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Open Access
Article
Publication date: 21 May 2024

Dongni Wang and Carmen Fillat-Castejón

The purpose of this paper is to analyse the institutional threshold effects of foreign aid on foreign direct investment (FDI).

Abstract

Purpose

The purpose of this paper is to analyse the institutional threshold effects of foreign aid on foreign direct investment (FDI).

Design/methodology/approach

This paper develops a theoretical model from an extended Solow model that introduces the conductive effect of institutions in an aid recipient country towards the capacity of attracting FDI. This study evidences threshold effects with the most recent panel threshold models that consider endogeneity issues. The data on economic institutions and foreign aid are decomposed into disaggregated level to reveal the detailed threshold pattern. Several sample subsets are used for a heterogeneity analysis.

Findings

Conducting empirical research on a sample of 62 countries during the period 2003–2016, this study finds robust evidence of the existence of an institutional threshold in the aid–FDI nexus which a country must attain to reap the full attraction of FDI by foreign aid providing financial resources. Furthermore, foreign aid tends to promote FDI in institutions characterized by a right-sized government, a strengthened legal system and an appropriate regulatory environment. On the other hand, aid may crowd out FDI. The results are robust to regional combinations and a subset of low and lower-middle-income countries. In addition, this study finds that aid targeted at social infrastructure and services has a positive effect regardless of institutional threshold.

Originality/value

This paper contributes to the literature by introducing a non-linear and discontinuous effect of aid on FDI, i.e. a threshold effect, highlighting the relevance of legal systems and regulations and the possibility of a crowding-out effect on FDI for specific institutional regimes. The thresholds provide a guide for donor countries to ensure aid effectiveness at the risk of being counterproductive and for recipient countries to better assess the institutional dimensions that need to be improved.

Details

Applied Economic Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2632-7627

Keywords

Book part
Publication date: 16 May 2024

Guus Hendriks

China’s foreign aid efforts in Africa remain contentious. Chinese foreign aid tends to be different from “traditional” development assistance in that it frequently involves firms…

Abstract

China’s foreign aid efforts in Africa remain contentious. Chinese foreign aid tends to be different from “traditional” development assistance in that it frequently involves firms as the implementing agents of projects. Firms bring unique resources to public–private partnerships (PPPs) formed with government agencies, but their possible self-interested nature also gives rise to concerns over their development impact. Yet, on a larger scale, little is known about the characteristics of Chinese PPPs in foreign aid. Using project-level data available for 1,308 Chinese aid projects in 50 countries across Africa, the author characterizes the projects undertaken by firms and government agencies in a PPP and contrasts them to those executed by Chinese government agencies without firm involvement. This exploratory data analysis suggests that important differences apply, as Chinese PPPs tend to target different sustainable development goals (SDGs), work on the basis of distinct aid conditions, and implement projects that tend to be larger than those that are solely run by government agencies. Such observations raise important questions of an ethical, theoretical, and international nature, and warrant further research. The author develops a research agenda that aims at issues particularly important for business ethics scholars, organization theorists, and international business scholarship.

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

Keywords

Article
Publication date: 21 September 2023

Biswajit Patra and Narayan Sethi

This paper analyzes the direct effect of financial development and the mediating impact of financial development through foreign direct investment (FDI), foreign aid and trade on…

Abstract

Purpose

This paper analyzes the direct effect of financial development and the mediating impact of financial development through foreign direct investment (FDI), foreign aid and trade on economic growth for all Asian countries.

Design/methodology/approach

A fixed-effect model with Driscoll–Kraay panel corrected estimators was employed to find the direct and mediating impact of financial developments on growth for all 47 Asian economies from 1980 to 2020. The bootstrapped panel-quantile regression (BPQR) model is used to check how this effect varies for different income groups of countries.

Findings

The results demonstrated that financial development positively impacts countries' economic growth. The interaction effect of financial development with FDI, foreign aid and foreign trade negatively impacts economic growth. The BPQR results showed that FDI and foreign aid help in the growth of lower quantile economies; however, the impact is negative for middle- and upper-income countries. Trade impacts growth positively for all the quantiles of economies.

Research limitations/implications

The results suggest that the Asian economies must continue to provide thrust on the financial development of their own countries to achieve better growth. It also implied that the dependence on external finance is good for low-income countries and not advisable for middle- and upper-income countries.

Originality/value

To the best of the authors’ knowledge, the current study is the first to provide empirical evidence on analyzing both the direct and interaction effect of financial development on economic growth by considering all the Asian economies.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2022-0587

Details

International Journal of Social Economics, vol. 51 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Expert briefing
Publication date: 3 May 2024

The Biden administration originally introduced the package in October, and its subsequent convoluted, and often stalled, passage through Congress demonstrates a range of complex…

Details

DOI: 10.1108/OXAN-DB286822

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 21 May 2024

Usman Farooq, Abbas Ali Chandio and Zhenzhong Guan

This study investigates the impact of board funds, banking credit, and economic development on food production in the context of South Asian economies (India, Pakistan…

Abstract

Purpose

This study investigates the impact of board funds, banking credit, and economic development on food production in the context of South Asian economies (India, Pakistan, Bangladesh, Sri Lanka, and Nepal).

Design/methodology/approach

This study used data from the World Development Indicators covering the years 1991–2019. To investigate the relationship between the variables of the study, we employed the panel unit root test, panel cointegration test, cross-sectional dependence test, fully modified least squares (FMOLS), and panel dynamic least squares (DOLS) estimators.

Findings

The empirical results indicate that board funding significantly increase food production; however, banking credit had a negative impact. Furthermore, the findings indicate that economic development, Arable land, fertilizer consumption, and agricultural employment play a leading role in enhancing food production. The results of the Dumitrescu-Hurlin causality test also show substantiated the significance of the causal relationship among all variables.

