Cross-border infrastructure projects offer significant economic and social benefits for the Asia-Pacific region. If the required investment of $8 trillion in pan-Asian connectivity was made in the region’s infrastructure during 2010–2020, the total net income gains for developing Asia could reach about $12.98 trillion (in 2008 US dollars) during 2010–2020 and beyond, of which more than $4.43 trillion would be gained during 2010–2020 and nearly $8.55 trillion after 2020. Indeed, infrastructure connectivity helps improve regional productivity and competitiveness by facilitating the movement of goods, services and human resources, producing economies of scale, promoting trade and foreign direct investments, creating new business opportunities, stimulating inclusive industrialization and narrowing development gaps between communities, countries or sub-regions. Unfortunately, due to limited financing, progress in the development of cross-border infrastructure in the region is low.
This paper examines the key challenges faced in financing cross-border projects and discusses the roles that different stakeholders—national governments, state-owned enterprises, private sector, regional entities, development financing institutions (DFIs), affected people and civil society organizations—can play in facilitating the development of cross-border infrastructure in the region. In particular, this paper highlights the major risks that deter private sector investments and FDIs and provides recommendations to address these risks.
This study investigates the impact of Foreign Direct Investments (FDIs) on wage dynamics in Slovakia and Slovenia, with a particular emphasis on gender-specific effects in post-Communist emerging markets. By analyzing wage outcomes for male and female workers separately, the research reveals potential disparities in FDIs-driven wage growth. Employing econometric techniques and longitudinal data, the study explores the nuanced relationship between FDIs, wage policies, and economic development over time. A temporal lag in FDIs analysis suggests that Slovakia and Slovenia have experienced differing impacts from past foreign capital flows. In Slovakia, significant correlations indicate persistent FDIs influence and a pronounced effect on gender wage disparities. In Slovenia, more moderate correlations and FDIs volatility suggest a less stable relationship between external investment and wage dynamics. The originality of this research lies in its comparative approach, examining two distinct post-Communist nations and identifying unique country-specific patterns and trends. This study contributes to a deeper understanding of FDI’s role in labor market management and its implications for gender equality in two European emerging economies.
Interdependence between the United States (U.S.), European Union (EU) and Asia in the semiconductor industry, driven by specialization, can serve as a preventive measure against disruptions in the global semiconductor supply chain. Moreover, with rising geopolitical tensions, the cost-intensive nature of the semiconductor industry and a slowdown in demand, interdependence and partnership provide countries with opportunities and benefits. Specifically, by analyzing global trade patterns, developing the Interdependence Index within the semiconductor market, and applying the Grubel-Lloyd Index to the U.S., the EU, and Asian countries from 2011 to 2022, our findings reveal that interdependence enhances regional semiconductor supply chains, such as the establishment of semiconductor foundries in the U.S., Japan, and the EU; reduces dependence on a single supplier, such as the U.S. distancing from China; and increases market share in different semiconductor segments, as demonstrated by Taiwan in automobile chips. The evidence indicates that China heavily depends on foreign sources to meet its semiconductor demand, while Taiwan and South Korea specialize as foundry service providers with lower Interdependence Index values. The U.S., with a robust presence in semiconductor manufacturing and design, has a moderate dependence on semiconductor imports, whereas the EU demonstrates a higher level of interdependence because it lacks semiconductor foundries. The stage-specific analyses indicate that the U.S. and the EU rely on Asia for semiconductor devices, while China and Taiwan have a higher dependence on American intermediate inputs and European lithography machines.
This study is considered one of the few studies that attempted to explore the relationship between exports and foreign direct investment in the Kingdom of Saudi Arabia. The study aims to determine the nature of the relationship between exports and foreign direct investment in the Kingdom of Saudi Arabia during the period between (1990–2023). Employing Ender’s methodology using cointegration and error correction model. The study also relies on data on Saudi exports and foreign direct investment inflows from the World Bank databases. The results indicate the existence of Cointegration between foreign direct investment (FDI) inflows and the Saudi exports in the period (1990–2023), as for the causal relationship between the two variables, the results showed the causal relation between exports and FDI inflows from the direction of exports only, which means that Saudi exports cause FDI inflows in Saudi Arabia, and the study recommends giving more incentives to attract foreign investors in different sector rather than oil sector, besides improving the logistical services which is vital to any investment attraction strategy.
This article presents an analysis of Russia’s outward foreign direct investment based on the balance of payments. The country has been affected by the “Dutch disease,” characterized by a heavy reliance on the mining industry and revenues from oil and gas exports. The financial account reveals a consistent outflow of capital from Russia, surpassing inflows. A significant portion of domestic investment goes abroad, often to offshore destinations. This capital outflow has not been fully offset by foreign capital inflows. These findings underscore the challenges faced by Russia in managing its financial position, including the need to address capital outflows, diversify the economy, and reduce dependence on raw material exports. Furthermore, this article aims to identify the presence of Russian capital in OECD countries by comparing data from the Central Bank of Russia and the OECD. The analysis reveals significant discrepancies between the two datasets, primarily due to unavailable or confidential information in the OECD dataset. These variations can also be attributed to differences in methodology and the specific nature of Russian outward direct investments, particularly those involving offshore jurisdictions. As a result, accurately determining the extent of Russian capital in OECD countries based on the available data becomes a challenging task (including for the tourism industry as well).
The current study examines the impact that technological innovation, foreign direct investment, economic growth, and globalization have on tourism in top 10 most popular tourist destinations in the world. The information on the number of tourists, foreign direct investment, growth in gross domestic product, GFCF, use of FFE, and total energy consumption were extracted from the World Development Indicators. The United Nations Conference on Trade and Development (UNCTAD) database was used for collecting the statistics about technological innovation. The source ETH Zurich has been utilized to gather panel data for the time period 2008 to 2022 to calculate the KOF Index of Globalization. Theoretically, FDI and Economic growth are the endogenous variables for the Tourism model. Whereas, TI, Glob, Energy Consumption, and GFCF are the exogenous variables. Hence, the analysis is based on the System Equation—Simultaneous equations, after checking identification that confirms the problem of simultaneity in system of 3 equations. The empirical outcomes suggest that TI, FDI, globalization index, GDP growth, and energy consumption are the most important factors that contribute to an increase in tourism. Likewise FDI as the endogenous variable is favorably impacted by globalization, technological innovation, fossil fuel energy consumption, gross fixed capital formation, and tourism. Nevertheless, the coefficient of GFCF is only insignificant in the study. While, globalization, TI, and FFE are also favorably affecting the FDI. GDP growth is the second endogenous variable in this research, and it is positively influenced by globalization, FDI, and tourism in the case of the top 10 nations that are most frequently visited by tourists.
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