Impact of foreign direct investment volatility on economic growth of asean-5 countries

Article OPEN
Chee-keong Choong; Venus khim-sen Liew;
  • Journal: Economics Bulletin,volume 29,issue 3,pages1,829-1,841
  • Subject: Foreign direct investment, economic growth, volatility, cointegration, ASEAN, ARDL
    • jel: jel:F0 | jel:F3

This study examines the impact of volatility of FDI, rather than its level on the economic growth of ASEAN-5 countries. Using bounds testing approach, we show that FDI volatility retards long-run economic growth in Indonesia, Malaysia, the Philippines and Thailand. Our ... View more
  • References (12)
    12 references, page 1 of 2

    De Mello, L. (1997) “Foreign Direct Investment in Developing Countries and Growth: A Selective Survey”, Journal of Development Studies 34, 1-34.

    Engle, R. (1982) “Autoregressive Conditional Heteroskedasticity with Estimates of The Variance Of U.K. Inflation”, Econometrica 50, 987-1008.

    Engle, R., Ito, T. and Lin, W.L. (1990) “Meteor Showers or Heat Waves? Heteroskedastic Intra-Daily Volatility in The Foreign Exchange Market”, Econometrica 58, 525-542.

    Guillaumont, P. and Chauvet, L. (2001) “Aid and Performance: A Reassessment”, Journal of Development Studies 37, 66-92.

    Lensink, R. and Morrissey, O. (2000) “Aid Instability as A Measure of Uncertainty and the Positive Impact of Aid on Growth”, Journal of Development Studies 36, 31-49.

    Lensink, R. and Morrissey, O. (2002) “The Volatility of FDI, Not the Level, Affect Growth in Developing Countries”, The CDS Research Report Series, University of Groningen, 1-35.

    Lensink, R. and Morrissey, O. (2006) “Foreign Direct Investment: Flows, Volatility, and the Impact on Growth”, Review of International Economics 14, 478-493.

    Narayan, P.K. (2005) “The Saving and Investment Nexus for China: Evidence from Cointegration Tests”, Applied Economics 37, 1979-90.

    Ozturk, I. (2007) “Foreign direct investment - growth nexus: a review of the recent literature”, International Journal of Applied Econometrics and Quantitative Studies 4(2), 79 - 98.

    Pesaran, M.H. and Pesaran, B. (1997) Working with Microfit 4.0: Interactive Econometric Analysis. Oxford: Oxford University Press.

  • Related Organizations (2)
  • Metrics
Share - Bookmark