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      The Possible Responsiveness of FDI to Electric Power Consumption in Different Income Level

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      ScienceOpen Preprints
      Foreign Direct Investment, Electricity Power Consumption, Labor Force

            Author Summary


            In “the possible responsiveness of FDI to electric power consumption at different income-level” Wondimu Sigo investigates that high-income countries have a high level of electric power consumption and therefore electric power consumption becomes less important for them to attract FDI.  But electric power consumption can significantly increase net FDI inflow for middle & low-income countries because for these countries, especially for low-income countries, sufficient electricity supply is important for FDI inflow. In addition, numerous researchers have tried to study the relationship between net inflows of FDI and energy consumption. The research has been concluded that as FDI allows for cheaper and easier access to capital, demand for energy increase with FDI inflows increase.



            Modern energy in the form of electricity is vital for economic activities such as for getting clean water, and healthcare, for getting stable and effective lighting, heating, and cooking. However, in developing countries there is a huge shortage of electricity and big gaps in access, while access to electricity in developed countries almost reached a hundred percent. Hence, the purpose of this paper is to shows the possible responsiveness of FDI to electric power consumption in different income-level. Hence, this study aims to address questions, including how is the relationship between economic activities such as FDI and electricity consumption in different income-level. For motivating the research, 131 countries data have been collected from WDI and US-EIA from 1992 to 2016 and both quantitative and qualitative methods used.

            The cross-country regression result shows that there exists an inverse-U shaped relationship between EPC and FDI net inflow because most high-income countries have a high level of EPC and therefore EPC becomes less important for them to attract FDI. But when we separate the total sample into two, EPC can significantly increase net FDI inflow for middle & low-income countries because for these countries, especially for low-income countries, sufficient electricity supply is important for FDI inflow.


            Author and article information

            ScienceOpen Preprints
            24 August 2021
            [1 ] Institute of South-South Cooperation and Development, Peking University, Beijing, 5 Yiheyuan Rd, Haidian District, China, 100871
            Author notes

            This work has been published open access under Creative Commons Attribution License CC BY 4.0 , which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Conditions, terms of use and publishing policy can be found at www.scienceopen.com .

            The datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request.
            Foreign Direct Investment,Electricity Power Consumption,Labor Force


            Dear Author, 


            How are you, brother? It is fortunate that I review your article. I tried to go through all pages. my observation in these pages would show you what I intend to give you as a comment as follows.


            It is well articulated and very brief, but author does not explain the methodology employed to reach these conclusions and recommendations.


            The section has been given relatively huge space. Therefore, it needs to make it short and very brief. In addition, I found the statement of the problem only in the overall introduction. First, the statement of the problem in the overall introduction is not comprehensive enough to justify that there is a need to do research on the topic you stated.

            3.Literature review

            This article lacks critical evaluation of the literature. You didn’t seem identify gaps in the literature. The purpose of reviewing literature is to know the most recent knowledge in the subject and identify knowledge gaps. Lack of identification of knowledge gaps is evident in the article. You need critically to review relevant knowledge gaps. With this caveat, it is difficult to know your contribution to the literature.

            The author does not include the literature review regarding the research topic. This needs reorganization along the following areas.

            1. Theoretical review should be included
            2. group empirical using either methodology used, issues focused or both.


            This article provides important knowledge and fill the gap on the literature. Therefore, it is more relevant for the academic community.  However, it does not employ novel approach or new findings in comparison with other publications in the field.

            • Level of validity:

            The way that the data is compiled and analyzed is sound, well-controlled and statistically significant. The results of the analysis are clearly articulated and interpreted as well as supported by the data. The author employed appropriate methodology to analyze the data and interpret the results.

            • Level of completeness:

            The author cites and lists all relevant publications in the field in scholarly context. He also acknowledges and cites all the information used in his article.

            • Level of comprehensibility:

            The article is well articulated and written with good language and flow. Tables and graphs are properly presented. The article is also systematically and logically organized.

            My overall impression is very good, the paper is written very well; and it has a lot of strengthens as mentioned above


            2021-12-06 14:51 UTC
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