Level of development, foreign direct investment and domestic investment in food manufacturing [version 3; peer review: 1 approved, 2 approved with reservations]
Background: Whilst the literature on the complementarity and substitutability of foreign direct investment (FDI) on domestic investment (DI) is not uncommon, the facet of food manufacturing is non-existent. This paper fills this void by investigating the effect of FDI on DI in the food manufacturing...
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| Format: | Article |
| Language: | English |
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F1000 Research Ltd
2022-07-01
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| Series: | F1000Research |
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| Online Access: | https://f1000research.com/articles/10-72/v3 |
| _version_ | 1797860432969465856 |
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| author | Justice Gameli Djokoto |
| author_facet | Justice Gameli Djokoto |
| author_sort | Justice Gameli Djokoto |
| collection | DOAJ |
| description | Background: Whilst the literature on the complementarity and substitutability of foreign direct investment (FDI) on domestic investment (DI) is not uncommon, the facet of food manufacturing is non-existent. This paper fills this void by investigating the effect of FDI on DI in the food manufacturing sector for developing, economies in transition and developed countries. Methods: Using an unbalanced panel data of 49 countries from 1993 to 2016, from FAOSTAT, estimated by the system generalised method of moments (GMM), the Wald statistics for the short and long-run effects of FDI on DI were computed for the development groups. Results: Developed economies experienced a crowd-out effect of FDI on DI in the short run, whilst the others experienced no significant effect. In the case of the long run, the food manufacturing sectors of all three development groups exhibited a crowd-out effect. The effect in the long run for all development groups together is a crowd-in. Analysing all country groups together could mask the results of the various country groups. Conclusions: A review of investment policies to prioritise FDI entry mode that favour domestic investment is needed. Improvement of the investment regulatory and administrative efficiency among others are recommended. |
| first_indexed | 2024-04-09T21:45:46Z |
| format | Article |
| id | doaj.art-93720094bcf7458da67c1e69bb277ebc |
| institution | Directory Open Access Journal |
| issn | 2046-1402 |
| language | English |
| last_indexed | 2024-04-09T21:45:46Z |
| publishDate | 2022-07-01 |
| publisher | F1000 Research Ltd |
| record_format | Article |
| series | F1000Research |
| spelling | doaj.art-93720094bcf7458da67c1e69bb277ebc2023-03-25T01:00:00ZengF1000 Research LtdF1000Research2046-14022022-07-0110135534Level of development, foreign direct investment and domestic investment in food manufacturing [version 3; peer review: 1 approved, 2 approved with reservations]Justice Gameli Djokoto0https://orcid.org/0000-0002-2159-2944Agribusiness Management Department, Central University, Ghana, Accra, Greater Accra Region, +233, GhanaBackground: Whilst the literature on the complementarity and substitutability of foreign direct investment (FDI) on domestic investment (DI) is not uncommon, the facet of food manufacturing is non-existent. This paper fills this void by investigating the effect of FDI on DI in the food manufacturing sector for developing, economies in transition and developed countries. Methods: Using an unbalanced panel data of 49 countries from 1993 to 2016, from FAOSTAT, estimated by the system generalised method of moments (GMM), the Wald statistics for the short and long-run effects of FDI on DI were computed for the development groups. Results: Developed economies experienced a crowd-out effect of FDI on DI in the short run, whilst the others experienced no significant effect. In the case of the long run, the food manufacturing sectors of all three development groups exhibited a crowd-out effect. The effect in the long run for all development groups together is a crowd-in. Analysing all country groups together could mask the results of the various country groups. Conclusions: A review of investment policies to prioritise FDI entry mode that favour domestic investment is needed. Improvement of the investment regulatory and administrative efficiency among others are recommended.https://f1000research.com/articles/10-72/v3Crowding-in crowding-out developing countries developed countries food manufacturing foreign direct investmenteng |
| spellingShingle | Justice Gameli Djokoto Level of development, foreign direct investment and domestic investment in food manufacturing [version 3; peer review: 1 approved, 2 approved with reservations] F1000Research Crowding-in crowding-out developing countries developed countries food manufacturing foreign direct investment eng |
| title | Level of development, foreign direct investment and domestic investment in food manufacturing [version 3; peer review: 1 approved, 2 approved with reservations] |
| title_full | Level of development, foreign direct investment and domestic investment in food manufacturing [version 3; peer review: 1 approved, 2 approved with reservations] |
| title_fullStr | Level of development, foreign direct investment and domestic investment in food manufacturing [version 3; peer review: 1 approved, 2 approved with reservations] |
| title_full_unstemmed | Level of development, foreign direct investment and domestic investment in food manufacturing [version 3; peer review: 1 approved, 2 approved with reservations] |
| title_short | Level of development, foreign direct investment and domestic investment in food manufacturing [version 3; peer review: 1 approved, 2 approved with reservations] |
| title_sort | level of development foreign direct investment and domestic investment in food manufacturing version 3 peer review 1 approved 2 approved with reservations |
| topic | Crowding-in crowding-out developing countries developed countries food manufacturing foreign direct investment eng |
| url | https://f1000research.com/articles/10-72/v3 |
| work_keys_str_mv | AT justicegamelidjokoto levelofdevelopmentforeigndirectinvestmentanddomesticinvestmentinfoodmanufacturingversion3peerreview1approved2approvedwithreservations |