THEORIES ON ECONOMIC DEVELOPMENT AND FDI Research Papers

The concept of Corporate Social Responsibility (CSR) has evolved considerably for the last 50 years. The multiplicity of historical reviews and confusion mentioning some of the events and neglecting other events have led dispersion of... more

The concept of Corporate Social Responsibility (CSR) has evolved considerably for the last 50 years. The multiplicity of historical reviews and confusion mentioning some of the events and neglecting other events have led dispersion of models and theories related to CSR. Through this article, a new investigation has been made towards the most notable academic and practical events that affect the development of CSR. A comprehensive literature review method has fragmented the academic evolution of the CSR concept depending on milestones-basis. It has been implemented through this article that some valuable political and sociable milestones have affected CSR context development. Analyzing the historical development perspectives of CSR have shown the relationship between CSR theories and between the implementation process of CSR by an enterprise.
Today, interest in corporate social responsibility is growing rapidly. In a broad sense, corporate social responsibility means the ability of an enterprise to benefit not only itself but also to ensure the sustainable social development of society. Social responsibility is a rather broad concept that includes areas such as the environment and social justice. The concept of corporate social responsibility (CSR) has changed significantly over the last fifty years. Most historical reviews in the academic literature share the historical development of the concept of CSR according to the time scale, which is why this study is devoted. In this article, the authors conducted an original study of the most notable scientific and practical developments that affect the development of CSR worldwide. The analysis of historical trends in the development of CSR showed a clear relationship between theories of CSR and the process of implementing CSR by the management of enterprises. In this article, the authors show the existence of a clear relationship between the development of CSR theories and the use of CSR approaches by international communities and international companies. The historical overview of the stages of CSR development was aimed at helping decision makers understand the meaning of CSR and convince them that theories of CSR implementation are not limited to social and environmental benefits for society as a whole, but they also have strategic advantages for companies, namely: strengthening competitiveness, ensuring quality standards and enhancing the company's reputation. As a result of the study, it becomes clear that the international community in cooperation with international institutions, engaged in the development of quality standards for CSR, seek to transform the concept of corporate social responsibility from an optional concept to a mandatory principle of operation of all enterprises, regardless of ownership. Transforming corporate social responsibility into a mandatory principle will limit the greed of businessmen, limit risks and ensure a future for future generations.

This is a discussion of research findings on the interaction of the Japanese firms with Australia’s locational factors that affect their investment decisions in Australia. The paper argues that there is a convergence as well as... more

L’objectif de cette recherche est de clarifier les objectifs de la normalisation industrielle et de déterminer les différentes facettes de la normalisation dans une économie en transition. C’est la question de recherche liée à la... more

FDI may affect the supply of productive resources including (financial capital, equipment and machinery, technology, management and etc.). FDI creates employment where unemployment and underemployment rate is high and thus increases the... more

One of the major economic problems in developing countries is low formation of capital needed to finance the essential investments for economic growth. Foreign Direct Investment (FDI) inflows has been identified by many scholars as one... more

One of the major economic problems in developing countries is low formation of capital needed to finance the essential investments for economic growth. Foreign Direct Investment (FDI) inflows has been identified by many scholars as one among the major sources of stimulating economic growth in the country since it provides the capital needed for further investment, it promotes import and exports of goods and services, it increases industrial competition in the host countries and helps the local firms in productivity by adopting efficient technologies and knowledge as well as investing in human and/or physical capital. This study aims at analyzing the roles of FDI inflows on economic growth in Tanzanian economy using annual time series data from 1986 to 2016. The area of the study used is the United Republic of Tanzania and its economy as whole. The study has adopted descriptive design because it describes what exists with regards to variables in a scenario and quantitative research paradigm because the study has used quantitative data to explain the relationship between variables of the study. In conducting the study, secondary data has been used which included FDI inflows, FDI (% of GDP), Gross Domestic Product (GDP) growth rates, Trade (% of GDP), R&D expenditures (% of firms) and Employment rates which are obtained from World Bank and National Bureau of Statistics (NBS) databases. The study employs multiple regression analysis and correlation analysis using Pearson correlation to answer the research questions of the study. The findings of the study have revealed that there is a strong positive correlation between FDI inflows and GDP and between FDI inflows and employment generation. While the correlation between FDI inflows and trade openness, FDI inflows and technology transfer progress was positive but weak. The results for regression analysis have showed a strong positive relationship between GDP and FDI inflows as well as GDP and trade openness while there is negative relationship between GDP and technology transfer progress and employment generation. From the findings, the study has recommended that the government should improve and implement investment policies that promote exports of goods and services, adoption of new technologies, transparency legal frameworks and political pluralism to enhance democracy in the country. In addition, the government should maximize the efforts to attract FDI from regional blocs such as EAC and SADC.

One of the main themes in today’s global economic system is whether or not certain countries will ever be able to ‘catch up’, and if so, how to go about this. There is no shortage of institutions and schools of thought willing and wanting... more

One of the main themes in today’s global economic system is whether or not certain countries will ever be able to ‘catch up’, and if so, how to go about this. There is no shortage of institutions and schools of thought willing and wanting to prescribe the best ways to go about this quest of economic catching up, growing and developing.

One of the most popular ideas on how to achieve economic growth and development currently is that of foreign direct investment (FDI). Neatly in line with reigning neoliberal ideals, proponents of FDI as a strategy for growth and development believe it to link its host countries into the rest of the globalised world in ways that will benefit both, and that it will provide countries with much-needed capital for more investment in the pursuit of profit by the private sector.

Despite global enthusiasm for and focus on FDI, some regions and countries – in this particular instance the Southern African Development Community (SADC) – have not managed to attract as much FDI as they would have liked to, and developed countries continue to be both the major hosts and homes to FDI.3 This essay proposes that this is due to the fact that policies and programmes are designed with general determinants in mind, while the more important industry- and country-specific contextual aspects are not adequately dealt with. One-size- fits-all rarely works, and there is no reason to believe the realm of FDI would be different.

The research question examined in this essay is:
Can the main industries in SADC countries better account for differences in values of FDI attracted than the FDI determinants generally agreed upon in literature and followed in typical FDI promotion programmes?

This essay argues that one can indeed make better sense of the differences in values of FDI attracted in SADC when one looks more closely at differences in industrial composition. The implication of this for future FDI-related research is that more attention must be paid to the country-, industry-, even firm-, - but at least context- - specific factors in assessing how much FDI a country is likely to attract, or what it can do to attract more.

The essay follows the following structure: First it provides a short overview of why FDI is believed to be of such importance to economic growth and development. Following this, an overview is given of the common agreed-upon determinants for FDI attraction, relating to the business and economic environment. Finally, FDI attraction in SADC countries is analysed, comparing the country-specific factors of industrial composition and the common FDI determinants in order to show that the latter lead to puzzlement, while a focus on the former generally helps clear matters up. Ultimately, not the business environment but rather the structure of the economy determines success or failure in attracting FDI.

THEORIES ON ECONOMIC DEVELOPMENT AND FDI

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