FDI and Local Financial Market Development:A Granger Causality Test Using Panel Data
AbstractThis paper reports the findings of Granger causality tests on the relationship between foreign direct investment (henceforth, FDI) and local financial market development across 62 countries from 1996 to 2007. In this paper we explore whether local financial market development is important in catalyzing the flow of foreign direct investment. findings results are robust to different measures of financial market development. Furthermore, the results indicate that most of the causal links are found in Non OECD, Low income and Lower middle Income countries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 24654.
Date of creation: 27 Aug 2010
Date of revision:
FDI; Financial market; Capital markets; Credit markets;
Find related papers by JEL classification:
- P45 - Economic Systems - - Other Economic Systems - - - International Linkages
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
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