arbiter
JournalsAccount

FDI, Informational Globalisation and Global Value Chain: Lessons from G20 Economies

Madhabendra Sinha et al.

Indian Economic Journal2026https://doi.org/10.1177/00194662261425165article
ABDC B
Weight
0.50

Abstract

The study attempts to explore the dynamic interlinkages among foreign direct investment (FDI) inflows, informational globalisation (ING) and global value chain (GVC) empirically in the G20 nations from 1990 to 2019. The trade and growth effects of FDI are widely discussed in theoretical and empirical literature in the context of globalisation in different countries and regions. The noteworthy progress of information and communication technologies (ICT) has also been a substantial factor in the FDI-trade-growth relationship, as observed in various contemporary studies. However, the existing studies cannot provide a suitable answer with explicit scenarios regarding the relationship between FDI and GVC in the context of the latest form of global trade in the era of ING, which encompasses both globalisation and digitalisation. To conduct the empirical exercises examining the dynamic relationships among FDI, ING and GVC, the study chooses G20 nations, which represent around 85% of the global gross domestic product (GDP), over 75% of the global trade and FDI flows, and about two-thirds of the world’s population ( OECD, 2022 , Twenty-eighth report on G20 investment measures ). World Bank (2022 , World Development Indicators (WDI) ) provides country-wise annual data on FDI. The year-wise quantitative measures of the ING for selected countries are obtained from the KOF Globalisation Index (2022 , KOF Globalisation Index 2020 ). The study collects country-wise yearly data on GVC from the UNCTAD-Eora (2023 , UNCTAD-Eora global value chain database ) GVC database. In the panel cointegration and vector error correction mechanism (VECM) framework, the empirical estimations applying the panel fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods reveal the bidirectional causality between FDI and GVC and FDI and ING, and unidirectional causality between ING and GVC in G20 economies. JEL Codes: F01, F20, F41

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1177/00194662261425165

Or copy a formatted citation

@article{madhabendra2026,
  title        = {{FDI, Informational Globalisation and Global Value Chain: Lessons from G20 Economies}},
  author       = {Madhabendra Sinha et al.},
  journal      = {Indian Economic Journal},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1177/00194662261425165},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

FDI, Informational Globalisation and Global Value Chain: Lessons from G20 Economies

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.