scholarly journals The stock market capitalisation and financial growth nexus: an empirical study of western European countries

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Faris Alshubiri
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
European Countries ◽  
Gdp Per Capita ◽  
Significant Relationships ◽  
Financial Growth ◽  
Per Capita ◽  
Western European ◽  
Market Capitalisation

AbstractThis study aimed to analyse the stock market capitalisation and financial growth nexus of Western European countries from 1989 to 2018 in order to understand the interactive relationship between the stock market and the economy to identify the specific financial market channels through which economic growth is managed. The pooled least square findings identified positive significant relationships between stock market capitalisation, foreign direct investment and stocks traded and financial growth, while negative and significant relationships were found between GDP per capita growth and inflation and financial growth. The fixed effect, random effect and pooled mean group models yielded the same results, indicating positive significant relationships between stock market capitalisation and stocks traded and financial growth, while the effect of foreign direct investment on financial growth was positive and insignificant. Finally, there were negative and significant relationships between GDP per capita growth and inflation and financial growth. The results from the quantile regression (tau = 0.10, 0.20, 0.30, 0.40 and 0.50) there were positive relationships between stock market capitalisation and stocks traded and financial growth for all percentiles, while there were negative relationships between GDP per capita growth and inflation and financial growth except at the 0.30 percentile; foreign direct investment also had a negative relationship to financial growth at the 0.30 percentile. Most variables were significant at a 1% significance level. However, inflation was insignificant at the 0.10 percentile, foreign direct investment was insignificant at the 0.20, 0.30, 0.40 and 0.50 percentiles, and stocks traded were insignificant at the 0.40 and 0.50 percentiles. All of the applied the diagnostic tests confirmed the robustness of the data. The main conclusion is that countries should minimise any regulatory obstacles to financial markets and protect the rights of shareholders. Furthermore, advanced financial systems should reduce the obstacles faced by companies in terms of external financing.

Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN

2020 ◽  
pp. 359-384
Author(s):  
Praopan Pratoomchat
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Gdp Per Capita ◽  
Tourism Sector ◽  
Per Capita ◽  
Asean Countries ◽  
Asean Economic Community ◽  
Growth Hypothesis

This study tests the relationships of visitor spending, foreign direct investment in the tourism sector, and the gross domestic product (GDP) per capita among members of the Association of Southeast Asian Nations (ASEAN) during the period of 1988 to 2011 to prove the tourism-led growth hypothesis. The results of panel regression show that tourism-led growth hypothesis is valid for the ASEAN countries. Factors determining the GDP per capita in these countries are visitor spending, foreign investment and government consumption in tourism sector, human capital and trade openness. The results from this study suggest that the governments of the ASEAN countries are able to have effective growth policies by encouraging foreign direct investment in the tourism sector and improving their human capital. Therefore, ASEAN Economic Community (AEC) which will strengthen and facilitate investment cooperation and human capital developments in the tourism sector among ASEAN countries will have a significant benefit to economic growth in the region.

scholarly journals An Impact Assessment of Expected Future Turmoil Risk on FDI: A Panel Data Analysis of Developing Countries

2014 ◽  
Vol 19 (2) ◽  
pp. 101-128 ◽  
Author(s):  
Mahvish Faran
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Data Analysis ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Gdp Per Capita ◽  
Democratic Accountability ◽  
Fdi Inflows ◽  
Per Capita ◽  
Very High

This paper uses foreign direct investment (FDI) data from 39 developing countries for the period 2002–11 to explore whether the expected future turmoil risk of a country plays a significant role in determining FDI. It concludes that countries for which the expected future turmoil risk is very high are likely to have lower FDI inflows than countries for which the expected future turmoil risk is low, keeping all other factors constant. The results also illustrate that GDP per capita, democratic accountability, religious tension, and FDI inflows in the previous period are important determinants of FDI in developing countries.

scholarly journals Macroeconomic Drivers of Private Equity Penetration in Sub-Saharan African Countries

2019 ◽  
Vol 13 (1) ◽  
pp. 192
Author(s):  
Fonkam Mongwa Nkam ◽  
Akume Daniel Akume ◽  
Molem Christopher Sama
Keyword(s):  
Stock Market ◽  
Private Equity ◽  
Gdp Per Capita ◽  
African Countries ◽  
Estimation Techniques ◽  
Private Investments ◽  
Per Capita ◽  
Sub Saharan ◽  
Market Capitalisation ◽  
Banking Credit

