Still dirty: the effect of global risks and development on foreign direct investment inflow
There needs to be more research on the global risks and developmental determinants of foreign direct investment inflow with green investment campaigns. This article presents new evidence covering 116 countries (2018–2020) using least squares regression. We show that ceteris paribus, higher perceive...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2024-02-01
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| Series: | Business: Theory and Practice |
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| Online Access: | https://journals.vilniustech.lt/index.php/BTP/article/view/19193 |
| _version_ | 1797292234672963584 |
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| author | M. Elfan Kaukab |
| author_facet | M. Elfan Kaukab |
| author_sort | M. Elfan Kaukab |
| collection | DOAJ |
| description |
There needs to be more research on the global risks and developmental determinants of foreign direct investment inflow with green investment campaigns. This article presents new evidence covering 116 countries (2018–2020) using least squares regression. We show that ceteris paribus, higher perceived environmental and geopolitical risks are more likely to increase foreign direct investment. We also find that lower business environment, safety and security, and environmental sustainability increase foreign direct investment inflow. Meanwhile, foreign investment inflow increased positively according to price competitiveness, infrastructure quality, and natural resources. One development variable, information, and communication technology readiness, becomes significant when the analysis is performed only on developing countries. Economic risks, societal risks, technological risks, health and hygiene, human resources, and international openness are not significantly affecting investment inflow. An insightful theoretical implication regarding the finding is that some supports exist for the pollution haven hypothesis. Implications for practice include creating supportive policies that appreciate sustainable practices, such that investors are attracted to the country not as opportunistic polluters but as sustainability pioneers.
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| first_indexed | 2024-03-07T19:48:53Z |
| format | Article |
| id | doaj.art-f186a81c84b04897b306c27068ef0004 |
| institution | Directory Open Access Journal |
| issn | 1648-0627 1822-4202 |
| language | English |
| last_indexed | 2024-03-07T19:48:53Z |
| publishDate | 2024-02-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Business: Theory and Practice |
| spelling | doaj.art-f186a81c84b04897b306c27068ef00042024-02-28T16:24:20ZengVilnius Gediminas Technical UniversityBusiness: Theory and Practice1648-06271822-42022024-02-0125110.3846/btp.2024.19193Still dirty: the effect of global risks and development on foreign direct investment inflowM. Elfan Kaukab0Faculty of Economics and Business, Universitas Sains Al-Qur’an, Wonosobo, Indonesia There needs to be more research on the global risks and developmental determinants of foreign direct investment inflow with green investment campaigns. This article presents new evidence covering 116 countries (2018–2020) using least squares regression. We show that ceteris paribus, higher perceived environmental and geopolitical risks are more likely to increase foreign direct investment. We also find that lower business environment, safety and security, and environmental sustainability increase foreign direct investment inflow. Meanwhile, foreign investment inflow increased positively according to price competitiveness, infrastructure quality, and natural resources. One development variable, information, and communication technology readiness, becomes significant when the analysis is performed only on developing countries. Economic risks, societal risks, technological risks, health and hygiene, human resources, and international openness are not significantly affecting investment inflow. An insightful theoretical implication regarding the finding is that some supports exist for the pollution haven hypothesis. Implications for practice include creating supportive policies that appreciate sustainable practices, such that investors are attracted to the country not as opportunistic polluters but as sustainability pioneers. https://journals.vilniustech.lt/index.php/BTP/article/view/19193global risksdevelopmentforeign direct investmentgreen investmentCOVID-19 |
| spellingShingle | M. Elfan Kaukab Still dirty: the effect of global risks and development on foreign direct investment inflow Business: Theory and Practice global risks development foreign direct investment green investment COVID-19 |
| title | Still dirty: the effect of global risks and development on foreign direct investment inflow |
| title_full | Still dirty: the effect of global risks and development on foreign direct investment inflow |
| title_fullStr | Still dirty: the effect of global risks and development on foreign direct investment inflow |
| title_full_unstemmed | Still dirty: the effect of global risks and development on foreign direct investment inflow |
| title_short | Still dirty: the effect of global risks and development on foreign direct investment inflow |
| title_sort | still dirty the effect of global risks and development on foreign direct investment inflow |
| topic | global risks development foreign direct investment green investment COVID-19 |
| url | https://journals.vilniustech.lt/index.php/BTP/article/view/19193 |
| work_keys_str_mv | AT melfankaukab stilldirtytheeffectofglobalrisksanddevelopmentonforeigndirectinvestmentinflow |