The Determinants of Foreign Direct Investment Inflows: The Case of Emerging Countries
DOI:
https://doi.org/10.22452/IJIE.vol18no1.9Keywords:
FDI, productivity, Corruption, Digital economic, Innovation capacityAbstract
The purpose of this study is to analyse the impacts and causal associations
of the digital economy, productivity, corruption, and innovation capacity on foreign
direct investment (FDI) in emerging countries. A panel dataset that included 24
emerging countries from 2000 to 2020 was used in the study. The heterogeneous panel
cointegration test determines the short- and long-run dynamics between the variables,
which is highlighted for empirical analysis. The application of principal component
analysis (PCA) in this study results in the creation of a digital economy index that
contributes to the existing empirical literature and provides a more comprehensive
representation. The empirical evidence indicates that overall productivity has a positive
impact on FDI flow in the long run, whereas corruption has negatively impacted FDI
in the short term. The FDI flows are positively impacted by the digital economy in the
short term, but innovation capacity is not a significant factor in FDI. Policymakers can
benefit from valuable insights from the research, which can assist them in leveraging
productivity and the digital economy to positively impact FDI inflows.
Downloads
Downloads
Published
How to Cite
Issue
Section
License
Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.
An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on www.ijie.um.edu.my. Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at www.ijie.um.edu.my.
All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.