The objective of this study is to investigate in to the drivers of private equity penetration in Cameroon, Nigeria, Ghana, Kenya and South Africa. Secondary data was collected from private equity and venture capital data bases (CapitalIQ, Preqin, Burgiss and Mergermarket), World Bank development indicators, regional private equity and venture capital associations and country specific stock market websites. The Panel Two-Stage Least Squares Instrumental Variables (2SLS IV), Panel Corrected Standard Errors (PCSE) and Feasible Generalised Least Squares (FGLS) estimation techniques were used. This was due to potential problems of endogeneity and spherical errors of serial correlation, heteroskedasticity, cross sectional dependence and multicollinearity. The results using the 2SLS IV estimation technique show that stock market capitalisation, GDP per capita, banking credit to private sector, real exchange rate and private investments are key macroeconomic drivers of private equity penetration in the selected Sub-Saharan African countries. Inflation had negative and insignificant effect on private equity penetration in the selected countries. The results using the PCSE and FGLS estimation techniques show that the signs of all the variables remain the same as was the case in the 2SLS IV estimation technique though the magnitudes were different. However, the results of PCSE and FGLS estimation techniques show that banking credit to private sector is significant in the FGLS model while private investments is significant in the PCSE model. GDP per capita, real exchange rate, stock market capitalisation and inflation are significant in both the PCSE and FGLS estimation techniques.

Foreign direct investment, financial development and economic prosperity in major south Asian economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Narayan Sethi ◽  
Aurolipsa Das ◽  
Malayaranjan Sahoo ◽  
Saileja Mohanty ◽  
Padmaja Bhujabal
Keyword(s):  
Foreign Direct Investment ◽  
Financial Development ◽  
Free Trade ◽  
South Asian ◽  
Direct Investment ◽  
Gdp Per Capita ◽  
Content Type ◽  
Asian Economies ◽  
Short Run ◽  
Per Capita

PurposeThis paper empirically examines the relationship between foreign direct investment, financial development and other macroeconomic variables like trade openness, domestic investment and labour force and that of GDP per capita in select South Asian countries, i.e. India, Sri Lanka and Pakistan for the period 1990–2018.Design/methodology/approachThe study uses various econometrics tools such as Pedroni, Kao and Johansen–Fisher panel cointegration test, Panel FMOLS and DOLS and Granger causality in order to analyse the long-run and short-run dynamics among the variables under consideration.FindingsThe results of the panel data estimation techniques employed imply that there is a short-run causality running from GDP per capita to FDI and financial development, and results from FMOLS and DOLS indicate that FDI and financial development have positive impacts on GDP per capita in the countries under consideration.Originality/valueIn this paper, we use a dynamic macroeconomic modelling framework to examine the effect of FDI and financial development on per capita income in three major south Asian economies, which are categorized as three Non-Least Developed Contracting States under the South Asian Free Trade Area (SAFTA), 2006, established with an aim to facilitate free trade among them. Considering the diversity of the level of growth experienced by these economies, the study uses appropriate panel regression techniques. Therefore, in addition to proper formulation of policies directed towards scaling up of export and import levels, the respective authorities should also take care that the political stability and institutional quality are maintained.

scholarly journals Dampak ekspor ke Jepang dan investasi asing terhadap pendapatan perkapita masyarakat di Indonesia

2018 ◽  
Vol 13 (2) ◽  
pp. 47-54
Author(s):  
Candra Mustika ◽  
Erni Achmad ◽  
Etik Umiyati
Keyword(s):  
Foreign Direct Investment ◽  
Capita Income ◽  
Direct Investment ◽  
Gdp Per Capita ◽  
Per Capita Income ◽  
Average Growth ◽  
Average Value ◽  
Per Capita ◽  
The Impact ◽  
Research Period

This study aims to analyze the development of exports to Japan and foreign direct investment and per capita income in Indonesia during the period 1993-2014 also the impact of exports to Japan and foreign direct investment on per capita income of Indonesian people in that period. During research period starting in 1993-2014 where the GDP per capita has fluctuated where the average value is 15.058 in thousand rupiahs per year with an average growth of 16.61%, then the results obtained during that period the highest growth in 1998 is 50.50% and the lowest growth occurred in 2012 which was 8.46%. FDI Indonesia has fluctuated with an average value of 17,804.61 million US dollars and with an average growth of 15.35%. From the regression results on both models, the results found that in the first model the value of exports to Japan has a positive and significant effect on GDP per capita while the FDI variable does not have a positive and significant effect on GDP per capita

Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN

2017 ◽  
pp. 224-249 ◽  
Author(s):  
Praopan Pratoomchat
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Gdp Per Capita ◽  
Tourism Sector ◽  
Per Capita ◽  
Asean Countries ◽  
Asean Economic Community ◽  
Growth Hypothesis

