This document discusses the role of foreign direct investment (FDI) in the economic growth of transition economies. It begins by reviewing theories on the impact of FDI on growth and noting that empirical results have been varied. The paper aims to understand how FDI impacts growth in transition economies, taking into account factors like human capital, domestic investment, and political discretion. It develops an endogenous growth model framework and discusses literature showing that while early studies found FDI had negative effects, more recent work shows benefits through technology and skills transfer. The paper seeks to analyze the determinants of FDI in transition economies, including initial conditions, political stability, and human capital, and their influence on economic growth.
This document summarizes previous research on the relationship between foreign direct investment (FDI) and economic growth. Several studies have found that FDI positively correlates with growth only if the host country meets a minimum human capital threshold. This paper aims to build a theoretical framework incorporating this threshold and analyze potential policy actions. It reviews literature establishing the human capital threshold finding and discusses studies examining FDI's effects through technology spillovers and productivity/capital growth channels. The paper will develop a model based on Borensztein, De Greggario, and Lee's (1998) work and analyze how taxing foreign firms or subsidizing human capital formation could impact growth rates.
Determinants of Foreign Direct Investment in Nigeria (1977-2008) OLADAPO TOLU...dapoace
This document contains a literature review on foreign direct investment (FDI). It begins by defining FDI and discussing how FDI flows are compiled. It then reviews several theories on the determinants and impacts of FDI. Market size, trade openness, macroeconomic stability, and infrastructure development are identified as important determinants of FDI inflows. The literature suggests that while FDI can benefit economic growth, developing effective policies is important to maximize benefits and minimize risks for host countries like Nigeria.
Determinants of Foreign Direct Investment (FDI) in Malaysia: What Matters Most?Nursuhaili Shahrudin
1. The study examines the determinants of foreign direct investment (FDI) inflows to Malaysia from 1970 to 2008 using the autoregressive distributed lag (ARDL) framework.
2. The results suggest that financial development, as measured by money supply, and economic growth, as represented by GDP, have a positive impact on FDI inflows to Malaysia in the long run.
3. A developed financial system and high economic growth rate help create a favorable environment for foreign investors and are important for attracting FDI to Malaysia.
Impact of openness, foreign direct investment, gross capital formation on eco...Alexander Decker
This document summarizes a study that assessed the impact of openness, foreign direct investment, and gross capital formation on economic growth in Kenya from 1960 to 2010. A multiple linear regression model was used to analyze data from the World Bank. The findings showed that trade openness had a positive and significant impact on GDP growth. However, foreign direct investment and gross capital formation did not have a significant effect on GDP growth. The study recommends that policymakers in Kenya emphasize increasing trade openness to promote economic growth.
This document is a research proposal submitted by a group of students at University Malaysia Sarawak investigating the determinants of foreign direct investment in Malaysia. It provides background on FDI and its importance to the Malaysian economy. The study aims to determine what factors influence FDI inflows, with a focus on exchange rates, market size, and infrastructure. The methodology section outlines the hypotheses, econometric model, and statistical tests that will be used, including OLS regression, tests for serial correlation and heteroskedasticity, and Granger causality.
This document analyzes the determinants of foreign direct investment (FDI) in Malaysia's manufacturing industry from 1980-2002. It finds:
1) Malaysia received substantial FDI over this period, which was an important driver of its economic growth and industrialization.
2) An econometric analysis using cointegration and fully-modified least squares methods found that increases in education, infrastructure, market size, and current account balance led to increases in FDI, while increases in inflation and exchange rate led to decreases.
3) Major sources of FDI in Malaysia's manufacturing sector included the US, Japan, Germany, and Singapore, with electrical/electronics, petroleum, and chemicals as top recipient industries.
Foreign Aid and Economic Growth in the West African States: A Panel Frameworkinventionjournals
This paper examines the impact of economic variables namely, foreign direct investment (FDI), investment, export, foreign aid and broad money supply on economic growth, approximated by gross domestic product (GDP)using annual data covering a period 1981-2008 on a group of West African countries. The impact of variables on GDP is estimated using three panel estimation models: pooled model (pooled), fixed effects model (FEM) and random effects model (REM). We explore the hypothesis that foreign aid can promote growth in developing countries. We test this hypothesis using panel data series,while the findings of previous studies are generally mixed, our resultsindicate that foreign direct investment has purely positive effects on economic growth in West African countries
This document summarizes previous research on the relationship between foreign direct investment (FDI) and economic growth. Several studies have found that FDI positively correlates with growth only if the host country meets a minimum human capital threshold. This paper aims to build a theoretical framework incorporating this threshold and analyze potential policy actions. It reviews literature establishing the human capital threshold finding and discusses studies examining FDI's effects through technology spillovers and productivity/capital growth channels. The paper will develop a model based on Borensztein, De Greggario, and Lee's (1998) work and analyze how taxing foreign firms or subsidizing human capital formation could impact growth rates.
Determinants of Foreign Direct Investment in Nigeria (1977-2008) OLADAPO TOLU...dapoace
This document contains a literature review on foreign direct investment (FDI). It begins by defining FDI and discussing how FDI flows are compiled. It then reviews several theories on the determinants and impacts of FDI. Market size, trade openness, macroeconomic stability, and infrastructure development are identified as important determinants of FDI inflows. The literature suggests that while FDI can benefit economic growth, developing effective policies is important to maximize benefits and minimize risks for host countries like Nigeria.
Determinants of Foreign Direct Investment (FDI) in Malaysia: What Matters Most?Nursuhaili Shahrudin
1. The study examines the determinants of foreign direct investment (FDI) inflows to Malaysia from 1970 to 2008 using the autoregressive distributed lag (ARDL) framework.
2. The results suggest that financial development, as measured by money supply, and economic growth, as represented by GDP, have a positive impact on FDI inflows to Malaysia in the long run.
3. A developed financial system and high economic growth rate help create a favorable environment for foreign investors and are important for attracting FDI to Malaysia.
Impact of openness, foreign direct investment, gross capital formation on eco...Alexander Decker
This document summarizes a study that assessed the impact of openness, foreign direct investment, and gross capital formation on economic growth in Kenya from 1960 to 2010. A multiple linear regression model was used to analyze data from the World Bank. The findings showed that trade openness had a positive and significant impact on GDP growth. However, foreign direct investment and gross capital formation did not have a significant effect on GDP growth. The study recommends that policymakers in Kenya emphasize increasing trade openness to promote economic growth.
This document is a research proposal submitted by a group of students at University Malaysia Sarawak investigating the determinants of foreign direct investment in Malaysia. It provides background on FDI and its importance to the Malaysian economy. The study aims to determine what factors influence FDI inflows, with a focus on exchange rates, market size, and infrastructure. The methodology section outlines the hypotheses, econometric model, and statistical tests that will be used, including OLS regression, tests for serial correlation and heteroskedasticity, and Granger causality.
This document analyzes the determinants of foreign direct investment (FDI) in Malaysia's manufacturing industry from 1980-2002. It finds:
1) Malaysia received substantial FDI over this period, which was an important driver of its economic growth and industrialization.
2) An econometric analysis using cointegration and fully-modified least squares methods found that increases in education, infrastructure, market size, and current account balance led to increases in FDI, while increases in inflation and exchange rate led to decreases.
3) Major sources of FDI in Malaysia's manufacturing sector included the US, Japan, Germany, and Singapore, with electrical/electronics, petroleum, and chemicals as top recipient industries.
Foreign Aid and Economic Growth in the West African States: A Panel Frameworkinventionjournals
This paper examines the impact of economic variables namely, foreign direct investment (FDI), investment, export, foreign aid and broad money supply on economic growth, approximated by gross domestic product (GDP)using annual data covering a period 1981-2008 on a group of West African countries. The impact of variables on GDP is estimated using three panel estimation models: pooled model (pooled), fixed effects model (FEM) and random effects model (REM). We explore the hypothesis that foreign aid can promote growth in developing countries. We test this hypothesis using panel data series,while the findings of previous studies are generally mixed, our resultsindicate that foreign direct investment has purely positive effects on economic growth in West African countries
This document summarizes a study that investigated the impact of political environment on the business performance of multinational companies in Nigeria. The study found that political environment has a negative significant impact on business performance. Political environment refers to forces from political decisions that can alter economic outcomes. It poses risks like taxation, currency issues, and violence. The literature review discusses how an unstable political environment with risks like expropriation, domestication, and policy changes can negatively affect multinational company profits and goals.
The impact of international trade and fdi on economic growth and technologica...Springer
This document provides an overview of different theoretical approaches to international trade and foreign direct investment (FDI) and their impact on economic growth. It discusses how early neoclassical models viewed trade and FDI as having only transitory effects on growth rates. New trade theory and new growth theory introduced increasing returns to scale and imperfect competition, allowing for selection and scale effects that increase productivity. More recent extensions incorporate firm heterogeneity and selection effects of trade that increase aggregate productivity and shift market shares towards more productive firms, thus having a direct short-term impact on economic growth rates. However, these models still do not explain permanent effects on long-run growth rates. The document aims to distinguish theories that predict only medium-term impacts from those relevant
Teece's 1985 paper critiques Hymer's emphasis on market power over efficiency in analyzing multinational enterprises (MNEs). Teece argues that MNEs vary in form and motivation, pursuing both efficiency and rent extraction. He identifies three issues with Hymer's analysis: it overlooks efficiency motivations for foreign direct investment, oversimplifies host country controls on MNEs, and underemphasizes dynamic considerations like how market power and efficiency roles may change over time. Empirical literature on MNE impact is mixed, with some evidence they may increase concentration more in developing countries but also spur productivity through knowledge spillovers. FDI in Latin America is heterogeneous but centered on vertical investments, with
Effect of globalization on strategy formulation in selected banksAlexander Decker
This document discusses the effect of globalization on strategy formulation in selected banks in Anambra State, Nigeria. It begins with an abstract that outlines the study's objective to empirically determine how globalization affects strategy formulation in the banking industry. The introduction provides context on how globalization impacts various aspects of the global economy and influences strategy. It then reviews literature on both the opportunities and threats that globalization presents for banks, such as new markets but also greater competition. The conceptual framework section defines key terms like globalization and strategy formulation. It also analyzes theoretical perspectives and discusses how factors like technological advances, deregulation, and increased trade have changed the competitive landscape and necessarily impacted banks' strategies. The document aims to investigate these effects
Artykuł podejmuje zagadnienie instytucjonalnych aspektów internacjonalizacji przedsiębiorstw. Autorzy koncentrują uwagę Czytelnika na roli, jaką odgrywają formalne instytucje
w procesach umiędzynarodowienia przedsiębiorstw, w szczególności w zakresie zagranicznych
inwestycji bezpośrednich. Celem artykułu jest prezentacja oraz próba oceny polityki wsparcia
zagranicznych inwestycji bezpośrednich wychodzących z Polski po okresie globalnego kryzysu ekonomicznego 2008. Autorzy najpierw podjęli studia literaturowe w odniesieniu do instytucjonalnych aspektów umiędzynarodowienia, następnie przeprowadzili badania jakościowe
z zastosowaniem metody wywiadu bezpośredniego z reprezentantami instytucji makro- i mezoszczebla (ministerstwo, władze regionalne, organizacje otoczenia biznesu). Wywiady pozwoliły na scharakteryzowanie podmiotowego oraz przestrzennego zorientowania polityki wsparcia zagranicznych inwestycji bezpośrednich wychodzących z Polski oraz na zasygnalizowanie
wyzwań, jakie rysują się przed tą polityką po 2008 roku. Uzyskane rezultaty stanowią punkt
wyjścia do dalszych, bardziej szczegółowych badań w przyszłości.
