The purpose of the study to evaluate the contribution of foreign direct investment (FDI) and tourism receipts (TR) to Sri Lanka’s gross domestic product (GDP). This study employs time series annual data for the period from 1978 to 2016 and EViews 10 econometrics software was used for the time series data analysis. Unit root test was done on the variables and the method chosen was the Augmented Dicky – Fuller test. Co-integration analysis was used for the long run relationship and the Granger causality test was performed to investigate the causal relationship. Recently a more conducive environment has been established after the three decade long ethnic war came to an end. In this context, the Sri Lankan government has taken positive measures to attract foreign direct investment and boost tourism in the country. This study intends to evaluate the contribution of Sri Lanka, as these two factors are considered to be very effective at increasing the GDP of a country. The empirical study shows that there is a positive and statistically significant relationship between the variable’s TR and FDI to the GDP in the long run. Results of Granger causality test implied that the two-way causality promoted the economic growth of Sri Lanka.

Global economic integration has provided good opportunities and conditions for the development of foreign direct investment in Finances. Therefore, this paper attempts to explore what determines foreign direct investment in Finances of Organization for Economic Co-operation and Development (OECD) countries. Research design, data and methodology: This paper employs the panel data over the period 2005-2017 and uses the random effect model to estimate this proposition. Results: The results indicate that the foreign direct investment in services, growth rate of GDP, interest rate and saving are positively related with foreign direct investment in finances. Conversely, the growth rate of wage and fluctuation rate of exchange rate are negatively related with foreign direct investment in finances. Moreover, the results verify that the effect of these variables on foreign direct investment in finances is different before and after 2008 (global economic crisis). In addition, the results also manifest that the regional effect exists. Namely, the effect of these variables on foreign direct investment in finances between G7 countries and G20 countries exist significant difference. Conclusions: Those variables used in this paper are related with foreign direct investment in Finances of (OECD) countries.

The paper examines the effects of Foreign Direct Investment (FDI) on the economic growth of Lao People's Democratic Republic (Lao PDR) between 1993 and 2015. The investigation is based on the influence of growth and economic absorptive capability determinants such as human capital, trade openness, and institutional quality. The methodological analysis uses a multivariate framework accounting capital stock, labor stock, FDI, human capital, trade openness, and institutional quality in regression of the Vector Autoregressive model. Augmented Dickey-Fuller unit root test, Johansen Cointegration test, and Granger Causality test were applied as parts of the econometric time-series analysis approach. The empirical results demonstrate the positive effects of FDI and trade openness, and the negative effects of human capital and institutional quality on the economic growth of the Lao PDR over the 1993 to 2015 period. The findings confirm that trade openness complemented by a sufficient level of infrastructure, education, quality institutions, and transparency significantly influence economic growth and attract more FDI. Research results lend credence to the need for the Lao PDR’s government to focus on improving its economic absorptive capability and economic competitiveness regionally and globally by improving wealth and resource management strategies, as failure to take this course of action could lead to the Dutch Disease effects.

The paper aims to investigate whether foreign direct investment (FDI) has positive effect on the labour productivity in Vietnam. Labour productivity is the elemental determinant of a country’s development level in long-term. In recent years, although increasing consistently, labour productivity of Vietnam remains low in comparison to other South East Asian countries. To identify the direction of effect and the level of effect of FDI and human capital on the labour productivity of Vietnam, Autoregressive Distributed Lag (ARDL) model was used to examine the effect of FDI and human capital on labour productivity in Vietnam from 1986 to 2014. The results of bounds test confirm the existence of cointegration among the variables. Further, the Toda and Yamamoto Granger causality test affirms that there is unidirectional causality running from foreign direct investment and human capital index to labour productivity. The empirical results provide strong statistical evidence that foreign direct investment and human capital has a positive impact on labour productivity in Vietnam in long-term. These findings imply that workers are expected to further improve their knowledge, skills and that policy-maker should establish concrete plans to increase human capital. Results from this study provide suggestion necessary for Vietnam to achieve sustainable development.

The study examines the magnitude of economic spillover and the impact of foreign direct investment (FDI) inflows on the efficiency of the bank industry in China. This study employs unit root tests, cointegration tests and cointegrating regression analysis, including fully modified ordinary least squares (FMOLS), canonical cointegrating regression (CCR) and dynamic OLS (DOLS) to test the proposed hypotheses. The sample is restricted to the period of time in which monthly data is available and comparable among variables for the period from January 2002 to October 2013 (142 observations). All of the time series data was collected and retrieved from the People’s Bank of China, China Monthly Statistics from the National Bureau of Statistics of China, and International Financial Statistics database from International Monetary Fund. The results of the Johansen cointegration test suggest that there is a long-run equilibrium relationship between FDI inflows, foreign exchange rate and banks performance in China. The results of cointegrating regression analysis using FMOLS, CCR and DOLS suggest that M2 supply and FDI inflows are significant at the 0.01 level. The results confirm that FDI inflows in the banking sector are positively related to the increase of banks productivity and performance and short-term loans in China. However, the results suggest that Chinese Yuan currency exchange rate to U.S. dollar is not significant in the banking and financial industry of China.

