Author: Antoine Niyungeko
Publisher: GRIN Verlag
ISBN: 3346248224
Category : Business & Economics
Languages : en
Pages : 23
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Scientific Study from the year 2020 in the subject Economics - International Economic Relations, , language: English, abstract: This study aims identifying the mediation effect of export in the relationship between FDI and GDP in low and middle low-income African countries. The study uses correlation analysis, Baron and Kenny method, Bootstrap procedure and Sobel test to investigate the significance of the indirect effect. The relationship between foreign direct investment (FDI) inflows, exports and economic growth as measured by gross domestic product (GDP) has been a global interest of academics and policy-makers, but research methods did not allow the characterization of the indirect mediating effects that exports have on that relationship. The result of the analysis shows a partial mediation of exports in the relationship between FDI and GDP. The study demonstrates the indirect effect caused by FDI through export. It is therefore recommended that low and middle low-income African countries should stimulate foreign direct investment to boost their exports, and gross domestic product. Additionally, these countries should find new ways of financing exports as FDI are predicted to fall due to the Covid-19 pandemic during 2020.
Author: Antoine Niyungeko
Publisher: GRIN Verlag
ISBN: 3346199908
Category : Business & Economics
Languages : en
Pages : 32
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Scientific Essay from the year 2020 in the subject Economics - Foreign Trade Theory, Trade Policy, , language: English, abstract: This paper aims to examine the direct and indirect effects of foreign direct investment (FDI), development assistance (DA), and International Monetary Fund credit (IMFC) on the increase of exports (EXP) in Sub-Saharan African (SSA) countries. The study focuses on identifying the most influential factor in driving EXP, with a particular emphasis on sustainable financing strategies for export diversification and industrialization in SSA. Traditionally, SSA has relied on FDI, development assistance (DA), remittances, and international credit for financial support. However, these sources of funding are expected to decrease due to the pandemic's economic impacts. The United Nations Conference on Trade and Development forecasts a significant decline in global FDI flows, with SSA facing a 25% to 40% reduction in investment flows for 2020. This underscores the urgency for SSA nations to explore sustainable financing methods for the necessary investments to boost exports. Historically, SSA countries have utilized foreign direct investment (FDI) to fund economic development, but the outcomes have often fallen short, leaving many nations in poverty. Despite SSA's wealth of natural resources, efficient resource utilization remains a challenge, and potential advantages have not translated into inclusive growth. The region also grapples with infrastructure gaps, poor investment climates, and weak governance and institutional capacities. In this context, it is imperative to consider alternative ways to finance economic growth, particularly export diversification and industrialization. Research shows that export diversification and industrialization can significantly drive economic growth, but the question of how to finance these processes effectively remains largely unexplored. In the face of declining FDI and limitations within SSA's banking system, this study investigates the direct and indirect effects of FDI, DA, and IMFC on export expansion (EXP) and, subsequently, on gross domestic product (GDP). The study delves into the mediating role of exports in various factors' impact on GDP, with the objective of identifying the most influential factor in driving export growth. Ultimately, this study aims to provide SSA leaders and policymakers with insights into innovative and sustainable financing approaches to promote export diversification and industrialization in the region.
Author: Niyungeko Antoine
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Fall of foreign direct investment inflows (FDI) are predicted to in 2020. The consequences of that prediction on economies of low, low middle, and upp-middle income countries are still unknown. The general objective of this paper is investigating the consequences of the predicted fall of FDI on economies as measured by Gross domestic product (GDP) of LMUMI countries. Specifically, the study analyses to what extent FDI was related to GDP, household consumption (HHC), export (EXP), import (IMP) and gross capital formation (GCF). It also analyses the impact of FDI on GDP, HHC, EXP, IMP and GCF. The paper finally examines direct and indirect effect of FDI on GDP via GDP, HHC, EXP, IMP and GCF. Spearman correlation, robust regression, bootstrap procedure, and robust mediation were used. The findings show a strong and positive correlation, a positive and statistically significant impact of FDI on other variables, statistically significant indirect effect of FDI on GDP via mediator variables (HHC, EXP, IMP, and GCF). The predicted fall of FDI will have a negative impact on all variables analyzed. Governments in low, low middle, and upper middle-income countries should prepare a clear plan to reduce the impact of the reduction of household income, export, import and gross capital formation. The ultimate consequence will be increasing in the unemployment rate, decreasing in gross domestic per capita, increasing in poverty, and decline in country competitiveness, etc. These states must prepare an economic recovery plan to soften the negative effects caused by this vicious circle of harmful consequences.