* Projekt badawczy: No. 11430010 Small Grants Program of the International Visegrad
Fund „Outward FDI policies in Visegrad Countries”.
The document discusses the history and evolution of outsourcing in the US economy over time. It begins by looking at the initial stages of outsourcing after the industrial revolution, where companies outsourced non-core functions domestically. It then explores how outsourcing expanded to include sending functions overseas to lower-cost countries. The document examines debates around outsourcing's impact on US jobs and discusses how countries like India have benefited from the growth of their outsourcing industries. Finally, it briefly touches on arguments that outsourcing provides advantages to countries by allowing them to compete globally through access to cheaper labor.
Entrepreneurship as a determinant of fdi in case of georgiaAzer Dilanchiev
Abstract
Attraction of Foreign Direct Investment (FDI) is the one of the main priorities for Georgia. Liberal investment environment and
equal approach to local and foreign investors makes country as an attractive destination for FDI. The paper focuses on relation
between entrepreneurship and FDI in case of Georgia, to find out the role that entrepreneurship takes as a determinant of FDI.
The paper empirically proves that in order to attract FDI, development of entrepreneship is vital.
An empirical assessment of the effect of corporate restructuring in the banki...Alexander Decker
This document summarizes a study that empirically assessed the effect of corporate restructuring in Nigeria's banking industry on economic growth from 1990-2009. The study found that foreign direct investment, aggregate capital to the private sector, pre-tax profits for all banks, and number of bank employees significantly influenced economic growth in Nigeria. It recommends that the Central Bank of Nigeria encourage banks to invest profits in the real economy to boost productive capacity and growth. The introduction provides background on banking industry restructuring through mergers and acquisitions in Nigeria and their theoretical drivers of economic growth.
This policy brief covers a discussion on finance for sustainable development held during a full day conference at the Stockholm School of Economics on May 11, 2015. The event was organized jointly by the Stockholm Institute of Transition Economics (SITE) and the Swedish Ministry for Foreign Affairs, and was the fifth installment of Development Day – a yearly development policy conference. With the Millennium Development Goals (MDGs) expiring in 2015, the members of the United Nations are now in the process of defining a post-2015 development agenda. The Sustainable Development Goals (SDGs) build on the eight anti-poverty targets in the MDG but also include a renewed emphasis on environmental and social sustainability. Whatever targets or goals will be agreed upon in the end, we know for certain that reaching the objectives will require substantial financial resources, far beyond the current levels of official development assistance (ODA). To discuss this issue, the conference brought together a distinguished and experienced group of policy-oriented scholars and practitioners from government agencies, international organizations, civil society and the business community.
Macroeconomics analyzes aggregate economic variables such as total output, investment, exports and the average price level rather than individual markets. It considers how these aggregates result from the activities and decisions of consumers, government and firms. The document defines key macroeconomic concepts including gross domestic product, inflation, unemployment, economic models, and the business cycle. It explains that unemployment and inflation tend to vary over the course of the business cycle, with unemployment a greater problem during contractions and inflation a greater problem during expansions.
The global pattern of foreign direct investment in recent yearsAlexander Decker
This document summarizes research on patterns of foreign direct investment (FDI) globally and factors influencing it. It discusses how FDI has shifted from developed to developing countries, especially Brazil, Russia, India, China and South Africa (BRICS). It also examines theories around why multinational corporations engage in FDI according to advantages of resources, markets, and costs. Political stability, property rights, tax policy and regulations in host countries impact FDI flows. Capital flight is another factor, as the US benefits from outflows to other nations due to the strength of the dollar.
An empirical study on the relationship between stock market index and the nat...Alexander Decker
This document discusses a study that investigates the relationship between stock market development and economic growth in Jordan from 2000-2012. It uses various econometric models including unit root tests, Granger causality tests, and cointegration analysis. The results of the Granger causality tests indicate there is unidirectional causality from stock market development to economic growth. The study aims to examine the long-run and short-run dynamics between Jordan's stock market index and real GDP.
This document summarizes a research paper that studied determinants of income inequality using top income share data from 16 countries over the 20th century. The paper finds that periods of high economic growth disproportionately increase the income share of the top 1% while reducing the share of the next 9%. Financial development also increases top shares, especially in early stages of development. Government spending reduces shares for the upper middle class but not the top 1%. Higher taxes reduce top shares significantly over the long run. Trade openness has no clear effect on inequality.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
- Macroeconomics deals with aggregate economic indicators such as output, consumption, employment, investment and price levels of an entire economy. It analyzes performance, structure and decision-making of national, regional and global economies.
- Three major macroeconomic concerns are unemployment, inflation and output growth. Unemployment refers to those without work, inflation is a sustained increase in price levels, and output growth is changes in economic activity and development.
- Macroeconomics is important for understanding how the whole economy works, evaluating overall performance through national income, analyzing causes of economic issues, and understanding individual economic unit behavior in context of aggregates.
Innovation a modern model for estimating volume of money launderingAlexander Decker
This document summarizes research on estimating the volume of money laundering using a new mathematical model. It introduces previous methods for estimating money laundering that have limitations and errors. The study applies a combination of the Bhatta charya method and arithmetic methods based on Tikhonov's regularization strategy and inverse problem to introduce a new equation for assessing the quantity of dirty money. It aims to explain economic modeling and introduce an improved method without assumptions of other approaches.
Cross country empirical studies of banking crisisAlexander Decker
1) The document analyzes factors associated with banking crises during periods of financial liberalization using a spatial Durbin model with panel data from 49 countries from 1989-1997.
2) The results suggest that financial liberalization increased the likelihood of banking crises, especially in emerging markets. Tighter restrictions on bank activities and entry also increased fragility.
3) Stronger institutions partly mitigated the effects of financial liberalization on crises. The impact of determinants differed between the full sample and emerging economies.
China goes Global: Present Theories and Future DirectionsIlan Alon
Chinese globalization is upon us. But the Chinese companies internationalization, speed of internationalization and mode of entry follow a different pattern from their Western peers. The talk will review the extant literature and theories and suggest new ways to think about and research China’s drive to global markets.
Foreign direct investment environment and economic growthnakije.kida
Abstract: This paper examines the models of economic growth and the dynamic interaction between
models from the Solow Model to New Endogenous Models. Long-term relationship of these models
is noticed to have been related in terms of causality. Model comparisons were made to examine their
dynamics which is not as complex as reflected. Results that growth is led by endogenous or
exogenous factors are not verified to be absolute but relative. Results indicate that FDI affect the
economic growth in many developing countries, but there are also many cases (developed countries)
that show that economic growth has led to a long term increase of FDI flow. It is also verified that the
impact of FDI on the environment is relative, based on the fact that there are exogenous factors that
may affect the reduction of externalities. Causal link among FDI, economic growth and their impact
on the environment makes the endogenous models be analysed with the dynamics, through which is
shown best which is the “cause-consequence” factor, that causes gaps of concepts and practices in
economic growth and environmental concerns.
To what extent foreign direct investment (fdi) affect in economic development...Alexander Decker
This document discusses research on the impact of foreign direct investment (FDI) on Pakistan's economic growth from 1975 to 2010. It finds that FDI has had a positive effect on economic growth in both the short and long run. The document reviews previous literature on the relationship between FDI and economic growth. It then describes the methodology used in the study, which analyzes the impact of FDI, reserves, inflation, and gross domestic savings on GDP. The results show that all variables are positively correlated with FDI and statistically significant. The conclusion is that FDI contributes to Pakistan's economic growth.
This document summarizes a study that investigated the impact of political environment on the business performance of multinational companies in Nigeria. The study found that political environment has a negative significant impact on business performance. Political environment refers to forces from political decisions that can alter economic outcomes. It poses risks like taxation, currency issues, and violence. The literature review discusses how an unstable political environment with risks like expropriation, domestication, and policy changes can negatively affect multinational company profits and goals.
The impact of international trade and fdi on economic growth and technologica...Springer
This document provides an overview of different theoretical approaches to international trade and foreign direct investment (FDI) and their impact on economic growth. It discusses how early neoclassical models viewed trade and FDI as having only transitory effects on growth rates. New trade theory and new growth theory introduced increasing returns to scale and imperfect competition, allowing for selection and scale effects that increase productivity. More recent extensions incorporate firm heterogeneity and selection effects of trade that increase aggregate productivity and shift market shares towards more productive firms, thus having a direct short-term impact on economic growth rates. However, these models still do not explain permanent effects on long-run growth rates. The document aims to distinguish theories that predict only medium-term impacts from those relevant
Teece's 1985 paper critiques Hymer's emphasis on market power over efficiency in analyzing multinational enterprises (MNEs). Teece argues that MNEs vary in form and motivation, pursuing both efficiency and rent extraction. He identifies three issues with Hymer's analysis: it overlooks efficiency motivations for foreign direct investment, oversimplifies host country controls on MNEs, and underemphasizes dynamic considerations like how market power and efficiency roles may change over time. Empirical literature on MNE impact is mixed, with some evidence they may increase concentration more in developing countries but also spur productivity through knowledge spillovers. FDI in Latin America is heterogeneous but centered on vertical investments, with
Effect of globalization on strategy formulation in selected banksAlexander Decker
This document discusses the effect of globalization on strategy formulation in selected banks in Anambra State, Nigeria. It begins with an abstract that outlines the study's objective to empirically determine how globalization affects strategy formulation in the banking industry. The introduction provides context on how globalization impacts various aspects of the global economy and influences strategy. It then reviews literature on both the opportunities and threats that globalization presents for banks, such as new markets but also greater competition. The conceptual framework section defines key terms like globalization and strategy formulation. It also analyzes theoretical perspectives and discusses how factors like technological advances, deregulation, and increased trade have changed the competitive landscape and necessarily impacted banks' strategies. The document aims to investigate these effects
Artykuł podejmuje zagadnienie instytucjonalnych aspektów internacjonalizacji przedsiębiorstw. Autorzy koncentrują uwagę Czytelnika na roli, jaką odgrywają formalne instytucje
w procesach umiędzynarodowienia przedsiębiorstw, w szczególności w zakresie zagranicznych
inwestycji bezpośrednich. Celem artykułu jest prezentacja oraz próba oceny polityki wsparcia
zagranicznych inwestycji bezpośrednich wychodzących z Polski po okresie globalnego kryzysu ekonomicznego 2008. Autorzy najpierw podjęli studia literaturowe w odniesieniu do instytucjonalnych aspektów umiędzynarodowienia, następnie przeprowadzili badania jakościowe
z zastosowaniem metody wywiadu bezpośredniego z reprezentantami instytucji makro- i mezoszczebla (ministerstwo, władze regionalne, organizacje otoczenia biznesu). Wywiady pozwoliły na scharakteryzowanie podmiotowego oraz przestrzennego zorientowania polityki wsparcia zagranicznych inwestycji bezpośrednich wychodzących z Polski oraz na zasygnalizowanie
wyzwań, jakie rysują się przed tą polityką po 2008 roku. Uzyskane rezultaty stanowią punkt
wyjścia do dalszych, bardziej szczegółowych badań w przyszłości.
