Foreign Direct Investment, Financial Development and Economic Growth

Eryiğit, Kadir Yasin; Eryigit, Sibel Bali

doi:10.4018/978-1-4666-7288-8.ch021

Cited by 2 publications

References 24 publications

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The Effect of Financial and Economic Growth on Tourism Development in Emerging Economies: A Study of Vietnam for the Interval 1990-2020.

Thao¹

2022

Tour. hosp. manag.

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Purpose - The primary study objective is to determine the interaction between economic, financial, and tourism development in Vietnam for the 1990-2020 intervals. Design - This study is conducted through a combination of qualitative and quantitative methods using secondary data from WorldBank, Ourworldindata, and the Vietnam Bureau of Statistics. Methodology: The ARDL model is a statistically more robust approach for cointegration testing; then the ECM model was used to test for short-term effects and finally the Granger test for causality between the observed variables. Findings - Investigating the vital internal force that promotes tourism development reveals that finance and economic growth are crucially crucial during the 31-year study period. To illustrate, the economic and financial contribution to the positive change of tourism is up to 30.4% and 18.1%, respectively. Excitedly, the Granger test demonstrates a one-way causal relationship between economic growth and tourism development, tourism development, and finance development, and finance development and economic growth. In other words, it is a circle that demonstrates a consistently positive impact from tourism development to finance development, from finance development to economic growth, and finally, from economic growth to tourism development. The originality of the research - This paper highlights the role and impact level of the economic and financial sector on the tourism industry of a new Asian tiger and can be considered as the first study on Vietnam. The findings investigate how the economy functioned in the past and support policymakers in establishing future development policies, particularly in post-pandemic recovery.

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The Effect of Financial and Economic Growth on Tourism Development in Emerging Economies: A Study of Vietnam for the Interval 1990-2020.

Thao¹

2022

Tour. hosp. manag.

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Foreign Direct Investment

Kasemsap

2017

Advances in Finance, Accounting, and Economics

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This chapter indicates the overview of Foreign Direct Investment (FDI); FDI entries and export; FDI and spillover effects; FDI, human capital, and absorptive capacity; and the significance of FDI in the global economy. FDI is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased. FDI offers a source of external capital and increased revenue. FDI can be a tremendous source of external capital for the developing countries, which can lead to economic development. Through FDI, capital goes to whatever businesses have the economic growth anywhere in the world. FDI helps in increasing the output through the utilization of advanced technology and management techniques. FDI benefits investors, businesses, and the global economy. FDI contributes to foreign exchange earnings, employment creation, and the increases in incomes in the global economy.

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Foreign Direct Investment, Financial Development and Economic Growth

Cited by 2 publications

References 24 publications

The Effect of Financial and Economic Growth on Tourism Development in Emerging Economies: A Study of Vietnam for the Interval 1990-2020.

The Effect of Financial and Economic Growth on Tourism Development in Emerging Economies: A Study of Vietnam for the Interval 1990-2020.

Foreign Direct Investment

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