World Investment Report 2012 (요약 번역본)

Argentina is ranked as one of the most corrupt countries in South America, although it is also the fourth largest Foreign Direct Investment recipient. We aim to study the role of corruption in attracting FDI through an empirical analysis by exploiting a database in which two alternative measures of business climate are included: the Corruption perceptions Index (CPI) and the Index of Economic Freedom (EFI). Our result provides evidence that the high level of corruption in Argentina does not influence its inward FDI negatively because FDI mostly concentrates on the exploitation of natural resources.

/pdf/the-effect-of-corruption-on-fdi-in-argentina-3su5395mdl.pdf

The effect of corruption on FDI in Argentina

One Bad Turn Deserves Another: How Energy Production, Financial Instability, and Political Governance Crisis Sustain the Decline of FDI Inflows in the Central African Republic

Foreign direct investment (FDI) is one of the most practical types of foreign investment. FDI contributes to job creation, foreign exchange earnings and national income escalation, improving semi-skill and skilled labor. Based on our knowledge, this paper is the first study attempting to investigate the effect of political stability on the FDI in Turkey using an econometric approach. Achieving this objective, a co-integration analysis was conducted between the FDI and its determinants in the short-run and long-run including “macroeconomic indicators” and “Political Stability (PS)” in Turkey. Using annual data from 1974 to 2017 via Auto-Regressive Distributed Lag (ARDL) model. The results confirm the positive correlation between Gross Domestic Product (GDP), openness, domestic savings and political stability and FDI inflows. They also confirm the negative impact of energy consumption, population and inflation on FDI inflows. 

The Impact of Political Stability and Macroeconomic Variables on Foreign Direct Investment in Turkey

The determinants of FDI inflows have been a subject of unremitting debate in the economic literature over the years. However, the role of country risk has received inadequate attention, especially in the context of the Visegrád countries, which comprise the Czech Republic, Hungary, Poland and Slovakia. Hence, this study examined whether country risk matters for FDI inflows into the Visegrád Four for the period 1991–2020. This study accounted for cross-sectional dependency, structural breaks and heterogeneous slopes in the panel of the four countries by employing the dynamic common correlated effect estimator. Additionally, country-wise fully modified least-squares regression was conducted for each country to test the robustness of the estimates. The empirical results revealed that country risk matters for the FDI inflows into the Visegrád countries, as it has a negative effect on the FDI inflows. Furthermore, both the overall panel and country-wise regressions established that economic and political risks are essential determinants of the FDI inflows, as both have a negative relationship with the FDI inflows. However, financial risk had weak and mixed impacts on the FDI inflows in the overall panel and country-wise regressions, respectively. These research outcomes highlight the need for appropriate macroeconomic and government authorities in the Visegrád economies to enhance the market capabilities of their economies by improving and upholding the social, institutional, corporate and macroeconomic structures, and as a way of achieving better country risk attributes.

/pdf/does-country-risk-influence-foreign-direct-investment-2y63e6i8.pdf

Does Country Risk Influence Foreign Direct Investment Inflows? A Case of the Visegrád Four

Foreign direct investment (FDI) is an important determinant of economic growth. A wealth of literature has tackled its determinants; however few investigated the effect of political risk on FDI. Consequently, this study examines 12 ICRG political risk indicators, after removing multicollinearity and grouping them into three categories, to test the nature of this relation in the case of Lebanon over the period 2008-2018. The findings provide evidence of significant causality between all political risk factors and FDI inflows. Other determinants like “Infrastructure”, “Inflation”, “Trade Openness” and “Wage Rates” have insignificant effects.

/pdf/impact-of-political-instability-on-foreign-direct-investment-23u7k6rr4e.pdf

Mohamad Hamadeh

Papers

Impact of Political Instability on Foreign Direct Investment in Lebanon