* Projekt badawczy: No. 11430010 Small Grants Program of the International Visegrad
Fund „Outward FDI policies in Visegrad Countries”.
The document discusses the history and evolution of outsourcing in the US economy over time. It begins by looking at the initial stages of outsourcing after the industrial revolution, where companies outsourced non-core functions domestically. It then explores how outsourcing expanded to include sending functions overseas to lower-cost countries. The document examines debates around outsourcing's impact on US jobs and discusses how countries like India have benefited from the growth of their outsourcing industries. Finally, it briefly touches on arguments that outsourcing provides advantages to countries by allowing them to compete globally through access to cheaper labor.
Entrepreneurship as a determinant of fdi in case of georgiaAzer Dilanchiev
Abstract
Attraction of Foreign Direct Investment (FDI) is the one of the main priorities for Georgia. Liberal investment environment and
equal approach to local and foreign investors makes country as an attractive destination for FDI. The paper focuses on relation
between entrepreneurship and FDI in case of Georgia, to find out the role that entrepreneurship takes as a determinant of FDI.
The paper empirically proves that in order to attract FDI, development of entrepreneship is vital.
An empirical assessment of the effect of corporate restructuring in the banki...Alexander Decker
This document summarizes a study that empirically assessed the effect of corporate restructuring in Nigeria's banking industry on economic growth from 1990-2009. The study found that foreign direct investment, aggregate capital to the private sector, pre-tax profits for all banks, and number of bank employees significantly influenced economic growth in Nigeria. It recommends that the Central Bank of Nigeria encourage banks to invest profits in the real economy to boost productive capacity and growth. The introduction provides background on banking industry restructuring through mergers and acquisitions in Nigeria and their theoretical drivers of economic growth.
This policy brief covers a discussion on finance for sustainable development held during a full day conference at the Stockholm School of Economics on May 11, 2015. The event was organized jointly by the Stockholm Institute of Transition Economics (SITE) and the Swedish Ministry for Foreign Affairs, and was the fifth installment of Development Day – a yearly development policy conference. With the Millennium Development Goals (MDGs) expiring in 2015, the members of the United Nations are now in the process of defining a post-2015 development agenda. The Sustainable Development Goals (SDGs) build on the eight anti-poverty targets in the MDG but also include a renewed emphasis on environmental and social sustainability. Whatever targets or goals will be agreed upon in the end, we know for certain that reaching the objectives will require substantial financial resources, far beyond the current levels of official development assistance (ODA). To discuss this issue, the conference brought together a distinguished and experienced group of policy-oriented scholars and practitioners from government agencies, international organizations, civil society and the business community.
Macroeconomics analyzes aggregate economic variables such as total output, investment, exports and the average price level rather than individual markets. It considers how these aggregates result from the activities and decisions of consumers, government and firms. The document defines key macroeconomic concepts including gross domestic product, inflation, unemployment, economic models, and the business cycle. It explains that unemployment and inflation tend to vary over the course of the business cycle, with unemployment a greater problem during contractions and inflation a greater problem during expansions.
The global pattern of foreign direct investment in recent yearsAlexander Decker
This document summarizes research on patterns of foreign direct investment (FDI) globally and factors influencing it. It discusses how FDI has shifted from developed to developing countries, especially Brazil, Russia, India, China and South Africa (BRICS). It also examines theories around why multinational corporations engage in FDI according to advantages of resources, markets, and costs. Political stability, property rights, tax policy and regulations in host countries impact FDI flows. Capital flight is another factor, as the US benefits from outflows to other nations due to the strength of the dollar.
An empirical study on the relationship between stock market index and the nat...Alexander Decker
This document discusses a study that investigates the relationship between stock market development and economic growth in Jordan from 2000-2012. It uses various econometric models including unit root tests, Granger causality tests, and cointegration analysis. The results of the Granger causality tests indicate there is unidirectional causality from stock market development to economic growth. The study aims to examine the long-run and short-run dynamics between Jordan's stock market index and real GDP.
This document summarizes a research paper that studied determinants of income inequality using top income share data from 16 countries over the 20th century. The paper finds that periods of high economic growth disproportionately increase the income share of the top 1% while reducing the share of the next 9%. Financial development also increases top shares, especially in early stages of development. Government spending reduces shares for the upper middle class but not the top 1%. Higher taxes reduce top shares significantly over the long run. Trade openness has no clear effect on inequality.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
- Macroeconomics deals with aggregate economic indicators such as output, consumption, employment, investment and price levels of an entire economy. It analyzes performance, structure and decision-making of national, regional and global economies.
- Three major macroeconomic concerns are unemployment, inflation and output growth. Unemployment refers to those without work, inflation is a sustained increase in price levels, and output growth is changes in economic activity and development.
- Macroeconomics is important for understanding how the whole economy works, evaluating overall performance through national income, analyzing causes of economic issues, and understanding individual economic unit behavior in context of aggregates.
Innovation a modern model for estimating volume of money launderingAlexander Decker
This document summarizes research on estimating the volume of money laundering using a new mathematical model. It introduces previous methods for estimating money laundering that have limitations and errors. The study applies a combination of the Bhatta charya method and arithmetic methods based on Tikhonov's regularization strategy and inverse problem to introduce a new equation for assessing the quantity of dirty money. It aims to explain economic modeling and introduce an improved method without assumptions of other approaches.
Cross country empirical studies of banking crisisAlexander Decker
1) The document analyzes factors associated with banking crises during periods of financial liberalization using a spatial Durbin model with panel data from 49 countries from 1989-1997.
2) The results suggest that financial liberalization increased the likelihood of banking crises, especially in emerging markets. Tighter restrictions on bank activities and entry also increased fragility.
3) Stronger institutions partly mitigated the effects of financial liberalization on crises. The impact of determinants differed between the full sample and emerging economies.
China goes Global: Present Theories and Future DirectionsIlan Alon
Chinese globalization is upon us. But the Chinese companies internationalization, speed of internationalization and mode of entry follow a different pattern from their Western peers. The talk will review the extant literature and theories and suggest new ways to think about and research China’s drive to global markets.
Foreign direct investment environment and economic growthnakije.kida
Abstract: This paper examines the models of economic growth and the dynamic interaction between
models from the Solow Model to New Endogenous Models. Long-term relationship of these models
is noticed to have been related in terms of causality. Model comparisons were made to examine their
dynamics which is not as complex as reflected. Results that growth is led by endogenous or
exogenous factors are not verified to be absolute but relative. Results indicate that FDI affect the
economic growth in many developing countries, but there are also many cases (developed countries)
that show that economic growth has led to a long term increase of FDI flow. It is also verified that the
impact of FDI on the environment is relative, based on the fact that there are exogenous factors that
may affect the reduction of externalities. Causal link among FDI, economic growth and their impact
on the environment makes the endogenous models be analysed with the dynamics, through which is
shown best which is the “cause-consequence” factor, that causes gaps of concepts and practices in
economic growth and environmental concerns.
To what extent foreign direct investment (fdi) affect in economic development...Alexander Decker
This document discusses research on the impact of foreign direct investment (FDI) on Pakistan's economic growth from 1975 to 2010. It finds that FDI has had a positive effect on economic growth in both the short and long run. The document reviews previous literature on the relationship between FDI and economic growth. It then describes the methodology used in the study, which analyzes the impact of FDI, reserves, inflation, and gross domestic savings on GDP. The results show that all variables are positively correlated with FDI and statistically significant. The conclusion is that FDI contributes to Pakistan's economic growth.
The document discusses a study investigating the impact of foreign direct investment (FDI) on economic growth in Pakistan from 1990-2006. The study uses a production function model including FDI, trade, domestic capital, labor, and human capital as independent variables affecting economic growth. The expected results are a statistically significant positive relationship between real per capita GDP and FDI in Pakistan. Policy recommendations could then be made regarding FDI in Pakistan based on the results.
New Evidence on the Determinants of Foreign Direct Investments in Emerging Ma...ijtsrd
The main goal of the current study is to investigate how conventional and institutional factors affect foreign direct investment in particular global emerging markets. The study specifically seeks to determine the impact of GDP Growth, Population Growth, Level of Inflation, Trade Openness, Voice and Accountability, Rule of Law, Control of Corruption, Political Stability, and Government Effectiveness which are institutional determinants on FDI Inflows towards the Global Emerging Markets. To approach the research question a panel regression analysis has been applied by leveraging annual data from 18 countries, namely Angola, Brazil, Chile, China, Colombia, Egypt, Ghana, India, Indonesia, Malaysia, Mexico, Nigeria, Peru, Philippines, Singapore, South Africa, South Korea and Vietnam. Findings show that inflation and GDP have a significant and positive effect on the FDI inflows, while Voice and Accountability is significant but negative towards the examined variable. Manolis I. Skouloudakis "New Evidence on the Determinants of Foreign Direct Investments in Emerging Markets: A Panel Data Approach" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-2 , April 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd56212.pdf Paper URL: https://www.ijtsrd.com.com/economics/international-economics/56212/new-evidence-on-the-determinants-of-foreign-direct-investments-in-emerging-markets-a-panel-data-approach/manolis-i-skouloudakis
This document summarizes a research article that analyzes the relationship between foreign direct investment (FDI), economic growth, and good governance in OECD countries from 1996-2013. It finds that FDI, economic growth, and all proxies of institutional quality (regulatory quality, corruption control, political stability, voice and accountability, and government effectiveness) have significant positive associations with each other. A Granger causality test shows bidirectional causation between FDI and regulatory quality impacting economic growth, and unidirectional causation from other institutional quality proxies to economic growth. The results imply that maintaining high institutional quality leads to greater economic growth and FDI inflows.
