Lead-lag association between foreign flows and economic growth in selected emerging economies

Saini, Vijender Pal; Ravinder, N.A.

doi:10.1504/ijicbm.2022.125593

Cited by 2 publications

(4 citation statements)

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“…The negative and significant influence of FDI on economic growth is similar to the results of Soomro et al, (2022) and Ehigiamusoe and Lean (2019). According to Saini and Ravinder (2022) and Singh et al (2023), even high amounts of FDI are insufficient for accelerating economic growth in a host nation unless that nation has reached the basic stage of development in terms of income, education, and complementing trade policies. As a result, a host country's ability to absorb FDI effectively and channel it towards long-term development is influenced by various factors, and low-income nations are less likely to meet these initial absorptive requirements.…”

Section: Resultssupporting

confidence: 81%

“…Promotion of investment, increase in demand and supply, and increase in consumption can result from the inflows of remittances (Pradhan et al, 2008). Also, foreign debt helps in fulfilling the financing needs of developing nations for promoting growth (Saini and Ravinder, 2022;Singh et al, 2023). Foreign inflows have not necessarily positive effect always.…”

Section: Review Of Literaturementioning

confidence: 99%

“…Remittances have both direct and indirect impacts on the growth of the recipient nation (Sridi and Guetat, 2020;Ziesemer, 2012). The optimistic impact of remittances can be in the form of an increase in investment and availability of credit whereas a negative influence can be in the form of extravagant spending and disheartening saving (Verma et al, 2021;Saini and Ravinder, 2022).…”

Section: Introductionmentioning

confidence: 99%

“…The association between foreign inflows on recipient countries' economic growth is a burning and controversial issue. Saini and Singhania (2018); Rahman et al, (2019);Adedayo et al, (2020), Ayenew (2022), and Abouelfarag and Abed (2020); Saini and Ravinder (2022); Saini (2022a); Saini (2022b) tested the association of various sources of foreign inflows with nations' growth simultaneously. They found that FDI, remittances, and foreign aid have an important role in determining recipient nations' growth.…”

Section: Introductionmentioning

confidence: 99%

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Foreign Inflows and Economic Growth of BIMSTEC: A GMM Approach

Saini

2023

OJC

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The study is an attempt to test the influence of foreign capital inflows on BIMSTEC nations' economic growth of BIMSTEC nations during the time 2010-2021 by employing the one-step system GMM method. the data has been taken from WDI, 2022. The outcomes revealed that remittances, FDI, and inflation have an adverse influence on growth whereas debt, openness to trade, population, and aid have an optimistic influence on economic growth. The impact of population, remittance, and foreign is found statistically significant whereas the remaining variables have an insignificant impact. This led all the BIMSTEC countries should revise their policies and strategies regarding openness to trade, usage of external debt, and foreign aid. Various growth theories found foreign inflows an important factor for economic growth. Further accelerating these nations' economic growth will include the adoption and implementation of sound policies, the identification and removal of internal and external hurdles, and other related activities.

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Section: Resultssupporting

confidence: 81%

Section: Review Of Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Foreign Inflows and Economic Growth of BIMSTEC: A GMM Approach

Saini

2023

OJC

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Do trade and foreign direct investment contribute to growth? A study of BIMSTEC nations

Arya,

Verma,

Saini

2024

JBSED

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PurposeThe study examines the association between trade (exports and imports), foreign direct investment (FDI) and economic growth in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) countries using data from 1991 to 2019.Design/methodology/approachAugmented Dickey–Fuller (ADF) and Phillips–Perron (PP) unit root tests were applied to check the stationary of the data while the Johansen cointegration test and Vector Error Correction Model (VECM) was used to analyze long-run and short-run relationships.FindingsThe results indicate a long-run relationship between trade, FDI and economic growth in all selected countries except Bhutan. Additionally, a bidirectional causality exists between gross domestic product (GDP) and FDI in India, Bangladesh, Myanmar, Nepal, Bhutan and Sri Lanka, while unidirectional causality from GDP to FDI is observed in Thailand. Moreover, a one-way causality from exports to GDP exists in Bangladesh, Nepal, Bhutan, Sri Lanka and Myanmar, whereas a bidirectional relationship exists in India and Thailand.Practical implicationsThis paper will be highly beneficial for regulators and policymakers in the designated economies, aiding in the formulation of FDI and trade policies that promote economic progress and development.Originality/valueMost previous studies examining the relationship between macroeconomic variables have focused on developed nations. This study is the first to explore the relationship between trade (exports and imports), FDI and economic growth in the BIMSTEC countries.

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Lead-lag association between foreign flows and economic growth in selected emerging economies

Cited by 2 publications

References 0 publications

Foreign Inflows and Economic Growth of BIMSTEC: A GMM Approach

Foreign Inflows and Economic Growth of BIMSTEC: A GMM Approach

Do trade and foreign direct investment contribute to growth? A study of BIMSTEC nations

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