scholarly journals Financial Deepening, Foreign Direct Investment and Output Performance in Nigeria

2018 ◽  
Vol 65 (2) ◽  
pp. 193-204
Author(s):  
Mumeen Olatunbosun Alabi ◽  
Sheriffdeen Adewale Tella ◽  
Ibrahim Abidemi Odusanya ◽  
Olumuyiwa Ganiyu Yinusa
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Financial Deepening ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Output Performance ◽  
Long Run ◽  
Financial Depth ◽  
Short Run ◽  
Bound Test

Abstract This study examines the relationship between financial deepening, foreign direct investment and output performance in Nigeria from 1980-2015 using the Autoregressive Distributed Lag (ARDL) Bound Test approach. A long-run relationship was established between financial deepening indicators, foreign direct investment and output performance in Nigeria. Foreign direct investment and market capitalization as a percentage of the GDP exerted significantly on output performance both in the short-run and in the long-run periods. It is recommended that financial depth should be enhanced through improved and highly efficient provision of credit by banks to the real sector of the Nigerian economy.

scholarly journals Market concentration and foreign direct investment in the financial leasing sector of the Republic of Serbia

Skola biznisa ◽  
2020 ◽  
pp. 1-19
Author(s):  
Marija Radulović
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Relationship ◽  
Market Concentration ◽  
Financial Leasing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Republic

The financial leasing market in previous years is characterised by a growth that is also expected in the coming period. Besides, developing countries are striving to attract as much foreign direct investment (FDI) as possible to accelerate economic growth and achieve macroeconomic stability. The aim of this paper is to determine whether there is a relationship between FDI and the level of market concentration in the financial leasing sector of the Republic of Serbia and to determine whether this relationship is long-term or short-term. Quarterly data from the first quarter of 2006 to the first quarter of 2019 were used. Autoregressive Distributed Lag approach (ARDL) and bounds test were used for data analysis. The results showed that there is a negative relationship between FDI and the level of market concentration in the financial leasing sector of the Republic of Serbia in the long run, while there is no statistically significant relationship between FDI and the level of market concentration in the short run.

scholarly journals GROWTH EFFECTS OF FOREIGN DIRECT INVESTMENT AND FINANCIAL DEEPENING IN NIGERIA (1981-2018)

2020 ◽  
Vol 10 (4) ◽  
pp. 49-67
Author(s):  
Gbenga F. BABARINDE ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Financial Deepening ◽  
Causality Test ◽  
Growth Effects ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Money Velocity

This study investigates growth effects of foreign direct investment and financial deepening in Nigeria for the period 1981-2018. Data employed for this study were obtained from Central Bank of Nigeria Statistical Bulletin and World Development Indicators. Pairwise granger causality test and autoregressive distributed lag (ARDL) model were employed in the data analysis. Empirical results show that foreign direct investment (FDI) has positive significant effect on economic growth (GDP) in Nigeria both in the long and short runs. Financial deepening measured as broad money supply as a ratio of GDP (broad money velocity) has positive significant effect on GDP in Nigeria in the long run but the position is reversed to negative non-significant in the short run. In the long run, financial deepening indicator-credit to private sector as a ratio of GDP-, has negative non-significant effect on GDP in Nigeria while its influence is absent in the short run model. Findings also reveal a unidirectional causality from FDI to GDP. Likewise, unidirectional causality flows from GDP to each of the two financial deepening indicators, thus lending credence to the demand-following hypothesis. This study concludes that foreign direct investment and financial deepening have positive growth effects in Nigeria with causality flowing from foreign direct investment to economic growth and the latter granger-causing financial deepening in Nigeria. To boost economic growth, there is a need for Nigeria’s government to further develop the financial system and implement policies to stimulate FDI inflows to the country.

scholarly journals Inward Foreign Direct Investment and Trade Openness in Vietnam: A Nonlinear Autoregressive Distributed Lag Approach

Economies ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 120
Author(s):  
Jen-Yao Lee ◽  
Ya-Chuan Hsiao ◽  
Ngochien Bui ◽  
Tien-Thinh Nguyen
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Inward Foreign Direct Investment ◽  
Nonlinear Autoregressive ◽  
Foreign Direct Investment Inflows

This study aims to examine the asymmetric relationship between trade openness and FDI (foreign direct investment) inflows to Vietnam by using NARDL (nonlinear autoregressive distributed lag) during the period from 1997 to 2019. Our findings show that the influence of FDI on trade openness is asymmetric in the short-run and long-run. But the influence of trade openness on FDI is symmetric in the short-run and asymmetric in the long run.

