An analysis of causal nexus between foreign direct investment, exchange rate and financial market development in Nigeria (1970 to 2009)

Saibu, Olufemi

doi:10.1504/ajesd.2012.045756

Cited by 6 publications

(3 citation statements)

References 20 publications

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“…Abzari et al (2011) concurred with Saibu (2012) and further revealed a direct causality relationship running from FDI to banking sector and financial market development in D-8 group of countries. On the other hand, Zakaria (2007) noted that FDI positively impacted on banking sector development in a significant way in developing nations.…”

Section: Introductionsupporting

confidence: 59%

“…However, a study by Saibu (2012) revealed that FDI had a direct significant positive impact on banking sector and financial markets development in Nigeria. Abzari et al (2011) concurred with Saibu (2012) and further revealed a direct causality relationship running from FDI to banking sector and financial market development in D-8 group of countries.…”

Section: Introductionmentioning

confidence: 99%

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Banking sector development and foreign direct investment. A case of Botswana

Tsaurai¹

2014

RGC

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The study investigates if there is a causality relationship between banking sector development and FDI inflows in Botswana. Though quite a number of authors have written on the subject, there appears to be no consensus on the directional causality between banking sector development and FDI inflows into the host country. At the moment, three dominant perspectives exist regarding the relationship between banking sector development and FDI inflows into the host country. The first perspective says that banking sector development attracts FDI inflows into the host country. The second perspective suggests that there is a positive feedback effect between banking sector development and FDI inflows whilst the third perspective maintains that there is no direct causality relationship between the two variables. The results from this study are consistent with the third perspective that says there is no direct causality relationship between banking sector development and FDI net inflows. This confirms that the long run relationship between banking sector development and FDI net inflows is an indirect one and the two set of variables affect each other indirectly through other factors in Botswana.

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Section: Introductionsupporting

confidence: 59%

Section: Introductionmentioning

confidence: 99%

Banking sector development and foreign direct investment. A case of Botswana

Tsaurai¹

2014

RGC

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“…However, (Alfaro et al 2010;Kaur et al 2013) claimed that developed Þ nancial system assists host countries to attract signiÞ cant FDI and enjoy the FDI beneÞ ts through the provision of Þ nancial support, and increase loans to the private sector, good foreign currency services and optimal allocation of capital, especially in emerging economies. Moreover, (Zakaria, 2007, Abzari et al, 2011Saibu 2012) argued that there is a positive signiÞ cant relationship between FDI and banking sectors, and further they revealed a direct causality relationship running from FDI to banking sector and Þ nancial system development. In addition, Klein et al (2000) conÞ rmed that the number of FDI projects conducted by Japanese companies in the US economy has a positive correlation with the Þ nancial sectors especially banking sector.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The effect of foreign direct investment on financial development

Alsmadi

Oudat

2019

Ekon. pregl. (Online)

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The aim of this paper is to analyze the relationship between foreign direct investments and financial development in Bahrain. The estimation financial development effects was performed for the period 1978 to 2015, which covers the political conflicts that recently happened in Middle East area (Arab Spring). On the other hand, the paper sought to examine the causality relationship between foreign direct investments and financial development. The study empirically investigates the short and long run equilibrium relationship between the variables by applied co-integration and Autoregressive Distributed Lags Approach (ARDL). The Granger causality test was employed to capture causality relationship. The obtained results show that there is a significant positive relationship between FDI and financial development in short and long run, while, a significant negative relationship between Arab Spring and financial development. However, the results also revealed bidirectional causality relationship between FDI and financial development.

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