scholarly journals Impact of Foreign Direct Investment, Foreign Portfolio Investment and Diaspora Remittances on Kenya’s Economic Growth

2021 ◽  
Vol 06 (11) ◽  
Author(s):  
Joan Serem ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Domestic Product ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Short Run ◽  
Auto Regressive ◽  
Level Of Significance

The Objective of this study is to find out the effect of capital flows on economic growth in Kenya, With Three specific objectives; To investigate the effect of foreign direct investment on economic growth in Kenya, to find out the effect of foreign portfolio investment on economic growth in Kenya, and to determine the effect of diaspora remittances on economic growth in Kenya. Quarterly data from 2002 to 2017 was used in the study, and Descriptive research design and inferential research design were used to analysis the data. Descriptively, mean and standard deviation were used and Inferentially the Auto regressive distribution Lag technique using the STATA software Version 15. Diagnostic tests were conducted on the data; Normality test using Jarque Bera test supported by the skewness and Kurtosis results; Unit root was tested using the Augmented Dickey Fuller Test .The Auto Regressive Distributed Lag regression short run results show that, foreign direct investment had an positive and insignificant effect on gross domestic product, whereas foreign portfolio investment had a positive and statistically significant short run effect on gross domestic product at 1% level of significance and diaspora remittances had a positive and very significant effect of gross domestic product at 5% level of significance. The Error Correction Model regression results showed that in the long run, Foreign Direct Investment, Foreign Portfolio Investment, and Diaspora Remittances had a positive and very significant effect on the economic growth at 1% level of significance.

scholarly journals Effect of Foreign Private Investment on the Development of Small and Medium Enterprises in Nigeria

2020 ◽  
Vol 9 (7) ◽  
pp. 257-266
Author(s):  
Amadin Victor Idehen ◽  
Osarumwense Vincent Iguisi
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Private Investment ◽  
Domestic Product ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Medium Scale ◽  
Foreign Private Investment

This study sought to examine the effect of foreign private investment on the development of small and medium scale enterprises (SME’s) in Nigeria. The study adopted a longitudinal research design which made the use of secondary data imperative. The study employed data on the foreign private investments and development of SMEs in Nigeria covering 1991-2018. The variables used are Net Foreign direct investment, Net Foreign Portfolio investment, percentage of foreign direct investment in Gross Domestic Product (GDP), and development of SMEs in Nigeria. The technique adopted in this study is multiple regressions to test the hypotheses. E-view econometric software 3:1 was used for the analysis. The result revealed that the value of Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) have a negative relationship with the development of SME’s and Foreign Direct Investment (FDI) in the percentage of gross domestic product and exchange rate have a negative and significant impact on the development of SME’s in Nigeria. It was recommended among others that government should increase its funding of small and medium scale enterprises, SME’s should be encouraged to go on public offer to expand the scope of funds, the exchange rate must be strengthened to encourage SME’s to attract funds and the needs to stabilized the economy to discourage divestment.

The Causal Links Between Foreign Direct Investment And Economic Growth In Pakistan

2012 ◽  
Vol 6 ◽  
Author(s):  
Najid Ahmad ◽  
Muhammad Farhat Hayat ◽  
Muhammad Luqman ◽  
Shafqat Ullah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Domestic Product ◽  
Correction Model ◽  
Economic Progress ◽  
Long Run ◽  
Domestic Capital ◽  
The Relationship

This paper investigates the relationship between foreign direct investment and economic growth in Pakistan. The co-integration and error correction model is used to show the relationship between foreign direct investment and gross domestic product in Pakistan. Gross domestic product is taken as dependent variable while foreign direct investment, labor force and domestic capital as independent variables. The results suggest that there is a positive relation between foreign direct investment and gross domestic product in short as well as long run. If we want to make economic progress then there is a need to invite foreign investors because foreign direct investment increases GDP that is economic growth.

