Natural disasters, foreign direct investment, and women's rights in developing countries

We examine the conditions under which women's economic and political status is less vulnerable in the aftermath of natural disasters. We theorize that women in natural disaster-hit countries that receive higher levels of foreign direct investment (FDI) are less susceptible to the gendered impacts of those disasters. Since FDI is vital to post-disaster economic recovery, countries grappling with natural disasters are motivated to uphold women's rights as a strategy to attract FDI. Furthermore, multinational corporations (MNCs)' operation and commitment to gender equality-based values and practices are also an impetus to address the deterioration in respect for women's rights. By conducting a time-series cross-sectional, ordered logistic analysis with random effects and using a comprehensive dataset on natural disasters and women's rights, including 107 developing countries from 1990 to 2011, we find that FDI mitigates natural disasters' adverse effects on women's economic rights but not their political rights.

Environmental Sustainability in Selected OPEC Countries: Do the Influence of FDI and ICT Matter?

Considering the undeniable role and importance of the environment in people's lives, the present study is designed to investigate the combined effect of information and communication technology (ICT) and foreign direct investment (FDI) on achieving environmental sustainability. Since the increasing emission of carbon in society and its destructive environmental effects on social economic aspects and even political tensions have become a challenge, the main question of the research is what strategies have governments, especially oil exporting countries, used in the past to reduce the level they have discovered pollution and what policies do they want to follow in the future? Among the policies undertaken by the OPEC oil exporting countries, has the action for foreign direct investment (FDI) and the development of information and communication technology (ICT) been effective in preventing harmful environmental effects? For this purpose, data on renewable energy consumption, the intensity of use of information and communication technology, foreign direct investment (FDI), and urbanization have been used as explanatory variables, and carbon dioxide (CO2) emission as a dependent variable. The target countries selected are oil exporting countries (OPEC) for the period 2000 to 2020, and the analysis method used is panel VAR. The results showed that creating a shock in FDI, labor force, urban population, and renewable energy consumption decreases CO2 while creating a shock in Gross capital formation increases CO2. The impact of shock of ICT on CO2 is also insignificant and can be ignored. The results of variance analysis also showed that urban population, labor force, and FDI variables have the largest contribution in explaining the behavior of CO2; therefore, it is necessary to pay attention to FDI and try to increase the attraction of foreign direct investment to reduce CO2 in OPEC countries. JEL: C23, F43, F64.

Research on the Heterogeneity Threshold Effect of Foreign Direct Investment and Corporate Social Responsibility on Haze Pollution

Carrying out environmental protection and governance in the process of using foreign capital to develop the economy is a realistic problem that China needs to solve urgently. In order to reduce environmental pollution, all enterprises are called upon by the local government to fulfil CSR and improve the quality of FDI use. However, previous studies have rarely explored the threshold effect of FDI and CSR on haze pollution. This paper employs the threshold effect model to explore the above problem based on panel data of 30 provinces in China from 2009 to 2018. The empirical study found the following: (1) FDI has a significantly positive double-threshold effect on haze pollution. Meanwhile, the promotion effect of FDI on haze pollution is the strongest in the two threshold ranges. (2) CSR has a significantly negative single-threshold effect on haze pollution; that is, the increase in CSR intensity inhibits haze pollution. Such a negative effect shows the characteristics of increasing marginal efficiency. (3) In addition, the provinces in different thresholds display obvious geographical distribution characteristics. Through the above analysis, it can be observed that FDI and CSR have distinct impacts on haze pollution. Thus, the country and the government can reduce haze pollution by improving the investment structure, using environmentally friendly technology, guiding enterprises to abide by business ethics and promoting social responsibilities fulfilment.

