Foreign Direct Investment, Sovereign Debt and Growth: Evidence for the Euro Area

Tan, Ai-Lian; Ismail, Normaz Wana

doi:10.18034/ajtp.v2i2.383

Cited by 4 publications

(1 citation statement)

References 50 publications

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“…The results resemble those of Tan & Ismail (2015) who observed that high government debt crowds out investment (foreign and domestic) and consequently lowers economic growth. None of the threshold slope coefficients of bond sector development is significant.…”

Section: Resultssupporting

confidence: 81%

The Impact of Financial Sector Development on Foreign Direct Investment: An Empirical Study on Minimum Threshold Levels

Tsaurai

Makina

2018

JEBS

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Using panel data of 21 emerging economies, the paper investigates the financial sector development threshold levels that would influence foreign direct investment (FDI) inflows. The threshold levels we identified are 41.27% of stock market capitalization for stock market turnover, 53.55% of gross domestic product (GDP) for stock market value traded, 121.53% of GDP for stock market capitalization, 114.43% of GDP for domestic credit to private sector by banks, 144.06% of GDP for domestic credit provided by financial sector, 0.22% of GDP for outstanding domestic private debt securities and 41.26% of GDP for outstanding domestic public debt securities. Our results show that higher stock market and banking sector development above the threshold level positively and significantly influence FDI inflows whilst the influence of lower stock market and banking sector development on FDI inflows was weak and not significant. Levels of private bond market development equal to or greater than the threshold level are found to have a positive but non-significant impact on FDI inflows whilst private bond market development levels less than the threshold have a weaker positive and non-significant influence on FDI inflows. On the other hand, public bond market development levels equal to or greater than the threshold level negatively influenced FDI inflows whilst levels of public bond market development less than the threshold positively but non-significantly attracted FDI inflows into emerging markets.

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Section: Resultssupporting

confidence: 81%

The Impact of Financial Sector Development on Foreign Direct Investment: An Empirical Study on Minimum Threshold Levels

Tsaurai

Makina

2018

JEBS

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European Sovereign Debt Crisis and its Impact on Financial Markets and Institutions

Ahmad

2015

Am. j. trade policy

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This paper examines the European sovereign debt crisis that began in 2009; it mostly considers Greece and then Italy and Portugal since they were affected by the crisis. It gives the emergence and the causes of the crisis as well as its effect on their debt as a percentage to Gross Domestic Product and their Real Gross Domestic Product. It also analyses the impact on sovereign bond and its yields, the stock, gold, derivatives and forex markets, including the impact on financial institutions, it uses graphical illustrations from Bloomberg to back the analysis. It further assesses the measures taken so far by policy makers and financial institutions to curb the situation. It finally considers the impact of the crisis on financial landscape and lessons learnt from it.

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Relationship between Foreign Direct Investment and Company Taxation: Case of Bangladesh

Ahmed

2016

Am. j. trade policy

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This study looks at the association between foreign direct investment and company taxation in Bangladesh from 2001-2010. The annual reports were sourced from the Bangladesh Bank Bulletin, Bangladesh Bureau of Statistics (BBS) and World Bank which was analyzed using Descriptive Statistic, correlation and regression. The independent variable corporate taxation was measured using corporate tax rate (CTR) whilst dependent variable foreign direct investment was measured using FDI net inflow (% of GDP). GDP, exchange rate and inflation rate were used as control variables. The result showed negative significant relationship between CTR and FDI whereas exchange rate and FDI indicated negative insignificant relationship. On the other hand, GDP was positively insignificantly related with FDI whilst inflation had positive significant relationship with FDI. Based on the result, the study suggested that there is require for the government to lo trim down corporate tax rate in order to create a centre of attention FDI into the country.

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Foreign Direct Investment, Sovereign Debt and Growth: Evidence for the Euro Area

Cited by 4 publications

References 50 publications

The Impact of Financial Sector Development on Foreign Direct Investment: An Empirical Study on Minimum Threshold Levels

The Impact of Financial Sector Development on Foreign Direct Investment: An Empirical Study on Minimum Threshold Levels

European Sovereign Debt Crisis and its Impact on Financial Markets and Institutions

Relationship between Foreign Direct Investment and Company Taxation: Case of Bangladesh

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