Author: United Nations Conference on Trade and Development. Division on Transnational Corporations and Investment
Publisher: New York : United Nations
ISBN:
Category : Africa
Languages : en
Pages : 134
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Author: Gebeyehu Tuji Benti
Publisher: GRIN Verlag
ISBN: 366844689X
Category : Business & Economics
Languages : en
Pages : 61
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Master's Thesis from the year 2016 in the subject Economics - Case Scenarios, , language: English, abstract: This paper assesses the patterns of export product diversification and identifies its determinants in four east African countries particularly focus on the case of Ethiopia. In addition to this, the study develops lessons from East Asian countries as best experience to know the way they have followed to achieve export product diversification with less than three decades. The research conducts Herfindahl-Hirschman index to see the degree of export product diversification, balanced panel data to examine determinants of export product diversification using GLS random effect model and descriptive statistics for the year 1995-2014. The statistical data collected from WDI, UNCTAD, ERCA, NBE and ADI data bases. The study also conducts Huasman specification test to select the best model for the study and Breusch-Peagan test to check the existence of heteroscedasticity and used one year lag-values in log form to detect the endogeneity problems and some of the variables like labor force and saving effect may not observed immediately on diversification. According to the finding, the HHI for east African countries export product diversification shows as they concentrated on few products. However it shows an improvements from year to year with gradual changes. In 1995-2014 Ethiopia, Rwanda and Ugandan export highly concentrated but since 2001 Ethiopia and Uganda export performance shows moderately improved compare to the previous years. The regression result of the study suggests that exchange rate, gross domestic saving, inflation, PGDP, openness to trade, labor force and foreign direct investment suggests as they have positive contribution to export diversification. Likely, the regression result of labor force showing the highest relatively compare to other explanatory variables. [...]
Author: Ibrahim Elbadawi
Publisher: World Bank Publications
ISBN:
Category : Business enterprises
Languages : en
Pages : 33
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"In a large cross-country sample of manufacturing establishments drawn from 188 cities, average exports per establishment are smaller for African firms than for businesses in other regions. The authors show that this is mainly because, on average, African firms face more adverse economic geography and operate in poorer institutional settings. Once they control for the quality of institutions and economic geography, what in effect is a negative African dummy disappears from the firm level exports equation they estimate. One part of the effect of geography operates through Africa's lower "foreign market access:" African firms are located further away from wealthier or denser potential export markets. A second occurs through the region's lower "supplier access:" African firms face steeper input prices, partly because of their physical distance from cheaper foreign suppliers, and partly because domestic substitutes for importable inputs are more expensive. Africa's poorer institutions reduce its manufactured exports directly, as well as indirectly, by lowering foreign market access and supplier access. Both geography and institutions influence average firm level exports significantly more through their effect on the number of exporters than through their impact on how much each exporter sells in foreign markets. "--World Bank web site.
Author: Antoine Niyungeko
Publisher: GRIN Verlag
ISBN: 3346309614
Category : Business & Economics
Languages : en
Pages : 20
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Scientific Study from the year 2020 in the subject Business economics - Investment and Finance, , language: English, abstract: This paper aims to investigate the relationship between foreign direct investment (FDI), export (EXP) and gross domestic product (GDP). The impact of interaction between EXP and FDI on GDP was also examined. For this purpose, quantitative approach was adopted. Secondary data for 49 countries whose gross national income per capita was less than 6 000 $ were collected. Spearman correlation, robust regression and causal mediation analysis were performed. Spearman correlation showed very strong correlation among GDP-FDI-EXP. Robust regression indicated that all regression coefficients are statistically significant indicating a positive moderation effect of the interaction between EXP and FDI on GDP. Causal mediation effect indicated that average causal mediated effect is statistically significant while average direct effect is not statistically significant, indicating full mediation. The effect of FDI on GDP is transmitted to GDP through increasing EXP. The effect of the interaction of FDI and GDI was found statistically significant. The results are consistent with empirical studies and existing theories.
Author: Abdoul Mijiyawa
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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This paper empirically examines the effect of foreign direct investment (FDI) inflows on exports in Africa. Using the system-generalised method of moments estimator for linear dynamic panel data on a sample of 53 African countries and five-year periods from 1970 to 2009, the paper finds that higher FDI inflows are positively and significantly linked with higher exports of goods and services. A large part of the FDI effect is driven by its spillover effects on exports. The paper also finds the lagged value of exports, a competitive currency, as well as increases in domestic investment and physical infrastructure, to be factors stimulating African exports.
Author: Antoine Niyungeko
Publisher:
ISBN: 9783346225450
Category :
Languages : en
Pages : 28
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Book Description
Author: Nomathemba Mhlanga
Publisher:
ISBN:
Category :
Languages : en
Pages : 236
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Book Description