Foreign Direct Investment in the former Soviet Unionrojeymiller
FDI is expected to increase economic growth in the Former Soviet Union (FSU) through mechanisms like productivity gains and technology transfers. The author constructs a model to test if FDI has a greater effect on GDP growth in FSU countries than elsewhere. Independent variables include FDI, secondary education, inflation, trade openness, and initial GDP. Regression results may help understand how to support transitioning economies and attract beneficial FDI.
USING STRUCTURAL EQUATION MODELING ON FOREIGN DIRECT INVESTMENT OF INDIAN ECO...indexPub
Purpose: Foreign direct investment (FDI) altogether influences the beneficiary country's financial development, making it more stable, high-quality, and healthy, according to this empirical study based on the present stage of economic development. Thus, every country encountering financial globalization is attempting to lay out a serious business climate to increment worldwide speculation. Design/Methodology/Approach: the main objective of this study is based on Institutional quality or Evidence and I selected 5 factors Institutional Metrics like Voice and Accountability, Civil liberties, Women in parliament, Corruption perceptions, Political rights from DPIIT website (Secondary Data) for the period 2018-2023. Static analysis methods such as the Unit Root Test, the ARDL Approach, and SEM are being used. Originality/Value: The experts in this study used OLS (Least Squares) regression: Foreign direct investment (FDI) streams were the focal point of the exploration. The impact of institutional qualities on unfamiliar direct speculation streams has been explored utilizing the customary least square methodology. Findings: Institutional metrics of government efficacy and corruption have shown a shortrun link with foreign direct investment (FDI) flows, according to the research, which used the ARDL model to find that these indicators had positive coefficient values. As far as institutional markers like law and order, administrative quality, and voice and responsibility, the review found that political stability had a long-term association with foreign direct investment flows (7.4578 > 4.16), placing it above the upper peasant table.
A Literature Review On The Relationship Between Foreign Direct Investment And...Audrey Britton
This document provides a literature review on the relationship between foreign direct investment (FDI) and economic growth. It discusses that while theories and studies have conflicting views on whether FDI boosts or hinders economic growth, most research finds that FDI can stimulate growth through technology transfers, productivity gains, and increasing capital stock and employment. However, some argue FDI may "crowd out" domestic investment or lead to external vulnerability. The document reviews several empirical studies that have found positive correlations between FDI and economic growth, technology diffusion, and domestic investment. Overall, it examines the complex debate around FDI's impact on host country economies.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Effect of public investment on economic growth in bangladeshAlexander Decker
This document analyzes the effect of public investment on economic growth in Bangladesh through econometric analysis. It summarizes previous literature finding both positive and ambiguous effects of public investment on growth. The document then describes the author's methodology, including data sources and definitions of variables like GDP, public investment (ADP), and gross capital formation (GCF). Descriptive statistics of the variables from 1973-2011 are also provided. The author's model specifies GDP as a linear function of ADP and GCF to test the relationship between public investment and economic growth in Bangladesh.
Foreign Direct Investment and Foreign Aid as Factors of GrowthNicolas Vander Meer
This document provides a literature review on foreign direct investment (FDI) and foreign aid as factors of economic growth. The key points are:
1) Recent research shows that FDI can positively impact growth through productivity spillovers from technology and knowledge transfers, as well as supply chain linkages, which can create feedback loops that attract more FDI. However, the size of these effects is difficult to measure.
2) While older studies found no effect of foreign aid on growth, more recent work shows aid can boost growth when paired with good economic policies in recipient countries. However, aid is often misallocated and could reduce poverty even more if distributed efficiently.
3) The relationships between FDI, aid
Gross domisitic investment growth effeects on growth of some micro and macro ...Alexander Decker
1) The document investigates the effect of gross domestic investment (GDI) growth on the growth of micro and macroeconomic variables in Jordan from 1987-2012.
2) It uses quantitative econometric methods, including OLS regression, Tobit regression, and Prais-Winston analysis to analyze the relationship between GDI growth and GDP growth, inflation, exchange rate, labor force, and economic policy stability.
3) The results find proportional relationships between GDI growth and GDP growth and labor force growth, and inverse relationships between GDI growth and exchange rate changes and stability of economic policies.
The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.
This document summarizes a study that examined factors affecting foreign direct investment (FDI) flows to Ethiopia from 1990 to 2011. The study used a multiple regression model to analyze the relationship between FDI inflows as a percentage of GDP (the dependent variable) and five independent variables: market size, trade openness, inflation rate, infrastructure, and human capital. Time series data from 1990 to 2011 on these variables was obtained from the World Bank and analyzed. The findings showed that trade openness and inflation rate had a significant impact on FDI flows to Ethiopia, while no clear relationship was found for market size, infrastructure, and human capital.
Relation Between Inflow Of FDI and The Development Of India's EconomyIJTEMT
1) The document examines the relationship between foreign direct investment (FDI) inflows and economic development in India. It discusses how FDI has increased in India since economic reforms began in 1991, with sectors like services, telecommunications and software attracting significant investment.
2) The paper aims to analyze the impact of FDI on India's GDP as a measure of economic development. It also examines how economic reforms have affected FDI in India and constraints to increasing FDI.
3) The document provides context on the growth of FDI globally and its potential benefits, like increasing employment, productivity, and technology transfer. However, it notes that some studies have struggled to find a definitive causal link between FDI and economic
This document discusses macroeconomic indicators that can be used to compare emerging economies. It defines emerging economies and lists some key characteristics such as undergoing economic reforms and opening markets. The document outlines several important macroeconomic indicators that will be studied, including GDP, unemployment, inflation, interest rates, and their relationships. It presents the objectives of the study as finding countries' economic potential and comparing macroeconomic factors to identify opportunities for investment or business operations.
This study aims to analyze the effect of foreign direct investment (FDI) on new job creation, and pays attention to factors interrelated to employment by using the case of Afghanistan. Using time series data form 2003 to 2017, this paper explore the driving forces and reduction potentials of employment in Afghanistan with consideration for dynamic changes within the traditional OLS and standardize OLS model. The results show that exchange rate plays a dominant role in increasing employment in Afghanistan. And exports and inflation rate plays a dominant role in decreasing employment in Afghanistan. All variables are co-integrated and the analysis of the impulse response function and variance decomposition turns out to be synchronous. Furthermore, in the short run export and inflation rate are more critical in reduction potentials of employment in Afghanistan. Policies should be advised to control inflation rate and illegal export and improve the investment projects to attract more FDI into the economy for quick adjustment purpose in case of the shock to the system.
5.[34 42]effect of foreign direct investment and stock market development on ...Alexander Decker
This study investigates the impact of foreign direct investment (FDI) and stock market development on economic growth in Nigeria from 1980 to 2009. It finds that both FDI and lagged stock market development have a small but statistically significant positive effect on economic growth. The results support the argument that extractive FDI and stock market development enhance growth. However, both FDI and stock market development show cyclical movements over time. Lagged exchange rate appreciation is also found to positively impact growth in Nigeria. The study aims to fill a gap by examining the joint impact of FDI and stock market development on growth, which has not been the focus of prior research on Nigeria.
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
Women with polycystic ovary syndrome (PCOS) have elevated levels of hormones like luteinizing hormone and testosterone, as well as higher levels of insulin and insulin resistance compared to healthy women. They also have increased levels of inflammatory markers like C-reactive protein, interleukin-6, and leptin. This study found these abnormalities in the hormones and inflammatory cytokines of women with PCOS ages 23-40, indicating that hormone imbalances associated with insulin resistance and elevated inflammatory markers may worsen infertility in women with PCOS.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
A universal model for managing the marketing executives in nigerian banksAlexander Decker
This document discusses a study that aimed to synthesize motivation theories into a universal model for managing marketing executives in Nigerian banks. The study was guided by Maslow and McGregor's theories. A sample of 303 marketing executives was used. The results showed that managers will be most effective at motivating marketing executives if they consider individual needs and create challenging but attainable goals. The emerged model suggests managers should provide job satisfaction by tailoring assignments to abilities and monitoring performance with feedback. This addresses confusion faced by Nigerian bank managers in determining effective motivation strategies.
A unique common fixed point theorems in generalized dAlexander Decker
This document presents definitions and properties related to generalized D*-metric spaces and establishes some common fixed point theorems for contractive type mappings in these spaces. It begins by introducing D*-metric spaces and generalized D*-metric spaces, defines concepts like convergence and Cauchy sequences. It presents lemmas showing the uniqueness of limits in these spaces and the equivalence of different definitions of convergence. The goal of the paper is then stated as obtaining a unique common fixed point theorem for generalized D*-metric spaces.
A trends of salmonella and antibiotic resistanceAlexander Decker
This document provides a review of trends in Salmonella and antibiotic resistance. It begins with an introduction to Salmonella as a facultative anaerobe that causes nontyphoidal salmonellosis. The emergence of antimicrobial-resistant Salmonella is then discussed. The document proceeds to cover the historical perspective and classification of Salmonella, definitions of antimicrobials and antibiotic resistance, and mechanisms of antibiotic resistance in Salmonella including modification or destruction of antimicrobial agents, efflux pumps, modification of antibiotic targets, and decreased membrane permeability. Specific resistance mechanisms are discussed for several classes of antimicrobials.
A transformational generative approach towards understanding al-istifhamAlexander Decker
This document discusses a transformational-generative approach to understanding Al-Istifham, which refers to interrogative sentences in Arabic. It begins with an introduction to the origin and development of Arabic grammar. The paper then explains the theoretical framework of transformational-generative grammar that is used. Basic linguistic concepts and terms related to Arabic grammar are defined. The document analyzes how interrogative sentences in Arabic can be derived and transformed via tools from transformational-generative grammar, categorizing Al-Istifham into linguistic and literary questions.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
A therapy for physical and mental fitness of school childrenAlexander Decker
This document summarizes a study on the importance of exercise in maintaining physical and mental fitness for school children. It discusses how physical and mental fitness are developed through participation in regular physical exercises and cannot be achieved solely through classroom learning. The document outlines different types and components of fitness and argues that developing fitness should be a key objective of education systems. It recommends that schools ensure pupils engage in graded physical activities and exercises to support their overall development.
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
This document summarizes a study examining efficiency in managing marketing executives in Nigerian banks. The study was examined through the lenses of Kaizen theory (continuous improvement) and efficiency theory. A survey of 303 marketing executives from Nigerian banks found that management plays a key role in identifying and implementing efficiency improvements. The document recommends adopting a "3H grand strategy" to improve the heads, hearts, and hands of management and marketing executives by enhancing their knowledge, attitudes, and tools.