scholarly journals The Effect of Economic Globalization on the Economic Growth-A Study on Foreign Portfolio Investment, Foreign Direct Investment, Export and Import in 1982-2017 Period: A Case Study in China

2019 ◽  
Vol 5 (3) ◽  
pp. p347
Author(s):  
Xu Yonghong ◽  
Setyabudi_ Indartono
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Globalization ◽  
Portfolio Investment ◽  
Economic Activities ◽  
Foreign Portfolio Investment ◽  
Ex Post ◽  
Ex Post Facto ◽  
Ex Post Facto Study

In the context of economic globalization, countries around the world are closely linked through economic activities such as import, export, foreign direct investment and foreign portfolio investment. Economic globalization is conducive to participating in the international division of labor, giving play to its comparative advantages and expanding overseas markets. This research is an ex post facto study using quantitative. The data used are as many as 35 data from 1982 to 2017. This study aims to determine the effect of economic globalization on economic growth, study: Foreign Portfolio Investment, Foreign Direct Investment, import and export, both directly or indirectly. The data ware validated using the VAR model, the results of this study indicate that the effects of variables on economic growth are positive.

scholarly journals Examining the impact of Exports and Exchange rate on Economic Growth of Turkey

2020 ◽  
Author(s):  
Iftikhar Muhammad ◽  
Malik Shahzad Shabbir
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Economic Policies ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

Abstract Purpose This study intends to analyze the long-run and short-run relationships along with the identification of causal links between exports, economic growth, and exchange rate in Turkey. Data/Design: This study uses auto-regressive distributed lags (ARDL) and Granger causality over time series monthly data from the year 2010–2018. The results indicate that exports are significantly positively related to economic growth while the exchange rate is found to be negatively related to economic growth. Findings: Moreover, findings from the test of Granger causality indicate that a unidirectional causal association is found from exports to foreign direct investment and economic growth and from economic growth to foreign direct investment. The Granger causality results indicate that an increase in exports accelerates the economic growth of Turkey and a change in growth rate and exchange rate leads to a change in foreign direct investment. Originality of work: The overall findings suggest that exports should be promoted along with the liberal-investment economic policies to boost the overall economic growth in Turkey.

scholarly journals Foreign Direct Investment (FDI), Trade and Its Contribution to the Mining Sector of Guinea

2016 ◽  
Vol 7 (2) ◽  
pp. 65
Author(s):  
Kimberly Racquel Elizabeth Chin
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Mining Industry ◽  
Domestic Product ◽  
Mining Sector ◽  
The Government ◽  
The Relationship

In order to objectively analyze Foreign Direct Investment (FDI) contribution to Guinea’s mining sector, the granger casualty test was used to determine the relationship among variables and to determine whether any of these variables affect others and how. The variables used are Gross Domestic Product, Government Income, Trade, FDI inflow into Guinea mining sector and the exchange rate. The granger casualty test produced evidence of a bidirectional casualty relationship which suggests that FDI’s influence on efficiency lies in the government relaxing its dependency on the mining industry for economic  growth.

Exploration of Relationship between FDI and GDP: A Comparison between India and Its Neighbouring Countries

2018 ◽  
Vol 21 (2) ◽  
pp. 473-489 ◽  
Author(s):  
Pooja Sengupta ◽  
Roma Puri
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Indian Subcontinent ◽  
Domestic Product ◽  
Economic Policies ◽  
Fdi Inflows ◽  
The Difference

Foreign direct investment (FDI) inflows have been a trigger for accelerating economic growth in a number of countries. The pattern of FDI flows into India and its neighbourhood has been varied and so has been its impact on the economic growth in each of the countries. Although a lot of research has been carried out to establish causality between FDI and economic growth, the results are sometimes varied and conflicting. This study attempted to study the pattern of FDI into the Indian subcontinent and India’s neighbours, such as Pakistan, Nepal, Bangladesh and Sri Lanka, and explore the causality between FDI and gross domestic product (GDP). The results showed that the different economic policies of the respective countries had a role to play in explaining the difference in the quantum of the flow and there is an association between FDI and GDP, and in all the cases, FDI is instrumental in enhancing the economic growth of the countries included in the study.

scholarly journals How do Foreign Direct Investment and Growth Interact in India?

