Investigating the Nexus Between FDI and Institutional Quality: Evidence from Morocco

2021 ◽  
pp. 097491012110530
Author(s):  
Hamza Belfqih ◽  
Ahlam Qafas ◽  
Mounir Jerry
Keyword(s):  
Structural Breaks ◽  
Institutional Quality ◽  
Large Set ◽  
Policy Recommendations ◽  
Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
The Relationship ◽  
Quality Evidence ◽  
Ardl Bounds Testing Approach

This article investigates the relationship between institutional quality and foreign direct investment (FDI) in Morocco using a large set of institutional quality variables over the period 1970–2016. The study uses ARDL bounds testing approach with structural breaks and Granger causality. The analysis is then extended to the disaggregated sub-components to discern the inherent dynamics of institutional quality. The study finds several relationships between FDI and various aspects of institutional quality. Results from both models conclude with policy recommendations.

scholarly journals An ARDL Bounds Testing Approach to the Relationship between Financial Development and Output Growth in Nepal

2018 ◽  
Vol 11 (1) ◽  
pp. 5-20
Author(s):  
Surya Bahadur Rana
Keyword(s):  
Financial Development ◽  
Financial Sector ◽  
Output Growth ◽  
Bounds Testing ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
The Relationship ◽  
Ardl Bounds Testing Approach

This paper examines the relationship between financial development and output growth in Nepal over 42 years of period from mid- July 1975 to 2017 using ARDL bounds testing approach to co-integration. The study uses natural logarithm of per capita real GDP as a proxy of output growth and means removal average of broad money (M2) to GDP ratio and domestic private credit to GDP ratio as a proxy of financial development indicator. The results of ARDL bounds test show that financial development and output growth in Nepal is co-integrated over the study period. The study results demonstrate that financial development in Nepal leads to output growth in the long-run. However, the study fails to detect any impact of financial development on output growth in Nepal over the short-run. Based on long run results of this study, it can be concluded that development of financial sector in Nepal can stimulate long-run output growth. Thus, considerable efforts should be paid on promoting the development of the financial sector that contributes significantly to achieve long-run output growth.

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