This document discusses evaluating the link budget for effective 900MHz GSM communication. It describes the basic parameters needed for a high-level link budget calculation, including transmitter power, antenna gains, path loss, and propagation models. Common propagation models for 900MHz that are described include Okumura model for urban areas and Hata model for urban, suburban, and open areas. Rain attenuation is also incorporated using the updated ITU model to improve communication during rainfall.
A synthetic review of contraceptive supplies in punjabAlexander Decker
This document discusses contraceptive use in Punjab, Pakistan. It begins by providing background on the benefits of family planning and contraceptive use for maternal and child health. It then analyzes contraceptive commodity data from Punjab, finding that use is still low despite efforts to improve access. The document concludes by emphasizing the need for strategies to bridge gaps and meet the unmet need for effective and affordable contraceptive methods and supplies in Punjab in order to improve health outcomes.
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
1) The document discusses synthesizing Taylor's scientific management approach and Fayol's process management approach to identify an effective way to manage marketing executives in Nigerian banks.
2) It reviews Taylor's emphasis on efficiency and breaking tasks into small parts, and Fayol's focus on developing general management principles.
3) The study administered a survey to 303 marketing executives in Nigerian banks to test if combining elements of Taylor and Fayol's approaches would help manage their performance through clear roles, accountability, and motivation. Statistical analysis supported combining the two approaches.
A survey paper on sequence pattern mining with incrementalAlexander Decker
This document summarizes four algorithms for sequential pattern mining: GSP, ISM, FreeSpan, and PrefixSpan. GSP is an Apriori-based algorithm that incorporates time constraints. ISM extends SPADE to incrementally update patterns after database changes. FreeSpan uses frequent items to recursively project databases and grow subsequences. PrefixSpan also uses projection but claims to not require candidate generation. It recursively projects databases based on short prefix patterns. The document concludes by stating the goal was to find an efficient scheme for extracting sequential patterns from transactional datasets.
A survey on live virtual machine migrations and its techniquesAlexander Decker
This document summarizes several techniques for live virtual machine migration in cloud computing. It discusses works that have proposed affinity-aware migration models to improve resource utilization, energy efficient migration approaches using storage migration and live VM migration, and a dynamic consolidation technique using migration control to avoid unnecessary migrations. The document also summarizes works that have designed methods to minimize migration downtime and network traffic, proposed a resource reservation framework for efficient migration of multiple VMs, and addressed real-time issues in live migration. Finally, it provides a table summarizing the techniques, tools used, and potential future work or gaps identified for each discussed work.
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
This document discusses data mining of big data using Hadoop and MongoDB. It provides an overview of Hadoop and MongoDB and their uses in big data analysis. Specifically, it proposes using Hadoop for distributed processing and MongoDB for data storage and input. The document reviews several related works that discuss big data analysis using these tools, as well as their capabilities for scalable data storage and mining. It aims to improve computational time and fault tolerance for big data analysis by mining data stored in Hadoop using MongoDB and MapReduce.
1. The document discusses several challenges for integrating media with cloud computing including media content convergence, scalability and expandability, finding appropriate applications, and reliability.
2. Media content convergence challenges include dealing with the heterogeneity of media types, services, networks, devices, and quality of service requirements as well as integrating technologies used by media providers and consumers.
3. Scalability and expandability challenges involve adapting to the increasing volume of media content and being able to support new media formats and outlets over time.
This document surveys trust architectures that leverage provenance in wireless sensor networks. It begins with background on provenance, which refers to the documented history or derivation of data. Provenance can be used to assess trust by providing metadata about how data was processed. The document then discusses challenges for using provenance to establish trust in wireless sensor networks, which have constraints on energy and computation. Finally, it provides background on trust, which is the subjective probability that a node will behave dependably. Trust architectures need to be lightweight to account for the constraints of wireless sensor networks.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
This document discusses a study that analyzes the financial health of the Indian logistics industry from 2005-2012 using Altman's Z-score model. The study finds that the average Z-score for selected logistics firms was in the healthy to very healthy range during the study period. The average Z-score increased from 2006 to 2010 when the Indian economy was hit by the global recession, indicating the overall performance of the Indian logistics industry was good. The document reviews previous literature on measuring financial performance and distress using ratios and Z-scores, and outlines the objectives and methodology used in the current study.
Fueling AI with Great Data with Airbyte WebinarZilliz
This talk will focus on how to collect data from a variety of sources, leveraging this data for RAG and other GenAI use cases, and finally charting your course to productionalization.
Have you ever been confused by the myriad of choices offered by AWS for hosting a website or an API?
Lambda, Elastic Beanstalk, Lightsail, Amplify, S3 (and more!) can each host websites + APIs. But which one should we choose?
Which one is cheapest? Which one is fastest? Which one will scale to meet our needs?
Join me in this session as we dive into each AWS hosting service to determine which one is best for your scenario and explain why!
Generating privacy-protected synthetic data using Secludy and MilvusZilliz
During this demo, the founders of Secludy will demonstrate how their system utilizes Milvus to store and manipulate embeddings for generating privacy-protected synthetic data. Their approach not only maintains the confidentiality of the original data but also enhances the utility and scalability of LLMs under privacy constraints. Attendees, including machine learning engineers, data scientists, and data managers, will witness first-hand how Secludy's integration with Milvus empowers organizations to harness the power of LLMs securely and efficiently.
zkStudyClub - LatticeFold: A Lattice-based Folding Scheme and its Application...Alex Pruden
Folding is a recent technique for building efficient recursive SNARKs. Several elegant folding protocols have been proposed, such as Nova, Supernova, Hypernova, Protostar, and others. However, all of them rely on an additively homomorphic commitment scheme based on discrete log, and are therefore not post-quantum secure. In this work we present LatticeFold, the first lattice-based folding protocol based on the Module SIS problem. This folding protocol naturally leads to an efficient recursive lattice-based SNARK and an efficient PCD scheme. LatticeFold supports folding low-degree relations, such as R1CS, as well as high-degree relations, such as CCS. The key challenge is to construct a secure folding protocol that works with the Ajtai commitment scheme. The difficulty, is ensuring that extracted witnesses are low norm through many rounds of folding. We present a novel technique using the sumcheck protocol to ensure that extracted witnesses are always low norm no matter how many rounds of folding are used. Our evaluation of the final proof system suggests that it is as performant as Hypernova, while providing post-quantum security.
Paper Link: https://eprint.iacr.org/2024/257
Main news related to the CCS TSI 2023 (2023/1695)Jakub Marek
An English 🇬🇧 translation of a presentation to the speech I gave about the main changes brought by CCS TSI 2023 at the biggest Czech conference on Communications and signalling systems on Railways, which was held in Clarion Hotel Olomouc from 7th to 9th November 2023 (konferenceszt.cz). Attended by around 500 participants and 200 on-line followers.
The original Czech 🇨🇿 version of the presentation can be found here: https://www.slideshare.net/slideshow/hlavni-novinky-souvisejici-s-ccs-tsi-2023-2023-1695/269688092 .
The videorecording (in Czech) from the presentation is available here: https://youtu.be/WzjJWm4IyPk?si=SImb06tuXGb30BEH .
Programming Foundation Models with DSPy - Meetup SlidesZilliz
Prompting language models is hard, while programming language models is easy. In this talk, I will discuss the state-of-the-art framework DSPy for programming foundation models with its powerful optimizers and runtime constraint system.
Driving Business Innovation: Latest Generative AI Advancements & Success StorySafe Software
Are you ready to revolutionize how you handle data? Join us for a webinar where we’ll bring you up to speed with the latest advancements in Generative AI technology and discover how leveraging FME with tools from giants like Google Gemini, Amazon, and Microsoft OpenAI can supercharge your workflow efficiency.
During the hour, we’ll take you through:
Guest Speaker Segment with Hannah Barrington: Dive into the world of dynamic real estate marketing with Hannah, the Marketing Manager at Workspace Group. Hear firsthand how their team generates engaging descriptions for thousands of office units by integrating diverse data sources—from PDF floorplans to web pages—using FME transformers, like OpenAIVisionConnector and AnthropicVisionConnector. This use case will show you how GenAI can streamline content creation for marketing across the board.
Ollama Use Case: Learn how Scenario Specialist Dmitri Bagh has utilized Ollama within FME to input data, create custom models, and enhance security protocols. This segment will include demos to illustrate the full capabilities of FME in AI-driven processes.
Custom AI Models: Discover how to leverage FME to build personalized AI models using your data. Whether it’s populating a model with local data for added security or integrating public AI tools, find out how FME facilitates a versatile and secure approach to AI.
We’ll wrap up with a live Q&A session where you can engage with our experts on your specific use cases, and learn more about optimizing your data workflows with AI.
This webinar is ideal for professionals seeking to harness the power of AI within their data management systems while ensuring high levels of customization and security. Whether you're a novice or an expert, gain actionable insights and strategies to elevate your data processes. Join us to see how FME and AI can revolutionize how you work with data!
For the full video of this presentation, please visit: https://www.edge-ai-vision.com/2024/06/temporal-event-neural-networks-a-more-efficient-alternative-to-the-transformer-a-presentation-from-brainchip/
Chris Jones, Director of Product Management at BrainChip , presents the “Temporal Event Neural Networks: A More Efficient Alternative to the Transformer” tutorial at the May 2024 Embedded Vision Summit.
The expansion of AI services necessitates enhanced computational capabilities on edge devices. Temporal Event Neural Networks (TENNs), developed by BrainChip, represent a novel and highly efficient state-space network. TENNs demonstrate exceptional proficiency in handling multi-dimensional streaming data, facilitating advancements in object detection, action recognition, speech enhancement and language model/sequence generation. Through the utilization of polynomial-based continuous convolutions, TENNs streamline models, expedite training processes and significantly diminish memory requirements, achieving notable reductions of up to 50x in parameters and 5,000x in energy consumption compared to prevailing methodologies like transformers.
Integration with BrainChip’s Akida neuromorphic hardware IP further enhances TENNs’ capabilities, enabling the realization of highly capable, portable and passively cooled edge devices. This presentation delves into the technical innovations underlying TENNs, presents real-world benchmarks, and elucidates how this cutting-edge approach is positioned to revolutionize edge AI across diverse applications.
"Choosing proper type of scaling", Olena SyrotaFwdays
Imagine an IoT processing system that is already quite mature and production-ready and for which client coverage is growing and scaling and performance aspects are life and death questions. The system has Redis, MongoDB, and stream processing based on ksqldb. In this talk, firstly, we will analyze scaling approaches and then select the proper ones for our system.
