Foreign direct investment and its influence on China’s economic growth: A comprehensive review

The advent of globalization has spurred the level of foreign direct investment (FDI), which has increased the employment level and economic growth in countries around the world. This scenario has also been debated in the extant literature. It is on this backdrop that this study was inspired to examine the relationship between FDI and the level of employment in Nigeria. The article uses the Fully Modified Ordinary Least Squares (FMOLS) and the Johansen co-integration econometric approach on the data, which were sourced from the World Development Indicators (WDI) of the World Bank and the Central Bank of Nigeria (CBN) statistical bulletin. The investigation period covered thirty-two years (1985–2017). Also, the authors adopted the theory of absorptive capacity as the baseline for the model. Results obtained from the study showed that foreign direct investment is statistically significant and positively related to the employment level in Nigeria. These findings imply that a 1 unit increase in the inflow of foreign direct investment to the Nigerian economy is capable of increasing the level of employment by about 0.97 units. Therefore, based on findings, the study is concluded by recommendations that the Nigerian economy should become viable through effective trade policies and programs, which are capable of attracting foreign direct investment into the Nigerian economy for employment creation.

Acknowledgment(s)
The publication support received from Covenant University Centre for Research, Innovation and Discovery (CUCRID) is appreciated

This paper provides a study of the relationship between sustainable development and foreign direct investment (FDI) from an empirical point of view in the case of the North African countries during the period from 1985 to 2005. We use the cointegration test, the FMOLS (Fully Modified Ordinary Least Squares) model and the Granger causality test to examine this relationship. According to the empirical results, we confirm the existence of a cointegration relationship between the different series studied in this paper. Based on the cointegration test we can use the error correction model. Also, to test the effect of FDI on sustainable development in the North African countries, we make an estimate by FMOLS method. We found that the foreign direct investment has a positive impact on CO2 emissions. Also, the Granger Causality test confirms the presence of a bidirectional relationship between FDI and CO2 emissions (Carbon dioxide). That is to say, the FDI can cause CO2 emissions and CO2 emissions can cause FDI based on the Granger causality.

The development of investment processes is significant for a country’s economy, economic development, and the expansion of market opportunities. The successful functioning of the national economy in the global economic space requires its integration into the international finance system. The impact of foreign direct investment on the economy of host countries remains relevant. The purpose of this study is to investigate the impact of foreign direct investments on the Gross Domestic Product of Turkey for the years 1990–2021. The data set includes foreign direct investments, exchange rate levels, and the Gross Domestic Product of Turkey and was used in logarithmic form in the empirical assessments. The results show a positive and statistically significant relationship between foreign direct investments and Gross Domestic Product. A long-term integrative relationship exists between the independent variables (foreign direct investments and exchange rate) and the dependent variable (Gross Domestic Product). Consequently, this implies that a 1% increase in foreign direct investment results in a 0.35% increase in Gross Domestic Product, holding other factors constant.