A contribution of foreign direct investment,clean energy,trade openness,carbon emissions and economic growth to energy demand in UAE

This paper investigates the relationship between foreign direct investment, clean energy, trade openness, carbon emissions and economic growth in case of UAE covering the period of 1975Q1–2011Q4. We have tested the unit properties of variables in the presence of structural breaks. The ARDL bounds testing approach is applied to examine the cointegration by accommodating structural breaks stemming in the series. The VECM Granger causality approach is also applied to investigate the causal relationship between the variables. Our empirical findings confirm the existence of cointegration between the series. We find that foreign direct investment, trade openness and carbon emissions decline energy demand. Economic growth and clean energy have positive impact on energy consumption.     

The nexus among foreign investment,domestic capital and economic growth: Empirical evidence from the MENA region

The objective of this paper is to estimate an econometric model for analyzing the interrelationship among foreign direct investment, domestic capital and economic growth in 13 MENA countries by using a ‘growth model’ framework and simultaneous-equation models estimated by the generalized method of moments (GMM) during the period 1990–2010. Our empirical results show that there is bi-directional causal relationship between foreign investment and economic growth, as well as domestic capital and economic growth, and there is uni-directional causal relationship from foreign direct investment to domestic capital for the region as a whole.     

Foreign Direct Investment,Female Education,Capital Formation,and Economic Growth in Japan and South Korea

ABSTRACT

The influence of foreign direct investment (FDI) on host country‘s economic growth is a widely explored issues in the existing economic literature. This study attempts to examine the role of foreign direct investment, capital formation, and expansion of female education on economic growth of Japan during the period 1971–2014, using time series observations. The study further makes a comparison regarding the association with FDI and economic growth with South Korea, another major OECD economy of Asia The study utilises the auto-regressive distributed lag (ARDL) bounds approach to cointegration to examine the long run causality association among the variables. Today, for sustainable economic development the social and institutional policy issues are important. The paper explores one such social issue, namely gender and economic prosperity. This paper has novel contributions in the current research on time series, econometric analysis for the following reasons: (1) it has investigated the relationship between economic growth, foreign direct investment and capital formation in a gendered differential framework (utilising the role of human capital formation among men versus women; (2) the study covers a long period and more recent time period (till 2014), which concurs with the upsurge of world FDI movements and (3) the study also explores the major structural breaks of the two economies and how economic growth is impacted thereof.     

外商直接投资与经济增长关系研究

选取1983～2010年的数据,运用协整检验和误差修正模型研究外商直接投资与经济增长之间的关系,研究表明:(1)1983～2010年两者之间没有明确的长期均衡关系,原因在于我国引进外资政策和外商直接投资规模的阶段性特征明显。(2)根据两个时间序列的图形特征及邹氏参数稳定性断点检验将整个样本期以1994年为界分为两个子样本,两个子样本期内两者之间存在长期协整关系,短期内当外商直接投资规模偏离经济增长时,经济系统将分别以-0.2908和-0.0263的力度将其拉回均衡状态。(3)格兰杰因果检验表明,FDI促进了经济增长,但经济增长对吸引更多外资的作用不显著。提出了改善外商投资环境、加强外资的产业与区域导向和拓宽引进外资的渠道等政策建议。     

外商直接投资与河北省产业结构调整

改革开放以来,外商直接投资对经济增长与产业结构的提升起到了重要的推动作用。近年来,河北省利用外商直接投资规模虽不断增大,但利用外资与产业结构调整之间在某些方面还不协调,应从改变投资方式,引导外资流向,改善投资环境等几方面加以改进,以进一步促进产业结构的优化升级。     

Foreign Direct Investment and Economic Growth: Theory and Application to China

The paper investigates the relationship between foreign direct investment and economic growth. A model of endogenous growth first highlights the transfer of foreign technology as a key determinant of economic growth, and suggests that economic growth may conversely influence the inflows of foreign capital. Simultaneous-equation model estimation based on a sample of 24 Chinese provinces, from 1985 to 1996, confirms the fundamental role played by foreign investment in provincial economic growth in China, and stresses the importance of potential growth in foreign investment decisions.     

