FDI and economic growth: new evidence on the role of financial markets

Azman-Saini, W.N.W. and Law, Siong Hook and Ahmad, Abdul Halim (2009): FDI and economic growth: new evidence on the role of financial markets. Published in: Economics Letters , Vol. 107, : pp. 211-213.

Abstract

This study uses a threshold regression model and finds new evidence that the positive impact of FDI on growth “kicks in” only after financial market development exceeds a threshold level. Until then, the benefit of FDI is non-existent.

• Item Type: MPRA Paper
• Language: English
• Keywords: FDI, economic growth, financial markets, threshold effects
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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