Fdi Analysis - 3746 Words

Abstract On the basis of previous studies of foreign direct investment (FDI) in insurance services industries by Moshirian (1997 and 1999), this study applies the similar model and variable with those previous studies to present analysis and discussion about FDI in insurance services industries in America from 1987 to 1998. As the extension on prior studies, this study found that the relative wage rate of the US versus the source countries, and FDI in manufacturing industries both are highly important determinants of FDI in insurance services industries in America in statistic. However, this result is different from Moshirian’s (1997), due to majority of factors which are valued important in his study are unimportant in this study. The†¦show more content†¦After that, the model and the data of FDI in insurance services in the US would be explained. Furthermore, it would point out the different between the finding of this paper and the study of Mishirian(1997). Finally, the con clusion would summarize the result. 2. Literature review 2.1 FDI in General A huge amount of studies have already discuss or analysts the factors that stimulate the growth of FDI in insurance services in the US. That kind of studies mainly focus on the change in the total amount of FDI in the US. Moran(2003) declares that the size of the US market and development opportunities are the vital factors for developing the FDI in insurance services. On the other hand, Santis et al. (2004) suggest that the US exchange rate is highly influence the FDI in insurance services. 2.2 FDI in Banking According to empirical studies by Moshirian (2001), which discovered determinants of US FDI in banking industries, the primary factors which have influence on the activity of foreign banking in American includes the market volume of host country, the cost of investment capital cost, relative economic growth, bilateral trade, taxation, interest rates, exchange rates and FDI in non-finance industries. However, the study, which discriminates between the abroad activities of banks and FDI in banking by banks and non-banks, indicated that exchange rate is a crucial element of FDI expansion in banking because of currencies appreciates. In addition,Show MoreRelatedFdi Risk Analysis of Cuba2322 Words   |  10 PagesDianet Perez Garcia Politics of International Investment May 1, 2012 Foreign Direct Investment Risk Analysis on Cuba Background: Cuba is an island in the Caribbean. La Habana is the capital of Cuba and its biggest city. Cuba is not an industrialized country and it mainly consists of farms. Cuba is the largest island in the Caribbean and the most populated with a population of over 11 million people. Cuba is a totalitarian communist country and has been ruled by Fidel Castro since 1959. RaulRead MoreAn assignment on critical analysis of FDI policy and Import Export policy In Bangladesh5993 Words   |  24 Pageson critical analysis of FDI policy and ImportExport policy In Bangladesh MGT-405: International Business Submitted to: Mohammad Shariat Ullah Assistant Professor Department of Management University of Dhaka Submitted by: Tapash Chandra Paul Roll: 35 Section: A; Batch: 17th Department of Management University of Dhaka Submission Date: March 23, 2014 Table of Contents Pages No (A) Foreign Direct Investment in Bangladesh 1.0 Introduction 1.1 FDI and its Concepts 1.2 Importance of FDI 1.3 OpportunitiesRead MoreThe Effect Of Fdi Inflow On Exports1394 Words   |  6 Pagestime series data on Bangladesh from the WDI databank to find the impact of FDI inflow on exports. We’ve considered the time period from 1976. Bangladesh became independent in 1971. Just after birth, the nation adopted an import substitution trade policy. And consequently, discouraged export oriented industrialization. And FDI was forbidden till 1976. In 1976, Bangladesh took newer policies and thereby trade openness began. FDI also started to arrive. That’s why, we’ve excluded the years before 1976Read MoreEssay On Fdi836 Words   |  4 Pagesbeen collected from 2007-2016. However to make analysis between financial performance of FDI based Companies and Non FDI based Companies listed at BSE for 10 years has been considered. This study is based on secondary data. The required data have been collected from CMIE Prowess IQ data base.The tools used in the study are panel data Fix ed Effect Model, Random Effect Model, Hausman test and Chow test. The sample size is selected on the basis of FDI definition given by IMF i.e. if foreign shareholdingRead MoreIndia s Foreign Corporate Tax Rate961 Words   |  4 Pagesa relationship between India’s Foreign Corporate Tax Rate and India’s Foreign Direct Investment (FDI). Through my research, we see that India’s foreign corporate tax rate affects its FDI negatively. The time period we will be looking at will be from 1997-2013, due to the limited data available. Furthermore, I will explore some policy improvements which may increase FDI in India. 1. Background FDI is defined as cross-border investment by a resident entity in one economy with the objective of obtainingRead MoreThe Net Inflow Of Fdi Into The Developing Countries1110 Words   |  5 PagesSample Data Figure 1 shows the net inflow of FDI into the developing countries. There is a fall into the amount of FDI going to the developing countries from late 1980 to early 1990 and in the late 2000. Overall, there is an upward trend of amount of FDI going to the developing countries. The same trend with ODA shown in Figure 2. The amount of Net ODA received by developing countries from 1990 to mid-1990 is fluctuating then continued to fall until 2000. From year 2000 onwards, there is a steadyRead Morec) State and discuss the empirical framework that underlies the relationship of the study. FDI= ÃŽ ²1900 Words   |  4 Pagesc) State and discuss the empirical framework that underlies the relationship of the study. FDI= ÃŽ ²1 + ÃŽ ²2 GDP + ÃŽ ²3 DT+ ÃŽ ²4EX+ ÃŽ µ Where FDI = Foreign Direct Investment ( RM Million) GDP = Gross Domestic Product (RM Million) DT = Debt (RM Million) EX = Exchange Rate (Official exchange rate of local currency units per US$) ÃŽ µ = Error term Foreign Direct Investment (FDI) is the dependent variable measure in terms of RM Million. Gross Domestic Product (GDP), DebtRead MoreThe Role Of Indian Fdi On Nepalese Economic Growth1491 Words   |  6 Pagesanalytical methods. It includes OLS regression after testing stationarity, co-integration and causal relationships among the variables for time series data-set. Present study employs secondary data on the concerned variables such as Indian FDI flows, structure of Indian FDI, Nepalese GDP, investment and export from FY 1988/89 to 2013/14. The necessary data are taken from Economic Survey 2013/14 and Department of Industry, Nepal. The data are transformed into real terms taking 2005/06 as the base year andRead MoreDeterminants of Fdi in Saudi Arabia3837 Words   |  16 PagesKing Saud University, Riyadh, KSA. ABSTRACT Foreign Direct Investment (FDI) plays an important role in stimulating the growth potentials and providing stability to the economy of Saudi Arabia. Our findings show that there are mainly four factors which determine the net FDI flow to Saudi Arabia. These are - GDP, Privatization, Import and Export and Growth rate of GDP. There exists a positive relationship between FDI and GDP and GDP growth rate while it is negatively related to privatisation andRead MoreThe Effects of Foreign Direct Investment on Economic Growth in Malaysia3880 Words   |  16 Pagesinvestment is expected to remain strong and also accompanied with the government initiative under the ETP. FDI are also expected to increase given the positive economic outlook, increasing business confidence, enhancing global FDI flows, better corporate earnings and also government’s extensive economic transformation projects. 1.1.2 Trends and Patterns of FDI Flows in Malaysia Foreign Direct Investment (FDI) has been the underlying key vehicle that drives the strong growth performance experienced by the