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Open Access
Article
Publication date: 22 August 2023

Rifan Ardianto, Prem Chhetri, Bonita Oktriana, Paul Tae-Woo Lee and Jun Yeop Lee

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Social implications

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

Originality/value

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.

Details

Journal of International Logistics and Trade, vol. 21 no. 4
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 5 August 2019

Nam Hoai Tran and Chi Dat Le

The purpose of this paper is to thoroughly investigate the interplay between institutions, foreign direct investment (FDI) and entrepreneurship in the context of emerging markets…

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Abstract

Purpose

The purpose of this paper is to thoroughly investigate the interplay between institutions, foreign direct investment (FDI) and entrepreneurship in the context of emerging markets (EMs).

Design/methodology/approach

The authors argue that the impact of FDI on entrepreneurial activity depends on different natures of capital flow and entrepreneurial motivation and relates to the quality of institutional environment. First, the roles of inward and outward FDI are examined in connection with the new firm creation by opportunity- and necessity-motivated entrepreneurs. Second, the integrated influences of (inward/outward) FDI and governance quality (GQ) on (opportunity/necessity) entrepreneurship are tested. This nexus of relationships is analyzed through segmented regressions using the GEM data of 39 EMs over the 2004–2015 period.

Findings

It is evidenced that the quality of governance infrastructure affects the relationship between FDI and entrepreneurship: in emerging countries with low GQ, opportunity entrepreneurship is stimulated by inward FDI and diminished by outward FDI; and in emerging countries with high GQ, necessity entrepreneurship is discouraged by inward FDI and promoted by outward FDI.

Practical implications

This research has implications for the institutional context-based execution of public policy in emerging economies. As the entrepreneurial effects of inward and outward FDI are pronounced differently under the two types of entrepreneurship and the two extremes of GQ, public policy makers who recognize the catalytic role of FDI in domestic business development should take the distinct institutional context of their country into consideration.

Originality/value

The paper contributes to the extant literature on international entrepreneurship in emerging economies by making a breakdown on the roles played by different types of FDI in the entrepreneurial activity, analyzing the mediating effects of GQ on the relationship between inward/outward FDI and entrepreneurship, and interpreting the capital and institutional determinants of entrepreneurship in terms of entrepreneurial motivations by opportunity and necessity.

Details

Journal of Asian Business and Economic Studies, vol. 26 no. 2
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 11 August 2020

Chukwuebuka Bernard Azolibe

This study empirically assessed the influence of foreign direct investment on the manufacturing sector growth in the Middle East and North African region using panel data of 18…

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Abstract

Purpose

This study empirically assessed the influence of foreign direct investment on the manufacturing sector growth in the Middle East and North African region using panel data of 18 countries covering the period of 1975–2017.

Design/methodology/approach

The study employed Levin et al. (2002) test (LLC) and Im et al. (2003) panel unit root test. Furthermore, Kao’s cointegration test was applied to examine the long-run relationship between the variables. Both the Dynamic OLS and Fully modified OLS were used in estimating the short-run relationship.

Findings

The results of the DOLS and FMOLS indicate that both inward and outward FDI influence the manufacturing sector growth positively. This shows that much of the manufacturing sector growth in the MENA region is driven by both inward and outward FDI. Our findings made a strong new proposition that aside from the negative influence proposed by Stevens and Lipsey (1992), outward FDI could also have a positive influence on the manufacturing sector of a country through effective utilization of domestic raw materials that are produced locally for production of goods in a foreign country.

Practical implications

MENA countries should concentrate more on making policies that will encourage the effective utilization of domestic resources for outward foreign direct investment in other countries of the world as it has the capacity to boost the manufacturing sector growth. Also, policies that will attract more inflows of FDI in the region should be encouraged. Both inward and outward FDI should be considered as an integral part of MENA economic policy in order to spur the manufacturing sector growth.

Originality/value

Previous empirical studies on the relationship between FDI and manufacturing sector growth have focused much on the influence of inward FDI. Thus, very little attention has been paid to the contribution that the outward FDI makes to the growth of the manufacturing sector of the host country. Our empirical study focused on the influence of both inward and outward FDI on the manufacturing sector growth with specific emphasis on the MENA region that remains the center of attraction of inward FDI and a source of inward FDI to most nonoil producing developing and developed countries given the oil-rich nature of the region.