2015 ◽  
Vol 2 (2) ◽  
Author(s):  
Gurmeet Singh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Granger Causality ◽  
Foreign Exchange ◽  
Direct Investment ◽  
Foreign Exchange Reserves ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run

The study investigates the relationships between the FDI and economic growth, namely, Gross Domestic Product, exports and foreign exchange reserves over the period 1994 to 2013. Johansen’s co-integration and vector error correction model have been applied to explore the long-run equilibrium relationship between foreign direct investment and economic growth. The analysis reveals that economic growth and the foreign direct investment are co-integrated and, hence, a long-run equilibrium relationship exists between them. It is observed that the foreign direct investment is positively related to gross domestic product and foreign exchange reserves but negatively related to exports. Exports are found to be insignificant in determining FDI. In the Granger causality sense, FDI causes GDP in both long run and short-run. No bidirectional causality is observed between any variables under study. Furthermore, the findings of VECM and Granger Causality test show that FDI creates a long run relationship with economic growth but in short run no causality is found between FDI, exports and foreign exchange reserves.

scholarly journals Financial Determinants of Economic Growth of Pakistan: An Empirical Analysis

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Zaib-un- Nisa
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Business Environment ◽  
Domestic Product ◽  
Series Data ◽  
Real Gross Domestic Product ◽  
Determinants Of Economic Growth

The paper attempts to investigate the relationship between savings and Economic growth of Pakistan by using the time series data from 1972 to 2015. For empirical analysis, ordinary least square method is used. The analysis is made in two parts. In the first part; descriptive statistics and correlation matrix are described. In second part, multivariate analysis explains how saving of Pakistan is determined by economic growth. This study concludes that the employed labor force, gross fixed capital formation and exchange rate have positive and significant influence on real gross domestic product. Foreign direct investment and gross domestic savings have negative but insignificant impact on real gross domestic product. Keeping in view the role of savings and economic growth in Pakistan. It is recommended that government should provide enabling environment and fiscal incentives for enhancing the foreign direct investment. This will increase the gross domestic product in the country. For this purpose, the industrial and agricultural sectors of the country must be stable. Moreover, there is a need of creating an investment friendly business environment in Pakistan.

scholarly journals The Impact of Foreign Direct Investment on Gross Domestic Product in Iraq During the Period (2006 - 2015)

2021 ◽  
Vol 10 (1) ◽  
pp. 382
Author(s):  
Shivan H. Ali ◽  
Shivan A. Jameel
Keyword(s):  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Domestic Product ◽  
Short Term ◽  
The World Bank ◽  
Short Run ◽  
Independent Variable ◽  
The Impact

The paper aims at examining the impact of Foreign Direct Investment on Gross Domestic Product in Iraq over the period 2006-2015. Data have been collected from the World Bank database. For the purpose of analyzing data, the study applied Foreign Direct Investment (FDI) Net Inflows as an independent variable while Gross Domestic Product (GDP) as a proxy for economic growth as a dependent variable. The results of the study found that all of the variables under study are non-stationary at the level while stationary at first differenced by utilizing unit-root tests (ADF). The findings of Johansen Test for Co-integration showed that there is no long-term relationship among variables. Other findings of the paper revealed that, in short term, it is concluded that FDI Granger-Causes GDP and there is a short-run causality running from FDI to GDP. The research recommended that Iraq has to pay more attention to improve the level of education sectors and financial sector and to empower human capital. It also has to decrease lending rate, transportation and instability terms of political and economic environment as well as to improve liberalized market environment.

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