Foreign Direct Investment and World Pandemic Uncertainty Index: Do Health Pandemics Matter?

Foreign Direct Investment and Cost Uncertainty: Correlation and Learning Effects

Option Value, Policy Uncertainty, and the Foreign Direct Investment Decision

In this paper we analyse the impact of policy uncertainty on foreign direct investment strategies. The paper follows the real options approach, which allows to investigate the value to a firm of waiting to invest and/or disinvest, when payoffs are stochastic due to political uncertainty and investments are partially reversible. Across the board we find that political uncertainty can be very det...

Institutional Uncertainty, Economic Integration, and Vertical Foreign Direct Investment Decisions

In this paper we analyse the impact of institutional uncertainty on vertical foreign direct investment (FDI) strategies. We also consider the impact of economic integration upon FDI decisions. The paper follows the real options approach, which allows investigating the value to a firm of waiting to invest and/or disinvest, when payoffs are stochastic due to institutional uncertainty and investme...

Malaysian Foreign Direct Investment and Growth: Does Stability Matter?

The objective of the paper is twofold. First, is to examine causal relationship between foreign direct investment (FDI) and economic growth in Malaysia and second, to look at the impact of FDI on the stability of economic growth and the impact of growth on stability of FDI. Using time series data, the paper implements the recent Toda and Yamamoto’s (1995) non-causality test to establish the dir...

Foreign Direct Investment and Growth: Does the Sector Matter? *

Although it may seem natural to argue that foreign direct investment (FDI) can convey great advantages to host countries, this paper shows that the benefits of FDI vary greatly across sectors by examining the effect of foreign direct investment on growth in the primary, manufacturing, and services sectors. An empirical analysis using cross-country data for the period 1981-1999 suggests that tot...