Foreign direct investment : implication for economic development in Lao PDR

The study aimed to address and analyse foreign direct investment and its impact on the national economy. Statistical data were analysed, concluding that a majority of foreign direct investment (37.6-43.7%) was directed to industry, particularly the processing sector (23.7-26.3%), trade (14-15.9%), and financial activities (18.4-19.6%), while the least went to education (0.04-0.08%) and healthcare (0.2-0.3%). Most foreign direct investments inflows came from Cyprus, the Netherlands, Switzerland, Germany, and the United Kingdom. Advantages and disadvantages of attracting foreign direct investment were systematised, and key factors negatively influencing Ukrainian investment market were identified. The study explored the core components that facilitated foreign direct investment inflows as well. A definition of the term “foreign investment” was provided, implemented measures aimed to improve the investment climate, as well as the measures that need to be implemented to promote the attraction of additional foreign investment were analysed. Main statements of legislative and regulatory acts to support strategic foreign investors were systematised. Investment potential of Ukrainian promising sectors was addressed. To trace foreign direct investment dynamics, the volume of foreign direct investment in Ukraine as of 2003-2024 period was considered. Distribution of foreign direct investment by major economic sectors (2007-2024) and by country of origin was analysed. The study explored the correlation between changes in foreign direct investment levels and inflation dynamics in Ukraine using macroeconomic data and the elasticity coefficient for the 2003-2024 period. The influence of internationalisation, globalisation, and transnationalisation on foreign direct investment was addressed. The importance of foreign direct investment as a driver of Ukrainian economic development was substantiated, key challenges in managing foreign direct investment were identified, and recommendations for enhancing investment governance were proposed. The practical significance of the study is determined by the contribution to improvement of the effectiveness of foreign direct investment management and promotion of national economic welfare

Many developing and developed countries alike are striving to attract foreign direct investment because of its impact on economic development, transferring expertise, and development of mechanisms for the business models of the host economy. This research drives at studying foreign investments by analyzing their inflows and their relative importance to Egypt; identifying as well, the reasons that prevent outmost and optimal benefit by drawing on the experiments of some countries. The research also aims to examine foreign direct investment in the field of clean energy in Egypt, to study the patterns of joint cooperation between foreign investments and the various ministries and agencies in the energy field; studying as well, the obstacles that prevent some of the memorandums of understanding signed with foreign companies from being implemented. The practical side of the study is explained through the applied study by analyzing the data issued by the Ministry of Planning and Economic Development using descriptive statistical and inductive measures to test the relationship between the study variables. The results of the study showed through statistical analysis when testing the hypotheses that there is a positive significant effect between foreign direct investment and the real economic growth rate, and that it contributes to development but in a small amount due to the nature of these investments and their sectoral distribution. There is a positive non-significant impact between foreign direct investment and total exports and imports as a percentage of the gross domestic product. Its impact is negligible and poor, given that the majority of it flows into the petroleum sector. There is also a positive significant impact between foreign direct investment and total human capital as a percentage of the gross domestic product in a small percentage given that the majority of foreign investments do not require large labor. There is a negative significant effect between foreign direct investment of the inflation rate due to its sector distribution which is mostly focused in the petroleum sector and between tourism and real estate.

Data privacy and security are crucial to competitiveness in the information age, especially for Foreign Direct Investment (FDI) and firm-level competitive advantage. A systematic review and content analysis were conducted based on scientific publications. This chapter explains the intricate relationship between factor conditions, supporting industries, policies, and regulatory frameworks that contribute to its competitiveness in attracting Foreign Direct Investment (FDI). The institutional stability of data protection boosts employees' trust and reduces geopolitical and cybersecurity concerns. The approach enhances competitiveness in attracting technology-driven Foreign Direct Investment (FDI) and enables enterprises to maintain long-term profitability through secure and transparent data ecosystems. According to research, compelling data governance and privacy enable organizations to capitalize on market opportunities and mitigate risks. The chapter provides a framework for corporate leaders to integrate privacy, security, and FDI competitiveness in digital globalization.

The so called resource curse, the fact that countries rich in natural resources often show lower rates of economic growth compared to resource-poor countries, is commonly attributed to the low quality of governance in resource-rich countries. The Extractive Industries Transparency Initiative (EITI) was founded in 2003 to address this problem through increasing the quality of the public financial management of resource flows. By joining this initiative, governments show their willingness to reform and to improve their governance. As the quality of governance is an important factor for investors in deciding where to invest, this signal has the potential to improve a country’s appeal for foreign direct investment (FDI). This study shows in a panel of 81 countries that joining the EITI increases the ratio of FDI inflows to GDP on average by around two percentage points. This is a remarkable increase given that the average ratio of FDI inflows to GDP in the sample is five percent. The results are robust when controlling for selection bias due to the voluntary decision to join the initiative and possible endogeneity of the candidate variable.

