Indian stock market has witnessed spectacular change in the recent decade. The market has undergone huge reform in the past few years. The linkage of stock market with macroeconomic variables has ...always been an area of interest among investors and policy makers. The stock market and its indicators in the form of indices, reflect the potential, the direction and health of the economy. There is an extensive group of macroeconomic variables that influences the stock prices in the share market. The stock market of emerging economy like India carries huge expectation of the investors. The Indian stock market improves with the increase in the inflow of foreign investment. FIIs investment is volatile by nature and also FIIs flows have positive and negative impact in the market as well as the economy. Hence, there is a need to determine the push and pull factors behind any change in the FIIs, so that it will become easy to frame the policies by considering the variables that attract foreign investment.. It becomes really important for any investor to understand the key economic factors which have high influence on FIIs investment Indian stock market improves with the increase in the inflow of foreign investment. Hence, there is a need to determine the push and pull factors behind any change in the FIIs, so that it will become easy to frame the policies by considering the variables that attract foreign investment. The foreign investor’s participation in Indian stock market increases the liquidity of local markets and lowers the cost of capital. It becomes really important for any investor to understand the key economic factors which have high influence on FIIs investment. Hence, an attempt has been made to analyse the factors determining behaviour of FIIs net investment.
The Civil Aviation Sector in India includes Airports, Scheduled and Non-Scheduled, Domestic Passenger Airlines Helicopter Services, Ground Handling Services, Maintenance and Repair Organizations, ...Flying Training Institutes and Technical Training Institutions. The government has issued the National Civil Aviation Policy on 2016. The Civil Aviation Sector currently contributes $72 billion to Gross Domestic Product. The National Civil Aviation Policy covers the policy areas such as Regional Connectivity, Safety, Air Transport Operation, 5/20 requirement for International Operations, Bilateral Traffic Rights, Fiscal Support, Maintenance, Repair and Overhaul, Air Cargo, Aeronautical ‘Make In India’. The Central Government announces that the foreign airlines now will be allowed to invest in domestic airlines up to 49 percent. The researcher has to study the impact of FDI Inflows in Aviation Sector in India and Annual Growth Rate of FDI Inflows in Aviation Sector in India. FDI is necessary for all stakeholders and partners to work together to maximize the benefits of air transport, and to support the sustainable growth of aviation by connecting more people and more places. Aviation has continued to expand. It has weathered crises and confirmed long-term resilience, becoming a crucial means of transport. Historically, air transport has doubled in size every 15 years and has grown earlier than most other industries. The researcher has used Statistical Tools such as, Trend Analysis, Descriptive Analysis, and Regression. The present study covers period of ten years taking from 2009-10 to 2018-19. The research paper concludes the positive growth and positive impact of FDI in Aviation Sector
What are the main tenets associated with foreign direct investment (FDI)? What research has been performed in the area of FDI to date? Which direction should research in this field proceed in the ...days to come? As there is no article with comprehensive coverage of all the studies on FDI, we review empirical research in this area between the years 1970 and 2014 as an attempt to answer these questions. We identify the advances and analytical areas of FDI research, list out the impactful research papers and authors, theoretical and methodological approaches, leading journals and variables of interest that exist in the area of FDI research. As the research into the FDI has advanced significantly over the last two decades, we have also tried to point out the gaps in the literature. Taken together, our paper highlights the heterogeneous nature of FDI across countries and firms.
Foreign direct investment (FDI) from emerging markets to developing countries has increased significantly for recent decades. Such the South-South FDI tends to behave differently from the North-South ...FDI. The rise of China's FDI (C-FDI) in Africa has generated considerable controversy. While the popular opinion in Africa about C-FDI is positive, the Western reaction often is highly negative. How does C-FDI affect Africa's economies? Do C-FDI and the North-FDI have different impacts on Africa? This paper studies the issues by using the cross-country panel data in 2003–2018. We find that benefits from C-FDI to African economies are greater than those from the North FDI, and that the promoting effects of C-FDI concentrate on host-country's exports and industrialization. Uniquely the large Chinese investment in Africa's infrastructure not only contributes overall economic growth, but also enhance host-country's absorptive capacity in attracting and utilizing foreign capital.
