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Previous studies on the determinants of foreign direct investment (FDI) have predominantly focused on developed and emerging economies. However, there seem to be few studies concentrating on a comparative analysis of vast African and Asian countries. This paper analysed drivers of foreign direct investments (FDI) to Asian and African economies using a panel dataset from 1980 to 2013.This study used Granger causality test, under vector error correction modelling (VECM) to test for causality among the variables. While the drivers of FDI inflows were measured using five dimensions as proposed by Anyanwu; the dependent variable, FDI inflows, was proxied by the ratio of FDI flows to gross domestic product (GDP). Findings revealed that variables manifesting the determinants of FDI inflows positively affected FDI into these continents. Specifically, factors such as trade openness, macroeconomic condition, infrastructural development, and monetary union have positive and significant effect on FDI to Asian economies. No significant relationship was found between FDI inflows and market size to the Asian continent during the study period. On the other hand, trade openness, macroeconomic condition, market size and infrastructural development have positive and significant effects on FDI inflows to African economies although there was no significant relationship between FDI inflows and monetary union to the African continent during the study period. In fact, there were bi-directional relationships between FDI inflows and some of the determinants in both continents. Theoretically, this model provides predictive implications on improved FDI inflows, given the activities of critical variables manifesting as determinants of FDI inflows.

This study uses the annual time –series data covering the period 1970 to 2013 to analyses the effect of employment on foreign direct investment (FDI) in South Africa using the vector error correction modelling (VECM). For this purpose, the behavioural patterns and quality of data are tested and these include the unit root test using the ZAU test and as well as the Correlograms for serial correlations. The ZA unit test results show that FDI, employment, real interest rates and real effective exchange rate are integrated of order zero while inflation was found to contain unit root. The Johansen cointegration test was performed to establish the number of cointegration vectors in the model and the test provides evidence of at most one cointegrating vector. With the long-run relationship present, the possibility of having short-run shocks was done with the aid of the VECM. VECM indicates that employment affects FDI positively in the short-run. Therefore, stable and economically sound environment and sound macroeconomic fundamentals are required in order to improve attract more FDI into South Africa. DOI: 10.5901/mjss.2014.v5n20p522

The purpose of this study is to analyze the causal relationship of external debt and balance of payment with foreign direct investment (FDI) in Bangladesh for the period of 1980 to 2017 through the application of Johansen Cointegration technique, Vector Error Correction Model (VECM), and Granger Causality approach. Results of cointegration and VECM indicate a significant long-run relationship between dependent (FDI) and independent variables (external debt and balance of payment). External debt is found to have a significant negative impact on FDI in the long-run, but it is found insignificant in the short-run. In contrast, the balance of payment has a significant positive effect on FDI both in the long-run and short-run. Results of the Granger causality test reveal that there exists bidirectional short-run causality between the balance of payment and FDI; that is, both the balance of payment and FDI affect each other. But no unidirectional or bidirectional short-run causality is found between external debt and FDI. Keywords: FDI, external debt, balance of payment, cointegration, VECM, causality

The objective of this study is to investigate the influence of foreign direct investment, economic growth, international trade, Covid-19 pandemic on unemployment rates in six developing Middle Eastern and North African (MENA) countries, as well as members of the Organization of Islamic Cooperation (OIC), over period 2010 to 2021. Quantitative approaches using panel regression fixed effect model are utilized. According to the findings of this study, all of the variable used include foreign direct investment, economic growth, international trade and the Covid-19 pandemic simultaneously have a substantial impact on unemployment rate in six MENA countries. While partially, foreign direct investment, economic growth and international trade have a strong influence in declining unemployment in six MENA countries, while the Covid-19 pandemic variable has a positive relation and insignificant effect on the unemployment rate which indicates that statistically there is no significant difference of the unemployment rate in the years before and during Covid-19 pandemic. In conclusion, since the MENA countries has experienced a high concentration of unemployment particularly among youth for a long time, the government ought to concentrate more on facilitating skills training support for young people. This will ensure that the young people have added value and are qualified in the sectors and fields offered, particularly in foreign direct investment, allowing the FDI to absorb domestic workers. The youth can so, collectively, escape unemployment and enhance productivity in a country, which will also raise the GDP of the country