The Influence of Foreign Direct Investment on Physical Health of Rural-Urban Migrants-Empirical Evidence from China Migrants Dynamic Survey

The purpose of this study is to explore the influence of Foreign Direct Investment (FDI) on rural-urban migrants' physical health and its influencing mechanism. A total of 134,920 rural-urban migrant samples are matched based on the China Migrants Dynamic Survey in 2017 and the China Urban Statistical Yearbook in 2016. On the basis of the samples, a Binary Probit Model is used to explore the relationship between the degree of FDI and rural-urban migrants' physical health. The results show that compared with migrants who lived in cities with a lower FDI level, rural-urban migrants who lived in cities with a higher FDI level are better in physical health. The results of the mediation effect model show that the degree of FDI has a significant positive impact on employment rights and benefits the protection of rural-urban migrants, improving rural-urban migrants' physical health, which means employment rights and benefits protection plays an intermediary role in the process of FDI affecting rural-urban migrants' physical health. Therefore, when formulating public policies such as plans to improve the physical health of rural-urban migrants, not only the availability of medical services for rural-urban migrants needs to be improved, but the positive spillover effect of FDI should be taken into account. By doing so, FDI can positively affect the physical health of rural-urban migrants.

Revisiting the Green Growth Effect of Foreign Direct Investment from the Perspective of Environmental Regulation: Evidence from China

The inflow of foreign direct investment (FDI) has both advanced China's economic development process and influenced the ecological quality of China's regions. Under the deepening of economic globalization and the continuous deterioration in environmental quality, the correlation mechanism between foreign direct investment, environmental regulation, and economic growth is becoming increasingly complex. Therefore, based on the slacks-based measure (SBM) model and the Global Malmquist-Luenberger (GML) index, this study measured the level of green economic growth using data from 30 provinces and cities from 2004-2019 and constructed a panel fixed-effect regression model to study the effect of foreign direct investment on green economic growth in China. The study found that foreign direct investment significantly promoted green economic growth in China, foreign direct investment promoted green economic growth through independent innovation and inhibited green economic growth through imitation innovation, and environmental regulation moderated the impact of foreign direct investment on green economic growth. This paper incorporated foreign direct investment, heterogeneous technological innovation, green economic growth, and environmental regulation into the research framework, and thereby further enriched and improved the research on the theoretical mechanism of green economic growth. The research conclusion clarified the influence mechanism of foreign capital on the quality of China's economic development, which was conducive to the formulation of more reasonable policies for attracting investments and to the promotion of the formation of a positive interaction mechanism between environmental regulation and foreign direct investment, which is of great practical significance for China's economy to achieve sustainable development.

Covid-19 impact on financial growth and guidelines for green recovery in BRICS: fresh insights from econometric analysis

Sustainable development and socioeconomic growth are balanced through green economic recovery post pandemic. To statistically examine the coordinated development of green economic growth, foreign direct investment, stock market return and financial development, this paper constructs a complete indicator system for green economic recovery and financial development, by using a VAR model for the BRICS over the period of 2000–2020. Our results demonstrate that FDI significantly improves environmental quality by lowering pollution levels and improve the green economic growth in the region (BRICS). Stock market also has a significant positive effect on green economic growth. On the other side, FDI has a significant detrimental effect on financial development. Finally, financial development has a considerable detrimental impact on environmental deterioration. Our analysis recommends that besides the initiatives in financial growth, FDI and stock market be given priority in order to improve sustainable development.

Does foreign direct investment matter for environmental innovation in African economies?

This study investigates the role of foreign direct investment (FDI) in environmental innovation in Africa during 1990–2019. It utilizes the endogenous growth theory to specify an innovation production function, estimated using the seemingly unrelated regression (SURE) method. The study employs four indicators of environmental innovation and also controls for the influence of resource abundance. Key findings from the study show evidence that FDI inflow enhances environmental innovation practices by improving resource efficiency outcomes. In particular, FDI is found to reduce greenhouse gas emission intensity of output and carbon intensity of energy. Further, the effect of FDI on resource utilization and energy productivity is insignificant. Estimates confirm the learning and imitation, and demonstration effects of FDI on resource utilization, though the formal effect is detrimental. The labour market effect is revealed to promote resource efficiency, while resource abundance plays negligible role in environmental innovation in all models. Policy implications are derived.