In the Russian economy, foreign direct investments (FDI) are distributed very unevenly between the regions. This inequality is caused by differences in the regions’ economic characteristics, as well ...as by varying effectiveness of regional policies to attract FDI. The assessment of a region’s potential to attract FDI could serve as a guide for analysing the effectiveness of local authorities in terms of creating a positive environment for foreign investors. The research focuses on constructing and assessing an econometric model of FDI determinants at the regional level. The theoretical foundation for this model is a gravity approach. We used estimates obtained with the help of Poisson’s method of quasi-maximum likelihood estimation for calculating the potential of foreign direct investments. Using the data for the period from 2015 to 2017, we identified the crucial factors influencing the inflow of foreign direct investment in Russia at the regional level: availability of the workforce, level of bureaucracy, level of income, population density, and the financial results of the regional companies. Based on the calculated potentials, we identified successful and lagging Russian regions in terms of FDI inflows. We analysed and systemised the volume of FDI inflows as well as the ratio of actual/potential FDI of the Russian regions. The largest Russian regions in terms of FDI inflows have limitations in growth because they either exceed their potential level already (Moscow oblast, Krasnodar krai, Samara oblast) or are close to it (Moscow city, Leningrad oblast, Saint-Petersburg city). At the same time, more than a half of the Russian regions (41 out of analysed 82) not only have very low potential to attract FDI inflows, but also operate at a level lower than potential. A significant increase in FDI inflows across the country may be provided by a small group of regions with medium and high levels of FDI inflows but with considerable unrealized potential. This group includes such regions as Republic of Bashkortostan, Republic of Tatarstan, Sverdlovsk oblast, Udmurt republic, KhMAO–Yugra, Orenburg oblast, and Belgorod oblast. The suggested methodology for assessing a region’s FDI potential and comparing it with actual FDI inflows can be used for goal setting for relevant regional authorities and subsequent control of their efforts to attract FDI.
Using recent survey data, this study examines the impact of firm resources, industry dynamics, and government policies on the outward foreign direct investment (FDI) motives of Chinese firms, based ...on the integrated ‘strategy tripod’ framework. The results suggest that supportive government policies are important motivators for both strategic asset-seeking and market-seeking outward FDI. Firms' technology-based competitive advantages and a high level of industry research and development (R&D) intensity tend to motivate strategic asset-seeking outward FDI, whereas firm's export experience and higher level of domestic industry competition tend to induce market-seeking outward FDI.
This note compares three different schemes to identify FDI types and documents that correlation among different classification schemes is extremely low. Empirical exercises in line with the ...proximity-concentration tradeoff hypothesis support the sales information based scheme.
•This note compares different schemes to identify FDI types.•An industry information based scheme defines horizontal (vertical) FDI as a subsidiary belongs to an industry identical to (different from) its parent’s.•A sales information based scheme classifies a subsidiary as horizontal (vertical) FDI when a subsidiary predominantly sells to local unrelated (any related) parties.•Yet another way is to directly ask a firm about its FDI motive.•Empirical exercises in line with the proximity-concentration tradeoff hypothesis support the sales information based scheme.
We study the effects of foreign direct investment (FDI) on the rate of exhaustion of bioproductive physical land. We test for differential ecological performance of FDI in developed vs. developing ...countries, as well as in “clean” vs. “dirty” sectors. We examine the impact of six sector-level FDI flows on four ecological footprints (EF): Consumption EF, Production EF, Imports EF, and Exports EF, compiled by the Global Footprint Network. We estimate a dynamic panel model incorporating an Environmental Kuznets Curve (EKC) and differentiating across country development levels. The findings are intriguing. First, High Income countries tend to experience a consumption-related ecological impact of FDI, whereas Low- and Middle-Income countries tend to experience a production-related ecological impact of FDI. Second, the burden of FDI-generated Exports EF is born disproportionately by Middle Income countries; High Income countries bear none (evidence of FDI ecological haven). Third, in High Income countries, financial services FDI reduces the Production EF (evidence of FDI ecological halo). Finally, non-financial services FDI is more ecologically damaging than manufacturing FDI.
With China’s economy gradually entering a new stage of high-quality development, how to effectively improve the level of technological innovation, rational use of foreign investment, and reduce the ...level of environmental pollution have become important tasks of China’s ecological civilization construction. This study used panel data from 30 provinces in China from 2006 to 2016, using FDI quantity and FDI quality as threshold variables, and using the Hansen nonlinear panel threshold regression model to determine whether there is an EKC curve relationship between technological innovation capabilities and environmental pollution test. The results show that there is a complex nonlinear relationship between technological innovation capability and environmental pollution when taking FDI quantity and quality as dual thresholds. When the level of FDI is low, the capacity for scientific and technological innovation aggravates environmental pollution levels, while when the level of FDI crosses a higher threshold, the capacity for scientific and technological innovation improves environmental quality. However, with a further increase of the level of FDI, the positive effect diminishes to some extent. When FDI quality is low, technological innovation capability aggravates environmental pollution levels, but the impact is not significant. With an improvement in FDI quality, the positive effects of scientific and technological innovation ability on environmental pollution are strengthened. Our results can serve as a reference for effectively promoting scientific and technological innovation and for achieving green sustainable development.
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