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Direct Foreign Investment and its Determinants: A Case Study - Gli investimenti diretti esteri e loro determinanti : studio di un caso

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The intent of this paper is to determine short-run and long-run relations among foreign direct investment and its potential determinants using coi ntegration and error correction reaction model for Fiji Islands over the period 1980-2013. T he modern time series quantitative technique of bounds test for cointegration is employed. Bound s test approach is applicable even though the underlying series are integrated of different order . The calculated F-statistics of bound test were checked against the appropriate critical value s. The long-run and short-run coefficient is calculated using autoregressive distributed-lag (AR DL) approach. We found that there are significant positive impact of gross domestic produ ct, trade openness and negative impact of GDP per capita , exchange rate and political instability on FDI in flow in Fiji; while level of infrastructure development, inflation and financial markets have no impact on its FDI inflow. This study is the first attempt in specifically exa mining various factors that influence direct foreign investment in Fiji Islands. Given Fiji’s re ceptiveness to direct foreign investment in light of falling aid, the findings of this paper have use ful policy implications. - Lo scopo di questo studio è determinare la relazion e nel breve e lungo periodo fra gli investimenti diretti esteri (IDE) e le loro potenzi ali determinanti nelle Isole Fiji nel periodo 1980-2013, utilizzando un modello di cointegrazione e error correction reaction. Vengono impiegate le tecniche quantitative di bound test e cointegrazione. L’approccio bound test si applica anche quando le serie sottostanti hanno dif ferenti ordini di integrazione. Le statistiche F ottenute sono testate contro appropriati valori cri tici. Il coefficiente di lungo e breve periodo è calcolato con l’approccio ARDL. I risultati indican o che c’è un’influenza positiva significativa del flusso di ADF del PIL e dell’apertura al commercio internazionale, e un’influenza negativa del PIL procapite, del tasso di cambio e dell’instabili tà politica. Sono invece ininfluenti il livello di sviluppo delle infrastrutture, dell’inflazione e de i mercati finanziari. Questo studio rappresenta il primo tentativo di esa minare specificatamente i diversi fattori che influenzano gli IDE nelle Fiji. Considerando la ric ettività delle Isole Fiji verso gli IDE alla luce della mancanza di aiuti, i risultati di questo stud io sono politicamente rilevanti.

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  • Makun, Keshmeer Kanewar, 2016. "Direct Foreign Investment and its Determinants: A Case Study - Gli investimenti diretti esteri e loro determinanti : studio di un caso," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 69(2), pages 151-174.
    • Handle: RePEc:ris:ecoint:0776
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    More about this item

    Keywords

    Determinant; Foreign Direct Investment; Fiji;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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