Foreign Direct Investment, Economic Growth, and Financial Sector Development: A Comparative Analysis

Choong, Chee‐Keong; Yusop, Zulkornain; Soo, Siew Choo

doi:10.1355/ae21-3b

Cited by 50 publications

(34 citation statements)

References 13 publications

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“…Based on data for 71 countries from 1975 to 1995, their empirical results show that although FDI alone plays an "ambiguous" role in contributing to economic growth, a well-developed financial market enables the country to benefit from FDI. This is consistent with the findings by Hermes and Lensink (2003), Choong et al (2004), and Alfaro et al (2006). Research, Vol 20, No.…”

supporting

confidence: 93%

“…An issue that has received a lot of attention is the interaction in the process of economic growth and development between FDI and several macroeconomic factors including human capital (Borensztein et al 1998;Ciruelos and Wang 2005;Figlio and Blonigen 2000;Urata and Kawai 2000;Xu 2000), financial development (Alfaro et al 2004(Alfaro et al , 2006Choong et al 2004;Dutta and Roy 2008;Hermes and Lensink 2003;Maswana 2008), and openness (Balasubramanyam et al 1996;Kohpaiboon 2002;Nourzad 2008). The present paper is concerned with the interaction between FDI and the host country's infrastructure base.…”

Section: Introductionmentioning

confidence: 99%

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The Interaction Between FDI and Infrastructure Capital in The Development Process

Nourzad

Greenwold²,

Yang

2014

Int Adv Econ Res

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This paper focuses on the possible interaction between foreign direct investment (FDI) and the host country's infrastructure base. Its central hypothesis is that the effect of FDI on per capita real income depends, at least in part, on the size of the recipient country's infrastructure. This hypothesis is tested in a panel of 46 countries and 5-year averages over the 1980-2000 period using the size of three types of infrastructure capital: telecommunication, power generation, and network of roads or highways. The NOT THE PUBLISHED VERSION; this is the author's final, peer-reviewed manuscript. The published version may be accessed by following the link in the citation at the bottom of the page. 2 results indicate that the size of the host country's infrastructure base helps to improve the marginal effect of FDI on real income. International Advances in Economic Research

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supporting

confidence: 93%

Section: Introductionmentioning

confidence: 99%

The Interaction Between FDI and Infrastructure Capital in The Development Process

Nourzad

Greenwold²,

Yang

2014

Int Adv Econ Res

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“…The findings of them are totally consistent with results of Johansen cointegration test [2]. According to Choong, Yusop and Soo (2004) the presence of FDI inflows creates a positive technological diffusion in the long run only if the evolution of the domestic financial system has achieved a certain minimum level [3]. They investigate the patterns of foreign direct investment (FDI) and economic growths are investigated among select developed and East Asian countries.…”

Section: Literature Reviewsupporting

confidence: 69%

Relationship between GDP, Foreign Direct Investment and Export Volume: Evidence from Indonesia

Mahadika¹,

Kalaycı²,

Altun³

2017

IJTEF

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Abstract-Using time-series and co-integration test from 1981 to 2013, this manuscript examines the long-run relations between FDI, GDP and export volume of Indonesia. The impact of Indonesian export volume and FDI on Indonesian GDP were measured in this article, it has been found that export volume and FDI have significant influence on economic growth of Indonesia. In addition, according to Johansen cointegration test, there is long-run relationship between GDP, FDI and export volume of Indonesia. The empirical findings are consistent with other academic articles.

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“…Furthermore, Li and Zeng, Su and Song, and Luo also carried out comparative studies, but focused on the different financial market development phases. They pointed out that the FDI spillovers effects increase with improvements to the financial market [66][67][68]. However, Jiang and Wang revealed that there was a limitation to financial market development with FDI spillovers processes.…”

Section: Introductionmentioning

confidence: 99%

An Empirical Research of FDI Spillovers and Financial Development Threshold Effects in Different Regions of China

Wang

Liu

2017

Sustainability

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Based on a comprehensive review of previous studies about the threshold effects of financial development on the process of foreign direct investment (FDI) spillovers, the present work roundly measures the financial development from the aspects of scale, structure, and efficiency and applies a multiple threshold regression model to estimate the threshold effects of financial development on FDI spillovers, and then examines the inherent relationship between FDI spillovers effects and the financial development from the three aspects, respectively, in different regions of China, based on regional panel data from 2000 to 2014. The results revealed that there are two thresholds of financial development scale, structure and efficiency, existing in the FDI spillover processes in different regions. The FDI spillovers effects are greatest in the eastern region and are generally smallest in the western region. There is a negative correlation between FDI spillovers effects and the financial development scale or efficiency in eastern and central region. Moreover, there is positive correlation between FDI spillovers effects and the financial development structure in eastern and central region. Additionally, there is a positive correlation between FDI spillovers effects and the financial development scale, structure, or efficiency in western region. The capital, labor, and regional technology progress have positive effects on economic growth in different regions and the effects of financial development on economic growth are not unanimous in each region. Based on the empirical results, some policies on how to develop regional finances and how to introduce FDI to promote economic growth are recommended.

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Foreign Direct Investment, Economic Growth, and Financial Sector Development: A Comparative Analysis

Cited by 50 publications

References 13 publications

The Interaction Between FDI and Infrastructure Capital in The Development Process

The Interaction Between FDI and Infrastructure Capital in The Development Process

Relationship between GDP, Foreign Direct Investment and Export Volume: Evidence from Indonesia

An Empirical Research of FDI Spillovers and Financial Development Threshold Effects in Different Regions of China

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