scholarly journals The effect of mining foreign direct investment inflow on the economic growth of Zimbabwe

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Plaxedes Gochero ◽  
Seetanah Boopen
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Domestic Investment ◽  
Mining Sector ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Full Effect ◽  
Short Run ◽  
Using Data

Abstract The study employs the autoregressive distributed lag (ARDL) approach to examine the relationship between foreign direct investment (FDI) in the mining sector on the Zimbabwe economy, while controlling for both non-mining FDI and domestic investment. Using data over the period 1988–2018, this research results show that foreign direct investment in the mining sector has a significant positive relationship with the country’s GDP in the long run. Mining FDI is revealed to have relatively higher effects as compared to FDI in non-mining sector and domestic investment. The short-run analysis observed that mining FDI as well as non-mining and domestic investment still has positive and significant impacts on growth but at a relatively lower extent. This implies that it takes some time for such investments to have their full effect on the economy.

scholarly journals Modeling Long-Run and Short-Run Dynamics of Foreign Direct Investment on the Manufacturing Sector Growth in Nigeria: The ARDL Bound Testing Approach

2017 ◽  
Vol 9 (11) ◽  
pp. 128
Author(s):  
Nseabasi Imoh Etukafia ◽  
Ntiedo Bassey Ekpo ◽  
Ikenna Elias Asogwa
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Output Growth ◽  
Explanatory Variables ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
Bound Test

This paper econometrically examines the long run and the short run dynamics of foreign direct investment (FDI) on the manufacturing sector growth in Nigeria between the period 1981 and 2015. Data used in this study were obtained from the Central Bank of Nigeria statistical bulletin published in 2016. The econometric methodology adopted was the bound test and auto regressive distributive lag (ARDL) approach to estimate cointegrating relationship as well as short run and long run dynamics of the FDI and other explanatory variables on output growth in the manufacturing sector. Results of the long run behaviour and short run dynamics (error correction model) indicate that economic liberalization is significant in influencing changes in manufacturing output growth. However, FDI has no significant effect in both the short run and the long run episode. Therefore, it is recommended that policies aimed at encouraging increased participation of private domestic investors in collaboration with multinational corporations in the manufacturing sector be crafted.

China’s outward foreign direct investment and exports diversification: an asymmetric analysis

2020 ◽  
Vol 13 (2) ◽  
pp. 45-69 ◽  
Author(s):  
Faheem Ur Rehman ◽  
Yibing Ding ◽  
Abul Ala Noman ◽  
Muhammad Asif Khan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Vital Role ◽  
Outward Foreign Direct Investment ◽  
Asymmetric Effect ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Chinese Export

Purpose Over the past two decades, China’s outward foreign direct investment (OFDI) has risen remarkably. Whether such an increase affects the Chinese export diversification (ED) is a significant issue that has surprisingly remained unaddressed. This study aims to explain this issue that how OFDI plays a vital role in symmetric and asymmetric effects on its ED. Design/methodology/approach The authors introduce a robust nonlinear autoregressive distributed lag (NARDL) model. Ironically, the purpose of this study is to analyze the symmetric and asymmetric effect of OFDI on ED. Findings The authors propose that growing OFDI would be more advantageous to China, rather than the policies of contraction. Therefore, the study provides valuable policy insights to consider the long-run asymmetric momentum given to ED by China’s OFDI. Originality/value The results of this study may seem to be an important newsletter for further policy discussion on how China can catch up on the benefits of ED through OFDI.

scholarly journals The Short and Long Run Determinants of Foreign Direct Investment in Nigeria

2020 ◽  
Vol 2 (4) ◽  
pp. 45-65
Author(s):  
Oludayo Elijah Adekunle
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Capital Expenditure ◽  
Trade Openness ◽  
Foreign Direct Investment Inflow ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run

What determines foreign direct investment inflows has been a subject of controversies among scholars. As a result of the highlighted gap discussed in this study, the short and long run determinants of foreign direct investment and their effects on foreign direct investment inflow in Nigeria was investigated from 1986 to 2018. Data were analyzed with Augmented Dickey-Fuller and Philip Perron unit root test, Autoregressive Distributed Lag and Pairwise Granger Causality techniques. Evidence of long run dynamic equilibrium relationship was established between foreign direct investment and its determinants. The short and long run coefficients revealed that government capital expenditure and inflation impede the inflow of foreign direct investment both in the short and long run while exchange rate serve as bane to foreign direct investment in the long run. However, gross domestic product and trade openness were found to stimulate the inflow of foreign direct investment in the short and long run. The Pairwise causality result revealed that government capital expenditure, exchange rate and trade openness had independent causality with foreign direct investment while gross domestic product and inflation rate had unidirectional causality with foreign direct investment. Thus, government should allocate more funds for the provision of enabling and investment enhancing environment to promote foreign direct investment inflow. The study added value to previous studies by estimating the short and long run determinants of foreign direct investment using more dynamic and robust technique of Autoregressive Distributed Lag developed by Peseran and Shin (1999). JEL Codes: C32, F21.