In the realm of cybersecurity, offensive security practices act as a critical shield. By simulating real-world attacks in a controlled environment, these techniques expose vulnerabilities before malicious actors can exploit them. This proactive approach allows manufacturers to identify and fix weaknesses, significantly enhancing system security.
This presentation delves into the development of a system designed to mimic Galileo's Open Service signal using software-defined radio (SDR) technology. We'll begin with a foundational overview of both Global Navigation Satellite Systems (GNSS) and the intricacies of digital signal processing.
The presentation culminates in a live demonstration. We'll showcase the manipulation of Galileo's Open Service pilot signal, simulating an attack on various software and hardware systems. This practical demonstration serves to highlight the potential consequences of unaddressed vulnerabilities, emphasizing the importance of offensive security practices in safeguarding critical infrastructure.
5th LF Energy Power Grid Model Meet-up SlidesDanBrown980551
5th Power Grid Model Meet-up
It is with great pleasure that we extend to you an invitation to the 5th Power Grid Model Meet-up, scheduled for 6th June 2024. This event will adopt a hybrid format, allowing participants to join us either through an online Mircosoft Teams session or in person at TU/e located at Den Dolech 2, Eindhoven, Netherlands. The meet-up will be hosted by Eindhoven University of Technology (TU/e), a research university specializing in engineering science & technology.
Power Grid Model
The global energy transition is placing new and unprecedented demands on Distribution System Operators (DSOs). Alongside upgrades to grid capacity, processes such as digitization, capacity optimization, and congestion management are becoming vital for delivering reliable services.
Power Grid Model is an open source project from Linux Foundation Energy and provides a calculation engine that is increasingly essential for DSOs. It offers a standards-based foundation enabling real-time power systems analysis, simulations of electrical power grids, and sophisticated what-if analysis. In addition, it enables in-depth studies and analysis of the electrical power grid’s behavior and performance. This comprehensive model incorporates essential factors such as power generation capacity, electrical losses, voltage levels, power flows, and system stability.
Power Grid Model is currently being applied in a wide variety of use cases, including grid planning, expansion, reliability, and congestion studies. It can also help in analyzing the impact of renewable energy integration, assessing the effects of disturbances or faults, and developing strategies for grid control and optimization.
What to expect
For the upcoming meetup we are organizing, we have an exciting lineup of activities planned:
-Insightful presentations covering two practical applications of the Power Grid Model.
-An update on the latest advancements in Power Grid -Model technology during the first and second quarters of 2024.
-An interactive brainstorming session to discuss and propose new feature requests.
-An opportunity to connect with fellow Power Grid Model enthusiasts and users.
How to Interpret Trends in the Kalyan Rajdhani Mix Chart.pdfChart Kalyan
A Mix Chart displays historical data of numbers in a graphical or tabular form. The Kalyan Rajdhani Mix Chart specifically shows the results of a sequence of numbers over different periods.
Dandelion Hashtable: beyond billion requests per second on a commodity serverAntonios Katsarakis
This slide deck presents DLHT, a concurrent in-memory hashtable. Despite efforts to optimize hashtables, that go as far as sacrificing core functionality, state-of-the-art designs still incur multiple memory accesses per request and block request processing in three cases. First, most hashtables block while waiting for data to be retrieved from memory. Second, open-addressing designs, which represent the current state-of-the-art, either cannot free index slots on deletes or must block all requests to do so. Third, index resizes block every request until all objects are copied to the new index. Defying folklore wisdom, DLHT forgoes open-addressing and adopts a fully-featured and memory-aware closed-addressing design based on bounded cache-line-chaining. This design offers lock-free index operations and deletes that free slots instantly, (2) completes most requests with a single memory access, (3) utilizes software prefetching to hide memory latencies, and (4) employs a novel non-blocking and parallel resizing. In a commodity server and a memory-resident workload, DLHT surpasses 1.6B requests per second and provides 3.5x (12x) the throughput of the state-of-the-art closed-addressing (open-addressing) resizable hashtable on Gets (Deletes).
Monitoring and Managing Anomaly Detection on OpenShift.pdfTosin Akinosho
Monitoring and Managing Anomaly Detection on OpenShift
Overview
Dive into the world of anomaly detection on edge devices with our comprehensive hands-on tutorial. This SlideShare presentation will guide you through the entire process, from data collection and model training to edge deployment and real-time monitoring. Perfect for those looking to implement robust anomaly detection systems on resource-constrained IoT/edge devices.
Key Topics Covered
1. Introduction to Anomaly Detection
- Understand the fundamentals of anomaly detection and its importance in identifying unusual behavior or failures in systems.
2. Understanding Edge (IoT)
- Learn about edge computing and IoT, and how they enable real-time data processing and decision-making at the source.
3. What is ArgoCD?
- Discover ArgoCD, a declarative, GitOps continuous delivery tool for Kubernetes, and its role in deploying applications on edge devices.
4. Deployment Using ArgoCD for Edge Devices
- Step-by-step guide on deploying anomaly detection models on edge devices using ArgoCD.
5. Introduction to Apache Kafka and S3
- Explore Apache Kafka for real-time data streaming and Amazon S3 for scalable storage solutions.
6. Viewing Kafka Messages in the Data Lake
- Learn how to view and analyze Kafka messages stored in a data lake for better insights.
7. What is Prometheus?
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Foreign Direct Investment: It’s Role in the Economic Growth of
Transition Economies
Theresa Onaji-Benson*
Department of Economics, Federal University Lafia P.M.B. 146, Nasarawa State, Nigeria.
*Email: tidenyi@yahoo.com
Abstract
The mechanism through which Foreign Direct Investment (FDI) affects growth and vice versa is an aspect of
growth developed on in the endogenous growth model, taking into cognisance the impact of human capital and
its spill over effects on transition economies .This paper, using panel data estimation methods seeks to
understand the impact of FDI on economic growth in transition economies and how this FDI performs with the
spill over effects from human capital in the economy.
In addition, this paper also seeks to understand how the political discretion of the preferences of political actors
in a nation affects the performance of FDI on growth, focussing on the economies in transition.
Key Words: Foreign Direct Investment, Transition economies, Economic growth
Introduction
Theories on the impact of FDI on economic growth are rampant, but the empirically proven analyses have
provided varied results not in congruence with the theory. De Mello(1999) finds that FDI, only impacts
positively and significantly in OECD countries where domestic and foreign capital are treated as complements,
while Carkovic et al (2002), do not find any robust causal links between FDI and growth. Campos et al (2000)
suggests this disparity exists, as a result of theory treating FDI as technology transferred, instead of the extent to
which it surpasses just technology.
The impact of FDI runs far deeper than just the technology it attracts into the host country, the endogenous
growth model sets a framework upon which the determinants of FDI are affected by FDI and furthermore their
impact on economic growth. Previous papers have analysed the impact of FDI on economic growth through this
model using technological advancement and the human capital level (absorptive capacity) (Borensztein et al,
1995), this paper looks at the endogenous growth model through the eyes of human capital, domestic investment
and political discretion.
In this paper we seek to understand how the determinants of FDI, based on the endogenous growth model which
for the sake of this paper are the initial conditions, political stability and human capital, affect the economic
growth in transition economies.Our main finding shows that FDI significantly affects economic growth directly,
The effect of human capital on economic growth though insignificant as a stand alone, but highly significant
when you interact it with FDI as it shows a complimentary effect in line with the findings of Borensztein et al
(1995).I also find the existence of a significant relationship between political discretion of preferences of
individuals on the economic growth rate. The paper proceeds in four sections: Section II presents the
Background, Theoretical framework and literature review; Section III follows with the methodology and testing;
Section IV proceeds with the empirical results; and Section V, with the conclusion remarks.
Theoretical Framework
The framework upon which this paper is developed on, is the endogenous model of growth, it differs from the
neoclassical growth model which lays more emphasis on capital and does not differentiate between domestic or
foreign capital. The endogenous growth model is premised on the fact that growth in any economy is brought
through technological deepening which depends not only on capital as propounded by the exogenous growth
models but also on economic decisions which may include the behaviour of investment, savings, human capital,
government expenditure, level of development etc. FDI is regarded as part of the growth function through its
impact on technology and how it attracts knowledge and other spill over effects. It is a long run variable as its
effects in the economy are felt much long after the inflow it self might have been exhausted, satisfying the
endogenous growth model. The major difficulty of the traditional endogenous model is its inconsistency with
empirics on convergence, in order to include convergence; I employ one of the extensions of the endogenous
models Barro (2004). This model can combine the AK endogenous growth features with the convergence
behaviour in the neoclassical models.
The production function is therefore:
Y = F (K, L) = AK + Ω (K, L)
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Where Ω (K, L) satisfies the properties of the neoclassical production function generating convergence and the
AK part satisfies the endogenous growth model
Where:
Y=Aggregate output
K= Aggregate Capital
L= Efficiency units of Labour
A= Baseline technology (determined by the preferences of political individuals and affects the long run growth
rate)
Note that the production function above is not neoclassical because it violates one of the Inada conditions i.e.
Lim K→∞ K [∂Y/∂K] = A>0
Literature review
Foreign direct investment forms a major part of the three aspects of capital inflows into any economy, the other
two, are loans from banks and portfolio capital. Together all three aspects, are empirically understood to be one
of the factors of economic growth, capital. The role of FDI in an endogenous growth model far outweighs that
obtainable in the exogenous models as its effects are not felt only in the steady states, but throughout the period
in which it flows into the economy.
There is a lot of empirical and theoretical analysis of the impact of FDI on economic growth, earlier studies hold
that the impact on growth was negative, as most of the benefits are enjoyed by the MNC’s6
originating country,
however recent studies has shown that the gain from FDI runs deeper than profits, but is highly available in the
technological know how gained in the host country, managerial skills, employee training and human capital
enhancement (Borensztein et al,1995:Campos et al,2000). The dependency school argues that FDI benefits only
the industrial economies while the host countries suffer, however recent studies (Campos et al,2000;Borensztein
et al, 1995) have observed that the host economies also gain from the investment through knowledge spill overs
and technology. The host economies are also seen to benefit, taking the Murphy Shleifer and Vishny model into
consideration that propounds that when one firm modernizes all other firms will modernize and start to enjoy the
benefits of modernization. Research has cited the various new directions of growth recovery in transition
economies to many factors ranging from economic liberalisation, inflation stabilisation, to the initial role of
initial conditions (De Mello, 1997).
Havrylyshyn et al (2003) is of the opinion that the institutional development also affects the market environment.
