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Climate risk greatly increases the risk exposure of global investments. Both the climate risks of home countries and host countries may affect international investment behaviors. The purpose of this paper is to explore the impact of climate risk and climate risk distance on foreign direct investment (FDI) inflows and outflows. Targeted proposals are provided to promote international economic and trade cooperation and the authors provide suggestions for the FDI strategies of multinational enterprises.

The authors define “climate risk distance” as the difference in climate risks between two countries. This paper uses both a theoretical model and a generalized least squares test to investigate the impact of climate risk distance on FDI from the perspectives of FDI inflows and outflows. In addition, the authors subdivide the samples according to the sign of climate risk distance and rank the FDI share from home country to host country into four groups according to the host country’s climate risk index. Finally, the authors undertake empirical tests with outward foreign direct investment (OFDI) data to support the empirical results.

Investors from countries with low climate risks have the upper hand due to their competitive advantages, like their skills, trademarks and patent rights, which they can transfer abroad to offset the disadvantage of being non-native. This is generally defined as ownership advantage. The impact of climate risk distance on FDI depends on the sign of climate risk distance. Specifically, host countries with higher climate risks compared with the climate risk levels of home countries may experience insignificant reductions in FDI inflows. For investors from home countries with higher climate risks, they are less likely to invest in host countries with lower climate risks. The results for samples from emerging market economies are shown to be more significant.

This study advances the O (ownership advantage) part of the ownership, location and internationalization (OLI) paradigm by incorporating the climate risk distance between the home country and the host country into the influencing factors of FDI. Both the O part and the L (location advantage, the advantage that host countries offers to make internationalization worthwhile to undertake FDI) part of the OLI paradigm concerning climate risks are validated with FDI and OFDI data.

The purpose of this study is to examine the effect of foreign direct investment (FDI) on economic growth contingent on the development level of the local financial system in emerging and developing Asia during the period 1996–2017.

The study adopts the threshold approach, namely the panel smooth transition regression (PSTR) model, for the annual data collection of 18 emerging and developing Asian countries in 22 years. The authors analyze the alternative PSTR models on different proxies of financial development (FD).

The results show new findings of two distinct thresholds of FD in the FDI–growth nexus. The growth-enhancing effect of FDI is realized only when the FD lies between the two threshold values. Notably, at very high levels of FD, the beneficial effect of FDI on growth is vanishing.

The authors provide new insights into the growth effect of FDI and the role of FD. The estimated nonlinear effect of FDI on growth and the thresholds of FD can be benchmarks for emerging and developing Asia in assessment of their situations. The results suggest important implications to the region in setting the long-run policies to boost the effect of FDI on economic growth.

The development of green manufacturing has become essential to achieve sustainable development and modernize the nation’s manufacturing and production capacity without increasing nonrenewable resource consumption and pollution. This study investigates the effect of green industrial practices on technical efficiency for Thai manufacturers.

The study uses stochastic frontier analysis (SFA) to estimate the stochastic frontier production function (SFPF) and inefficiency effects model, as pioneered by Battese and Coelli (1995).

This study shows that, on average, Thai manufacturing firms have experienced declining returns-to-scale production and relatively low technical efficiency. However, it is estimated that Thai manufacturing firms with a green commitment obtained the highest technical efficiency, followed by those with green activity, green systems and green culture levels, compared to those without any commitment to green manufacturing practices. Finally, internationalization and skill development can significantly improve technical efficiency.

Green industry policy mixes will be vital for driving structural reforms toward a more environmentally friendly and sustainable economic system. Furthermore, circular economy processes can promote firms' production efficiency and resource use.

To the best of the authors' knowledge, this study is the first to investigate the effect of green industry practices on the technical efficiency of Thai manufacturing enterprises. This study also encompasses analyses of the roles of internationalization, innovation and skill development.

The purpose of this study is to examine how five different multi-level governance (MLG) models affect place branding (PB) performance in Saudi Arabia.

In hierarchical administrative systems, central governments exert control on PB, influencing its effectiveness. While PB as such is widely studied, the effect of MLG on PB performance in centralized administrative systems remains understudied. The study is approached as a multiple case study of nine cities.