Regional analysis of the impact of inward foreign direct investment on economic growth in the Chinese electronic industry

This article empirically investigates the impact of inward foreign direct investment (FDI) on regional economic growth in the Chinese electronic industry (CEI). Utilizing a provincial-level panel data spanning the period 1989 to 2009, we specify and estimate an endogenous economic growth model for the CEI. Empirical results indicate that, for the coastal region, FDI inflows have been growth enhancing, while in the central and western regions the impact of FDI on economic growth is mixed, depending on the channel of capital flow. Results also indicate that exports, human capital, science and technology investment and fixed asset investment are growth enhancing, while unemployment and foreign R&D investment are growth impeding in the CEI.     

Foreign aid,external debt and governance

This paper investigates the impact of foreign aid, external debt and governance on the economic growth by extending the Ramsey–Cass–Koopman's growth model in an open economy framework. Steady-state and short run analysis shows that external debt and foreign aid do not affect the growth rate of consumption but have level impact on consumption. Foreign aid and governance encourage the economic growth but external debt creates a burden on the economy. Both investment and saving are independent of external debt and thus the current account surplus. Foreign aid does not affect investment directly but it has a direct positive impact on the savings in the economy. Therefore, it is argued that improvements in the quality of governance will stimulate the output and consumption rapidly and it acts like a catalyst.     

对外开放与中国经济增长关系的实证研究

Based on an adjusted Solow economic growth model, using econometric tools such as cointegration test and Granger causality test, taking the economic factors such as foreign trade and foreign investment into account, this paper makes regression analysis on the effect of economic opening on China’s economic growth by using the data from 1985 to 2004. The analysis indicates that the domestic capital input is still the primary element that promotes China’s economic growth, by contrast, the effect of foreign trade and foreign investment is faint. It is a bidirectional causality between foreign trade and economic growth, and the adjusting velocity of trade is larger than the foreign direct investment on the balance of the China’s long-time economic growth.      

How foreign investments contribute to economic growth of industrial parks in China: a production-frontier decomposition approach

We study the importance of foreign direct investment for economic growth of 52 Chinese industrial parks from 2007 to 2015. For this task, we extend a production-frontier methodology, specially designed to decompose economic growth into different sources, to take two types of capital into account. Our results reveal that foreign capital is necessary for boosting economic growth of the parks, but domestic capital played the main role.     

Foreign direct investment and economic growth: Is more financial development better?

We investigate the extent to which an increase in financial development affects the positive effect of foreign direct investment on economic growth. Although the financial sector is beneficial for economic growth, the effect of further financial development on growth is found to become insignificant. Using a dynamic panel threshold model on 62 middle- and high-income countries spanning the period 1987–2016, we re-examine the possible nonlinearity between finance, foreign direct investment, and growth. Consistent with the “vanishing effect” of financial development, we find significant evidence that foreign direct investment fosters growth in general, but the growth effect of foreign direct investment becomes negligible when the ratio of private sector credit to gross domestic product exceeds 95.6%. This finding is robust to different econometric methods, various subsamples and interaction analyses, and distinct financial development indicators.     

Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU

This article aims at analysing the issue of conditional convergence in the new enlarged European Union (EU) over the period 1995–2012 by means of panel data techniques. We examined the issue of conditional convergence in the enlarged EU giving particular attention to the effects of corruption and bureaucracy on growth controlling for a widely used set of explanatory variables such as investment (domestic and foreign), human capital formation, inflation, general government final consumption and trade openness. Furthermore, we examine if growth responds differently to corruption and bureaucracy in the new EU members by means of two group-specific interaction variables to capture possible different responses to corruption and bureaucracy. The analysis reveals evidence of conditional convergence in the enlarged EU, with investment share, foreign direct investment, human capital, and country openness appearing as robust growth drivers. In contrast, inflation and government consumption rather hamper growth. Furthermore, the effects of corruption and bureaucracy on growth seem to differ across old and new EU members.     

Empirical evidence regarding electricity consumption and urban economic growth

Links between electricity consumption and economic growth are fairly well documented for national economies, but less so for urban economies. The analysis of such relationships at the sub-national level of aggregation can potentially offer a useful complement to national-level research. This study examines the electricity-growth nexus in El Paso, Texas, while also considering the roles of capital stocks and employment. Testing suggests the presence of cointegrating relationships and a vector error correction model is estimated. Granger causality tests reveal the absence of causality between electricity consumption and personal income, implying that energy conservation efforts will have a neutral effect on economic growth. Furthermore, the results indicate that causality runs from the capital stock and employment to both personal income and electricity consumption. This echoes previous research regarding the importance of accounting for capital and labour factors of production in studies of aggregate electricity utilization and economic performance. The methodology used in this analysis to develop a broad synthetic measure of the urban capital stock, including various categories of public infrastructure, can also be applied to other regions and urban economies.     