scholarly journals The effect of worker remittances on economic growth: An ARDL approach

2019 ◽  
Vol 30 (4) ◽  
pp. 434-441 ◽  
Author(s):  
Muhammad Kamran Khan ◽  
Jian-Zhou Teng ◽  
Muhammad Imran Khan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Direct Investment ◽  
Domestic Saving ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Financial Flow ◽  
Short Run

Worker remittances are the main source of financial flow to any economy.  This study intended to scrutinize the effect of remittance inflow on Pakistan’s economy over the period 1976- 2016 by employing autoregressive distributed lag (ARDL) technique; because this method has been recently developed and has different advantages as compared to time series methods. ARDL method was applied to scrutinize the long run and the short run effect of worker remittances on Pakistan’s economy. This study concluded that Pakistan’s economy is positively affected by remittance inflow, foreign direct investment and the gross domestic saving in the long run, while Pakistan’s economy negatively affected by inflation and consumption in the long run. Remittances received from immigrant support economic growth in Pakistan because remittances inflow is mostly utilized for investment purpose. To further improve the economic development of Pakistan’s economy, it is suggested that policy maker in Pakistan encourage and motivate migrants to send remittances through proper channels to Pakistan, so that these inflows of remittances be used in such profitable investments that help to improve economic growth.

scholarly journals Does Inward Foreign Direct Investment Promote Export? Empirical Evidence from Sri Lanka

2018 ◽  
Vol 8 (3) ◽  
pp. 1
Author(s):  
Samantha NPG ◽  
Liu Haiyun
Keyword(s):  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Export Performance ◽  
Real Effective Exchange Rate ◽  
Domestic Investment ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Bound Test

Export-led growth hypothesis assumed that long-term economic growth can be achieved through higher exports. Foreign Direct Investment (FDI) is one of the determinants of export performance that can have a substitute effect or complementary relationship to export. The aim of this study is to investigate the impact of inward FDI on the export performance of Sri Lanka during the period from 1980 to 2016. Auto Regressive Distributed Lag (ARDL) model and bound test are applied to identify the long-run relationship and short-run dynamics of the selected variables. The short-run causality is checked by applying the Granger causality test. The ARDL bound test confirms long-run relationship among the variables. The study finds positive insignificant long run and short-run relationships between FDI and exports in Sri Lanka for the data period. Exports are highly sensitive to GDP and real effective exchange rate in the short-run and to domestic investment in the long-run. In order to promote exports via FDI, government policy should focus on attracting more FDI by drawing attention to national competitiveness. The study suggests a comprehensive sector level investigation on the impact of FDI on export performance of Sri Lanka.

Foreign Direct Investment and Growth Nexus: Further Evidence from Africa’s Largest Economy

2021 ◽  
Vol 13 (1) ◽  
pp. 65-78
Author(s):  
Anthony Orji ◽  
Godson Umunna Nwagu ◽  
Jonathan E. Ogbuabor ◽  
Onyinye I. Anthony-Orji
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Labour Force ◽  
Jel Classification ◽  
Least Square ◽  
Ordinary Least Square ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run

The study investigated the effect of foreign direct investment (FDI) on economic growth in Nigeria, which is currently Africa’s largest economy, and also determined the long-run relationship between FDI and economic growth in Nigeria from 1981 to 2017. The study adopted the autoregressive distributed lag modelling approach and ordinary least square in the analysis. The empirical results revealed that FDI has a positive and significant relationship with economic growth in Nigeria within the period under review. The study concluded and recommended that Nigerian Government should formulate policies that will attract more FDI in all sectors of the economy especially in the service and manufacturing sectors, so as to improve the infrastructural facilities and production of goods in the country and also expand its labour force. Finally, there is need to improve the educational policy of the country in order to raise the stock of human capital in the country that will make useful policies for the attraction for productive FDIs in the country. JEL Classification: E22, F21, F23, F43

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