The impact of foreign direct investment and openness on Vietnamese economy

This thesis examines the impact of foreign direct investment (FDI) on Vietnamese economy based on Partial Adjustment Model and time series data from 1976 to 2004. FDI is shown to have not only short run but also long run effect on gross domestic product (GDP) of Vietnam. However, elasticity of GDP with respect to FDI is small and it will take many years to fully manifest itself. The impact of trade openness on GDP has also been examined and it is shown to be stronger than that of FDI. The paper offers a number of explanations and discusses briefly suggestions in order to increase the contribution of FDI to Vietnam’s economic development.

The Impact of Foreign Direct Investment on International Trade: An Empirical Study of China

This paper investigates the impact of inward FDI (Foreign Direct Investment) on international trade of China empirically on the country level by using panel data from 1984 to 2007. Two separate transformed models which are based on the gravity equation and refer to the econometric models of some previous studies, are used in this paper to estimate the effect of FDI inflows on exports and imports respectively. The estimation results confirmed the complementary relationship between FDI inflows and trade of China both on exports and imports, which has also been supported by previous empirical studies.

A proposed Model for Country Branding : an experimental Application on Nigeria

In the era of globalization, countries compete with each other for attention, respect and trust of potential consumers, investors, tourists, media and governments of other nations. Branding is the most powerful tool that a nation can utilize for effective differentiation strategies and for creating competitive advantage over other nations. Unfortunately, not every nations or destination marketers have a broad understanding of the concept of branding and how a country can be successfully branded. Hence, this study has proposed a model that could be used as a valuable guide for country branding. Also the model is recommended for countries struggling with image crisis; on the mission to improve the image internationally. Nigeria is a good example of countries with image crisis; it is one of the most populated countries in the world with a population of about 160 million inhabitants and growth rate of 2.553percent annually. Despite the abundant resources (e.g. coal, petroleum, natural gas etc.) that the nation is endowed with, it is quite disappointing that the population below poverty line is still at the alarming rate of 70percent of the total population. The mismanagement and poor leadership of the nation characterised by corruption, fraud, embezzlement of public fund etc. has culminated into serious image crisis that is slowing down the potential for investment and economic growth. However, there has been series of image rebranding campaigns but no tangible achievement has been recorded. It is quite questionable though, if image rebranding will provide the kind of future that Nigeria envisaged, considering the socio-political situation and the economic imbalance; compounded by the obvious fact that the nation has no known brand. Therefore, this paper argues that there is need to redirect the effort invested on image rebranding to the creation of a unique and competitive brand for the country. It was established from the study that a nation’s brand is capable of improving the reputation of the nation as well as stimulate the expectation of the target audience. However, it was also established from the study that a wrong approach to branding could mislead the target audience and attract negative publicity. Hence, as a contribution of the study to the field of branding, a model was proposed as a functional guide for country branding. Also, considering the abysmal performance of Nigeria’s image in the international community and to strengthen the argument that brand creation is required for the country; an experimental application of the proposed model was conducted using Nigeria as the case country. The first phase of the model suggested a major improvement in the society; this is required to further enhance the strengths of the country and to motivate the much needed community participation and confidence in the brand creation. It is the conclusion of the study that a strong nation brand can offset the image problem if it is built on something concrete, genuine, and uniquely identifiable with the country, capable of connecting to the cognitive psychology of the target audience.

An analysis of linkage between foreign direct investment and GDP per Capita in Pakistan : A time series analysis

This study aims to investigate the relation between foreign direct investment (FDI) and per capita gross domestic product (GDP) in Pakistan. The study is based on a basic Cobb-Douglas production function. Population over age 15 to 64 is used as a proxy for labor in the investigation. The other variables used are gross capital formation, technological gap and a dummy variable measuring among other things political stability. We find positive correlation between GDP per capita in Pakistan and two variables, FDI and population over age 15 to 64. The GDP gap (gap between GDP of USA and GDP of Pakistan) is negatively correlated with GDP per capita as expected. Political instability, economic crisis, wars and polarization in the society have no significant impact on GDP per capita in the long run.