The impact of foreign capital flows on long‐term interest rates in emerging and advanced economies

2020 ◽  
Author(s):  
Masahiro Inoguchi
Keyword(s):  
Interest Rates ◽  
Capital Flows ◽  
Foreign Capital ◽  
Advanced Economies ◽  
Foreign Capital Flows ◽  
The Impact

scholarly journals Foreign capital flows, exports and growth in Zambia

2015 ◽  
Vol 5 (4) ◽  
pp. 26-37
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Capital Flows ◽  
Foreign Capital ◽  
Growth Enhancement ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Foreign Capital Flows ◽  
Causality Relationship ◽  
The Impact

This study investigates the causality between FDI net inflows, exports and GDP using Vector Error Correction Model (VECM) approach. The words foreign capital flows and FDI are used interchangeably in this study. The findings from the VECM estimation technique is six fold: (1) the study revealed a long run causality relationship running from exports and GDP towards FDI, (2) the study showed a non–significant long run causality relationship running from FDI and exports towards GDP and (3) the existence of a weak long run causality relationship running from FDI and GDP towards exports in Zambia. The study also found out that no short run causality relationship that runs from FDI and exports towards GDP, short run causality running from FDI and GDP towards exports does not exist and there is no short run causality relationship running from exports and GDP towards FDI. Contrary to the theory which says that FDI brings along with it a whole lot of advantages (FDI technological diffusion and spill over effects), the current study found that the impact of FDI in Zambia is not significant in the long run. This is possibly because certain host country locational characteristics that ensures that Zambia can benefit from FDI inflows are not in place or they might be in place but still not yet reached a certain minimum threshold levels. This might be an interesting area for further research. On the backdrop of the findings of this study, the author recommends that the Zambian authorities should formulate and implement export promotion strategies and economic growth enhancement initiatives in order to be able to attract more FDI.

scholarly journals The Influence of Financial Inclusion and Macroeconomic on Foreign Direct Investment (FDI) Flows in The Organization of Islamic Cooperation (OIC) Countries

2021 ◽  
Vol 11 (1) ◽  
pp. 71
Author(s):  
Farma Andiansyah
Keyword(s):  
Interest Rates ◽  
Capital Flows ◽  
Foreign Capital ◽  
Panel Data Analysis ◽  
Rapid Development ◽  
Financial Inclusion ◽  
Analysis Tool ◽  
Macroeconomic Variables ◽  
Negative Effect ◽  
Foreign Capital Flows

Foreign capital flows are important factors in the development of sustainable economies, especially in developing countries such as the OIC countries. Lately, the rapid development of the financial sector and macroeconomic stability became a serious concern by foreign investors, where financial inclusion and macroeconomics played an important role in attracting direct foreign capital flows (FDI). The study aims to investigate the role of financial inclusion and macroeconomic variables on the foreign direct flow of capital (FDI) by using data panels in 8 OKI member States during the 2012-2018 time span. The research uses the Fix Effect Model (FEM) Panel data Analysis tool, which is believed to be able to explain the correlation between independent variables and more accurate dependents. As for the results of the study showed that in partial only variable avaibility (the number of branches of the bank/100,000 adults) is a significant positive draws FDI in the OKI country. While on macroeconomic variables the exchange rates have significant negative effect on FDI, while interest rates and economic growth have significant positive relationships in attracting FDI.

scholarly journals Analisis aliran modal asing ke indonesia dengan Pull and push factors

2019 ◽  
Vol 5 (2) ◽  
pp. 77
Author(s):  
Basri Bado ◽  
Arung Samudera ◽  
Muhammad Imam Ma’ruf
Keyword(s):  
Interest Rates ◽  
Capital Flows ◽  
Foreign Capital ◽  
Time Series Data ◽  
Political Risk ◽  
Series Data ◽  
Regression Equations ◽  
Push Factors ◽  
Political Risks ◽  
Foreign Capital Flows

The purpose of this study is to analyze the flow of foreign capital into Indonesia with pull and push factors. Determinants used on Pull and Push factors are Domestic GDP. Global GDP, domestic interest rates, international interest rates and the country's political risks. The study uses a quantitative approach using time series data with a span of 20 years after the monetary crisis in Indonesia (1998-2017). Data analysis using multiple linear regression equations. The results of the study found that it turned out that the dominant factors influencing foreign capital flows were pull factors both the type of portfolio investment and foreign direct investment. The most dominant variable affecting the flow of foreign capital in Indonesia is the domestic political risk variable. Domestic political risk is closely related to the investment climate. On the other hand the influence of foreign capital flows is significant and positive in explaining economic growth in Indonesia.

Foreign Capital Flows and the Efficiency of the HDI Dimensions

2005 ◽  
Vol 5 (2) ◽  
pp. 1850036 ◽  
Author(s):  
Francisco J Arcelus ◽  
Basu Sharma ◽  
Gopalan Srinivasan
Keyword(s):  
Capital Flows ◽  
Human Development Index ◽  
Foreign Capital ◽  
Returns To Scale ◽  
Three Dimensions ◽  
Total Efficiency ◽  
Foreign Capital Flows ◽  
The Impact ◽  
Decision Making Units ◽  
Main Factor

This paper examines the impact of the various types of foreign capital flows (or FCF) on the efficiency with which countries transform their respective resources into the achievements associated with the three dimensions (Life expectancy or LI, Educational attainment or EI and wealth or WI) of the Human Development Index. An important result is the identification of returns to scale as the main factor preventing some countries from achieving the total efficiency level assumed by standard economic analysis, if decision-making units (DMUs) or countries in this case, working along their respective production possibility frontiers, wish achieve the goal of optimizing the utilization of their resources.

scholarly journals An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

2020 ◽  
pp. 63-76
Author(s):  
G. Tunde, Monogbe ◽  
J. Emeka, Okereke ◽  
P. Ebele, Ifionu
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign  portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively  related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

At a Glance …: The World Economy

2013 ◽  
Vol 225 ◽  
pp. F2-F2
Keyword(s):  
Interest Rates ◽  
World Economy ◽  
Emerging Market ◽  
Significant Rise ◽  
List Type ◽  
Slow Recovery ◽  
Term Trend ◽  
Advanced Economies ◽  
The World

The world economy will grow by 3.1 per cent this year, and by 3.6 per cent in 2014: still below longer-term trend.Growth has slowed in key emerging market economies, particularly China, while it remains relatively weak in most advanced economies.A significant rise in the volatility and level of global long-term interest rates is inconvenient for some countries and may slow recovery.

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