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Title: Construction investment, poverty during economic downturns, and foreign direct investment (Denmark, Italy, Germany, Romania, China, India and Russia)
Abstract: This study aims to investigate the relationship between foreign direct investment (FDI), construction investment, and poverty in various nations. With locations in both Europe and Asia, the Russian Federation makes significant investments in the building industry. Despite having 70% of its land mass in Northern Asia, Russia is frequently referred to as a European nation because 80% of its citizens live there. Because of this, both developed and emerging nations are taken into account in this document; the former are represented by the EU members of various economic levels, while the latter are the BRICS nations. Why does a high level of poverty continue in Russia when Russian officials have repeatedly reaffirmed their commitment to the implementation of the Sustainable Development Goals (SDGs) by investing heavily in construction and luring FDI? We examined data from various economically diverse nations to find the best differentiated data. Taking into account cointegration and heteroscedasticity, we used an autoregressive distributed lag (ARDL) for the estimation, in which the current values of the series depend on both the past values of this series as well as the current and past values of other time series. We were able to compare the economic development of nations using some economic growth theories after receiving statistical data. The 4-5% share of FDI in the GDP aids in limiting the damaging effects of financial crises. By boosting the population’s assets, investments in construction support national economies over the long term and maintain or lower the level of poverty. We were also able to assess the patterns of economic development and poverty in these seven countries with the aid of empirical data. The positions of China and the Russian Federation will be at different “poles.” For economic growth and the reduction of poverty, China employs multiple theories and models at once, while neither the Russian Federation nor China adhere to any particular theory or model of economic growth.
Keywords: poverty; foreign direct investment; construction in investment; GINI; Denmark; Italy; Germany; Romania; China; India; Russian Federation
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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