The subject of this research is a scientific contribution to the promotion of free trade in underdeveloped countries and developing countries, both in theoretical and practical terms. Bearing in mind that the world trade is a young scientific area that has evolved from skill through the methodology of dealing with people in organizations to forms as professions and scientific discipline. Experience shows that developing countries that have understood this and started using scientific achievements in the field of international trade business and free trade, have in practice achieved far faster development than other underdeveloped countries. The promotion of free trade in developing countries is more decades in the circles of interest for numerous economic theorists and practitioners, bearing in mind the fact that free trade is the first-rate factors of the economic development of each country. This paper presents a contribution to the analysis of the competitiveness of free trade in developing countries and persistent analysis compared to developed countries. The paper points to the importance of membership in the World Trade Organization, which entails access to the market, benefits, relief and exemption from customs duties. The starting assumption is that the competitiveness of the economy of countries that are underdeveloped or in development is at a very low level. Therefore, an increase in competition between undeveloped countries would be conditional on an increase in exports and thus developed a more favorable environment for attracting foreign direct investments. This is why the basic message of this scientific research paper is that, with cooperation with international monetary, financial and trade institutions, allow developing countries to open their markets and seize the benefits of engaging in international trade flows . Therefore, on the work of the paper a special emphasis is placed on cooperation with the World Trade Organization, the WTO. The theoretical and empirical foundation of this scientific and research work stems from the realization that investments in the development of free trade are an increasingly significant factor of growth and development of each economy. The experience shows that countries that save on these activities are the ones who are working too little for their present and not for their future. The lack of investment in the promotion of free trade is reduced in the final instance to poverty in the quality of economic development. And the quality of planting and future economic growth is based on programmed production, redistribution and allocation of quality scientific programs with calculated effects on labour productivity, savings and prosperity. Investing in improvement and cooperation with international trade institutions of the current and future leaders of undeveloped countries provides answers to evolving challenges. Improving foreign trade is one of the most cost-effective investments of an underdeveloped state. Knowledge and expertise in the field of foreign trade are the fundamental determiners of the development of the most solemn, the vreiority and the quality of human life in these countries. The entire future of one country is based on science, education and knowledge that liberate the social, economic and cultural difference.Chinese foreign direct investment in the world has long and successful tradition. Over the past decade, China has become one of the largest exporters of foreign investment in the world, including European countries. China's investment in Europe brings a number of benefits in terms of technology, know-how, improving the reputation of existing brands, establishing a logistical market in the European market. Looking from the viewpoint of the host countries, the inflow of Chinese investments brought new economic opportunities, especially in those European countries that had poor economic growth, faced with high unemployment after the Euro crisis. This paper presents global trends of Chinese foreign direct investment, the motives that have prompted Chinese investors to invest in European countries, the needs of the EU for Chinese investment, and good example of attracting Chinese investments in Serbia.

Abstract. This study examines the long-term and short-term balance relationship of GDP, Foreign Direct Investment to the performance of nonoil exports in KSA within the framework of the export-led growth (ELG) hypothesis: Evidence from ARDL, VECM and a smaller evaluation according to Vision 2030. We performed an analysis for the period from 1970 to 2019 by an autoregressive distributed lag (ARDL) model and checked the robustness of the results in the vector error correction (VECM) model. The co-integration and Toda - Yamamoto causality analysis are conducted by using two techniques of vector error correction model (VECM) and autoregressive distributed lag (ARDL). The main findings are: Foreign direct investment can increase GDP growth rates by increasing non-oil exports in the Saudi economy according to the results of the Toda - Yamamoto Causality Test; and the GDP in the Saudi economy are affected by FDI and the rates of non-oil exports, in the long and short term, and the reason is the strength of the reserves of the Saudi economy. The contribution of this research is that the outcomes found by means of econometric models can be used for predicting and measuring GDP in upcoming years, can get a guideline from this research To the economic policy makers in Saudi Arabia. Also, the dynamic interaction among FDI, non-oil exports, and economic growth is investigated using the ARDL. The ARDL co-integration results showed that GDP, FDI and non-oil exports are co-integrated, indicating the presence of a long-run equilibrium relationship between them. Besides, the results for the relationship between GDP, FDI and Non-Oil Exports are interesting and indicate that there is no significant from variables and vice-versa using Toda-Yamamoto causality. Keywords. GDP, FDI, Non-oil exports, Stationary, Toda-Yamamoto Test, VECM, ARDL. JEL. D42, D43, H21, L12, L13.