The Spread of and Death from Infectious Diseases in Sub-Saharan Africa: Implications for FDI Attraction

Are "economic bads" of infectious diseases and "economic goods" of foreign direct investment antagonistic to each other? This is the salient question that this research inquiry unravels for 34 African economies from 2000 to 2017. The empirical evidence revealed the following through a generalized method of moments (SGMM) inter alia: First, the mitigating roles of infectious diseases, such as malaria, HIV prevalence rate and AIDS, on global FDI inflows are unconditionally certified from a statistical and economic sense. Second, the diminishing influences of other confounders, such as low per capita GDP, shallow financial development, excruciating inflationary trend, and natural resource rents curse, are empirically endorsed, on the one hand, while the persistent nature of FDI and trade openness as boosting mechanisms for FDI are unambiguously applauded, on the other hand. Finally, a reduction in the numerical strength of the estimates after accounting for the outliers' effect from the models and the inclusion of additional controls do not diminish the robustness of already established findings, except for the HIV prevalence rate. On the policy front, if the foreign direct investment is truly pro-development outcomes, any policy interventions that eliminate infectious diseases will be Pareto-improving.

Investigating the Role of Information and Communication Technologies, Economic Growth, and Foreign Direct Investment in the Mitigation of Ecological Damages for Achieving Sustainable Development Goals

At the present time, information and communication technology (ICT) has played a vital role in socio-economic development such as economic growth, literacy, life expectancy, and employment levels in societies, however, such development has come with various environmental damages perspectives. This study scrutinizes the impact of ICT, economic growth, and foreign direct investment (FDI) on carbon dioxide (CO₂) emissions in the 44 One Belt and Road Initiative (OBRI) countries split into sub-region from 1991 to 2019. This study applied various econometrics approaches such as cross-sectional dependence, second-generation unit root, and Westerlund panel cointegration techniques are executed to analyze the panel data set. The full modified ordinary lease square and dynamic ordinary lease square estimators are applied to investigate the long-term influence of ICT development, GDP (economic growth), and FDI on CO₂ emissions. The empirical analysis was performed at a disaggregated level to assess the possible environmental influences across the OBRI countries. Overall, the results reported that broadband and mobile development have an adverse effect on CO₂ emissions. The finding further reveals that the broadband indicator negatively affects CO₂ emissions in all OBRI regions except South Asia. Similarly, the mobile use indicator protects the environmental quality in all OBRI regions except MENA (Middle East and North Africa) and Central Asia. Regarding country-wise analysis, broadband has alleviated the pollution level in 21 countries, while mobile has alleviated it in 15 countries. Moreover, economic growth is responsible to increase pollution levels in all panels and regions except Europe. Besides, the results highlight that higher FDI reduces environmental pollution whereby, the pollution halo hypothesis is supported to hold for all OBRI panels and regions except MENA countries. Based on the empirical findings, the policymakers and governments of these economies should design policies to grow smarter cities, transportation systems, electrical grids, industrial processes, and energy-saving production through ICT development on a macro level.

Financial Institutional and Market Deepening, and Environmental Quality Nexus: A Case Study in G-11 Economies Using CS-ARDL

This study presents a new insight into the dynamic relationship between financial institutional deepening (FID), financial deepening, financial market deepening (FMD), foreign direct investment (FDI), economic growth (GDP), population, and carbon dioxide emissions (CO₂e) in the G-11 economies by employing a cross-sectionally augmented autoregressive distributed lag (CS-ARDL) approach during 1990-2019. The outcomes from the CS-ARDL and dynamic common correlated effects mean group (DCCEMG) models shows that financial deepening, GDP, FDI, and population degraded environmental quality both in the short run and the long run. Contrary to this, FID and FMD improves environmental quality in these countries. The government should work to maximize financial institutions (access, depth, efficiency) and financial markets (access, depth, efficiency) to reduce the CO₂e. A strong positive and in-phase correlation of CO₂e with economic growth and population is observed for G-11 countries. These results suggest policy makers should further improve financial institutions by creating opportunities for their populations. Moreover, the governments of G-11 countries should revise their foreign direct investment policies and attention should be given to import efficient means of energy production.

