Global Structural Shocks and FDI Dynamic Impact on Productive Capacities: An Application of CS-ARDL Estimation

Round 1

Reviewer 1 Report

Article title: Global Structural Shocks and FDI dynamic impact on Productive Capacities: Evidence from Nonlinearity and Complementary Premises

 

The article investigates empirically the influence of FDI inflow and changes in productive capacity on the global economy. The authors focused on the effects of structural change, the private sector, institutional quality, transportation infrastructure, and natural capital. Using CS-ARDL estimate, they conduct a panel study for 170 countries with data ranging from 2000 to 2021. The article is well written and ideas well-articulated. However, there are some issues which could improve the quality of the work further.

 

a)     In the abstract, the author must just present the summary of major findings in terms of their consequences, as opposed to statistical interpretation. Additionally, you should delete the phrase "novel" from the abstract before CS-ARDL.

b)     Introduction: Multiple references to the UNCTAD 2021 report cause us to question whether the whole study was devoted to that report. However, this might be lowered greatly. The diagram for the conceptual framework might be moved to the literature section and give a brief theoretical framework for the study to illustrate the interconnectedness of the variables/components.

c)     The author justified the use of cross-sectional ARDL in the study, which was followed by the application of the Driscoll-Kraay approach and fixed effect models. I have identified some fundamental issues here. First, these models are incompatible since only the CS-ARDL is dynamic while the rest are static. Therefore, it may be inefficient to apply the same models as in a given study, not even as a robustness check. Given that the CS-ARDL is a superior method, it was unnecessary to employ static models. Therefore, you might exclude the static models and center your discussion on the CS-ARDL estimates.

 

d)     The study's reference and citation styles require revision. For example, the first citation includes the names of four authors, which, according to APA style, should be followed by the abbreviation "et al" (2022). Either the cited article has not been published or publishing information has not been included in the citation. If the former is true, you should not reference the source, but if the latter is true, you should add the journal, issue, and DOI.

Author Response

Note: We are very thankful for your guiding and kind suggestions. In response to the other reviewers’ comments and suggestions; now we need to change the title of the article, new title is written above

Author Response File: Author Response.docx

Reviewer 2 Report

Dear authors,

In my opinion, the paper lacks novelty and interest to attract readers. The authors need to clarify the paper's contributions. There are too many grammar errors and typos in the manuscript. Some examples are as follows:

(1) For batter examination of the above objective. We are examining several other variables that has potential to effect overall level of productivity at domestic level, which includes the institutional quality, transportation infrastructure quality, private business sector capacity, social structure, and natural capital of hosting country.

(2) Section three explains the applied methodology, while Section four explains how the empirical results were obtained d.

(3) The employment structure... 6 structure develops a concentration on spatial reality s.

Many other errors need to be corrected. The authors should revise and rewrite the manuscript.

 

 

 

 

 

Author Response

Note: We are very thankful for your guiding and kind suggestions. In response to the other reviewers’ comments and suggestions; now we need to change the title of the article, new title is written above

Author Response File: Author Response.docx

Reviewer 3 Report

Dear authors,

Congratulations for your interesting research. I have some suggestions on how to make your text more attractive for wider audience.

The literature review should be completed. It contains some interesting information, however it gives an idea of incomplete discussion – it is often not clear what the authors want to point out. I miss a clearly described connection to the second – analytical part. I suggest to add the following aspects to the theoretical discussion:

It has been found that institutions, such as legal framework, are an important indicator for FDI inflow and economic growth (see here: DOI: 10.18267/j.pep.749) while investors already settled in developing countries are less sensitive to institutional shocks (see here: DOI: 10.52950/ES.2020.9.2.004).

The concept of Industry 4.0 is a very resonant topic in current research of EU economies in the context of structural change (see here: DOI: 10.52950/ES.2020.9.1.007). This aspect should be revealed in your research – part 2.2.

Another important aspect should be mentioned in the theoretical settlement of the topic: relation between government budget, FDI and public capital efficiency role ( see here: DOI: 10.52950/ES.2019.8.2.010)

These are interesting points of view to be included and referenced in your research in order to attract more attention from international audience. 

Last remark: I believe that the citation format does not correspond to the journal requirements.

 

Author Response

To Editor

Sustainability

We are very thankful for your efforts regarding the entire review process. I want to request you for consideration of following two points;

 

1. In response to the reviewers’ comments and suggestions; now we need to change the title of the article, new title is written above.
2. To resolve the reviewers’ comments, we get professional help from our mentors, now all authors are agreed to add them as new authors in this current article. For this, we attached the authorship change proforma. I am requesting you to kindly consider the above options.

 

Thank you for your time and support.

Author Response File: Author Response.docx

Round 2

Reviewer 2 Report

Please edit the English writing.

Author Response

Ref.: sustainability-2038221

 

Article title: Global Structural Shocks and FDI Dynamic Impact on Productive Capacities: Application of CS-ARDL

Reviewer-2  

 

1. Please edit the English writing.

Answer: Thank you for your insightful comments, we edit the entire draft for language and grammatical issues and correct at possible level. Additionally, we get a professional proof-reading service from exports, but they give us a deadline for December 04, 2022. Once they review our current draft, I am sure that our final manuscript will be more interesting for reader.

Author Response File: Author Response.docx

Reviewer 3 Report

Congratulation

Author Response

Ref.: sustainability-2038221

 

Article title: Global Structural Shocks and FDI Dynamic Impact on Productive Capacities: Application of CS-ARDL

Reviewer-3  

 

1. Congratulation

Answer: Thank you for your appreciation and guiding.

Author Response File: Author Response.docx