India’s external commercial borrowing: Pulled by domestic fundamentals or pushed by global conditions?

Sur, Abhisek; Ray, Partha; Nandy, Amarendu

doi:10.1016/j.asieco.2019.02.004

Cited by 9 publications

(6 citation statements)

References 15 publications

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“…Results show that the Globalization Index has considerably affected GDP growth in the Asia region, and a couple of institutional governance determinants also have significantly impacted GDP growth, while the rest have an insignificant impact on GDP growth (Pring & Vrushi, 2019; Rothstein, 2015; Sur et al., 2019). Moreover, by considering the income categorization of the Asian economies, this study further found that high‐ and upper‐middle‐income countries are less influenced by globalization and rely heavily on ineffective governance practices for economic progression, while upper lower and low‐income countries are heavily influenced by globalization and institutional governance determinants.…”

Section: Resultsmentioning

confidence: 99%

Impact of globalization and governance determinants on economic growth: An empirical analysis of Asian economies

Abbas

Sun

et al. 2021

Growth and Change

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Globalization is an inevitable and irresistible process because many regional integrations emerged in the modern era. A global integration analysis, employing a country’s governance practices, offers various economic benefits and exerts socio‐economic pressures on different economies. This study uses the KOF Globalization Index and Institutional Governance Indicators as explanatory variables and examines their impacts on GDP growth as a dependent variable. The study employed Two‐step System GMM with a sample of 45 Asian economies, with the time horizon from 2003 to 2017. The outcomes show that globalization has positively impacted economic growth, sound regulatory control, and political stability. It further states that practical, feasible, and corruption‐free or transparent economic policies significantly contribute to the economic progression of Asian economies, and help to achieve sustainable development. The study concludes by suggesting that some economic and governance recommendations strengthen struggling Asian economies by addressing the globalization phenomenon tactfully. Future studies can be explored by globalization’s impact on socio‐economic development by taking regional integration as a moderating effect, which controls factors such as governance and institutional quality. Practitioners points The outcomes show that sound regulatory control, political stability, and global integration have positively impacted economic growth. Corruption‐free or transparent economic policies significantly contribute to the economic progression of Asian economies and help to achieve sustainable development. Prudent economic governance practices strengthen struggling Asian economies by approaching the globalization phenomenon prudently.

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Section: Resultsmentioning

confidence: 99%

Impact of globalization and governance determinants on economic growth: An empirical analysis of Asian economies

Abbas

Sun

et al. 2021

Growth and Change

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“…Investors invest their capital in an economy after adjustments have been made for the risk, and the returns are reasonably high. According to Gumus et al (2013) and Sur et al (2019), FPI inflows are sensitive to the interest rates differential.…”

Section: Interest Ratementioning

confidence: 99%

The effect of the adoption of International Financial Reporting Standards on foreign portfolio investment in Africa

Omotoso

Schutte

Oberholzer

2021

South African Journal of Accounting Research

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1994 to 2015 on total foreign portfolio investments in liabilities (equity and debt) were collected.Panel data regression analysis incorporating pooled regression, fixed-effects, and random-effects models was estimated. Also, the generalised method of moment estimator was employed to address the problem of endogeneity, usually associated with panel data analysis and as a robustness check for the model. The logit regression model was used to examine the determinant factors of IFRS adoption.Various statistical tests were estimated, such as the diagnostic test, using the histogram and Jarque-Bera statistics, difference-in-difference (DID) test, the unit root test, and the cross-sectional dependence test. The Hausman's chi-square was estimated to determine the best alternative technique between the fixed-effects and random-effects models. Also the Arellano-Bond estimator autocorrelation 〈1〉 and 〈2〉 was used to evaluate the validity of the variable instruments in the model. Besides, the average marginal effect (AME) was estimated for the effect of each covariate on the result. Certain covariates were estimated as control variables in the model.The statistical results show a significant and positive effect of the adoption of IFRS on FPI inflows after the adoption and implementation of IFRS in adopting countries. Equally, the finding further indicates a significant difference in the volume of FPI inflows after the adoption of IFRS than before the adoption, in adopting countries. The statistical estimates also reveal a positive and significant effect of IFRS adoption on FPI in adopting countries, compare with non-adopting IFRS countries where it shows a negative and non-significant relationship. It shows that countries that adopted IFRS experience more inflows in FPI compare with the non-adopting countries in Africa.Furthermore, the logit regression results show that culture, the legal system, political system, investor protection, market capitalisation, and tax were found to be positively significant with the probability of adopting IFRS in the logistic model. This thesis, therefore, suggests that the adoption of IFRS is justified in the selected countries in Africa since the results indicated a positive and significant effect of IFRS adoption on FPI in these countries. Hence, substantiated the assumption of IFRS proponents that adoption will enhance the flow of FPI in adopting countries for economic development. Policies measure to monitor the activities of listed firms and to enforce compliance with IFRS rules and regulations are warranted.These policies would further enable IFRS adopting countries to enhance more flow of FPI.

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“…Recent studies identify the economic system and FDI influenced by the emerging countries' fragile condition (Glawion et al, 2019;McKay & Thorbecke, 2019;Park, 2016). However, if bilateral cooperation goes positively, it mitigates the state's fragility, enhances local economic development, and strengthens regional progression (Gioacchino, 2020;Sur et al, 2019). Based on the literature, the study constitutes a hypothesis: H5: Fragile state index has significant negative impacts on FDI.…”

Section: State Fragility Determinantsmentioning

confidence: 98%

“…Regional, political, and economic cooperation in policy formulation helps states (Chen & Wu, 2012;Erler et al, 2015). Recent studies evidenced that local development planning and external commercial funding enhance economic development if it helps The World Bank Group (WBG)-World Governance Indicators (WGI) the country's economic growth rather than control the external markets (Gioacchino, 2020;Gounaridis et al, 2018;Sur et al, 2019). Based on the literature, the study constitutes a hypothesis:…”

Section: State Fragility Determinantsmentioning

confidence: 99%

Impact of institutional governance and state determinants on foreign direct investment in Asian economies

et al. 2021

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Asian economies are experiencing issues of governance and economic deprivation. Further, the lack of good governance itself is a considerable hurdle to economic development and growth. This study analyses the relationship of control of corruption, state fragility index, external intervention, and the corruption prevalence index with foreign direct investment (FDI) in 25 Asian economies by considering institutional governance and economic causation the time horizon from 2009 to 2019. By application of the two-step system generalized method of moments estimation, resultsshow that a corruption-free economic environment acts as a stimulus to FDI, as it depicts good governance practices toward economic progress. Simultaneously, state fragility discourages the FDI because it obstructs FDI in the economic cycle as a state becomes vulnerable. This study suggests that the exchange of bilateral expertise and investment supports from stable economies can play a vital role in its development. Further, it recommends that countries with good governance practices should assist with investment and bilateral contracts to poor and less developed (weak governance) countries to strengthen their economic structure, which takes nations toward the path of prosperity and development.

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India’s external commercial borrowing: Pulled by domestic fundamentals or pushed by global conditions?

Cited by 9 publications

References 15 publications

Impact of globalization and governance determinants on economic growth: An empirical analysis of Asian economies

Impact of globalization and governance determinants on economic growth: An empirical analysis of Asian economies

The effect of the adoption of International Financial Reporting Standards on foreign portfolio investment in Africa

Impact of institutional governance and state determinants on foreign direct investment in Asian economies

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