Research Methods in a Multinational Business Environment and Implications for Capital Formation: Application of Cross-Sectional Autoregressive Distributed Lag Methods

We explore whether foreign direct investment outflows augment or obstruct public or private capital in developing countries by decomposing domestic capital into private and public capital. While developed countries are the primary source of foreign direct investment outflows (FDIOs), developing economies have become the primary source of FDIO over the past 30 years. We apply cross-sectional autoregressive distributed lag (CS-ARDL) methods to overcome the issue of endogeneity and cross-sectional dependency in our dataset. This study analyzes the interaction effects of foreign direct investment and institutional quality (IQ) in promoting aggregate domestic capital formation in developing countries. Our empirical results show that FDI outflows augment private capital formation and additionally, IQ also upsurges private capital formation. Conversely, as per results, FDI outflows obstruct public capital formation, and IQ crowds out public capital formation significantly while private capital crowds out FDI inflows. As per result estimations, we notice that FDIO crowds in private capital formation, thus we conclude that the private sector controls the majority of the sectors for developing countries and the role of the public sector is quite minimal. We conclude that private and public capital possess different attributes; thus clubbing them together might result in aggregation bias. Our result estimations provide several useful policy implications.

Short-term effects of COVID-19 lockdown on foreign direct investment: Evidence from Ecuadorian firms

We exploit the exogenous variation that comes from the COVID-19 and the subsequent lockdown in Ecuador. We estimate a regression discontinuity in time (RDiT) design using official administrative FDI data from January to May 2020. We observe an overall large decrease in FDI inflows. We assess differences across FDI sources and find stronger effects coming from capital increases compared with new firm constitutions. In addition, we find that the negative effects are mostly from inflows coming from North and South American investments. We also assess whether partial reopening of activities positively affects FDI. We do not find any significant effect.

Direct Investment from Russia Abroad: Changes since 2018

The article considers the specifics of Russian foreign direct investment outflows in 2018-the first half of 2020. Three main reasons for the new stagnation of Russian foreign investment expansion are identified: 1) the strengthening of "sanctions war" with the West after the election of Vladimir Putin for the 4th presidential term; 2) the slowdown in the global economy in 2018-2019 against the background of relatively low prices for hydrocarbons and other raw materials exported from Russia; and 3) the crisis caused by the coronavirus pandemic in 2020. These factors resulted in a reduction of both outward foreign direct investment stocks by Russian MNEs (partially due to revaluation of their assets after the collapse of the ruble rate), and a decrease in investments of wealthy Russians in foreign real estate as well as pseudo-foreign investment because of the regular attempts to conduct de-offshorization. Based on a study conducted at INION within the framework of the international program for studying MNEs from emerging markets, a list of leading Russian non-financial MNEs by the end of 2019 is presented. Further prospects of Russian direct investment are shown at the end of the article.

Global uncertainty, economic governance institutions and foreign direct investment inflow in Africa

Based on the fact that Africa has not fared well in attracting foreign direct investments in the last decade compared to other regions of the world, especially during periods of high uncertainty occasioned by one crisis or the other, this study investigated: the impacts of global uncertainty and economic governance institutions on FDI inflow to Africa; the moderating effect of economic governance institutions on global uncertainty-FDI relationship in Africa; and other significant drivers of FDI inflow to Africa. The study used the system GMM modeling framework and a panel of 46 African economies over the period 2010–2019. The results indicate that global uncertainty has a significant dampening effect on FDI inflow to Africa, and economic governance institutions on the continent amplify this effect rather than mitigate it. The results further indicate that natural resource endowment, market size, and initial FDI inflows are robust drivers of FDI inflows to Africa, while the roles of financial development and trade openness remained muted. Overall, the study concludes that policymakers in Africa should take urgent steps to strengthen the quality of economic governance institutions as a means of mitigating the excruciating effect of global uncertainty on FDI inflows to Africa.

