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• pp.19-44
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• 2021

Sub Saharan Africa (SSA) is receiving increased investments in the energy sector under the belt and road initiative (BRI) project since its inception in 2013. SSA has a worse energy efficiency ratio coupled with deficient electricity access, through analysis showed varied impacts on the SSA countries due to the BRI initiative. This study dilves into the influencing factors for Energy Efficiency (EE) in 38 SSA countries, applying the probit and logit approach for 2000-2018. The Multiple-regression model shows significant results of some variables such as foreign direct investment, gross domestic product, and port infrastructure quality being significant on EE under BRI initiative countries. However, the logit and probit models produce similar results and the marginal effect for the entire variable, except energy imports that do not likely impact EE. Furthermore, the interaction of quality of port infrastructure and foreign direct investment variables produces significant results, highlighting the increased investments SSA receives under the BRI initiative in the energy and transport sectors. The model Percent correctly predicted (PCP) value was about 84%, indicating it correctly classified the variables and about 16% not classified. The study recommends EE performance standards should be incorporated on energy projects in SSA to ensure that these projects are energy efficient and decouple SSA's energy demand from economic growth. The research proffers suggestions for policy regarding the BRI initiative in SSA and the implications on sustainable energy and building a community with a shared future.

• Asian Journal of Business Environment
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• v.6 no.1
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• pp.19-24
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• 2016

Purpose - This paper aims to find and analyze factors that determine the flows of bilateral foreign direct investment in intra-ASEAN. It specifically focuses on the dimension of macro-economic, natural resources, human resources, and the quality of governance. Research design, data, and methodology - Data were collected from 64 bilateral relations between ASEAN nations from 2002 to 2013. Panel gravity model was utilized to find factors that determine the flows of bilateral foreign direct investment. Results - Significant factors were identified that determine the flows of bilateral foreign direct investment: GDP home country, GDP host country, real interest rate, distance, and total natural resources rent. Unexpectedly, natural resources have a negative effect. Conclusions - In a situation of increasing the flow of FDI among the countries of ASEAN, the government should control the interest rates and maintain good relations with nearby countries. The negative effect of total natural resource rents implies that ASEAN countries should not depend on their natural resources to attract foreign investments.

• Korea Trade Review
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• v.43 no.2
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• pp.87-105
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• 2018

We investigate the effects of inward foreign direct investment on innovation in Korean industries from 1998 to 2015 by first dividing FDI into greenfield and M&A (mergers and acquisitions). Furthermore, we use the number of patent applications as the proxy of innovation. Our empirical results are as follows: First, inward foreign direct investment has a significantly positive effect on the number of patent applications. This result suggests that the transfer of technology or knowledge through the inward foreign direct investment has a positive impact on innovation in Korean industries. Second, the greenfield investment has a positive impact on patent applications. This result is consistent with Liu and Zou (2008)'s assertion that greenfield investment has a positive impact on innovation by increasing facilities or plants. The M&A investment, however, has no significant effect on patent applications. This result is consistent with Stiebale and Reize (2011) who argue that the host countries do not benefit from technology transfer through M&A investments. In addition, this supports Liu and Zou (2008) and Garcia et al. (2013)'s hypothesis that foreign parent firms do not influence the innovation of host countries by employing strategies to increase market power rather than R&D activities through M&A investments. It is meaningful that this study first analyzes the impact of foreign direct investment on innovation in Korean industries and uses the number of patent applications as a proxy of innovation. Our empirical evidence provides policy implications for innovation and attraction of inward foreign direct investments.

• Journal of Korea Technology Innovation Society
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• v.8 no.3
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• pp.1225-1249
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• 2005

This study aims at investigating whether foreign direct investment plays a role as a channel of international technology diffusion. We used the annual panel data from 1980 to 2002. The nonstationary panel techniques, in particular group mean panel FMOLS(fully modified OLS) was exploited as an empirical methodology in order to tackle the heterogeneity between members and low frequency. The empirical results show that inflow direct investments lead to an increase in total factor productivity and economic growth. Also outflow direct investments contribute to an higher total factor productivity and economic growth. These results confirms that both inflow and outflow direct investments are important channels for international technology diffusion or spillover.