The Impact of Domestic and Direct Foreign Investment on the Economic Growth in Sudan: Evidence from Granger Causality and VAR Framework Dr. Musa Albur Abstract Foreign Direct Investment and Domestic Investment provide a crucial basis for economic development of any country. This study examines the causes and impacts of Real Gross Domestic Product (RGDP), Real Domestic Investment (DI) and Real Foreign Direct Investment (FDI) in Sudan for the period from 1990 to 2011.The importance of this study stems from the vital role of investment (domestic and foreign) in the development process through enhancing economic growth, improving infrastructure and achieving welfare. This study adopted Vector Autoregressive Model and Granger Causality Test (1969). The study depended on secondary data collected from Central Bank of Sudan and Central Bureau of Statistics. Our empirical evidence suggests that the causality directions running positively in the period (1990-2011). There is unidirectional causality of Foreign Direct Investment (FDI) to Real Gross Domestic Product (RGDP), from Real Gross Domestic Product (RGDP) to Foreign Direct Investment (FDI), from Domestic Investment (DI) to Real Gross Domestic Product (RGDP), from real gross domestic product (RGDP) to domestic investment (DI), from foreign direct investment (FDI) to domestic investment (DI), and from domestic investment (DI) to foreign direct investment (FDI). Granger causality results show that there are no statistically significant implications of the independence causality relationship between Domestic Investment( DI) and Real Gross Domestic Product (RGDP), Real Gross Domestic Product(RGDP) to Domestic Investment( DI), Foreign Direct Investment (FDI) ) to Real Gross Domestic Product (RGDP), Real Gross Domestic Product (RGDP) to Foreign Direct Investment (FDI), Foreign Direct Investment (FDI) ) to Domestic Investment(DI), and Domestic Investment ( DI) to Foreign Direct Investment(FDI). The VAR estimation shows that the coefficients of lagged RGDP significant in the regression of the RGDP, the coefficients of lagged DI significant in the regression of the DI and FDI, the coefficients of lagged DI insignificant in the regression of the RGDP, and the coefficients of lagged FDI insignificant in the regression of the RGDP.The study recommends raising more real financial resources for the purpose of investing in economic and social infrastructure as well as in oil exploration. Industrialization is highly recommended for import substitution purpose and for increasing the value added for Sudan's exports to benefit more from international trade. These require encouraging domestic saving, attraction of foreign funds to supplement the domestic component, strengthening foreign relations, and facilitating the investment procedures and thus achieving economic growth in the country. Full Text: PDF DOI: 10.15640/jeds.v7n4a9

Abstract: This chapter on "Global Business and Trade Strategies" provides a comprehensive exploration of the key concepts, economic impact, and historical evolution of global business and trade. It highlights the fundamental importance of international trade in promoting economic growth, improving efficiency, and fostering innovation. The chapter traces the historical context through an examination of early trade routes, the colonial trade era, the Industrial Revolution, and modern trade agreements like GATT, WTO, NAFTA, and TPP. The chapter delves into the drivers of global business, including economic policies, market demand, technological advancements, and cost efficiencies, and explores how globalization has reshaped business strategies to achieve competitive advantage. It analyzes the global trade environment through the lens of economic, political, legal, and cultural factors, and discusses key international trade theories such as comparative and absolute advantage. The roles of international economic institutions, trade policies, tariffs, and trade agreements are examined, along with strategies for managing cultural diversity in international business. Market entry strategies such as exporting, importing, foreign direct investment (FDI), joint ventures, strategic alliances, licensing, and franchising are thoroughly examined, with a focus on benefits, challenges, and best practices. The chapter also emphasizes global supply chain management, including logistics, risk management, and the role of technology. International marketing strategies, financial management, and legal and ethical issues are addressed, highlighting the importance of digital marketing, currency exchange mechanisms, compliance, and corporate social responsibility. The chapter concludes with case studies of successful global business strategies and a summary of key points, future trends, and recommended further reading. Keywords: Global Business,International Trade,Economic Impact,Historical Trade Evolution,Globalization,Trade Theories,Economic Indicators,International Economic Institutions,Trade Policies,Cultural Differences,Market Entry Strategies,Exporting and Importing,Foreign Direct Investment (FDI),Joint Ventures,Strategic Alliances,Licensing,Franchising,Supply Chain Management,Logistics and Distribution,Risk Management,Digital Marketing,Financial Management,Currency Exchange,Risk Management,Budgeting and Forecasting,International Trade Laws,Ethical Business Practices,Corporate Social Responsibility (CSR),Intellectual Property Rights,Case Studies,Multinational Companies,Innovation,Competitive Advantage,Sustainability and Global Business Strategies.