Threshold Effect of Foreign Direct Investment and Carbon Emissions Performance From the Perspective of Marketization Level: Implications for the Green Economy

Exploring the path and mechanism of marketization level in the effect of foreign direct investment (FDI) on carbon emission performance will help to maximize the stimulation effect of foreign investment on green and low-carbon development. This study used the panel data of 11 provinces and cities in the Yangtze River Economic Belt from 2008 to 2016. A panel threshold model is constructed to explore the non-linear relationship between FDI and carbon emissions performance from the perspective of marketization level. The main conclusions are as follows: First, from the perspective of marketization level, a significant double threshold effect exists between foreign participation and carbon emission intensity, with threshold values of 4.4701 and 9.2516 respectively. Second, as the marketization level increases, the technology spillover effect of FDI increases, and the stimulation effect of foreign participation on carbon intensity decreases significantly, but it does not inhibit carbon intensity, indicating that the overall benefits brought by FDI technology spillovers are still insufficient to offset pollution caused by foreign investment. Third, the eastern region of the Yangtze River Economic Belt has crossed the second threshold. In the central and western regions, the marketization process is relatively slow except for Chongqing, and the regions are still firmly stuck between the first and second thresholds. In response to the conclusions of the empirical research, relevant policy suggestions are put forward from three dimensions, namely, the strategy of introducing foreign investment, construction of the marketization system, and environmental regulation, to achieve low-carbon and green development in the Yangtze River Economic Belt.

Does Industrial Agglomeration or Foreign Direct Investment Matter for Environment Pollution of Public Health? Evidence From China

This article focuses on the interaction between China's industrial agglomeration, foreign direct investment (FDI) and environmental pollution of public health in the past 15 years. By conducting theoretical and empirical research, we try to reveal the relationship and mechanism between the economic growth and public health from the perspective of environmental pollution. By constructing an embedded theoretical model of industrial agglomeration and FDI, this article combines other environmental pollution influencing factors, expounds the impact mechanism of industrial agglomeration on environmental pollution. Based on the provincial-level panel data of China on environmental pollution and industrial agglomeration, the empirical test is carried out through the threshold panel regression model. According to the results, industrial agglomeration can significantly rectify the regional environmental pollution, thereby benefiting public health. FDI has a phased impact on the relationship between industrial agglomeration and environmental pollution. Specifically, when the level of FDI is low, the positive improvement effect of industrial agglomeration on environmental pollution is relatively strong. This is mainly because industrial agglomeration can promote economic growth, technological progress, and enhance environmental awareness. When the level of FDI exceeds the first threshold and continues to rise, the positive improvement effect of industrial agglomeration is maximized. Before the level of FDI exceeds the second threshold, this effect gradually weakens. The population concentration and excessive expansion of city scale brought about by industrial agglomeration will lead to the increase of regional resource and energy consumption, thus aggravating environmental pollution. The policy implication is that while the government and enterprises are vigorously increasing the level of foreign investment, they must pay equal attention to economic growth and public health, and the level of industrial agglomeration should match the level of foreign investment so as to give full play to the positive improvement effect of industrial agglomeration on environmental pollution, and realize the coordinated development of the regional economy, environment and population health.

The last frontier of globalization: Trade and foreign direct investment in healthcare

Internationalizing far later than other sectors, healthcare has seen trade and foreign direct investment (FDI) grow in recent years. While part of the service economy, healthcare has unique features that distinguish it from other service sectors and imprint on its globalization and spillover patterns. In this paper, we review the trends in healthcare internationalization, its drivers, and the obstacles standing in the way. We outline the special characteristics of the healthcare sector and how they affect the positive and negative spillovers from trade and FDI for home and host-countries. Implications for international business theory, research, and policy are delineated.

More and better investment now! How unlocking sustainable and digital investment flows can help achieve the SDGs

The global community can address the collapse of investment following COVID-19, drive digital transformation, and help achieve the SDGs through five actions: (1) establish a Facility and Fund to provide resources for technical assistance and facilitate private–public collaboration, including through a new EASI Alliance, (2) endorse a Sustainable Investment Framework to advance such collaboration, through aligning and coordinating efforts, (3) adopt specific investment policies and measures to support sustainable FDI for sustainable development, prioritizing linkages, (4) adopt specific policies and measures to facilitate investment in the digital economy, accelerating productive transformation while building resilience, and (5) develop partnerships and industry-based coalitions to operationalize these efforts.

