Institutions, Foreign Direct Investment and Growth: A Hierarchical Bayesian Approach

McCloud, Nadine; Kumbhakar, Subal C.

doi:10.1111/j.1467-985x.2011.00710.x

Cited by 18 publications

(6 citation statements)

References 45 publications

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“…The positive impacts of FDI on host countries' economic growth depends on whether certain factors exist or not in those countries, such as the degree of openness of its economy, political stability, the absence of violence or domestic institutional quality (Asheghian 2004;Hansen and Rand 2006). Furthermore, in a recent empirical investigation, McCloud and Kumbhakar (2011) noted the existence of a heterogeneous relationship between FDI and economic growth across developing countries. They argued that, across countries, differences in institutional quality were correlated with heterogeneous absorptive capacities and hence, a heterogeneous FDI-growth relationship.…”

Section: Results and Findingsmentioning

confidence: 99%

The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

et al. 2020

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While there is a consensus on the expanding importance of the China–Africa economic relationship, there is much more debate on how to portray the relationship. Thus, this study is aimed to examine the impacts of the China–Africa trade and Chinese foreign direct investment (FDI) on the growth of African countries controlling the mediating role of institutional quality. The two-step system Generalized method of moments (GMM) model is applied using robust data for the period of 2003–2017. Drawing on complementary theoretical perspectives, this study took into account the conditional effect of China–Africa trade and Chinese FDI subject to the institutional quality of African countries and the interdependence of China–Africa trade and Chinese FDI to African countries. The benign impacts of the China–Africa trade and Chinese FDI on economic growth to African countries remain contingent upon appropriate policy action to improve the institutional quality of African countries and the synergies between the China–Africa trade and Chinese FDI to African countries.

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Section: Results and Findingsmentioning

confidence: 99%

The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

et al. 2020

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“…Massive benefits are envisaged to be accrued to recipient nations of FDI with Goldberg and Klein (1998) asserting that FDI encourages export promotion, import substitution or greater trade in intermediate input which seldom exist between parent and affiliated producer. Other scholars believe there are positive links between FDI and economic growth and development (See Cipollina et al 2012, McCloud and Kumbhakar 2011, Wang and Wong 2008, Zhao and Du 2007, Liu et al 2014, Chaudhry et al 2013 and Adegbite and Ayadi 2010) but to the disagreement of Herzer (2012) who suggested that negative relationship exists between FDI and growth in developing countries (Akinlo 2004, Rehman 2016). Kiyota and Urata (2004) would reason that both investing and host countries do benefit from FDI.…”

Section: Introductionmentioning

confidence: 99%

Influence of Real Exchange Rate and Volatility on FDI Inflow in Nigeria

Muhammad¹,

Azu²,

Oko³

2018

IBR

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The purpose of this research is to ascertain the effect of real exchange rate fluctuation and its volatility on inward flow of FDI with Nigeria as a focal country, between 1970 to 2014. The research applied GARCH (1,1) to ascertain the level of volatility and ARDL model was used to determine the relevant results-these techniques were adopted for their robustness in estimation. It could be revealed that the effects of exchange rate and exchange rate volatility are more of a short-run phenomenon; while devaluation would increase inflow of FDI, volatility makes foreign investors more sceptical with increasing uncertainty. Increasing uncertainty could deter inflow of FDI into the country. Having captured the effect of political regime in the model, the paper reveals that a democratic regime should be the mainstay since it attracts more foreign investment compared to the military regimes. Therefore, even though devaluation is good, it would be better under civil government regimes.

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“…depicting corruption speaks volumes). R encompasses property rights, an important feature for economic growth (McCloud and Kumbhakar [35]). Country rankings based on corruption correspond inversely to country rankings based on property rights.…”

Section: Structures Of Cdrmentioning

confidence: 99%

General Theory of Economics: <i>CDR</i> Supply Side Scientific Growth Law Unveiled

Ridley¹

2018

TEL

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The capitalism (C), democracy (D) and rule of law (R)-CDR global invariant hypothesis was previously demonstrated for year 2014 cross country per capita real gross domestic product adjusted for purchasing power parity (G).Consistent with the principle of parsimony, the CDR index explained G with only these three variables. This paper re-estimates the model for the last 22 years of available data. The result is model parameters that are a set of global time invariant constants. These constants constitute the global time invariant CDR index defined by the vector inner (dot) product of the global constants and country C, D, R and C•D•R. This establishes the CDR global time invariant hypothesis. Exogenous and endogenous components of capital are decoupled to calculate and explain the values and roles of new ideas versus old capital stock. Based on the unitary entrepreneurship elasticity of G, the theoretical optimal reinvestment in capital stock is validated by empirical gross fixed capital formation. Together, these place economic growth on a scientific basis. Because of the absence of explicit definitions in the extant literature for concepts such as capitalist, capitalism, entrepreneurship and other consequential terminologies, they are clarified in concise nomenclature.

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Institutions, Foreign Direct Investment and Growth: A Hierarchical Bayesian Approach

Cited by 18 publications

References 45 publications

The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

Influence of Real Exchange Rate and Volatility on FDI Inflow in Nigeria

General Theory of Economics: <i>CDR</i> Supply Side Scientific Growth Law Unveiled

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Institutions, Foreign Direct Investment and Growth: A Hierarchical Bayesian Approach

Cited by 18 publications

References 45 publications

The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

Influence of Real Exchange Rate and Volatility on FDI Inflow in Nigeria

General Theory of Economics: &lt;i&gt;CDR&lt;/i&gt; Supply Side Scientific Growth Law Unveiled

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General Theory of Economics: <i>CDR</i> Supply Side Scientific Growth Law Unveiled