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Foreign Direct Investment and Private Domestic Investment: Does Institutional Quality Matter | ||
Iranian Economic Review | ||
دوره 28، شماره 1، تیر 2024، صفحه 220-237 اصل مقاله (734.69 K) | ||
نوع مقاله: Research Paper | ||
شناسه دیجیتال (DOI): 10.22059/ier.2024.337199.1007365 | ||
نویسندگان | ||
Rossanto Dwi Handoyo* 1؛ Kabiru Hannafi Ibrahim2؛ Wahyu Wisnu Wardana1؛ Nina Wulan Sari1؛ Lapipi Lapipi3 | ||
1Department of Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia | ||
2Department of Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia; Department of Economics, Faculty of Social and Management Sciences, Federal University Birnin Kebbi, Birnin Kebbi, Nigeria | ||
3Department of Economics, Faculty of Economics and Business, Haluoleo University, Kota Kendari, Indonesia | ||
چکیده | ||
Using a two-step system generalized method of moment (SGMM) this study explored the role of institutional quality while analyzing the links between foreign direct investment (FDI) and domestic investment (DI) in 21 Asian developing and emerging countries from 2011 to 2016. Our empirical strategy indicates that the crowds-out and crowds-in effect of FDI on domestic investment depends on the chosen dependent variable. Using domestic private investment (DPI) as the dependent variable, the study confirms the crowding-out effects of FDI on domestic investment. Conversely, utilizing the gross fixed capital formation (GFCF) findings show that the FDI crowds in the domestic investment. It is also revealed that institutional quality matters in determining such nexus. The study further recommends the need to augment the positive role of institutional quality in such a way that the crowding-out effect of the concurrent increase in FDI and institutional quality will augur well for domestic investment. | ||
کلیدواژهها | ||
Domestic Private Investment؛ Foreign Direct Investment؛ Institutional Quality؛ Two-step System Generalized Method of Moment (SGMM) | ||
آمار تعداد مشاهده مقاله: 210 تعداد دریافت فایل اصل مقاله: 289 |