De Mello (1997) suggests that economic reform can be simplified in transition economies with the change in
political structures and this change can range from institutional reforms to political constraints on individuals in
an economy. De Mello (1997) cites the importance of Institutional factors to include not, just politics and
government intervention, but also property rights, bottleneck bureaucratic procedures and the rights of foreign
firms legally. Ariun-Erdene (2009) also holds that “the economic and political dimensions of governance seem
to have a stronger positive influence on human development outcomes, with political governance having the
largest impact in the Baltics and the CEE countries”. However, Carkovic and Levine (2002) using the Arellano
and Bond GMM specification and a portfolio inflow of Capital as FDI find that there is no robust causal link
between FDI and economic growth. The growth of transition economies and the speed with which economies
successfully transition into market economies has been attributed to technological advancement resulting from
foreign capital, Campos and Kinoshita (2000) show a significant relationship between fast growth in transition
economies and foreign direct investment brought about through technological improvement.Balatsky (1999)
suggests that the solution to recession and shocks is a significantly increased foreign owned sector i.e. FDI in
transition economies.
In order to understand the role of FDI on economic growth in transition economies, we employ the endogenous
growth model, hence taking into perspective, the impact of convergence, human capital and, political discretion.
Human capital refers to the skills and capacities in an individual or work force gained through improved
education, nutrition, health and training (World Bank, 1995). This human capital is what Becker (1962) suggests
is one of the most important requirement for economic development. Transition economies, especially as they
once were centrally planned are generally enriched with a high level of human capital. Gros and suhrcke (2000)
finds that these economies have a lot higher secondary and tertiary education level than their initial per capita
6
MNC-Multinational company Multi-national Companies , One of the most common forms of foreign direct investment(
horizontal), It is more preferred to the vertical FDI as the host country stands to gain more through spill over and
technological advancement.
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GDP predicts. Barro and Sala-i-Martin (2004), Lucas (1998) and a host of others all find a significant effect of
human capital levels on economic growth. Aghion (1999) however holds that the role of human capital
development on economic growth is an important one, but its mechanism remains unclear. More so with
transition economies the impact of human capital on growth remains a topic for more research for conciseness
and clarity.
The impact of foreign direct investment on economic growth as suggested by various writers comes through the
technological advancement such foreign capital brings, however, in order for this MNC-driven technology to
bring about the needed growth a certain requisite level of human capital is required. Borensztein et al (1995)
finds that the performance of FDI far outweighs that of domestic investment, but only with a certain level of
absorptive capacity. He goes on to suggest the existence of a complimentary relationship between FDI and
human capital, determined through an interaction of FDI and human capital.7
Finally, in assessing the impact of FDI on economic growth, we look at the role of politics in transition
economies, this is one area that is been advocated for more empirical research upon, as it has become quite
glaring that the political state of a nation is a heavy determinant of the FDI inflows and also a relevant indication
as to how FDI performs in the economy. Aslund (2000) is of the opinion that the major problem inherent in post-
communist states is the misuse of public power solely for private gain; the report also suggests that for
successful transition to take place, a new state with higher constraints on political individuals need to be created.
Campos (2001) suggests that more empirical work into this area may be the enlightenment necessary to fully
understand and predict transition economies and growth. Spagat (2005) holds that returns to education lies
heavily on the politics in the economy and not only on market or foreign investments. Hess (2004) finds that
those transition countries with a more democratic outlook are closer to a successful transition, countries with
more autocratic governments are further away and countries caught in between democracy and autocracy are in a
paradox. Biglaiser and Brown (2004), on the other hand find that political stability does not affect the in flow of
FDI, but that what counts more importantly are economic reforms.8
The political implication of the ascension into
the European Union may also serve as an attraction for FDI, because of the implications (politically). Estrin and
Bevan (2000).
Methodology and Testing
Data description
In this section we describe the data employed in our analysis and their sources. It is however, important to take
note of the problem of data availability when interpreting the results, especially for the political constraint
variables. Even though the human capital variables were not entirely available, but the general year to year trend
is the same and as such missing data may not have significant effects on the data interpretation. Typically all
variables used are in growth rates, Reichart and Weinhold, (2001) suggests two reasons for this, one to control
for time invariant country specific characteristics and secondly to curb the risk of having spurious results. The
variables employed in this paper are basically consists of the explanatory variables and the control variables, but
the paper also includes variables generated from an interaction effect, according to Borensztein et al(1995) to
check for complementary or substitution relationship between selected variables.
Data and Data Sources
In the analysis, data on twenty one transition economies are gathered with time periods from 1989-2007(18
years), the choice to use a cross sectional time series data, is to control for the country specific time invariant
fixed effects (Reichart and Weinhold,2001).The choice of the twenty one transition economies is based on the
availability of relevant data and also a healthy representation of the various types of transition economies i.e.
Baltic region, Common Wealth of Independent states and the Central European Economies. The data is sourced
from the Penn World tables, UNCTAD, WBDI and the Henisz 2000 data.
The dependent variable, Economic growth rate is measured in percentages and is sourced from the PENN world
tables; it is measured as the Annual growth rate of real GDP per laspeyres2 per capita at constant prices.9
We have employed the use of logged Initial GDP per capita in all the countries across the period, It is sourced
from the Summer and Heston Penn world data table (6.3)
7
De Mello (1997)also holds that in order to justify investments and technology transfer, labour has to be well educated and
trained(human capital)
8
These results are evidenced from a case study of Latin American countries
9
Laspeyres2 per capita: Fixed based index using reference year shares, employing the use of the growth rate
of domestic absorption and applying it to the reference year domestic absorption to derive real domestic
absorption in each year(reference year -2005)
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This paper also uses the investment share as a percentage of GDP to proxy for domestic investment in the
countries, to analyse the effect of foreign direct investment and domestic investment (capital) on economic
growth. It is also available from the Summer and Heston Penn world data table (6.3)
Data for foreign direct investment as a percentage of GDP was sourced from the United Nations Conference on
trade and development statistical website (UNCTAD)
A measure of the total male secondary school enrolment rate was used to proxy for human capital; this data was
sourced from the World Bank Development Indicators (WBDI)
Finally, the variable employed in this work, to measure institutions is the political discretion measure, which
estimates the feasibility of policy change “whose strength lies in the fact that it is derived structurally from a
simple spatial model of political interaction which holds data on the alignment and heterogeneity of political
actors in the institutions”(Henisz,2002).The data was obtained from the Henisz 2000 data set, and is included in
this analysis to see the impact of political influence on the performance of foreign direct investment on economic
growth. It measures the extent to which a change in any one preference of political actors affects government
policy. The measure ranges from 0 to 1. It is calculated by subtracting the level of political constraints of
preferences of individuals from 1, where discretion is operationalized to 1, hence political constraints is equal to
0, implying that the highest level of political discretion is one and the lowest is zero. It is premised on the fact
that investors face a high level of uncertainty based on preferences of the executives or political actors.
Hypothesis, Summary statistics, and the Correlation matrix
The null hypothesis to be tested is:
Ho: No Significant relationship between FDI and growth rate in transition economies.
Ha: Significant relationship between FDI and growth rate in transition economies
Evident from the correlation matrix table above (table 2) it can be seen that the data employed in this analysis
show no serious problems of multicollinearity except where the explanatory variables have a correlation greater
than 0.50. This multicollinearity is observed between investment and the natural log of initial GDP with a
correlation coefficient of 0.5571. A high correlation is also observed between FDI and its interaction effects i.e.
0.9483 with FDIEDUC and 0.8389 with FDIPOL. High correlation is also observed between political constraint
and its interaction with FDIGDP, with a coefficient of 0.8194. All other variables employed in the analysis show
an acceptable level of correlation and are not likely to result in multicollinearity in their results.
Empirical testing
This paper is modelled closely on Aleksynka et al (2003) empirical analysis.
In order to understand the role of FDI in the economic growth of transition economies, I have divided my test
into four specifications:
• Direct effect of FDI on growth
• The role of FDI on growth taking into consideration the threshold effects of human capital, achieved by
interacting FDI and human capital (FDIEDUC).
• The role of FDI on growth considering the interaction effects of FDI and political discretion(FDIPOL)
• The impact of stage of development on the role of FDI on economic growth is by dividing my panel of
twenty one transition economies into two, panel A and panel B, where panel A consists of successfully
transitioned economies and panel B of transitioning economies
The analysis employs both the Ordinary least squares (OLS) method treating the samples as pooled data
(because we are interested in the stable difference across the cross section units) and the Generalised least
squares estimation method. We also employ the use of the “Hausmann test” to determine which of the effects
(Random or Fixed) to be used. The use of both the OLS pooled data and the GLS method is to check for the
robustness of the results.
According to the Hausmann test if the P-value is below 0.05 i.e. significant results, we should reject the null
hypothesis that there is no significant difference between the coefficients of the fixed effects model and the
random effects model, implying that the results of the fixed effects model are more valid for the estimation. If on
the other hand the hausmann test results in a P-value greater than 0.05, we cannot reject the null, hence implying
the use of the random effects model of estimation. It is imperative to note that both the fixed and the random
effects model have their own advantages, with the fixed effects model producing more consistent results while
the random effects been a more efficient estimator10
.
Empirical Results
The purpose of this paper is to understand the role of FDI on economic growth in a selection of transition
economies. The four specifications as stated in the data methodology above have resulted as follows:
10
http://dss.princeton.edu/online
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Direct effect of FDI on growth for all transition economies
The equation to estimate for this specification is11
:
grwgdpi,t
=
αi+β(L.linigdpi,t)+ξ(fdigdpi,t)+ς(invgdpi,t)+ρ(eduseci,t)+μ(poldisi,t)+єi,t
The first model employed (OLS for pooled data) showed a positive highly significant relationship between FDI
and growth. An increase in FDI as a percentage of GDP by 1% point increases the growth rate by almost 0.11%,
it is evident from the results in table 3 below that this relationship is highly significant with a 99.9% level of
significance.
The second method employed in line with the results of the Hausmann test, is the fixed effects model, this also
showed a positive highly significant relationship with a percentage point increase in FDI leading to about a 0.17%
point increase in the growth rate.
The null hypothesis that no significant relationship exists has to be rejected at a 99.9% level of significance for
both methods, the similarity of both methods in regards to FDI and growth rate could attest for the robustness of
the tests employed (Aleksynka et al, 2003).
In both regressions (table 3) we find that Initial GDP has a negative insignificant relationship with the growth
rate, this is in line with the convergence theory, where countries that are expected to grow faster are those with
lower initial GDP. However Barro (1992) suggests that there exists no convergence in transition economies
because of the difference in their technological capacities which should result in more of a divergence.
Domestic Investment in the OLS method show an insignificant negative relationship with the growth rate, while
in the generalised least squares method there exists a positive insignificant relationship. This finding
(insignificance) is in line with Havrylyshyn et al (2003) who suggests based on their own findings that output
growth has little or none to do with investment.