중국 2014년 전체 해외직접투자액이 1231.1 억 달러로 미국과 홍콩에 이어서 세계 3위를 기록하였 다. 앞으로 중국의 해외직접투자는 장기적인 성장세를 이어갈 것으로 예상되며 해외자본스톡 규모가 확대됨에 따라 중국의 국제무역에 미치는 효과도 함께 커질 것으로 전망된다. 따라서 본 연구는 중국 해외직접투자가 중국 무역에 미치는 효과를 살펴보기 위해 실증적으로 분석하였다. 분석결과는 해외 직접투자는 수출과 수입을 모두 증대시키는 것으로 드러났다. 즉 중국의 해외직접투자 금액이 1% 증 가할 때 수출은 0.085%, 수입은 0.028% 증가하는 것으로 나타났다. 이는 중국 기업들은 현지시장 진 출을 목적으로 현지국에 투자할 때 국내에서 중간재나 부품을 조달하여 현지에서 완제품을 생산하므 로 국내 수출이 해외투자와 보완관계에 있지만 생산 이후 현지시장에 판매하므로 국내로의 역수입에 대한 영향이도 존재하는데 이 수입효과가 수출효과보다 크지 않는 것을 판단할 수 있다. 즉 전체적으 로 보면 중국 해외직접투자가 무역수지를 개선할 수 있다는 것을 알 수 있다. 한편, 지역별 분석결과 를 살펴보면 동부와 중서부지역에서도 무역개선효과가 존재하는데 동부지역의 수출/수입에 보완효과 가 중서부보다 비교적 현조하다는 것을 알 수 있다.

Foreign Direct Investment (FDI) plays a vital role in economic growth of the countries. The present study analyses the impact of the FDI on economic growth of South Asian Association of Regional Cooperation countries by using the pooled data for the period 1990-2014. Neo-classical production function has been used for analysis and getting stock-to-flow estimation, Taylor series approximation has applied. Fixed Effects Model has been used to investigate the impact of FDI, domestic capital, labour and government expenditures on economic growth. It is the evident from the results that both domestic investment and FDI have been a positive effect on economic growth. The study finds that the contribution of domestic private investment is more trustworthy than the contribution of FDI. Consequently, FDI loses its attraction as an engine of growth if the adverse balance of payment consequence of the resulting profit repatriating is also taken into account. The labour has positive and significant association with GDP. The effect of government expenditure is negligible on economic growth. The findings suggest that growth strategy cannot yield the long term benefits if it neglects investments on human capital.

This paper investigates announcement effects of the outward foreign direct investment (FDI) projects of the Korean multinational companies. Although the FDI is considered corporate activity that can provide various benefits beyond financial resources, the most previous research focused on macro analysis such as country-level and industry-level analysis instead of the firm-level study, which is required to decide the investment project from a management perspective. Thus, this study examines the relationship between the outward FDI activities of the Korean corporations and their financial performance to fill the gap in this area.

Purpose – This paper aims to find and analyze factors that determine the flows of bilateral foreign direct investment in intra- ASEAN. It specifically focuses on the dimension of macro- economic, natural resources, human resources, and the quality of governance. Research design, data, and methodology – Data were collected from 64 bilateral relations between ASEAN nations from 2002 to 2013. Panel gravity model was utilized to find factors that determine the flows of bilateral foreign direct investment. Results – Significant factors were identified that determine the flows of bilateral foreign direct investment: GDP home country, GDP host country, real interest rate, distance, and total natural resources rent. Unexpectedly, natural resources have a negative effect. Conclusions – In a situation of increasing the flow of FDI among the countries of ASEAN, the government should control the interest rates and maintain good relations with nearby countries. The negative effect of total natural resource rents implies that ASEAN countries should not depend on their natural resources to attract foreign investments.

FDI in China begins in 1979 with China's reform and opening-up, which has brought China a great progress in the economic development up to now. For the sake of attracting FDI to China, Chinese government has built several special economic zones around coastal areas and the scale of FDI in China has been greeting its prosperous time since China's entry into WTO in 2001. In 2002, China firstly surpassed the USA and ranked as the first in the world with 52.7 billion dollars of annual FDI. More recently, the actual FDI in 2012 in China was 111.7 billion dollars, making a great contribution to China's economic development. With the guidance of government, most of the FDI focused on the coastal areas in east of China during the past 30 years. However, in order to reduce the regional differences, narrow the wealth gap, the FDI in major eastern cities and coastal areas has been gradually transferred to the central and western regions of China. This study makes a positive analysis on the determining factors of FDI site selection in China, according to the data provided by 29 provinces in the past 28 years. This analysis focuses on all the east, central and west regions of China. The results of regression analysis indicate that: 1. In a national scope, the FDI in China is proportional to the GRDP and export, but inversely proportional to salaries and students percentage.2. In the eastern, central and western local scope, the FDI in this three regions is all proportional to the GRDP and the percentage of secondary industry, but inversely proportional to salaries and students percentage. Additionally, the FDI is proportional to the export in east of China, while that is not obvious in central and western regions.3. The study on the three-region interactions shows that the FDI in three regions are proportional and the closer the locations are, the deeper the influence is. Therefore, the conclusion is that relationship of the three regions is not competitive but mutually promotive.