Suchergebnisse

This article examines whether large inflows of foreign direct investment (FDI) behave differently from smaller inflows in a sample of 56 developing countries for the period 1990–2017. We use the quantile regression method to investigate whether the responsiveness of FDI inflows to various push and pull factors differs across the conditional distribution of the former. Our results show that the magnitudes of the coefficients are significantly different across quantiles of FDI inflows for a number of covariates. That is to say, the coefficients are significantly larger for the upper quantiles compared to the lower ones. The interquantile regressions, which estimate the quantile differences, confirm the finding that large FDI inflows are more responsive to their covariates than smaller inflows. Our results suggest that large inflows of FDI are indeed different, both quantitatively and qualitatively, from smaller inflows. Therefore, it is necessary to investigate the causes of large and smaller inflows separately for a better understanding of the determinants of FDI inflows to developing countries. JEL Classification: F21, F23, F41

This paper examines the long run relationship between public debt and economic growth in India for the period 1980–2018 using the autoregressive distributed lag (ARDL) approach. The bounds test results suggest that gross domestic product (GDP) per capita, internal and external public debt, fixed investment and trade openness are cointegrated implying the existence of a long run equilibrium relationship between these variables. We find that both internal and external public debt have significant negative effect on economic growth in the long run whereas, investment has significant positive effect on the growth rate of output per capita. The error‐correction model shows that the long run equilibrium relationship is stable and the adjustment towards equilibrium is relatively high. Our findings suggest that too much reliance on public debt must be discouraged since it has adverse effect on economic growth in the long run. The government should adopt investment‐supportive policies to enhance economic growth of the country.

This article examines the determinants of foreign direct investment (FDI) inflows to five economies of the Association of Southeast Asian Nations (ASEAN) for the period 1985–2017. Using the fixed effects quantile regression (QR) method, we identify the differential effects of the covariates across the conditional distribution of FDI inflows. The results suggest that financial sector development and natural resources in the host country are the most significant determinants of FDI inflows to the ASEAN region. Financial sector development is significant at both higher and lower quantiles of the distribution of FDI inflows, whereas natural resources and political regime are significant at the upper quantiles. The findings suggest that while financial sector development is an important factor for attracting FDI, natural resources and political regime matter for large inflows of FDI to the ASEAN countries. The article concludes that the resource-seeking and the efficiency-seeking motives of the multinational corporations are the primary reasons of large inflows of FDI to the ASEAN countries.

When are developing countries able to initiate periods of rapid growth and why have so few of these countries been able to sustain growth over decades? Deals and Development: The Political Dynamics of Growth Episodes seeks to answer these questions and many more through a novel conceptual framework built from a political economy of business–government relations. Economic growth for most developing countries is not a linear process. Growth instead proceeds in booms and busts, yet most frameworks for thinking about economic growth are built on the faulty assumption that a country's economic performance is largely stable. Deals and Development explains how growth episodes emerge and when growth, once ignited, is maintained for a sustained period. It applies its new framework to examining the growth of countries across a range of institutional and political contexts in Africa and Asia, using the examples of Bangladesh, Cambodia, India, Malaysia, Thailand, Ghana, Liberia, Malawi, Rwanda, and Uganda. Through these country analyses it demonstrates the explanatory power of its framework and the importance of feedback cycles in which economic trends interact with political behaviour to either sustain or terminate a growth episode. Offering a lens through which to analyse complex scenarios and unwieldy amounts of information, this book provides actionable levers of intervention to bring around reform and improve a country's chance at achieving transformative economic growth.