Malaysia is still perceived as an important destination for foreign direct investment (FDI). Deregulation by the Malaysian government in 1986 with a new round of Pioneer status tax holidays, tax allowances for expansion projects, liberal rules for firms operating in free trade zones (FTZs), and tax exemptions are encouraging stronger FDI inflows (IFDI). IFDI flows reached a peak in 1988-1993 as export-oriented foreign multinational enterprises (MNEs) relocated manufacturing production operations to Malaysia to benefit from cheap labor, government incentives and liberal conditions for manufacturing FDI. After 1996, due to the Asian financial crisis in 1997-1998, IFDI flows into Malaysia decreased and subsequently recorded the lowest level in 2001 as a result of the world trade recession. Following steady growth in 2002-2007, IFDI in Malaysia fell dramatically in 2008 and 2009 due to the global economic crisis. However, a strong resumption in the first quarter of 2010 and government efforts, including continued liberalization of manufacturing and services, the Government Transformation Programme, promoting new key economic areas, and the active role of the Ministry of International Trade and Industry (MITI), contributed to an increase in inward FDI flows in the second quarter of 2010.

A WTO Agreement on Investment: A Solution in Search of a Problem?

Iskandar Malaysia is an advanced economic hub which is rapidly growing in the State of Johor. It has been an attractive place for Foreign Direct Investment (FDI) to invest. Many sectors are affected by the presence of FDI including the construction sector. This paper highlights the investigation on the effects of FDI to the local contractor in the Iskandar Malaysia Development. In this study, a questionnaire survey was carried out to gain the information on problems from internal factors and external factors that caused the limitation on involvement in FDI project by local contractors. 73 numbers of local contractor registered under CIDB in class G5, G6 and G7 are the respondents. Frequency analysis and Average Index Analysis are used for the results. This study provides the factors that impacted local construction players in Iskandar Malaysia Development. This study has portrayed that FDI plays a vital and significant role in spearheading the active involvement of local contractors in an urban sustainable development.

This chapter focuses on institutional configurations in host economies and examines the configurations that had a high propensity for foreign direct investment (FDI) inflows in Asian economies. While many previous studies on the relationship between FDI and growth focus on institutions in host economies, they are apt to search for one and/or best institutions. They do not perceive heterogeneous sets of linked institutions. This chapter contributes to the existing literature in a twofold manner. First, this analysis, based on multiple factor analysis, demonstrates a substantial variation in institutional configurations across Asian economies in attracting FDI. These Asian economies can be categorized into three clusters. Second, the fuzzy-set quality comparative analysis shows that two of the institutional configurations have a high propensity for FDI. The one found in Singapore relies on institutional complementarities similar to liberal market economies, while the other one, which is characteristic to Thailand, focuses on human capital formation in Asian welfare capitalism.

Trump's re-election reshaped US geopolitics and trade policy, with significant implications for Foreign Direct Investment (FDI), particularly from state-driven economies like China. Understanding how Chinese policy shapes FDI in geopolitically sensitive regions like Africa is crucial. This paper examines the interplay between traditional FDI motivations and policy influences driving FDI presence or absence in Africa. Adopting configurational theorising, we employ longitudinal, panel fuzzy-set Qualitative Comparative Analysis (fsQCA) across 46 African countries from 2012 to 2018. We find that policy/ political influences are integral to Chinese-FDI motivations. They consistently enable, accommodate, and complement traditional FDI motivations, reducing Multinational Enterprises (MNEs)’ risks and entry barriers, while fostering China’s long-term control over critical markets and resources. For Chinese-FDI combinations of motivations (pathways) drive FDI. The changes in pathways’ strength and geographical coverage are shaped by the presence of political influence and potentially reflect shifts in Chinese political priorities. We contribute to internalisation theory and OLI, by integrating policy/political drivers into location advantages to explain FDI-motivations. We showcase how Chinese MNEs utilise their ownership advantages to exploit non-market and institutional imperfections, creating internationally transferable location advantages. This supports Chinese MNEs and implements Chinese policy. The longitudinal fsQCA approach to analyse complex, evolving FDI motivations provides new insights into Chinese FDI in Africa. By addressing the nuanced role of economic diplomacy and the Chinese competitive state system, we offer practical implications for policymakers and managers aiming to attract and equitably manage Chinese-FDI, and to predict the future FDI location decisions of China to proactively manage their economic and geopolitical implications.