This research is based on the fact that the state of economic growth in Indonesia tends to fluctuate, even more often decrease. This is because the government policy is not appropriate to improve the economic growth of Indonesia. This study aims to determine and analyze the factors of foreign direct investment, inflation, international trade, and government expenditure that affect economic growth in Indonesia. The problem in this research is due to the limited fund in economic development both structure and infrastructure so that economic growth tends to decrease. Therefore, appropriate strategies must be taken to overcome the limitations in promoting economic growth. From this problem, this research aims to see how big influence of foreign direct investment (FDI), inflation (INF), international trade (NX) and government expenditure (GE) variable to economic growth. The data used in this study is secondary data (periodical data) in the period of observation 1996-2014 obtained from the World Bank and Statistics of Indonesia. To identify the influence of the variables used in this study used the VAR (Vector Autoregression) method. The results of this study show that equation regression shows that FDI (-1) has a negative influence on economic growth and FDI (-2) has a positive effect on economic growth, INF (-1) and INF (-2) have positive effects on economic growth , Variable NX (-1) has a positive effect on economic growth but NX (-2) has a negative effect on economic growth, and GE variable (-1) has a positive effect on economic growth while GE (-2) has a negative effect on growth Economy.

This research is based on the fact that the state of economic growth in Indonesia tends to fluctuate, even more often decrease. This is because the government policy is not appropriate to improve the economic growth of Indonesia. This study aims to determine and analyze the factors of foreign direct investment, inflation, international trade, and government expenditure that affect economic growth in Indonesia. The problem in this research is due to the limited fund in economic development both structure and infrastructure so that economic growth tends to decrease. Therefore, appropriate strategies must be taken to overcome the limitations in promoting economic growth. From this problem, this research aims to see how big influence of foreign direct investment (FDI), inflation (INF), international trade (NX) and government expenditure (GE) variable to economic growth. The data used in this study is secondary data (periodical data) in the period of observation 1996-2014 obtained from the World Bank and Statistics of Indonesia. To identify the influence of the variables used in this study used the VAR (Vector Autoregression) method. The results of this study show that equation regression shows that FDI (-1) has a negative influence on economic growth and FDI (-2) has a positive effect on economic growth, INF (-1) and INF (-2) have positive effects on economic growth , Variable NX (-1) has a positive effect on economic growth but NX (-2) has a negative effect on economic growth, and GE variable (-1) has a positive effect on economic growth while GE (-2) has a negative effect on growth Economy.

Recently, Indian economy has experienced strong Foreign investment flows through Foreign Direct Investment(FDI) and Foreign Portfolio Investment (FPI). It's long term trend highlighted economy has received $748.78 billion through FDI since 2014-2025 whereas FPI has been boosted by equity market gains with total FPI asset under custody hitting $858 billion. A healthy and vibrant industrial sectors of capital markets is important for development of a nation. In the present scenario, sectors of Foreign investment in Indian economy for instance Automotive, Pharmaceuticals, Information Technology (IT), Textiles, Construction, power, equity segment and assets under custody (AUC) have attracted attention of investors to invest in these Industries particularly. This paper attempted to analyse some of sectors and their impact on Industrial Development in India by foreign investors. The present study is based on quantitative data and used secondary data of annual time series. Data has been collected from the report of Reserve Bank of India, Department for Promotion of Industry and Internal Trade (DPIIT),world Bank report etc. To study the impact methods are practised such as comparative sectorial analysis, Autoregressive Distributed Lag (ARDL) and Garch model has been used to estimate volatility spillovers of FPI to sectoral output. The results indicated strong and positive long-run relationship with capital intensive, technology-based sectors hence leading to stable output growth and value addition. On the contrary, the FPI inflows showed a strong but volatile connection between FPI inflows and construction and power industries, which is highly vulnerable to market sentiment. However, it was observed from study that the investment activities in industrial sectors of FDI and FPI have had significant impact on Indian economy.

This paper identifies the impact of foreign direct investment (FDI), the real effective exchange rate and the total labor force on the exports of Pakistan. A Double lag equation model for this investigation was developed in which FDI, exchange rate and labor force play a central role. The underlying conceptual framework of this paper reveals the positive impact of FDI and Labor force on exports of Pakistan while exchange rate shows negative impact. The distinguishing feature of this analysis is to encourage FDI and Effective Labor force which contribute to export development strategies of Pakistan. To estimate the long run and short run connection among the variables, yearly data for the period ranging from 1990-2016 have been analyzed by using Johanson Co-integration and Vector Error Correction model have been applied to determine the response of variables on each other. The  result of this study shows that in the long run, FDI and Effective labor force play a vital role in the growth of Pakistan’s exports while in the short run, the influence of exchange rate are very effective for the promotion of exports. It is recommended based on the study that Government should encourage FDI & TLF when developing the policy of trade.

