Foreign Direct Investment And Poverty Reduction

This paper provides a detailed survey of the literature on the impact of foreign direct investment (FDI) on poverty reduction, outlining the theoretical and empirical relationship between these variables. Although a number of studies have been done on the impact of FDI on poverty reduction, the majority of these studies have focused on the indirect impact of FDI on poverty reduction. The bulk of the literature reviewed supports the positive effects of foreign direct investment on poverty reduction, although a few studies have also found foreign direct investment to have an adverse or insignificant effect on poverty reduction. This study differs fundamentally from previous studies in that it focuses on the direct impact of FDI on poverty reduction, giving a detailed review of the nature of this relationship

REMITTANCE INFLOWS, POVERTY AND ECONOMIC GROWTH IN TANZANIA: A MULTIVARIATE CAUSALITY MODEL

Purpose: This study examined the causal flow between economic growth, poverty, and remittances for Tanzania, using annual data from 1990 to 2020. Tanzania is working to achieve the policy targets set in its Vision 2025, and the findings of this study will add value to policy effectiveness and timing. The study uses household consumption expenditure per capita (HCE) as a measure of poverty, the rate of change in GDP as a measure of economic growth, and remittance inflows as a percentage of GDP as a measure of remittances. Methodology: The study used autoregressive distributed lag (ARDL) approach to cointegration and ECM-based Granger causality. Results: The study found a bidirectional causality between remittances and poverty in the short run and a unidirectional causal flow from remittances to poverty in the long run. No causality was found between remittances and economic growth, and between economic growth and household consumption expenditure per capita. Conclusions: The findings of this study point to the importance of remittances in poverty reduction and sustainable development in Tanzania. Recommendations: Tanzania is encouraged to continue implementing policies that support remittance inflows to positively influence poverty reduction

Povezanost izravnih stranih ulaganja, strane pomoći i gospodarskog rasta u Keniji: analiza kointegracije i uzročnosti

The increasing role of foreign capital inflows in reducing the disparity between government revenues and costs as well as impellent economic growth has motivated this study to establish the direction of causality between foreign direct investment (FDI), foreign aid, and economic growth in Kenya. By using annual time series data from 1970 to 2020 within bounds testing approach to cointegration and the error correction model ECM-based Granger-causality, the study found a bidirectional causality between foreign aid and economic growth in the short run and a unidirectional causal flow from foreign aid to economic growth in the long run. The results also support evidences of bidirectional causality between FDI and foreign aid in the short run and a unidirectional causal flow from foreign aid to FDI in the long run. However, the study found no causal relationship between FDI and economic growth, irrespective of whether the causality test is conducted in the short run or in the long run. These empirical findings are encouragement to policy makers in Kenya to carefully channel foreign aid in productive sectors to positively influence economic growth and foreign direct investment, as most relevant targets in achieving Vision 2030 and the Sustainable Development Goals (SDGs).Sve veća uloga priljeva stranog kapitala u ublažavanju nerazmjera između državnih prihoda i troškova te u ostvarenju poticajnog gospodarskog rasta, motivirali su ovu studiju da utvrdi smjer uzročnosti između izravnih stranih ulaganja (FDI), strane pomoći i gospodarskog rasta u Keniji. Korištenjem vremenskih nizova godišnjih podataka od 1970. do 2020. godine i graničnog pristupa testiranju kointegraciji te modela korekcije pogreške temeljenog na ECM Grangerovoj uzročnosti, studija je otkrila dvosmjernu uzročnost između strane pomoći i gospodarskog rasta u kratkom roku i jednosmjernu uzročnost od strane pomoći prema gospodarskom rastu u dugom roku. Rezultati također pružaju dokaze o dvosmjernoj uzročnosti između izravnih stranih ulaganja i strane pomoći u kratkom roku i jednosmjernoj uzročnosti od strane pomoći prema izravnim stranim ulaganjima u dugom roku. Međutim, studija nije pronašla uzročnu vezu između izravnih stranih ulaganja i gospodarskog rasta, bez obzira provodi li se kratkoročni ili dugoročni test uzročnosti. Ovi empirijski nalazi ohrabruju nositelje politika u Keniji da pažljivo usmjere inozemnu pomoć ka proizvodnim sektorima kako bi pozitivno utjecali na gospodarski rast i izravna strana ulaganja, kao najrelevantnijih ciljeva u postizanju Vizije 2030 i održivog razvoja (SDG)

