Foreign direct investment and economic growth in South America

Owusu-Nantwi, Victor; Erickson, Christopher A.

doi:10.1108/jes-11-2017-0323

Cited by 35 publications

(26 citation statements)

References 40 publications

(60 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…FDI and its determinants have received attention of researchers across the world (e.g., Alam et al, 2013; Busse & Hefeker, 2007; Conyon et al, 2002; Kishore & Singh, 2015; Kurecic & Kokotovic, 2017; Li & Liu, 2005; Majumder & Nag, 2015; Owusu-Nantwi & Erickson, 2019; Sabir et al, 2019; Saini & Singhania, 2018; Sichei & Kinyondo, 2012; Ullah & Khan, 2017). But, given the role of FDI in the development of any country by augmenting the level of capital and technology, it still attracts attention of researchers and policymakers to understand its determinants, particularly in the case of developing countries, and design appropriate policies to increase the FDI inflow in the country/region.…”

Section: Literature Reviewmentioning

confidence: 99%

“…It increases the capital flow in economy and thus affects the economic growth. Most of the available literature found a positive relationship between economic growth and FDI inflow (e.g., Abdouli & Hammami, 2017; Agrawal, 2015; Alam et al, 2013; Majumder & Nag, 2015; Owusu-Nantwi & Erickson, 2019). Agrawal (2015) observed a long-run unidirectional causal relationship between FDI and economic growth in Brazil, Russia, India, China and South Africa (BRICS) countries.…”

Section: Literature Reviewmentioning

confidence: 99%

“…1 1BRICS is an acronym for the association of five emerging economics, viz. Brazil, Russia, India, China and South Africa. However, in some studies, bidirectional causal relationship has been observed (Abdouli & Hammami, 2017; Owusu-Nantwi & Erickson, 2019). In a study comprising 84 countries over the period from 1970 to 1999, Li and Liu (2005) found a significant endogenous relationship between FDI and economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Causal Nexus Between FDI Inflows and Its Determinants in SAARC Countries

Kumar

Sharma

2020

South Asia Economic Journal

View full text Add to dashboard Cite

This article aims to understand the drivers of foreign direct investment (FDI) inflows and its nexus with its determinants such as economic growth, inflation rate, labour productivity, infrastructure development, market size, openness of the economy, political stability and corporate tax for South Asian Association for Regional Corporation (SAARC) countries. The article is based on secondary data from the World Bank and International Labour Organization (ILO) for 19 years from 2001 to 2018 for 6 SAARC countries, viz. Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka. The findings indicate that there exists long-run, short-run and joint causal relationship among infrastructure development, market size, openness of the economy, political stability and corporate tax and FDI inflows. Among these variables, the corporate tax is the most important one because it shows bidirectional causality with FDI inflows in the long run as well as short run along with joint strong causality. However, only the coefficients of infrastructure development and corporate tax were found to be positively and negatively significant, respectively. Therefore, better infrastructure development and decrease in corporate tax may enhance FDI inflows in SAARC countries. This infers that with the decrease in corporate tax, more FDI inflows may take place, and higher FDI inflows may decrease in corporate tax further. Therefore, this article suggests that SAARC countries should accelerate the process of integration of their economy with the rest of the world along with political stability, enhance the infrastructure facility and reduce the corporate tax to get the higher FDI inflows. JEL: F21, F02, C22

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Causal Nexus Between FDI Inflows and Its Determinants in SAARC Countries

Kumar

Sharma

2020

South Asia Economic Journal

View full text Add to dashboard Cite

show abstract

“…Penelitian oleh Nantwi mengatakan bahwa adanya hubungan jangka panjang antara FDI pada pertumbuhan ekonomi di Amerika Selatan. Hasil VECM menemukan hubungan jangka pendek dua arah atara FDI dan Pertumbuhan Ekonomi (Owusu-Nantwi & Erickson, 2019) Cetin ( 2014) menyatakan bahwa misi penting lembaga perbankan adalah untuk mendapatkan simpanan dari nasabah, perusahaan dan menggunakan dana untuk keperluan bisnis nasabah. Bank syariah secara fundamental mendapatkan sorotan dari rumah tangga dan perusahaan untuk menggunakan dana pinjaman dari bank untuk pertumbuhan volume bisnis dan untuk produksi.…”

Section: Pendahuluanunclassified

Pengaruh Pembiayaan Bank Islam, FDI dan Pertumbuhan Ekonomi: Studi Empiris Negara OKI

Zaimsyah

Herianingrum

2019

JIEI

View full text Add to dashboard Cite

The purpose of this study is studying influence between financing of Islamic Banks, FDI and Economic Growth. The methodology used is a quantitative method usning panel data. We have chosen 10 counties from Organization Islamic Conference (OIC) over the period 2009-2017. The research is the fist study to influence financing of Islamic Bank, FDI and Economic Growth in OIC Countries. The result show that the financing of Islamic Banks and FDI simultaneously and positively has a significant effect on economic growth in the OIC Countries with a significant level of 0.0000

show abstract

“…This is because the financial sector is very essential in its contribution to enhancing economic growth and development and as such, reforms in the sector would be considered as a major stride to achieving final liberalization and the status of a strong emerging economy. In respect to the determinants of growth, especially for developing economies over the past two decades, the positive role played by foreign direct investment (FDI) has been evidenced in several studies (see for instance Ali and Mna, 2019; Owusu-Nantwi and Erickson, 2019; Doku et al , 2017; Iqbal Chaudhry et al , 2013). The current paper thus sought to find out if reforms in financial sector could impact on FDI inflow in Ghana.…”

Section: Introductionmentioning

confidence: 99%

The impact of financial sector reforms on foreign direct investment in an emerging economy: empirical evidence from Ghana

Kamasa

Mochiah

Doku

et al. 2020

JHASS

View full text Add to dashboard Cite

Purpose This paper aims to empirically investigate the impact that financial sector reforms have on foreign direct investment (FDI) in Ghana. Design/methodology/approach Composite financial sector reform index was constructed, which was made up of various forms of reform policies that were implemented from 1987 to 2016. The auto regressive distributed lag bounds test was used to establish cointegration between variables. Having controlled for other covariates that affect FDI such as trade openness, exchange rate, gross domestic product per capita, inflation and by using the fully modified ordinary least squares method, the estimations are robust as it uses a semi-parametric correction to avoid for any possible issues of endogeneity and serial correlation. Findings Results from the paper reveal that financial sector reform deepening boost FDI with a 2.167% increase in FDI following from a unit percentage improvement of the financial sector reforms. Considering the various categories of reforms, the results reveal that competitive reforms have the highest impact on FDI followed by privatization reforms with positive and significant elasticity coefficients of 2.174% and 0.726%, respectively. Behavioral reforms revealed a positive effect on FDI, albeit insignificant. Originality/value The paper contributes to policy by providing empirical evidence on the effect of financial sector reform on FDI inflows in Ghana. As far as the review of literature is concerned, this paper provides the foremost empirical evidence on the subject with sole emphasis on Ghana. Thus, this paper suggests the deepening of the financial sector reforms, improving competition and maintaining macroeconomic stability.

show abstract

Foreign direct investment and economic growth in South America

Cited by 35 publications

References 40 publications

Causal Nexus Between FDI Inflows and Its Determinants in SAARC Countries

Causal Nexus Between FDI Inflows and Its Determinants in SAARC Countries

Pengaruh Pembiayaan Bank Islam, FDI dan Pertumbuhan Ekonomi: Studi Empiris Negara OKI

The impact of financial sector reforms on foreign direct investment in an emerging economy: empirical evidence from Ghana

Contact Info

Product

Resources

About