IDEAS home Printed from https://ideas.repec.org/a/ids/ijsuse/v16y2024i2p131-153.html
   My bibliography  Save this article

The FDI inflows in low-income and lower-middle-income countries: the moderating role of military expenditure

Author

Listed:
  • Saif Ur Rahman
  • Shurong Zhao
  • Danish Junaid

Abstract

Foreign direct investment (FDI) inflows have been found to positively impact citizens' quality of life in a country. However, the ways in which a country's military spending moderates this relationship between the factors of citizens' wellbeing and FDI inflows is less known in literature. The present study attempts to bridge this gap by investigating panel data for 56 low-income and lower-middle-income economies (N = 1,064) for a period from 2001 to 2019. Fixed effect regression estimation was used to test the hypothesised relationships, which demonstrate that military spending significantly and negatively correlates with inward FDI. The results show that in less developed economies, governments' spending in their security sectors reduces the chances of attracting inward FDI in its direct role; and in its moderating role, it negatively impacts the FDI inflows attracted by the variables of GDP per capita and health infrastructure in a country. The study has policy implications for improving the quality of life in less developed countries.

Suggested Citation

  • Saif Ur Rahman & Shurong Zhao & Danish Junaid, 2024. "The FDI inflows in low-income and lower-middle-income countries: the moderating role of military expenditure," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 16(2), pages 131-153.
    • Handle: RePEc:ids:ijsuse:v:16:y:2024:i:2:p:131-153
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=137611
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sadia Bint Raza & Salman Masood Sheikh & Saif Ur Rahman & Tasaddaque Hussain Warriach & Yasir Abbas Zaidi, 2024. "An Exploratory Study on Experiences of Work-Life Balance of Female Teacher in Private University," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 573-585.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijsuse:v:16:y:2024:i:2:p:131-153. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=301 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.