scholarly journals Financial market development in host and source countries and their effects on bilateral foreign direct investment

World Economy ◽  
2019 ◽  
Vol 43 (3) ◽  
pp. 534-556 ◽  
Author(s):  
Julian Donaubauer ◽  
Eric Neumayer ◽  
Peter Nunnenkamp
Keyword(s):  
Foreign Direct Investment ◽  
Financial Market ◽  
Direct Investment ◽  
Market Development ◽  
Financial Market Development ◽  
Source Countries

scholarly journals Role of Education and Financial Market Development in Attracting Foreign Direct Investment Inflows in Pakistan

TEM Journal ◽  
2021 ◽  
pp. 1184-1189
Author(s):  
Haider Mahmood ◽  
Muhammad Tanveer
Keyword(s):  
Foreign Direct Investment ◽  
Financial Market ◽  
Direct Investment ◽  
Market Development ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Financial Market Development ◽  
Positive Effect

This paper has investigated the role of education and Financial Market Development (FMD) on the Foreign Direct Investment (FDI) inflows in Pakistan from 1970-2019. In the short run, education has a positive effect on FDI inflows. 1% increasing of government's spending on education would increase 0.361% of FDI inflows in Pakistan. Moreover, the FMD has a positive effect on FDI inflows in the short run. 1% increasing FMD may increase 0.0496% of FDI in the short run. Both education and FMD are supporting the FDI inflows in the short run. Comparatively, education shows a larger effect on FDI than that of FMD in the short run. However, FMD and government spending on education could not affect the FDI inflows in the long run. This paper recommends supporting education and financial markets to attract FDI inflows in Pakistan.

scholarly journals The Impact of Foreign Direct Investment on Financial Market Development: The Case of Jordan

2020 ◽  
Vol 11 (4) ◽  
pp. 64
Author(s):  
Buthiena Kharabsheh ◽  
Ahlam Aldaher
Keyword(s):  
Foreign Direct Investment ◽  
Financial Market ◽  
Direct Investment ◽  
Causal Effect ◽  
Granger Causality Test ◽  
Market Development ◽  
Causality Test ◽  
Vector Autoregressive ◽  
Integration Test ◽  
Financial Market Development

This study examines the causal effect between foreign direct investment (FDI) and financial market development (FMD) in Jordan. Annual time-series data is used over the period 1978-2017. Principal component analysis is employed to create two indices to reflect FMD, namely stock market development (SMD) and banking sector development (BSD). To detect the causal effect between FDI and FMD, Vector Autoregressive Regressions, Granger Causality test and Johansen Co-integration test are employed in the analysis. In the short-run, the findings of Vector Autoregressive Regressions document a positive significant effect between SMD and FDI, however, no effect is found between BSD and FDI. The Granger Causality test shows unidirectional causality between SMD to FDI. Moreover, the Johansen Co-integration test reveals a long-run equilibrium relationship between FDI and FMD. These results are expected to have important implications for policy makers in Jordan.

Foreign direct investment and natural resources in Africa

2015 ◽  
Vol 42 (4) ◽  
pp. 608-621 ◽  
Author(s):  
Godfred Alufar Bokpin ◽  
Lord Mensah ◽  
Michael E. Asamoah
Keyword(s):  
Natural Resources ◽  
Financial Market ◽  
Direct Investment ◽  
Trade Openness ◽  
Market Development ◽  
Content Type ◽  
Infrastructural Development ◽  
Composite Form ◽  
Financial Market Development ◽  
Trade Blocks

Purpose – The purpose of this paper is to investigate the impact of natural resources on foreign direct investment (FDI) in Africa. Decomposing the measures of natural resource, in terms of contribution to GDP (oil rent (OR), mineral rent (MR) and forest rents (FRs)) and export drive (fuel exports (FE) and minerals export), with the objective of obtaining quantitative estimates of their relationship with FDI, we considered the effect of regional or trade blocks on the continent and control for trade openness, financial market development and infrastructure. Design/methodology/approach – Using annual panel data of 49 African countries over the period 1980-2011 and employing the system GMM estimation technique. Findings – The authors show that after allowing for effect of trade or regional block formation, natural resources in its composite form (ORs, MRs, forest rents (FRs), FEs and minerals export) influences FDI in Africa. Quantitatively, we demonstrate that though natural resources (compositely) influences FDI, the different measures of natural resource differ significantly in terms of their marginal contribution in attracting FDI to the continent especially to different trade blocks. The authors provide that in the presence of certain type of natural resources, trade openness or banking sector credit expansion or infrastructural development is less desirable whilst regional or trade blocks strongly moderate the effect of financial market development and infrastructural development on FDI flow on the continent. Originality/value – The authors employed a broad data set to provide evidence of the association between natural resources in its composite form and well as its various component and FDI to African after accounting for regional/trade blocks.

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