Submitted: May 12, 2013; Accepted: Jun 24, 2013; Published: Sep 15, 2013 Abstract: The paper investigates the impact of foreign direct investment on Growth (GDP) for Pakistan. It studies a long run relationship between the foreign direct investment and gross domestic investment in Pakistan. By using cointegration analysis, we demonstrate that there exists a long run relationship between the two...

a r t i c l e i n f o How does outward foreign direct investment (FDI) affect employment growth of the multinational corporations (MNCs) in the home country? Does the impact of outward investment differ by the level of development of the destination country of the FDI? Using a difference-indifference approach, we assess the impact of starting to invest in less-advanced countries compared with i...

Do developing countries derive benefits from foreign financial investment (FFI) in the same way as they do from FDI? Through analyses in a stylized framework of foreign investment, this paper concludes that due to the lack of well functioning financial markets and the lack of technology, FFI flows may not be allocated and utilized as efficiently in developing countries as FDI. The frequently cl...

This paper investigates the empirical evidence on the link between foreign direct investment and trade (export and import) in Turkey over the period from 1992:01 to 2008:04 by using the minimum LM unit root test for stationarity; Granger and Dolado-Lüthkepohl tests for causality. The test results based on the bi-variate VAR model indicate that there is no evidence of causality between foreign d...

This paper attempts to compare the overall trends and industrial patterns of inward foreign direct investment in the BRICs and explain their determinants. The overall trend of the inward FDI in the BRICs is increasing. Nevertheless, the industrial patterns of inward FDI are different from each other. In addition, there are three main factors that determinant the industrial patterns of inward fo...

We examine a large number of potential home bias determinants, including some novel ones, using extensive panel data. We distinguish between the actual home bias (overinvestment in domestic securities) and foreign investment bias, for which we propose a new measure. For foreign investment bias, we also demonstrate how “size biases” significantly affect the results. We find that the old empirica...

The foreign exchange market is one of the biggest markets in the global financial capital market. With current trends toward financial capital globalization, it is becoming more important to understand the co-movement of foreign exchange. Investors always want to get all kinds of messages to make decisions about investing. Moreover, they always look forward to making a profit. This study invest...

In this paper, we challenge the view that foreign investors lead firms to adopt a shortterm orientation and forgo long-term investment. Using a comprehensive sample of publicly listed firms in 30 countries over the 2001-2010 period, we find instead that greater foreign institutional ownership fosters long-term investment in tangible, intangible, and human capital. Foreign institutional presence...

Recent theoretical work suggests that firm heterogeneity has an impact on the international investment decisions of multinational firms. This paper provides evidence foreign direct investment (FDI) at different levels of aggregation. We use a novel firm-level dataset on the FDI stocks of German firms to assess level and role of heterogeneity. Our data cover the years 1990-2000. We provide evide...