The study reveals that different MLG models indeed affect PB performance differently. Direct access to central leadership and resources boosts branding performance, while privatization promotes flexibility with similarly positive effects. Study findings, furthermore, show that some cities are considered too big to fail. Cities such as Riyadh and Neom are of prime importance and receive plenty of resources and leadership attention, while others are considered peripheral, are under-resourced and branding performance suffers accordingly. Emerging differences in PB performance associated with different MLG models are thus likely to deepen the gap between urban economic winners and losers.

This paper introduces five MLG models based on the actors involved in PB, their interactions and their access to resources. For each model, this paper assesses other factors which may influence the effectiveness of PB as well, such as access to the national leadership and staff capacity. This research thereby adds to the literature by identifying specific factors within MLG models influencing PB performance in hierarchical administrative systems.

Cambodia's sustained and robust growth performance since the post-reform era in 1993 has been attributed to the boom in inward foreign direct investment (FDI) attracted to the country's labor-intensive industries, where it has comparative advantages. The purpose of this study is twofold. First, it aims to assess the consistency between Cambodia's revealed comparative advantage in exports and its sectoral inward FDI. Second, it examines the relationship between industry-level FDI and growth performance by accounting for heterogeneity across industries.

The paper uses descriptive methods and an industry-level dataset provided by the Council for the Development of Cambodia to elucidate the issue. Additionally, it applies instrumental variable two-stage least squares (IV-2SLS) regression to investigate the impact of industry-specific FDI on economic growth from 1994 to 2017, which also aims to address the endogeneity issue.

On the one hand, our research finds that Cambodia's FDI has been attracted to sectors in which it has a comparative advantage during the aforementioned period. On the other hand, both FDI and the comparative advantage index significantly impact economic growth in Cambodia. The greater the flow of foreign investment into sectors with comparative advantage, the stronger the impetus for growth.

This study fills a gap in the literature and contributes to a better understanding of the relationship between FDI and economic growth in Cambodia. It is the first paper to investigate the heterogeneity of industry-specific FDI and provides practical recommendations for policymakers to effectively harness foreign investments and avoid malign FDI inflows.

The purpose of the paper was to investigate the role of fiscal incentives in driving foreign direct investment (FDI) inflows into the Ghanaian economy based on data from 1975 to 2017 with the Eclectic paradigm as the theoretical basis. FDI inflows was the dependent variable whiles trade openness, corporate tax rate, exchange rate and market size were the independent variables with corporate tax rate as the main explanatory variable of interest.

The autoregressive distributed lag (ARDL) bounds test technique was employed to investigate Cointegration in the model. The results showed the presence of cointegration among the variables.

The results revealed that corporate tax rates have a significant negative impact on FDI inflows into the Ghanaian economy in the long run and significant positive impact on FDI inflows in the short run. In the context of Ghana, the positive short-run relationship observed is attributed to the lag effect of tax policy on FDI inflows.

One obvious limitation of the research is that, it does not identify the specific foreign businesses that are more deserving of a low corporate rate and to what extent can that boost FDI inflows in Ghana. Another limitation is that the data analyzed in the paper is exclusively for Ghana and the findings may not be generalized for other countries.

Based on the research findings, it is recommended that the Ghana Revenue Service (GRA) restructures the corporate tax regime in the country to deal with the policy lapses. It is also recommended that low corporate rates should be maintained especially in respect of foreign companies that are into the production of goods and services for which indigenous companies in Ghana have a comparative disadvantage in order to drive FDI into the Ghanaian economy.

This paper is unique for providing up to date and dynamic insights into the tax incentive and FDI nexus in the Ghanaian context.

This paper examines the short- and long-run effects of foreign direct investment (FDI) on tax revenue in Ghana.

The paper adopts the autoregressive distributed lag approach to estimate FDI’s long-run and short-run effects on tax revenue. The study uses time-series data from 1983 to 2019 for Ghana, mainly obtained from The Bank of Ghana, the World Bank and the IMF.

The results show that, in the short-run, FDI has no significant effect on direct tax revenue and total tax revenue but significantly hurts indirect tax revenue. In the long run, however, the results show that FDI has significant positive effects on indirect tax revenue and total tax revenue but no significant effect on direct tax revenue.