THE impact of remittance inflows on poverty in Botswana: an ARDL approach

Abstract The growing pressure on governments to reduce poverty among other Sustainable Development Goals (SDGs) through harnessing domestic and foreign sources has motivated studies on the relationship between poverty and different economic variables in many developing countries. This study investigates the impact of remittance on poverty in Botswana, employing time-series data from 1980 to 2017. The study employs two poverty proxies—household consumption expenditure and infant mortality rate to capture poverty in its multidimensional form and improve the robustness of the results. Using the autoregressive distributed lag (ARDL) approach, the study finds that remittance inflows reduce poverty in Botswana—both in the short run and in the long run when infant mortality rate is used as a proxy. However, when poverty is measured by household consumption expenditure, remittance was found to have no impact on poverty in the short run and in the long run. The study, therefore, concludes that remittance inflows play a crucial role in reducing poverty and that Botswana can benefit immensely from the surge in remittance inflows by putting in place policies and structures that support remittance inflow

Povezanost izravnih stranih ulaganja, strane pomoći i gospodarskog rasta u Keniji: analiza kointegracije i uzročnosti

The increasing role of foreign capital inflows in reducing the disparity between government revenues and costs as well as impellent economic growth has motivated this study to establish the direction of causality between foreign direct investment (FDI), foreign aid, and economic growth in Kenya. By using annual time series data from 1970 to 2020 within bounds testing approach to cointegration and the error correction model ECM-based Granger-causality, the study found a bidirectional causality between foreign aid and economic growth in the short run and a unidirectional causal flow from foreign aid to economic growth in the long run. The results also support evidences of bidirectional causality between FDI and foreign aid in the short run and a unidirectional causal flow from foreign aid to FDI in the long run. However, the study found no causal relationship between FDI and economic growth, irrespective of whether the causality test is conducted in the short run or in the long run. These empirical findings are encouragement to policy makers in Kenya to carefully channel foreign aid in productive sectors to positively influence economic growth and foreign direct investment, as most relevant targets in achieving Vision 2030 and the Sustainable Development Goals (SDGs).Sve veća uloga priljeva stranog kapitala u ublažavanju nerazmjera između državnih prihoda i troškova te u ostvarenju poticajnog gospodarskog rasta, motivirali su ovu studiju da utvrdi smjer uzročnosti između izravnih stranih ulaganja (FDI), strane pomoći i gospodarskog rasta u Keniji. Korištenjem vremenskih nizova godišnjih podataka od 1970. do 2020. godine i graničnog pristupa testiranju kointegraciji te modela korekcije pogreške temeljenog na ECM Grangerovoj uzročnosti, studija je otkrila dvosmjernu uzročnost između strane pomoći i gospodarskog rasta u kratkom roku i jednosmjernu uzročnost od strane pomoći prema gospodarskom rastu u dugom roku. Rezultati također pružaju dokaze o dvosmjernoj uzročnosti između izravnih stranih ulaganja i strane pomoći u kratkom roku i jednosmjernoj uzročnosti od strane pomoći prema izravnim stranim ulaganjima u dugom roku. Međutim, studija nije pronašla uzročnu vezu između izravnih stranih ulaganja i gospodarskog rasta, bez obzira provodi li se kratkoročni ili dugoročni test uzročnosti. Ovi empirijski nalazi ohrabruju nositelje politika u Keniji da pažljivo usmjere inozemnu pomoć ka proizvodnim sektorima kako bi pozitivno utjecali na gospodarski rast i izravna strana ulaganja, kao najrelevantnijih ciljeva u postizanju Vizije 2030 i održivog razvoja (SDG)

DOES TOURISM INFLUENCE FINANCIAL DEVELOPMENT IN KENYA?

Objective: In this study, we investigate the impact of tourism on financial development in Kenya using time series data from 1995 to 2017. The study uses the autoregressive distributed lag (ARDL) bound testing approach to cointegration and error correction model to examine this connection. To increase the robustness of the results, the study uses two proxies of financial development, namely broad money (bank-based financial development proxy) and total value of stocks traded (market-based financial development proxy). Results show that tourism has an insignificant impact on financial development in Kenya – both in the short run and in the long run. The results are relevant regardless of whether the financial development is proxied by a bank-based financial development indicator or by a market-based financial development indicator. This finding points to the fact that, although tourism is one of the main sources of foreign exchange in Kenya, it has no direct impact on financial development. The findings from this study add value to policy makers in Kenya by revealing the insignificant impact that tourism has on financial development, although this is in contrast to other studies that found a positive contribution. Based on the findings, Kenya may not anchor its financial development policies on tourism

The impact of foreign capital inflows on poverty in Vietnam: An empirical investigation

