FOREIGN CAPITAL FLOWS, FINANCIAL DEVELOPMENT AND GROWTH IN SUB-SAHARAN AFRICA
2
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
This paper investigated how financial development influences the relationship between foreign direct investment (FDI) and economic growth in selected Sub-Saharan Africa (SSA) countries. This study considered three alternative measures of financial development (FD) and their impacts on the FDI-growth linkage. It also explored the possibility of nonlinearities in the tripartite relationships. The results showed a positive influence of FDI on economic growth. Financial system development also had growth-promoting impact in the presence of FDI flows. Interestingly, these findings remained robust when potential endogeneity was accounted for using a well known instrumental variable (IV) estimator. Digging deeper, the findings also supported the existence of non-linearities in the role of FD in the FDI-growth association. In policy terms, these SSA countries will reap more growth benefits from foreign capital flows especially if financial reforms are sustained.
Abstract
This paper investigated how financial development influences the relationship between foreign direct investment (FDI) and economic growth in selected Sub-Saharan Africa (SSA) countries. This study considered three alternative measures of financial development (FD) and their impacts on the FDI-growth linkage. It also explored the possibility of nonlinearities in the tripartite relationships. The results showed a positive influence of FDI on economic growth. Financial system development also had growth-promoting impact in the presence of FDI flows. Interestingly, these findings remained robust when potential endogeneity was accounted for using a well known instrumental variable (IV) estimator. Digging deeper, the findings also supported the existence of non-linearities in the role of FD in the FDI-growth association. In policy terms, these SSA countries will reap more growth benefits from foreign capital flows especially if financial reforms are sustained.
참고문헌 (29)
- Adeniyi, O., "Foreign Direct Investment, Economic Growth and Financial Sector Development in Small Open Developing Economies", Economic Analysis and Policy, 42, pp.105~127 (2012)
- Albuquerque, R., "The Composition of International Capital Flows : Risk Sharing through Foreign Direct Investment", Journal of International Economics, 61, pp.353~383 (2003)
- Alfaro, L., "FDI and Economic Growth : The Role of the Financial Markets", Journal of International Economics, 64, pp.89~112 (2004)
- Ang, J., "A Survey of Recent Developments in the Literature of Finance and Growth", Journal of Economic Surveys, 22, pp.536~576 (2008)
- Balasubramanyam, V. N., "FDI and Growth in EP and IS Countries", Economic Journal, 106, pp.92~105 (1996)
- Benhabib, J., "The Role of Financial Development in Growth and Investment", Journal of Economic Growth, 5, pp.341~360 (2000)
- What Explains Growth in Developing Countries?, "Blomostrom, M.", ~, pp.NBER Working Paper, 4132 (1992)
- Blomostrom, M., "Convergence of Productivity: Cross-National Studies and Historical Evidence" (1994), University Press
- Borensztein, E. J., "How Does FDI Affect Economic Growth?", Journal of International Economics, 45, pp.115~135 (1998)
- Does Foreign Direct Investment Accelerate Economic Growth?, "Carkovic, M.", University of Minnesota, ~ (2003)
- Choong, C-K., "Foreign Direct Investment, Financial Development and Economic Growth; Panel Data Analysis", The IUP Journal of Applied Economics, 10, pp.57~73 (2011)
- Choong, C-K., "Private Capital Flows to Developing Countries: The Role of the Domestic Financial Sector", Journal of the Asia Pacific Economy, 15, pp.509~529 (2010)
- De Mello, L. R., "Foreign Direct Investment in Developing Countries and Growth : A Selective Survey", Journal of Development Studies, 34, pp.1~34 (1997)
- Durham, J. B., "Absorptive Capacity and the Effects of Foreign Direct Investment and Equity Foreign Portfolio Investment on Economic Growth", European Economic Review, 48, pp.285~306 (2004)
- Egwaikhide, F. O., "Foreign Direct Investment in the West African Monetary Zone : An Assessment of Flows, Volatility and Growth", West African Journal of Monetary and Economic Integration, 5, pp.137~150 (2005)
- Errunza, W., "Foreign Portfolio Equity Investment, Financial Liberalization and Economic Development", Review of International Economics, 9, pp.703~726 (2001)
- Hermes, N., "Foreign Direct Investment, Financial Development and Economic Growth", Journal of Development Studies, 40, pp.142~153 (2003)
- Im, K.S, "Testing Unit Roots in Heterogeneous Panels", Journal of Econometrics, 115, pp.53~74 (2003)
- King, R. G., "Finance, Entrepreneurship and Growth : Theory and Evidence", Journal of Monetary Economics, 32, pp.513~542 (1993)
- Kokko, A., "Policies to Encourage Inflows of Technology through Foreign Multinationals", World Development, 23, pp.459~468 (1995)
- Lemi, A., "Foreign Direct Investment and Uncertainty : Empirical Evidence from Africa", Africa Finance Journal, 5, pp.36~67 (2003)
- Levine, R., "Financial Development and Economic Growth : Views and Agenda", Journal of Economic Literature, 35, pp.688~726 (1997)
- Levin, A., "Unit Root Test in Panel Data : Asymptotic and Finite Sample Properties", Journal of Econometrics, 108(1), pp.1~24 (2002)
- Omran, M., "Foreign Direct Investment, Financial Development, and Economic Growth : Evidence from the Arab Countries", Review of Middle East Economics and Finance, 1, pp.231~249 (2003)
- Oshikoya, T. W., "Macroeconomic Determinants of Domestic Private Investment in Africa : An Empirical Analysis", Economic Development and Cultural Change, 42, pp.573~596 (1994)
- Pedroni, P., "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors", Oxford Bulletin of Economics and Statistics, 61, pp.653~670 (1999)
- Reisen, H., "Which Types of Capital Flows Foster Developing Country Growth?", International Finance, 4, pp.1~14 (2001)
- Trade, Foreign Direct Investment and International Technology Transfer : A Survey, "Saggi, K.", ~, pp.Policy Research Working Paper, 2349 (2000)
- "Migration and Remittances Factbook 2011"[URL]