Human Capital shows a positive insignificant relationship in both estimation methods. This insignificancy goes
against the Nelson Phelps approach that growth should increase with increase in the level of education
The political discretion variable in the GLS method shows a positive highly significant relationship with the
growth rate, indicating that the more able a political individual is able to change laws in a state, the increase in
the growth rates of the economy. This is based on the measure of the political discretion variable which indicates
that political discretion increases as the value goes to 1 and decreases as the values go to 0 With a 1% point
increase in the political discretion of individuals resulting in a 0.129% point increase in the growth rate..12
Using
the OLS we find that even though there is a positive relationship it is not significant.
Interaction effect of human capital and FDI on growth
The equations to be estimated in this specification:
grwgdpi,t
=
αi +β(L.linigdpi,t)+ξ(fdiedui,t) +ς(invgdpi,t) + μ(poldisi,t)+єi,t …..(1)
For the purpose of the second test, I have interacted the FDI as a percentage of GDP with human capital, i.e.
FDIEDU =FDIGDP*EDUSEC..In the same empirical style employed in the first specification, both methods are
applied to the interaction between human capital and FDI, using all the other explanatory variables (equation1)
shows that a 1% point increase in the synergy between FDI and human capital results in a 0.001% point increase
in economic growth, see table 4. In this test, we have used all three estimation methods because of the results of
the Hausmann test. The resulting p-value for the Hausmann test(0.0492) is approximately 0.05,therefore the
uncertainty as to whether to reject or accept the null, We ,however find that both results of the fixed and the
random effects model are similar
The result of this test in respect to the interaction effect implies a complimentary effect between FDI and human
capital in line with the findings of Borensztein, de Gregorio and lee (1995) which suggests that only countries
with a certain level of human capital can show a positive effect of FDI on growth.
The significance of the synergy is really important as it points to the existence of spill over effects between the
two variables which could imply that the prerequisites for optimum performance of FDI lies primarily on the
level of human capital inherent in the economy with a 1% point increase in the synergy resulting in a 0.001%
highly significant increase in the growth rate for all three estimation methods.
Regressing equation 2 however shows a different result, with the OLS results showing no significance between
all the variables, but a negative relationship between the synergy and economic growth from table 5 below. This
indicates a substitution effect existent between human capital and FDI. The random effects model however,
shows a positive significant effect of political discretion, and a positive non significant effect of the interaction
between FDI and human capital.
11
The meaning of the variables are found in the appendix list of variables employed
12
The measure of the poldis variable ranges from 0 to 1,and growth rate is in percentages, hence the need to calculate the
change using proportional allocation(unitary method)
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Interaction effect of FDI and the level of political influence on economic growth
The equations to be estimated here is:
grwgdpi,t
=
αi +β(L.linigdpi,t)+ξ(fdipoli,t) +ς(invgdpi,t) +ρ(eduseci,t) +єi,t …….(1)
The interaction of FDI with political discretion is basically to see how the preferences of a political individual in
a nation affects the performance of FDI, the interaction term is generated from multiplying FDIGDP with the
POLDIS variables resulting in FDIPOL.
Using both estimation methods, we find that there is a highly significant positive effect of discretion of
preferences of political individuals on the performance and growth in transition economies, implying that one
political individual can significantly determine the state of the economy by his selfish policies. This finding
supports Drazen’s notion that “policies are the outcome of the interaction of competing individuals and groups
whose concern is their own welfare and not necessarily that of any other individuals or the society as a whole”
(Drazen, 2000).
From the empirical analyses, using both the random effects model and the OLS pooled data method and
excluding the original FDI and POLDIS variables(equation 1), I find that a 1% point increase in the synergy
result in a 0.0016% increase in the growth rate of the economy, refer to table 5 in the appendix. This indicates a
complimentary effect between the two variables, In the robustness of the results, the same conclusions can be
drawn from using the random effects GLS method, as a 1% point increase in the interaction results in a 0.0020%
increase in the growth rate. Both results show a highly significant relationship within a 99.9% level in the
random effects model and a 99% in the OLS estimation method.
I regress the variables using the fixed effects model including both the original FDIGDP and POLDIS variables
(equation 2) and as shown in table 7, I find that there exists a positive and highly significant direct effect of FDI
on growth, with a 1% point increase in FDI resulting in about 0.47% increase in growth rate. I also find that the
political discretion variable has a negative highly significant effect on growth, with 1%point increase resulting in
about 0.0075% decrease in the growth rate.
Conclusion
The essence of this study is to identify the role of foreign direct investment on economic growth in transition
economies, while taking into consideration the impact of preferences of political individuals and human capital.
We find a positive direct effect of FDI on economic growth in transition economies, implying that for transition
economies, attracting FDI will be a good way of growing the economy.
The significant complimentary relationship between FDI and human capital suggests that for FDI to perform
optimally there should exist a threshold level of human capital, this is in line with Borensztein et al(1995) results.
Transition economies need to build on their human capital, in order to improve their growth through FDI. Based
on the fact that the educational enrolment rates in transition economies are generally high, I will suggest a build-
up of human capital, through technical knowledge, on hands experience and learning by doing (De Mello, 1997)
The analysis also finds a positive significant effect of discretion of political individuals on the growth of the
transition economy. These results are not in line with Aslund (2000), who suggests that the foundation of
transition lies on a legal system that functions and binds all individuals, officials and authorities. These findings
could imply that the performance of FDI is heavily dependent on the level of political discretion of individuals,
and therefore that with more constraints on political individuals the decrease in the performance of FDI and
inevitably the fall in the growth rate. The complimentary effect existent between FDI and the political discretion
further amplifies this conclusion; however there is still need for a lot of research to understand how political
discretion and constraints affect the performance of FDI and economic growth, not only in transition economies,
but also in developing and emerging economies.
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8. Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.4, No.9, 2013
170
Appendix
List of all countries in the Panel data set
Albania Uzbekhistan
Armenia Ukraine
Belarus Tajikistan
Bulgaria Slovenia
Cambodia Slovakia
Croatia Romania
Czech Republic Poland
Hungary Moldova
Kazakhstan Lithuania
Kyrgyzstan Latvia
Laos
Meaning of variables
GRWGDP – Average growth rate
L.LINIGDP- Log of Initial GDP per capita
FDIGDP- FDI as a % of GDP
INVGDP- Investment share of GDP
EDUSEC- Male Secondary school enrolment ratio
POLDIS- Discretion of political individuals in the economy
FDIEDU-FDIGDP*EDUSEC
FDIPOL- FDIGDP*POLDIS
Table 1: Summary Statistics
Variable Mean Std. Dev. Min Max Observations
Grwgdp 3.149579 6.99047 -29.41687 17.94725 N = 363
L.linigdp 8.673324 0.8015372 7.053883 10.09299 N = 355
Fdigdp 20.84539 18.75846 0 99.83118 N = 370
Invgdp 20.85345 9.721072 2.741321 48.58349 N = 377
Edusec 86.39658 18.25255 22.33062 112.936 N = 245
Poldis 0.31528 0.2195032 0 0.67 N = 375
Table 2: Correlation matrix
grwgdp lag_linigdp fdigdp invgdp edusec poldis fdiedu fdipol
Grwgdp 1
lag_linigdp 0.0808 1
Fdigdp 0.3900* 0.3253* 1
Invgdp 0.0932 0.5571* 0.2522* 1
Edusec 0.0533 0.6298* 0.1173 0.4320* 1
Poldis 0.1648* 0.4872* 0.2817* 0.3368* 0.2273* 1
Fdieduc 0.3402* 0.4906* 0.9483* 0.3768* 0.3816* 0.3222* 1
Fdipol 0.3023* 0.4327* 0.8389* 0.418* 0.2203* 0.5991* 0.8194* 1
*values represent correlation with 95% significance
9. Journal of Economics and Sustainable Development www.iiste.org
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171
Table 3: OLS pooled and FE results for direct effects of FDI on economic growth
Test 1
(1) (2)
Grwgdp grwgdp
L.linigdp -0.4830 -3.5657
(1.3189) (2.5006)
Fdigdp 0.1087***
0.1664***
(0.02711) (0.03087)
Invgdp -0.04315 0.009630
(0.05433) (0.08995)
Edusec 0.02367 0.05166
(0.02795) (0.07460)
Poldis 3.0803 12.929***
(4.0159) (3.6341)
_cons 3.7753 22.260
(8.0917) (20.273)
N 231 231
R –square 0.1390 0.1089
Hausmann test(p-value) 0.0147
Standard errors in parentheses
*
p < 0.05, **
p < 0.01, ***
p < 0.001
(1)- OLS pooled regression results
(2)- Fixed effects GLS results
Table 4: Test 2 OLS pooled Fixed effects and Random effects results of the interaction of FDIGDP and
EDUSEC (FDIEDUC)
Test 2a: Excluding FDIGDP and EDUSEC
(1) (2) (3)
Grwgdp grwgdp grwgdp
L.linigdp -0.5547 -1.2806 -2.8451
(1.1469) (0.8916) (2.4186)
Invgdp -0.04830 -0.03979 0.006285
(0.05330) (0.05926) (0.08740)
Poldis 3.3857 6.6885**
13.604***
(3.9948) (2.5103) (3.5166)
Fdieduc 0.001130**
0.001465***
0.001766***
(0.0003069) (0.0002524) (0.0003150)
_cons 6.7221 11.024 20.574
(7.9387) (6.9631) (19.983)
N 231 231 231
R-square 0.1312 0.1277 0.1090
Hausmann test(p-value) 0.04920 0.04920
Standard errors in parentheses
*
p < 0.05, **
p < 0.01, ***
p < 0.001
(1)- OLS pooled regression results
(2)- Random effects GLS results
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ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.4, No.9, 2013
172
(3)- Fixed effects GLS results
Table 5: OLS pooled and Random effects results for the interaction effect of FDIGDP and POLDIS,
Test 3a: Excluding FDIGDP and POLDIS
(1) (2)
Grwgdp grwgdp
L.linigdp 0.1701 -0.1356
(0.9125) (0.9538)
Invgdp -0.06190 -0.04828
(0.05689) (0.06123)
Edusec 0.01135 0.02010
(0.02447) (0.03684)
Fdipol 0.1633**
0.2049***
(0.05141) (0.04769)
_cons 1.8699 3.1128
(6.0392) (6.6712)
N 231 231
R- square 0.0756 0.0744
Hausmann test(p-
value)
0.2480
Standard errors in parentheses
*
p < 0.05, **
p < 0.01, ***
p < 0.001
(1)- OLS pooled regression results
(2)- Random effects GLS results
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