This study investigates the impact of foreign capital inflows on poverty in Vietnam, using annual time series data from 1990 to 2018. The study was motivated by the need to establish if burgeoning foreign capital inflows in Vietnam can support the poverty alleviation agenda. Foreign direct investment (FDI) and external debt were used as proxies for foreign capital inflows; and infant mortality rate, Human Development Index (HDI) and household consumption expenditure were used as poverty proxies. Using the autoregressive distributed lag (ARDL) approach, the study found foreign direct investment to reduce poverty in the short run and long run when household consumption expenditure was used as a poverty measure. However, the study found FDI to worsen poverty in the short run when infant mortality rate and HDI were used as poverty proxies. The study found external debt to have poverty mitigating effect in the short run regardless of the poverty measure used and in the long run only when household consumption expenditure was used as a poverty measure

Spatial and temporal dynamics of malaria transmission in rural western Kenya

ABSTRACT: BACKGROUND: Understanding the impact of reducing Plasmodium falciparum malaria transmission requires estimates of the relationship between health outcomes and exposure to infectious mosquitoes. However, measures of exposure such as mosquito density and entomological inoculation rate (EIR) are generally aggregated over large areas and time periods, biasing the outcome-exposure relationship. There are few studies examining the extent and drivers of local variation in malaria exposure in endemic areas. METHODS: We describe the spatio-temporal dynamics of malaria transmission intensity measured by mosquito density and EIR in the KEMRI/CDC health and demographic surveillance system using entomological data collected during 2002-2004. Geostatistical zero inflated binomial and negative binomial models were applied to obtain location specific (house) estimates of sporozoite rates and mosquito densities respectively. Model-based predictions were multiplied to estimate the spatial pattern of annual entomological inoculation rate, a measure of the number of infective bites a person receive per unit of time. The models included environmental and climatic predictors extracted from satellite data, harmonic seasonal trends and parameters describing space-time correlation. RESULTS: Anopheles gambiae s.l was the main vector species accounting for 86% (n=2309) of the total collected mosquitoes with the remainder being Anopheles funestus. Sixty eight percent (757/1110) of the surveyed houses had no mosquitoes. Distance to water bodies, vegetation and day temperature were significantly associated with mosquito density. Overall annual point estimates of EIR were 6.7, 9.3 and 9.6 infectious bites per annum for 2002, 2003 and 2004 respectively. Monthly mosquito density and EIR varied over the study period peaking in May during the wet season. The predicted and observed densities and EIR showed a strong seasonal and spatial pattern over the study area. CONCLUSIONS: Spatio-temporal maps of malaria transmission intensity obtained in this study are not only useful in understanding variability in malaria epidemiology over small areas but also provides a high resolution exposure surface that can be used to analyse the impact of malaria exposure on mortalit

An Analysis of the Potential of Manufacturing and Services Sectors as Drivers of Economic Growth and Development in Namibia

The purpose of this paper is to analyse the potential of the manufacturing and services sectors as drivers of economic growth in Namibia. The paper uses the intersectoral linkage analysis method to identify the industries with the greatest backward and forward linkages. The economy-wide impact of these industries is simulated further using a CGE model. The greatest backward linkages for manufacturing industries were found in meat processing, fish processing, grain milling, basic metals and construction. The greatest backward linkages for the tertiary industries were found in trade and repairs, hotels and restaurants, finance and insurance, and other private services. The greatest forward linkages for manufacturing industries were found in paper and printing, chemicals and rubber, fabricated metals and machinery, and electricity generation and distribution. The greatest forward linkages for tertiary industries were found in transport, communication, finance and insurance, and market real estate and business services. These, therefore, are the sectors that policies could target as they have greatest impact and could enable Namibia to achieve higher levels of growth. Further, simulation results are obtained from a CGE model by introducing direct exogenous increases in the output of the perceived key industries and examining the economy-wide feedback effects

PRISM framework: a paradigm shift for designing, strengthening and evaluating routine health information systems

The utility and effectiveness of routine health information systems (RHIS) in improving health system performance in developing countries has been questioned. This paper argues that the health system needs internal mechanisms to develop performance targets, track progress, and create and manage knowledge for continuous improvement. Based on documented RHIS weaknesses, we have developed the Performance of Routine Information System Management (PRISM) framework, an innovative approach to design, strengthen and evaluate RHIS. The PRISM framework offers a paradigm shift by putting emphasis on RHIS performance and incorporating the organizational, technical and behavioural determinants of performance. By describing causal pathways of these determinants, the PRISM framework encourages and guides the development of interventions for strengthening or reforming RHIS. Furthermore, it conceptualizes and proposes a methodology for measuring the impact of RHIS on health system performance. Ultimately, the PRISM framework, in spite of its challenges and competing paradigms, proposes a new agenda for building and sustaining information systems, for the promotion of an information culture, and for encouraging accountability in health systems