The Effect of Foreign Direct Investment and Economic Freedom on Economic Growth: The Case of BRICS Countries

Haydaroğlu, Ceyhun

doi:10.5430/rwe.v7n1p1

Cited by 14 publications

(14 citation statements)

References 38 publications

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“…The evidence suggested that there was a positive relationship between fiscal as well as financial freedom and economic growth. Similar results were reported in Haydaroglu (2016) for Brazil, Russia, India, China and South Africa (BRICS). Further, Karabegovic et al (2003) and Bennett (2016) observed that the level and growth of economic freedom positively affected GDP level and growth in 10 Canadian provinces and 50 American states over the period from 1994 to 1999 (and 1981 to 1997).…”

Section: Literature Reviewsupporting

confidence: 87%

The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence

Brkić

Gradojević

Ignjatijević

2020

JRFM

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This paper analyzes the impact of economic freedom along with traditional economic factors on economic growth for a panel of European countries. The growth of the gross domestic product was observed over a twenty-year time period on a sample of 43 developing and developed countries. Based on a robust dynamic panel setting, we conclude that increases in economic freedom as expressed by the Index of Economic Freedom/Heritage Foundation (but not its levels) are related to economic growth. The EU membership status either had no effect or it curbed the effect of the economic freedom on growth. We also find that the subprime economic crisis of 2008–2009 exerted a negative impact on the growth of European economies.

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Section: Literature Reviewsupporting

confidence: 87%

The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence

Brkić

Gradojević

Ignjatijević

2020

JRFM

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“…In the context of BRICS countries, recent studies are undertaken to get a deeper understanding of FDI inflows or outflows determinants. Studies (Haydariuglu, 2016;Kishor & Singh, 2015;Labes, 2015;Popa & Carp, 2013;Ranjan & Agrawal, 2011;Vijaykumar, Sridharan, & Rao, 2010) observed market size, labour cost, infrastructure, currency value, and gross capital formation work as the catalyst to attract FDI inflows in BRICS, while trade openness and inflation turns out insignificant. In a study by Jadhav (2012) to test the determinants of FDI in BRICS, confirmed that traditional economic factors are more significant than the institutional and political factors in promoting FDI into BRICS countries.…”

Section: Review Of Literaturementioning

confidence: 99%

Foreign direct investment into BRICS: an empirical analysis

Maryam

Mittal

2020

Transnational Corporations Review

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This paper examines empirically the role of selected macroeconomic variables in determining FDI inflows in the context of BRICS countries. The study employed the Pooled Mean Group (PMG) Auto-Regressive Distributive Lag (ARDL) method for annual dataset over the period 1994 to 2018. The findings of the study indicate that factors like GDP, trade openness, exchange rate, gross capital formation and availability of infrastructure facilities are significant in long run. The country-specific analysis for short run indicates that among BRICS, the FDI determining variables differ in each country. Among BRICS, China is the finest country with the significant and positive effects of examined variables in stimulating FDI inflows. As BRICS economies are facing challenge at the global level, the study suggested the need of adoption of liberal policies to attract more FDI along with growth promotion.

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“…Besides, the obtained outcome showed that economic freedom is a key determinant of effective FDI attracting policy. The conclusion of Hayrdaroglu (2016) is also confirmed by Maryam and Mittal (2020). Recently, Pradhan et al (2019) inspect the linkage between economic growth, stock market depth, trade openness, and FDI in 25 ASEAN regional forum countries.…”

Section: The Interaction Between Foreign Direct Investment and Econommentioning

confidence: 73%

Do Foreign Direct Investment, Energy Consumption and Urbanization Enhance Economic Growth in Six ASEAN Countries?

Long¹

2020

JAFEB

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The neoclassical economic supporters have suggested that foreign direct investment and raw material (e.g., coal, electricity, gas, and oil) are critical economic growth inputs. Few previous studies have analyzed the relationship between foreign direct investment and energy consumption on economic growth. However, existing studies usually have applied the frequentist inference. The limitation of the frequentist inference is that, if the coefficient of the independent variable is not yet significant, then conclusions might be unreliable. By applying the Bayesian approach, the main aim of this study is to revisit the impact of foreign direct investment, electricity consumption, and urbanization on economic growth in six ASEAN countries from 1980 to 2016. The obtained outcome shows that the impact of electricity consumption is evident and positive on economic growth in both frequentist and Bayesian inferences. However, the influence of foreign direct investment is not identified by frequentist inference, while Bayesian inference provides evidence that foreign direct investment is a moderately positive impact on economic growth. The empirical result from Bayesian inference contributes to the literature on foreign direct investment modeling and could be of significant importance for a more efficient foreign direct investment attracting and achieve sustainability in the long-term.

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The Effect of Foreign Direct Investment and Economic Freedom on Economic Growth: The Case of BRICS Countries

Cited by 14 publications

References 38 publications

The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence

The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence

Foreign direct investment into BRICS: an empirical analysis

Do Foreign Direct Investment, Energy Consumption and Urbanization Enhance Economic Growth in Six ASEAN Countries?

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