Empirical studies often fail to analyse the short-run and long-run effects of FDI on tax revenue. This study contributes to the mixed literature by analysing the short-run and long-run effects of FDI on tax revenue in an emerging market context. Additionally, this study employs three tax revenue measures in analysing the nexus.

The policy choices of Eurasian states whether to form a coalition along with the “Eurasia Initiative” can be explained by the cooperative game theory. While the each bilateral relationship before making a binding agreement seems to be a non-cooperative game, the coalitions with many other states through a binding agreement of Mega-FTA would be a cooperative game. Despite the lack of numerical data, this study at least tries to show the possibility of applying the game theory to analyze the “Eurasia Initiative” and it’s the impacts of Mega-FTAs on this ambition. While the Eurasia Initiative necessarily involves some economic projects requiring enough investment promotion, Korea can strategically set up the policies linked with the development of Mega-FTAs. To utilize the investment promotive effect of Mega-FTAs, Korea has to assure that the core of the cooperation game would be the grand coalition of a Mega-FTA. If it continues to search for the best policies to maximize the superadditivity of this cooperative game, Korea will finally be able to achieve the co-promotion of Mega-FTAs and the Eurasia Initiative.

This paper aims to explore the spatio-temporal patterns of Chinese foreign direct investment (FDI) since the inception of the Belt and Road Initiative (BRI) in 2013 as an extended version of geographically weighted regression.

The panel data are used to examine spatial and temporal dynamics of the magnitude and the direction of China's outward FDI stock and its flow from 2011 to 2015 at a country level. Using the geographically and temporally weighted regression (GTWR), spatio-temporal distribution of FDI is explained through Logistic Performance Index, the size of gross domestic product (GDP), Shipping Linear Connectivity Index and Container Port Throughput.

A comparative analysis between participating and non-participating countries in the BRI shows that the size of GDP and Container Port Throughput of the participating countries have a positive effect on the increases of China's outward FDI Stock to Asia especially after 2013, while non-participating countries, such as North America, Western Europe and Western Africa, have no significant effect on it before and after the implementation of the BRI.

The findings, however, will not necessarily provide insight into the needs of China's outward FDI in certain countries to develop their economy. The findings provide the evidence to inform policy making to help identify the winners and losers of the investment, scale and direction of investment and the key drivers that shape the distributive investment patterns globally.

The study provides the empirical evidence to inform investment policy and strategic realignment by quantifying scale, direction and drivers that shape the spatio-temporal shifts of China's FDI.

The analysis also guides the Chinese government improve bilateral trade, build infrastructure and business partnerships with preferential countries participating in the BRI.

There is an urgent need to adopt a new perspective to unfold the spatial temporal complexity of FDI that incorporates space and time dependencies, and the drivers of the situated context to model their effects on FDI. The model is based on GTWR and an extended geographically weighted regression (GWR) allowing the simultaneous analysis of spatial and temporal decencies of exploratory variables.

This study aims to assess the impact of foreign direct investment (FDI) on growth in presence of host country characteristics, namely, economic stability, human capital, financial development and trade openness, in the fastest emerging Brazil, Russia, India, China, South Africa (BRICS) economies, considered to be significant FDI destinations.

The panel data for the variables under study, collected from World Investment Reports published by World Bank, are analyzed using feasible generalized least squares method to examine the relationship between the dependent and explanatory variables over the period 1987–2018. The interaction effect has been studied to examine the growth impact of FDI in presence of host country characteristics.

The findings revealed that FDI does not exert a significant impact on the economic growth of BRICS individually but has a significant growth impact only in presence of host country characteristics. FDI on interacting with financial development, trade openness and human capital exerts a positive impact on the economic growth of BRICS economies, and on interacting with economic instability (inflation), FDI has a negative impact on growth.

The study has implications for policy makers of BRICS countries who are suggested to work toward the development of financial markets, trade liberalization and human capital development to realize the positive growth impact of FDI.

Very few studies have been conducted to examine the growth effect of FDI in BRICS economies, which are considered to be the fastest-growing economies and dominant players in the global investment landscape. Assessing the interaction of FDI with absorptive capacities/host country characteristics to study its growth impact in BRICS using long data and robust panel data methodology is an original contribution of this paper toward the existing body of knowledge.