IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/125411.html
   My bibliography  Save this paper

The role of financial development on the impact of FDI on economic growth

Author

Listed:
  • Alabi, Amina

Abstract

. This study analyses the role of financial development on the effect of foreign direct investment on economic growth. Literature on this topic focused on M&A FDI is scarce. Thus, this study contributes to the growing literature by using firm-level data on announced M&A deals for the manufacturing sector in the duration of 2003 – 2006. Results show a complementary relationship between financial system development in origin and destination country with FDI at the intensive and extensive margins. Further, findings show that country-level factors such as easy accessibility to credit information in origin and destination countries attract M&A FDI. Results remain consistent upon analysis with the pooled fixed effects and Heckman selection model.

Suggested Citation

  • Alabi, Amina, 2021. "The role of financial development on the impact of FDI on economic growth," MPRA Paper 125411, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:125411
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/125411/5/MPRA_paper_125411.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    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:pra:mprapa:125411. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.