This paper focuses on the marketing of regions and cities within the global market for foreign direct investments (FDIs). In a context in which place marketing and place branding are employed as tools for local and regional development, this paper aims to discuss, within the broader place marketing and branding discourse, the extent to which FDI promotion has evolved in pursuit of the relative economic prosperity of local communities. In so doing, this paper investigates the evolution of FDI promotion and its degree of integration with diverse local policy domains. The cases of Ontario (Canada), Tuscany (Italy) and Western Switzerland are taken as illustrative examples of the intertwining of the three dimensions that this paper identifies as fundamental to the analysis of FDI promotion, namely (a) FDI policy generation, (b) the relationship of place branding and place marketing and (c) governance complexity. In light of the results, the relation between FDI promotion and strategic planning is discussed, by drawing attention to critical aspects of policy integration.

There is unbridled competition among countries to attract foreign direct investments (Sethi et al., 2003). Developing countries are continuously revising their legal framework and policies to prevail in such a dynamic environment. The legal framework for foreign direct investment (FDI) in Kosovo since the establishment of temporary institutions until today has undergone constant changes and amendments to persuade foreign investors for investment purposes. The efforts to address issues raised by investors have played a pivotal role by shaping the legal environment in such ways in order to lure foreign investors. The main purpose of this study is to assess the legal framework in Kosovo by comparing the post-war and post-independence periods. This study adapts qualitative methodology and uses secondary data. The research concludes that although the legal changes were aimed at attracting foreign investors, this goal is still not being realized successfully. The findings of this research are very relevant because they can greatly contribute to other countries by learning the right lessons from Kosovo’s experience that can be used for other emerging markets.

In a modern economy, investment activity is one of the main factors of economic development, structural changes and increased competitiveness. A significant part of the countries of the world strive to attract and encourage foreign investments to strengthen productive capacities and sustainable economic development. And for a foreign direct investor, the primary motive for investment is the establishment of long-term relations with the host enterprise, provided that it has a significant influence on its management, as well as increasing profits, reducing taxes, diversifying risks, etc. Currently, the main subjects of foreign direct investment in the global market are international companies and financial groups. However, in reality, foreign direct investment alone cannot guarantee the prosperity of the national economy. The latter, as a development tool, has both its advantages and disadvantages, and in the host country, they contribute to sustainable economic growth only if certain conditions are met. In this regard, the government of the host country is responsible for establishing conditions for foreign direct investment that will contribute to the long-term economic growth of that country, and not only to ensuring the profits of foreign investors. Therefore, the impact of foreign direct investment on the host country depends on many factors, such as the method of entering the market, the sources of financing for direct investment, the latter’s impact on the activities of companies operating in the host country, etc. On the other hand, regardless of the volume of foreign investment, it can also be completely useless and lead to the ruthless waste of the country’s natural resources, as well as the population’s dependence on the outside world for many years. Only with a balanced and considered approach to the joint interests of investors and the host country can it be ensured that foreign investments are effectively attracted and utilised for the benefit of the country’s economic prosperity and the improvement of the population’s living standards.

Building on a sociology theory of space, we conceptualize physical geography as separated from its constructed connotations and suggest that the impact of geographic location on countries’ attraction for foreign direct investment (FDI) is contingent upon their constructed qualities – that is, their unilateral characteristics and connectivity to other countries. Quantile regression analyses confirm these predictions and show notable variations across the distribution of FDI. The findings show that geography is not destiny and should rather be treated as an endogenous country characteristic whose consequences for FDI are subject to actions of policymakers and firms. Subsequent analyses show that the level of economic development affects the relationships between the physical and constructed consequences of geography on FDI, introducing significant differences between developed and developing countries. We outline the role for policy in shaping the contingencies that affect the relationships between geographic location and FDI.

This document describes Russia's need for foreign investment and provides advice on how foreigners can invest. The first part details the level and type of foreign investment already present in Russia, the state of the Russian economy, politics, and a summary of Russia's need for foreign direct investment (FDI). The second part gives a description of the latest trade and tax regulations and a review of the privatization process, whose recent change in direction may result in more opportunities for foreign investors. The document concludes with details of the process of investing in Russia, including the registration process, and gives short case studies of companies that have already invested in Russia.

Uzbekistan’s New Bilateral Investment Treaty Standpoint: In Case of Uzbekistan-Turkey BIT (2018)