Is energy consumption sensitive to foreign capital inflows and currency devaluation in Pakistan?

This study investigates the relationship between foreign capital inflows and energy consumption by incorporating economic growth, exports and currency devaluation in energy demand function for the case of Pakistan. The long-run and short-run effects are examined via ARDL bounds testing procedure. Foreign capital inflows and currency devaluation (economic growth and exports) decrease (increase) energy consumption in long-run. The results confirm a feedback effect between foreign capital inflows and energy consumption. These findings would be helpful to policy makers in designing comprehensive economic and energy policies for utilizing foreign capital inflows as a tool for optimal use of energy sources to enhance economic development in long run.     

Assessing the Impacts of Capital Inflows on Domestic Economy across the Sub-Saharan Africa Countries

Using GMM models, this paper analyzes the impacts of capital inflows on domestic investment in 44 Sub-Saharan Africa (SSA) countries from 2003–2012. It is found that foreign direct investment across the SSA remains to be the largest percentage share, accounting for 35% of the total capital inflows. FDI inflows have significant positive impacts on domestic investment across the SSA in both short term and long term. Other key macroeconomic factors such as age dependency ratio, domestic economic growth, terms of trade, real effective exchange rate and trade openness also play vital roles in determining domestic investment.     

International Technology Diffusion and the Growth of TFP in the Manufacturing Sector of Developing Economies

This paper evaluates various channels through which foreign technology diffuses to the manufacturing sector of developing economies. These economies undertake virtually no own R&D, so they rely on foreign technology to a much larger extent than developed economies. We investigate the direct effect of foreign R&D, as well as technology embodied in imports of intermediate and capital goods and foreign direct investment, on the growth of total factor productivity and value added in the manufacturing sector of 32 economies during 1965–92. We find that foreign R&D typically has the biggest positive impact on domestic productivity and value‐added growth. Imports of capital goods and foreign direct investment also play a similar role, but their effect is of smaller magnitude and is not always significant.     

FDI inflows,economic growth,and governance quality trilogy in developing countries: A panel VAR analysis

This study provides evidence of the triangular relationship between governance quality, foreign direct investment, and economic growth. Unlike previous studies in the governance—foreign direct investment—growth literature, this study employed the panel vector autoregressive model to examine the impact of governance quality and foreign direct investment on economic growth. Moreover, we used the impulse response function tool, which was developed in the same context, to better understand the reaction of the two main variables of interest, foreign direct investment, and economic growth, after shocks to the governance quality variable. Finally, the analysis was completed by the variance decomposition of all variables. These analyses were conducted for 102 developing countries from 1996 to 2014. Overall, the results show that inward foreign direct investment has a significant impact and can strongly encourage economic growth. These results indicate that the quality of governance in developing countries does not affect foreign direct investment and economic growth.     

Is international tax competition only about taxes? A market-based perspective

This paper revisits tax competition among governments for foreign direct investment (FDI) by considering the role played by the economic dynamism of competitors on the setting of corporate tax rates (CTRs). Using a database with worldwide coverage over the period 1995–2014, we find that strong growth performance of neighbouring countries is associated with a lower CTR, especially in developed countries. This spatial effect is particularly manifest if competing countries are large and open to capital flows. These results appear to hold in most regions of the world and suggest that governments perceive foreign economic dynamism as a threat, leading them to reduce their CTRs to maintain their FDI attractiveness.     

我国高耗能行业电力消费中长期发展潜力预测

利用1985—2009年的年度数据,对我国高耗能行业用电量与GDP、行业产值、行业投资、城市化水平、行业投资结构等之间的相关关系进行了实证研究,采用情景分析法对2011—2020年7个情景下的我国高耗能用电的发展潜力及行业发展前景进行了预测。结果表明:高耗能用电与宏、微观经济变量之间存在长期均衡和短期偏离关系;城市化水平、高耗能行业投资结构是影响高耗能用电的重要因素;高耗能用电对GDP的发展速度比较敏感,在高耗能行业的投资与产值保持目前增长速度的情景下,高耗能用电走势与基准情景比较接近;2011—2020年高耗能行业继续发挥对经济的拉动作用,但巨大的资源消耗与能源环境代价呼唤高耗能行业进行绿色转型。