Foreign Direct Investment, Technological Innovation, and Export Performance: Empirical Evidence From Developing Asia

Foreign Direct Investment, Technological Innovation, and Export Performance: Empirical Evidence From Developing Asia

Arzu Tay Bayramoglu (Bulent Ecevit University, Turkey) and Tezcan Abasız (Bulent Ecevit University, Turkey)
DOI: 10.4018/978-1-5225-3026-8.ch001
OnDemand PDF Download:
$30.00
List Price: $37.50

Abstract

This chapter's objective is to explore the effects of foreign direct investment inflows and technological innovations on export performance in developing Asian countries (Hong Kong, China, Indonesia, Singapore, India, Turkey, Malaysia, Vietnam, United Arab Emirates, and Thailand) in the period of 1990-2015 by using the panel cointegration technique. The empirical results reveal that there is a cointegration among the variables, and cointegration regression shows that the foreign direct investments, per income and patent applications, have a positive and statistically significant impact on export performance in developing Asian countries. The results reveal that the impact of patent applications is greater than the foreign direct investments on exports. Then, technological development affects exports positively in all countries in the sample, except for India and the United Arab Emirates.
Chapter Preview
Top

Since 1980’s, foreign direct investment is an attracting issue for the economies all around the world. Developed and developing countries attempt to get much FDI for the economic growth and development strategy. Global foreign direct investment inflows increased to $1,762 billion in 2015, from $1,277 billion in 2014, with changing between countries and regions. In 2015, inward FDI to developing economies was $765 billion, and Developing Asia stayed the largest FDI host in the world with inward FDI half a trillion dollars. East and South Asian economies have a good performance to attract the FDI inflows. FDI inflows to Hong Kong (China) increased by 53 percent from in 2015 and reached to $175 billion. Inflows of FDI to India increased 28 percent and to Turkey increased by 33 percent in 2015, in the same time flows to China was $136 billion with a 6 percent increase as seen in Table 1 (UNCTAD 2016:43-45).

Complete Chapter List

Search this Book:
Reset