Impacts of the Stock Market Liberalization in China: Evidence from the Foreign Institutional Investor Scheme

Chen, Chun-Da; Chen, Chih‐Chun; Cheng, Chiao-Ming

doi:10.2139/ssrn.2147021

Cited by 1 publication

(1 citation statement)

References 62 publications

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“…These findings may have been impacted by the dominance of investments from emerging economies that take advantage of the absence of democracy. According to Chen et al (2005), high political risk causes hostcountry assets to be devalued to appeal to international investors. According to Janeba (2002), most high-political-risk economies attract FDI due to their cheap factor costs, which work as a reasonable risk trade-off.…”

Section: Introductionmentioning

confidence: 99%

On the Link Between FDI, Political Risk and Economic Growth in Sub-Saharan Africa: A Panel VAR Approach

Hamouda

2023

J. Econ. Impact

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This study looks at how foreign direct investment from other countries helps grow economies in Sub-Saharan Africa. But it not just about Foreign direct investment; the quality of institution in those countries also play a big role. We're exploring how foreign direct investment, political risks, and economic growth all connect. Using a Panel Vector Auto-Regressive (PVAR) approach with a sample of 28 sub-Saharan African countries over the period 1996–2016, the empirical results reveal that FDI positively relates to internal conflicts and political stability in Sub-Saharan African countries. However, the effects of economic growth and external conflicts are negative and significant. In addition, FDI and internal and external conflicts affect positively and significantly economic growth. However, the effect of political stability on economic growth is negative and significant. On the other hand, the interaction between foreign direct investment and political stability is negative and insignificant. Finally, the internal and external conflicts are negatively affected by foreign direct investment, yet they are positively influenced by political stability. These findings have important policy implications. If Sub-Saharan Africa is to realize its economic growth agenda, policymakers should promote FDI inflows to sub-Saharan African countries by improving their institutional quality by boosting political stability and reducing internal and external conflicts.

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Section: Introductionmentioning

confidence: 99%

On the Link Between FDI, Political Risk and Economic Growth in Sub-Saharan Africa: A Panel VAR Approach

Hamouda

2023

J. Econ. Impact

View full text Add to dashboard Cite

show abstract

Impacts of the Stock Market Liberalization in China: Evidence from the Foreign Institutional Investor Scheme

Cited by 1 publication

References 62 publications

On the Link Between FDI, Political Risk and Economic Growth in Sub-Saharan Africa: A Panel VAR Approach

On the Link Between FDI, Political Risk and Economic Growth in Sub-Saharan Africa: A Panel VAR Approach

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