Does governance matter to ensure significant effect of foreign direct investment on poverty reduction? Evidence from developing and emerging countries

IF 1.6 Q3 BUSINESS Transnational Corporations Review Pub Date : 2024-03-26 DOI:10.1016/j.tncr.2024.200058
Zouhaier Aloui , Mekki Hamdaoui , Samir Maktouf
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Abstract

This paper examines the moderating role of governance in the effect of Foreign Direct Investment (FDI) on poverty using simultaneous equations models for sub-Saharan African, Asian, Latin American and Eastern European countries over the period 1996–2017. The main objective of this study is to examine the role of governance as a moderator of the FDI effect on poverty. Our analyses support a positive significant impact of FDI on poverty reduction in sub-Saharan Africa and Latin America but a negative effect in Eastern Europe, while it is not significant in Asian economies. In addition, we detect a positive conjoint impact of FDI and governance quality on poverty in all African, Latin American and Eastern European economic communities. However, this interactive effect is negative and not significant in Asia. This means that FDI reduces poverty in the presence of governance quality. Our results support that in the poorest countries (sub-Saharan Africa, Latin America), poverty is more sensitive to interactions between governance and FDIs than in the richest countries (ASIA). As policy implications of this study, governments in less developed regions must give great importance to improving the quality of governance. In this way, it becomes possible to attract foreign direct investment and increase household consumption reducing poverty as main purpose of Sustainable Development Goals (SDGs) for 2030.

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治理对确保外国直接投资对减贫产生重大影响重要吗?发展中国家和新兴国家的证据
本文利用 1996-2017 年期间撒哈拉以南非洲、亚洲、拉丁美洲和东欧国家的同步方程模型,研究了治理在外国直接投资(FDI)对贫困的影响中的调节作用。本研究的主要目的是考察治理在外国直接投资对贫困的影响中的调节作用。我们的分析表明,在撒哈拉以南非洲和拉丁美洲,外国直接投资对减贫有积极的显著影响,但在东欧则有消极影响,而在亚洲经济体则不显著。此外,我们还发现,在所有非洲、拉丁美洲和东欧经济体中,外国直接投资和治理质量共同对贫困产生了积极影响。然而,在亚洲,这种互动效应是负的,而且不显著。这意味着,外国直接投资会在治理质量存在的情况下减少贫困。我们的研究结果表明,与最富裕国家(亚洲)相比,最贫困国家(撒哈拉以南非洲、拉丁美洲)的贫困问题对治理与外国直接投资之间的相互作用更为敏感。本研究的政策含义是,欠发达地区的政府必须高度重视提高治理质量。这样,才有可能吸引外国直接投资,增加家庭消费,减少贫困,这也是 2030 年可持续发展目标(SDGs)的主要目的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.20
自引率
5.70%
发文量
37
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