Impact of EU- FDI on Economic Growth in Middle Eastern Countries
This paper develops a simultaneous equations model to test the process of interaction between foreign direct investment, exports and economic growth in three Middle Eastern countries: Egypt, Jordan, Oman, and test for any possible feedback effects. Most of the FDI in these countries flows from the EU. The simultaneous equations model results suggest that higher rates of economic growth result in a greater inflow of foreign capital. The regression results also suggest that interest rate differentials exert a much stronger effect than economic growth on the attraction of foreign capital in the case of Egypt. However, this variable does not seem to play a significant role in the case of Oman. Moreover, the simultaneous equations model results suggest that there is a feedback effect in the relationship between economic growth and capital inflow in all sample countries. A greater inflow of foreign capital leads to growth in the exports of good and services. The expansion in exports leads to growth in GNP, which in turn, encourages the attraction of more foreign capital.
A system dynamics model of the impact of COVID-19 pandemic and foreign direct investment in the global supply chain
COVID-19 pandemic is a great challenge that the world has been faced in recent decades. The pandemic has affected the global trade and has caused a dramatic fall in Foreign Direct Investments (FDI). The impact on FDI is concentrated in the countries that are severely hit by the pandemic, although negative impact of disruptions is observed in other countries. In this paper, a system dynamics model is developed to simulate the impact of the pandemic on the FDI. Results showed that the level of force majeure condition and also the level of flexibility are two important factors that impact on the FDI and other important variables of the supply chain. In the case of lower severity of pandemic and higher flexibility, FDI is higher than the case that these parameters are in their worst condition.
Convergence Anatomization of Aquaculture Production in Leading Fish-Producing Countries During the Period of 1997-2013
Growth and national importance of aquaculture production is empirically assessed as an important indicator of development. The present article aims to test whether the major aquaculture producing countries of the world are converging over time. The authors have applied the absolute and conditional beta convergence and sigma convergence approaches on the data of FAO for the period 1997-2013. The results show that there is an absolute beta convergence and sigma convergence among 25 major aquaculture producing countries; negative sign of coefficient of conditional beta convergence with per capita income is also noticed. It implies, the growth rates of aquaculture for developed nations are declining with rise in per capita income and backward fish-intensive countries are catching up with the giant producers like China and India. The cross-country variations are also going down which means that the countries' development gaps are getting narrowed by means of growth of aquaculture resources.