International Trade and Foreign Direct Investment (FDI) have grown at fast paces during the last decades. At this point, however, it is not clear whether trade and investment are regarded by firms as complementary ways of accessing other markets, or, instead, if they are employed as alternative strategies. This paper examines this issue empirically, for the particular case of Europe, an area in which commercial and economic integration has gained remarkable momentum since 1992. More specifically, it tests whether the reduction of trade barriers over time among the members of the European Union (EU) has increased not only trade flows but also FDI within those countries. A gravity model is estimated using the Hausman-Taylor estimation technique—to circumvent time invariability and endogeneity—for intra Europe FDI and, separately, for FDI to the EU members with origin in third countries. In addition to trade integration measures, this paper also analyzes the potential role of other traditional determinants of FDI, as the market size of the host country and the cost differential among home-host economies. The results suggest that EU commercial integration and FDI reinforce each other, thus being complements rather than substitutes in Europe. This effect is apparent for the intra-EU FDI and also for investment coming from countries outside the EU. Cost differentials are not as relevant as the possibility of gaining market share which leads us to conclude that in the EU the FDI pattern follows a horizontal strategy rather than a FDI vertical model.

The impact of the accelerated internationalization of the last decade on the Austrian economy is a controversial issue. Granger's concept of casuality is used to investigate one aspect of the internationalization of production: the realtionship between foreign outward direct investment and exports using aggregate flow data from the Austrian economy. The stationarity of the time series is examined and cointegration tests for the adequacy of the multivariate time series approach are performed. The estimation results suggest significant causality of Austrian foreign outward direct investment and exports in both directions. Impulse response analysis and varience decomposition show a very slow dynamic response of both variables to exogenous shocks of the other. It furthermnore indicates the possiblity of a positive effect of exogeneously increased foreign direct investment on exports and a negative effect of export shocks on foreign direct investment; however, significant long-run effects are not established.

ABSTRACT: Since 2013, China has been the main foreign direct investor in African countries. Such presence has been remarkable and noticeable through numerous infrastructure projects in Africa and facilitation of Africans' access to advanced manufacturing products, which they did not have before such as mobile phones, computers, cameras, and others. But the empirical regularity of such growth impact of Chinese foreign direct investment (FDI) has been missing. In this study, we specified linear and nonlinear models and applied them to panel data of 47 African countries over 2003–2022 using the dynamic panel data estimation – two-step system GMM to assess the Chinese FDI impact on their economies. Linear models are the most used but are unable to capture complex dynamics of the growth-FDI relationship such as the U-shaped, inverted U-shaped, and S-shaped formulations. The results of estimations indicate that Chinese FDI inflows did not affect significantly economic growth of African countries in both specifications. Further, FDI inflows from the rest of the world, human capital, its interaction with Chinese FDI, domestic investment, perception of fight against corruption, and perception of political stability did not affect significantly economic growth of those countries either. Trade, inflation, government expenditure, and financial development were the main drivers of their economic growth. Trade affected positively and significantly their economic growth, with a 1% increase in its ratio to GDP resulting in 0.01% to 0.02% increase in their per capita GDP growth rate. In contrast, an increase in inflation affected negatively and significantly their economic growth, with a 1% percent increase in their inflation rate resulting in a 0.01% decrease in their per capita GDP growth rate. Further, a 1% increase in the ratio of government expenditure to GDP caused a significant decrease of 0.04 percent of their per capita GDP growth rate. Also, a 1.00% increase in the ratio of credit to private sector to GDP in those countries resulted in a decrease in their per capita GDP growth rate of 0.01%. African countries have not yet met the preconditions for the FDI to affect their economies. Their absorptive capacity is very weak due to extremely low level of human capital, weak domestic investment, macroeconomic instability, backward financial sector, inefficient government, and low economic persistence over time. Policies to improve their readiness to FDI include massive investment in secondary education and vocational training, institutional capacity building to mobilize domestic saving, contractionary fiscal and monetary policies to reduce inflation and inefficient government expenditure, and lenders' credit default risk compensation.