Estimating relationships among foreign direct investment, governance quality, and economic growth in developing countries using the threshold auto‐regressive model

Saidi, Yosra; Ochi, Anis

doi:10.1111/rsp3.12654

Cited by 5 publications

(2 citation statements)

References 51 publications

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“…These four governance quality indicators also have a positive impact on economic growth. Saidi and Ochi (2023) examined the triangular relationship between foreign direct investment (FDI), economic growth, and governance quality for 102 developing countries, including African countries. In the study, governance quality was measured as the average of six indicators.…”

Section: Review Of Literaturementioning

confidence: 99%

Rethinking of Government Institutions and Governance Quality Indicators on Economic Growth in Sub-Saharan African Countries

Şit,

Radulescu,

Güneş

et al. 2024

J Knowl Econ

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The study aims to investigate the effect of governance quality on economic growth and government consumption in Sub-Saharan African countries. Balanced dynamic panel data for 36 Sub-Saharan African countries from 2011 to 2022 were analyzed using GMM and Driscoll-Kraay regressions. In addition to the fact that there is no study in the literature that examines the effect of state governance indicators on economic growth in SSA countries, the addition of government consumption variable as a second dependent variable adds originality to the study. The empirical analysis revealed that government institutions have a positive effect and are significant in SSA countries’ economic growth. In addition, according to the Driscoll-Kraay regression, it is seen that governments’ development of institutions increases government consumptions. The governance indicators threshold that strengthens the government institution in Sub-Sahara Africa must be reached to increase the economic growth of Sub-Sahara Africa. For economic growth, effective government institutions and governance quality policies should be practiced and maintained among the Sub-Saharan African countries. Graphical Abstract

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Section: Review Of Literaturementioning

confidence: 99%

Rethinking of Government Institutions and Governance Quality Indicators on Economic Growth in Sub-Saharan African Countries

Şit,

Radulescu,

Güneş

et al. 2024

J Knowl Econ

View full text Add to dashboard Cite

show abstract

“…Additionally, imbalanced exports to imports have a negative impact on many industries, particularly manufacturing. Foreign direct investment inflows into emerging economies act as catalysts, supporting the development of advanced technology, skilled labor, and research and development (Saidi and Ochi, 2023).…”

Section: Institutions Consist Of Both Formal and Informal Restraints ...mentioning

confidence: 99%

Unveiling the Interplay of Institutional Quality, Foreign Direct Investment, Inflation and Domestic Investment on Economic Growth: Empirical Evidence for Latin America

Husnain,

Guo,

Pan

et al. 2024

IJEFI

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Uplifting economic growth is crucial for the sustained development and prosperity of an economy. The main objective of this study is to investigate the impact of institutional quality, foreign direct investment (FDI), inflation, and domestic investment on the economic growth of Latin America from 1996 to 2021. The study utilizes a combination of panel unit root testing, cross-sectional dependency testing, panel cointegration testing, and the Panel Autoregressive Distributive Lag (PARDL) technique to shed light on the dynamics of the region's economic development. The panel cointegration techniques confirm the existence of a long-run relationship among the selected variables over the chosen time frame. The PARDL technique is employed to determine the short- and long-run impact of institutional quality, FDI, inflation, and local investment on the economic growth of Latin America. The results show that institutional quality, FDI, and local investment have a significant positive impact on the economic growth of Latin America, while inflation has a negative impact. These findings suggest that policymakers in Latin America should prioritize improving institutional quality, encouraging FDI, and promoting local investment while controlling inflation. A comprehensive economic strategy that considers both short- and long-term dynamics is necessary, highlighting the importance of an integrated approach that recognizes their interaction. The study recommends improving the quality of institutions, especially political stability, to attract FDI and encourage domestic investment by promoting a business-friendly environment, guaranteeing financial accessibility, encouraging innovations, promoting regional and global integration, controlling inflation, reducing income inequality, and raising the standard of living.

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Relationship Analysis Between FDI and Economic Growth in African Countries: Does Governance Quality Matter?

Labidi,

Ochi,

Saidi

2024

J Knowl Econ

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Estimating relationships among foreign direct investment, governance quality, and economic growth in developing countries using the threshold auto‐regressive model

Cited by 5 publications

References 51 publications

Rethinking of Government Institutions and Governance Quality Indicators on Economic Growth in Sub-Saharan African Countries

Rethinking of Government Institutions and Governance Quality Indicators on Economic Growth in Sub-Saharan African Countries

Unveiling the Interplay of Institutional Quality, Foreign Direct Investment, Inflation and Domestic Investment on Economic Growth: Empirical Evidence for Latin America

Relationship Analysis Between FDI and Economic Growth in African Countries: Does Governance Quality Matter?

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