Practical implications

South Asian countries should prioritize board funding, bank credit, and economic development in their long-term strategies. Ensuring financial access for farmers through micro-credit and public bank initiatives can spur agricultural productivity and economic growth.

Originality/value

This study is the first to combine board funding, banking credit, and economic development to better comprehend their potential impact on food production. Instead of using traditional approaches, this study focuses on these financial and developmental aspects as critical determinants for increasing food production, using evidence from South Asia.

Details

Agricultural Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 24 May 2024

Alice Garner, Mary Leahy, Anthony Forsyth and Renee Burns

This article examines the role the Australian Trade Union Training Authority (TUTA) played in international education through the provision of trade union courses and exchanges…

Abstract

Purpose

This article examines the role the Australian Trade Union Training Authority (TUTA) played in international education through the provision of trade union courses and exchanges. We consider how an investigation of trade union networks contributes to a richer understanding of international education linkages.

Design/methodology/approach

This paper is based on research conducted for an Australian Research Council (ARC)-funded project: Trade union training: reshaping the Australian industrial landscape (ARC LP180100500). This research involved a critical analysis of 60 semi-structured oral history interviews and textual archives, including the official records held by the National Archives of Australia and papers held by the Noel Butlin Archives, the Australian Council of Trade Unions and in private collections.

Findings

TUTA was established primarily as a national union training organisation, but from its inception, it also acted as a hub for the development of regional and international labour networks. The nature of TUTA’s work placed it at the intersection of international trade union and educational domains. Although there were some points of contact with formal international programs (e.g. Japan–Australia and Kellogg Foundations, the Colombo Plan and US Department of Labour exchanges schemes), the specific contribution of TUTA is overlooked in the educational exchange literature. The role of TUTA is revealed through institutional connections and individual experiences.

Research limitations/implications

Further research is required to gain a deeper understanding of the impact of TUTA from the perspective of former participants in international TUTA course and current and former trade unionists in the Asia–Pacific.

Originality/value

This article builds new knowledge by examining the connections forged in the Asia–Pacific region at the intersection of trade union and educational networks, an area often overlooked in the literature on educational exchange.

Article
Publication date: 21 May 2024

Seon-Woo Kim

This experiment examines targeted public diplomacy message effects during a crisis, focusing on effects of whether such messages provide a targeted solidarity call that build a…

Abstract

Purpose

This experiment examines targeted public diplomacy message effects during a crisis, focusing on effects of whether such messages provide a targeted solidarity call that build a sense of common purpose by comparing the other country’s past crises to Ukraine’s current crisis.

Design/methodology/approach

Using an experiment, this study investigates whether such targeting in Zelensky’s speeches increased foreign public policy support for Ukraine, the perceived agenda importance of the war and Ukraine’s legitimacy.

Findings

The results found that a targeted solidarity call in public diplomacy messages during an international crisis helps gain foreign public policy support. However, it does not significantly impact the perceived agenda importance and the country’s legitimacy.

Originality/value

There has been a lack of studies on whether targeted messaging is more effective than nontargeted one in public diplomacy literature. The study’s result implies that the inclusion of a solidarity call in public diplomacy messaging is more effective in achieving its strategic goal of receiving aid. This study, therefore, empirically answers the remaining question about the effectiveness of targeted messaging in public diplomacy and advances. It also advances theoretical connections among solidarity, targeted messaging and public diplomacy.

Details

Journal of Communication Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1363-254X

Keywords

Content available
Book part
Publication date: 16 May 2024

Abstract

Details

Walking the Talk? MNEs Transitioning Towards a Sustainable World
Type: Book
ISBN: 978-1-83549-117-1

Article
Publication date: 16 May 2024

Odette Tougem Tasinda, Tian Ze, Bernard Boamah Bekoe, Sunday Adiyoh Imanche, Brandy Perkwang Taty, Raphael Fomukong Tasinda and Innocent Tayari Mwizerwa

This paper reports on the impact of China's Community of Shared Destiny Policy (CCSDP) on ethnicity, and the development and trade benefits in Africa, whilst proposing suggestions…

Abstract

Purpose

This paper reports on the impact of China's Community of Shared Destiny Policy (CCSDP) on ethnicity, and the development and trade benefits in Africa, whilst proposing suggestions for improvements.

Design/methodology/approach

A mixed-research (desktop-based and online survey-based) approach was employed.

Findings

Trade and foreign direct investment alone can account for 11.8% of changes in the peaceful coexistence of China and some selected African countries, and cause changes to the mutual prosperity of China and African nations, to the tune of 6.3%. Therefore, the activation of mutual prosperity among these nations is not necessarily trade and foreign direct investment. The CCSDP is effective and has increased economic development for ethnic groups (50%), although with some negative concerns.

Research limitations/implications

Inadequate/small sample size for the study.

Originality/value

Chinese investment in Africa has had a transformative impact, driving economic growth, improving infrastructure, and fostering regional integration. The share of trade between China and Africa in the continent's overall external trade has increased dramatically. Overall, the CCSDP should be kept in place, but with some modifications to improve its effectiveness and mitigate its negative effects. Finally, as China's engagement with Africa evolves, it is vital that partnerships are founded on mutual understanding, respect, and benefit, and that policies reflect the different needs and ambitions of African communities.

Details

International Journal of Sociology and Social Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-333X

Keywords

Expert briefing
Publication date: 3 May 2024

Collectively, participants pledged some USD2.2bn in humanitarian assistance for Sudan, against an appeal for USD4.1bn from aid agencies.

Details

DOI: 10.1108/OXAN-DB286833

ISSN: 2633-304X

Keywords

Geographic
Topical
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