Causality between Financial Development and Foreign Direct Investment in Asian Developing Countries

The Relationship between Foreign Direct Investment and Tourism Development: Evidence from Developing Countries

This paper investigates the existence of Granger causality and cointegrated relationships between tourism related Foreign Direct Investment (FDI) and tourism development in developing countries using panel VECM techniques from 1995 to 2008. The results confirm the existence of a co-integrated relationship between variables in the long run. In addition, there is a bilateral long-run causality be...

Foreign Direct Investment: Flows, Volatility and Growth in Developing Countries

This paper contributes to the literature on FDI and economic growth. We deviate from previous studies by introducing measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on growth. We estimate the standard model using cross-section, panel data and instrumental variable techniques. Whilst all results are not entirely robust, there...

Direct and Financial Foreign Investment: How Do They Differ in Benefits to Developing Countries?

Do developing countries derive benefits from foreign financial investment (FFI) in the same way as they do from FDI? Through analyses in a stylized framework of foreign investment, this paper concludes that due to the lack of well functioning financial markets and the lack of technology, FFI flows may not be allocated and utilized as efficiently in developing countries as FDI. The frequently cl...

An Examination Of Economic Liberalization Impact On Foreign Direct Investment In Selected Developing Countries

Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries

The last decade or so has witnessed rather dramatic increases in the flow of foreign direct investment (FDI) to the developing countries of the world. However, the balance of evidence seems to point in one direction, the inflow has been uneven. Middle-income developing countries have benefited from this upsurge at the expense of the lower-income countries. In an attempt to explore the two compl...