This study tests the relationships of visitor spending, foreign direct investment in the tourism sector, and the gross domestic product (GDP) per capita among members of the Association of Southeast Asian Nations (ASEAN) during the period of 1988 to 2011 to prove the tourism-led growth hypothesis. The results of panel regression show that tourism-led growth hypothesis is valid for the ASEAN countries. Factors determining the GDP per capita in these countries are visitor spending, foreign investment and government consumption in tourism sector, human capital and trade openness. The results from this study suggest that the governments of the ASEAN countries are able to have effective growth policies by encouraging foreign direct investment in the tourism sector and improving their human capital. Therefore, ASEAN Economic Community (AEC) which will strengthen and facilitate investment cooperation and human capital developments in the tourism sector among ASEAN countries will have a significant benefit to economic growth in the region.

scholarly journals Economic Growth and Investment Activity as Basic Elements and Indicators of Economic Security and Their Relationship with National and International Security

2018 ◽  
Vol 24 (2) ◽  
pp. 76-81
Author(s):  
Elitsa Petrova
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Security ◽  
Gdp Per Capita ◽  
The European Union ◽  
Investment Activity ◽  
Per Capita ◽  
The Republic

Abstract The economic potential of a country is directly related to a policy of creating new jobs, increasing labour productivity, balancing energy and materials consumption, technological innovation, refurbishing the production base, and taking action to create an environment for attracting investment and stimulating domestic consumption, as well as increasing exports of goods and services. A key feature of the economic system, that determines its ability to maintain normal living and working conditions for the population, is to guarantee and protect the sustainable development of the economy and the realisation of national economic interests. This article is addressed to two main economic security indicators - economic growth and investment activity of the state. It presents a specific comparison of real GDP per capita and growth rate in the European Union, the Eurozone and the Republic of Bulgaria and GDP per capita in purchasing power standards in the European Union, the Eurozone and the Republic of Bulgaria. The flow of foreign direct investment by economic sectors in the Republic of Bulgaria is been considered, including annual data, foreign direct investment flows by countries and the international position of the Republic of Bulgaria in this process

scholarly journals Natural disasters, information/communication technologies, foreign direct investment and economic growth in developed countries

2018 ◽  
Vol 9 (2) ◽  
pp. 80-87 ◽  
Author(s):  
Nadia Benali ◽  
Rochdi Feki
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Natural Disasters ◽  
Natural Disaster ◽  
Information And Communication Technologies ◽  
Direct Investment ◽  
Communication Technologies ◽  
Developed Countries ◽  
Gdp Per Capita ◽  
Per Capita

This paper investigates the causal relationship between natural disasters (DMS), information and communication technologies (ICT), foreign direct investment (FDI) and economic growth (GDP per capita) for 10 developed countries over the period 1990 to 2016. Panel DOLS and FMOLS results show that there is a positive relationship running from ICT to natural disasters and to foreign direct investment. In addition, ICT have a positive effect on GDP per capita. VECM Granger causality analysis results reveal a unidirectional causality in the short and long term from ICT to natural disaster and to FDI at the 5% and 10% levels. Therefore, one may note that there is a unidirectional relationship running from natural disaster to GDP and a bidirectional relationship between FDI and GDP.

scholarly journals A comparative analysis of foreign direct investment factors

Ekonomika ◽  
2015 ◽  
Vol 94 (2) ◽  
pp. 7-27 ◽  
Author(s):  
Algirdas Miškinis ◽  
Ilma Juozėnaitė
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
The Netherlands ◽  
Direct Investment ◽  
Trade Openness ◽  
Gdp Per Capita ◽  
Labor Costs ◽  
Factors Affecting ◽  
Unit Labor Costs ◽  
Per Capita

The paper identifies factors affecting the foreign direct investment (FDI) inflow. It analyzes the determinants of FDI in recent empirical evidence as well as determines differences among FDI factors in Greece, Ireland, and the Netherlands. The determinants being examined are the gross domestic product (GDP) per capita, exchange rate, unit labor costs, trade openness as well as inflation. The analyzed period is 1974–2012. Data were collected from the World Bank and the Organization for Economic Cooperation and Development (OECD) databases. With the help of the VAR model it was determined that only the exchange rate had a significant impact on FDI in Greece. Exchange rate, trade openness and inflation had a slight impact on FDI in Ireland. GDP per capita, unit labor costs and inflation had a slight impact on FDI in the Netherlands. The introduction of euro and the financial crisis had a significant impact on FDI only in Greece. Furthermore, after comparison of public debt, the ease of doing business ranking, budget deficit and the corruption index among the countries, it was determined that the low level of FDI in Greece was caused by the unfavorable investment climate.

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