Effects of FDI on the Efficiency of Government Expenditure on Environmental Protection Under Fiscal Decentralization: A Spatial Econometric Analysis for China

Most governments strive for an ecological civilization so the efficiency of government expenditure on environmental protection (EPEE) is an important issue. While it is recognized that foreign direct investment (FDI) enhances environmental protection, this investigation focuses on the effects of FDI on the efficiency of government expenditure on environmental protection under fiscal decentralization. Analysis is conducted using an output-oriented data envelopment analysis (DEA) scale return model to calculate the efficiency of environmental protection spending in China. Then, a spatial model is built to test the linkages among FDI, fiscal decentralization and the efficiency of government expenditure. The results reveal that, firstly, the efficiency of government spending has been enhanced over the last 10 years. Secondly, FDI is positively correlated with the efficiency of government environmental expenditure in terms of both quantity and quality of spending and it has a positive spillover effect. Thirdly, financial decentralization is negatively correlated with the efficiency of environmental spending, but it improves the effect of FDI. Accordingly, policy proposals are that the government should improve the supervision system for environmental spending and local governments should pursue FDI, improve the structure of FDI and use its spillover effect to enhance the efficiency of environmental expenditure.

Bad science: International organizations and the indirect power of global benchmarking

The production of transnational knowledge that is widely recognized as legitimate is a major source of influence for international organizations. To reinforce their expert status, international organizations increasingly produce global benchmarks that measure national performance across a range of issue areas. This article illustrates how international organization benchmarking is a significant source of indirect power in world politics by examining two prominent cases in which international organizations seek to shape the world through comparative metrics: (1) the World Bank-International Finance Corporation Ease of Doing Business ranking; and (2) the Organisation for Economic Co-operation and Development FDI Regulatory Restrictiveness Index. We argue that the legitimacy attached to these benchmarks because of the expertise of the international organizations that produce them is highly problematic for two reasons. First, both benchmarks oversimplify the evaluation of relative national performance, misrepresenting contested political values drawn from a specific transnational paradigm as empirical facts. Second, they entrench an arbitrary division in the international arena between 'ideal' and 'pathological' types of national performance, which (re)produces social hierarchies among states. We argue that the ways in which international organizations use benchmarking to orient how political actors understand best practices, advocate policy changes and attribute political responsibility thus constitutes 'bad science'. Extending research on processes of paradigm maintenance and the influence of international organizations as teachers of norms or judges of norm compliance, we show how the indirect power that international organizations exercise as evaluators of relative national performance through benchmarking can be highly consequential for the definition of states' policy priorities.

Intra-Household Allocation of Nutrients in an Opening China

This paper uses China Health and Nutrition Survey (CHNS) data to analyze the effect of foreign direct investment (FDI) on nutrient intakes across various family roles to identify the different family roles' heterogeneous nutrition intake responses to economic openness. The empirical evidence shows that FDI enhances labor forces' calorie intake significantly, especially for rural households. The government should continue facilitating more FDI inflows, especially FDI in secondary industries for rural populations. However, the larger the family, the smaller the effect of FDI on nutrient intake for some family roles. The elderly and children may be weaker responders on nutrient intake than other family members in an open economy. This implies the existence of intra-household redistribution and that the level of effectiveness will decrease with family size. The results suggest that family members in rural areas can benefit more in terms of nutrient intake. Our empirical evidence also indicates that female family members' calorie intake from the FDI effect is higher than that of male family members (except for the granddaughter/grandson). Preferential policies should be provided for the FDI, flowing to rural areas and female dominant industries.

The effect of population health on foreign direct investment inflows to low- and middle-income countries

This paper investigates the effect of population health on gross inflows of foreign direct investment (FDI). We conduct a panel data analysis of 74 industrialized and developing countries over 1980-2000. Our main finding is that gross inflows of FDI are strongly and positively influenced by population health in low- and middle-income countries. Our estimates suggest that raising life expectancy by one year increases gross FDI inflows by 9%, after controlling for other relevant variables. These findings are consistent with the view that health is an integral component of human capital for developing countries.