Details

International Trade, Politics and Development, vol. 5 no. 1
Type: Research Article
ISSN: 2586-3932

Keywords

Open Access
Article
Publication date: 31 December 2008

Tae Seung Kim, Hun-Koo Ha and Jin Kook Lee

FDI is considered to be a meaningful component for the economic growth of a country. But, it has not been proven clear that the effect of FDI is really beneficial in a host…

Abstract

FDI is considered to be a meaningful component for the economic growth of a country. But, it has not been proven clear that the effect of FDI is really beneficial in a host country regardless of the state of the countries. This paper tries to provide an evidence of the effect of FDI in developing country. To do this, we relate industry level value-added to inward and outward FDI stocks in Korea in a production function framework. Especially we divide inward FDI into FDI on the Greenfield projects and FDI for M&A. The results show that the effect of inward FDI as a whole on productivity is not statistically significant, though we can presume that the direction is positive, whereas the effect of outward FDI is strongly negative, and is statistically significant. But the effects of inward FDI by the characteristics of FDI are not differentiated.

Details

Journal of International Logistics and Trade, vol. 6 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Content available
Article
Publication date: 3 January 2022

Phung Thanh Quang, Ehsan Rasoulinezhad, Nguyen Nhat Linh and Doan Phuong Thao

The main purpose of this paper is to analyze the sustainable inward FDI pattern of Vietnam.

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Abstract

Purpose

The main purpose of this paper is to analyze the sustainable inward FDI pattern of Vietnam.

Design/methodology/approach

This paper intends to analyze the sustainable FDI pattern of Vietnam using the gravity theory and panel data approach for the annual data over the period of 2007–2020.

Findings

Vietnamese FDI volume is positively affected by political and social factors, globalization and green energy consumption, while geographical distance is a major obstacle to the increase of FDI inflows of the country.

Practical implications

As the main practical policy implications, issuing policies for sustainable economic growth, launching the novel strategy of green FDI neighborhood policy and regionalism through free trade agreements are recommended.

Originality/value

To the best of author's knowledge, there has not been any in-depth academic study focusing on the Vietnam's sustainable FDI. In addition, three robustness checks have been conducted to ensure the validation of empirical findings.

Details

China Finance Review International, vol. 12 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

Content available
Book part
Publication date: 14 February 2017

Laura Vanoli Parietti

Abstract

Details

Internationalization of Firms: The Role of Institutional Distance on Location and Entry mode
Type: Book
ISBN: 978-1-78714-134-6

Content available
Book part
Publication date: 23 May 2019

Abstract

Details

Modeling Economic Growth in Contemporary Russia
Type: Book
ISBN: 978-1-78973-265-8

Content available
Book part
Publication date: 19 February 2019

Densil Anthony Williams

Abstract

Details

International Business Blunders: Lessons for Future Managers
Type: Book
ISBN: 978-1-78769-219-0

Content available
Article
Publication date: 13 March 2017

Marina Dabic and Olivier Lamotte

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Abstract

Details

European Business Review, vol. 29 no. 2
Type: Research Article
ISSN: 0955-534X

Open Access
Article
Publication date: 7 August 2024

Fevzi Ölmez, Emre Bilgiç and Esra Aydın

This research aims to investigate the role of the economic policy uncertainty (EPU) in the outward FDI (OFDI) of the United Kingdom (UK) by considering the institutional quality…

Abstract

Purpose

This research aims to investigate the role of the economic policy uncertainty (EPU) in the outward FDI (OFDI) of the United Kingdom (UK) by considering the institutional quality (IQ) and globalization level of the host country as contextual factors.

Design/methodology/approach

The UK’s OFDI to its twenty partners is analyzed by using the factor augmented model for the 2005–2019 period.

Findings

The results show that the EPU of the host country has a negative and significant effect on the UK's OFDI. Furthermore, the findings surprisingly illustrate that the globalization level of the host country has a negative and significant impact on the UK's OFDI. In terms of IQ, this study indicates that, while government effectiveness and regulatory quality have a negative and significant influence on the UK's OFDI, the rule of law has a positive and significant effect on the UK's OFDI.

Originality/value

This will be one of a few studies considering OFDI in the scope of EPU. Also, the contradicting results of the study add unique perspectives to the literature about the relationship between OFDI, globalization, and IQ.

Details

Journal of Economics, Finance and Administrative Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2077-1886

Keywords

1 – 10 of 153