KaydedilenlerDerginizi ekleyin

Dergiler / Türkiye Mesleki ve Sosyal Bilimler Dergisi / 2025 / Cilt: 7 Sayı: 19 Özel Sayı

THE IMPACT OF DEVELOPMENT IN FINANCE AFFECTS FOREIGN DIRECT INVESTMENT FOR SPECIFIC ASIAN COUNTRIES

Amel Mahmood Ali Alobaidi

Sayfa
67–79
Yayın Tarihi
2025-06-30
DOI
—
🏛️Bu makalenin bibliyografik verileri ve tam metin bağlantısı DergiPark üzerinden sağlanmıştır.
DergiPark Kaydı ↗

Abstract

Countries want to increase direct foreign investment pro numerous details, for example, knowledge transmission, growing employment, guaranteeing growing and progress, FDI can be used to bridge the savings gap and has a major influence against growth for nations economy particularly, it reviewed FDI is influenced by financial development in countries, in this context, the study aims at investigating how financial development affects foreign direct investment in thirty nine Asian States for the period 2010-2017. This paper is important because FDI is crucial for developing countries, therefore; GMM was used to test the effect of target country’s level of financial development on FDI. Financial development does not matter according to several studies, however, there are exceptions to these findings, for instance, based on results, economic growth is an essential factor that boosts the flow of FDI into a country, thus allowing stronger players and better access via local capital markets, nonetheless, local factors may decrease FDI effects where it matters most.

Anahtar kelimeler
🔖

Bu Makaleye Atıf Yap

Alobaidi, A. M. A. (2025). THE IMPACT OF DEVELOPMENT IN FINANCE AFFECTS FOREIGN DIRECT INVESTMENT FOR SPECIFIC ASIAN COUNTRIES. Türkiye Mesleki ve Sosyal Bilimler Dergisi, Cilt: 7 Sayı: 19 Özel Sayı, 67–79. https://ajindex.com/articles/1067208

📄 Tam Metin PDF Okuyucu

↗Yeni Sekme

PDF belgesi yükleniyor...

Kaynakça (68)

  1. Aban, M. P., & Garcia-Vigonte, F. (2022). A Study on the Effects of Social Spending on Economic Activity. https://ssrn.com/abstract=4123354 (Accessed on: 6.09.2022).
  2. Abdul Bahri, E. N., Shaari Md Nor, A. H., Sarmidi, T., & Haji Mohd Nor, N. H. (2019). The role of Financial Development in the Relation Between Foreign Direct Investment and Economic Growth: A Nonlinear Approach. Review of Pacific Basin Financial Markets and Policies, 22 (02), 1-32.
  3. Afşar, A., & Afşar, M. (2010). Financial economy. Ankara: Detay Publishing.
  4. Agarwal, S. (2001). Stock Market Development and Economic Growth: Preliminary Evidence from African Countries. Journal of Sustainable Development in Africa, 3 (1), 48-56.
  5. Ahmed, A. D. (2007). Potental Impact of Financial Reforms on Savings in Botswana: An Empirical Analysis Using a Vecm Approach. The Journal of Developing Areas, 41 (1), 203-220.
  6. Alfaro, L., Kalemli - Ozcan, S., & Sayek, S. (2009). FDI, Productivity and Financial Development. World Economy, 32 (1), 111- 135.
  7. Alfaro, L., Chanda, A., Kalemli-Ozcan S., & Sayek, S. (2004). FDI and Economic Growth: The Role of Local Financial Markets. Journal of International Economics, 64 (1), 89-112.
  8. Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2006). How Does Foreign Direct Investment Promote Economic Growth? Exploring the effects of financial markets on linkages. National Bureau of Economic Research, Working Paper 12522. http://www.nber.org/Papers/w12522
  9. Alonso-Borrego, C., & Arellano, M. (1999). Symmetrically normalized instrumENTAL-ARIABLE Estimation Using Panel Data. Journal of Business & Economic Statistics, 17 (1), 36-49.
  10. Arellano, M., & Bover, O. (1995). Another Look at the Instrumental Variable Estimation of Error-Components Models. Journal of Economics, 68 (1), 29-51.
  11. Arellano, M., & Bond, S. (1991). Some tests of Specification for Panel Data: Monte Carlo Evidence and An Application to Employment Equations. The Review of Economic Studies, 58 (2), 277-297.
  12. Aslan, A., Altınöz, B., & Esmeray, M. (2019). The Effect of Financial Development on Foreign Direct Investments: The Case of Türkiye. International Journal of Economics and Business Administration, 15 (3), 649-659.
  13. Aslan, A., Altınöz, B., & Atay Polat, M. (2020). The Nexus Among Climate Change, Economic Growth, Foreign Direct Investments, and Financial Development: New Evidence from N --11 Countries. Environmental Progress & Sustainable Energy, 40 (3), 1-9.
  14. BAL, H., & Akça, E. E. (2016). Determiners of Foreign Capital Investments: Empirical findings from selected East Asia and Pacific countries. Socioeconomics, 24 (30), 91-111.
  15. Balasubramanyam, V. N., Salisu, M. A., & Sapsford, D. (1996). Foreign direct investment and growth ın EP and IS countries. Economics Journal, 106(434), 92-105.
  16. Batuo, M., Mlambo, K., & Guidi, F. (2010). Financial development and income inequality: Evidence from African countries. MPRA, Paper No. 25658. https://mpra.ub.uni-muenchen.de/25658/1/MPRA_paper_25658.pdf
  17. Bilir, L. K., Chor, D., & Manova, K. (2013). Host country financial development and MNC activity, 1-54. Research Collection School Of Economics. https://ink.library.smu.edu.sg/soe_research/953
  18. Bittencourt, M. (2010). Financial development and inequality: Brazil 1985-99. Economic Change and Restructuring, 43(2), 113-130.
  19. Blonigen, B. A., & Piger, J. (2014). Determinants of foreign direct investment. Canadian Journal of Economics, 47(3), 775- 812.
  20. Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115-143.
  21. Cetorelli, N., & Goldberg, L. S. (2010). Global banks and international shock transmission: Evidence from the crisis. IMF Economic Review, 59(1), 41-76.
  22. Chletsos, M., & Sintos, A. (2022). Financial development and ıncome inequality: A meta‐analysis. Journal of Economic Surveys, 1-30.
  23. Choong, C. (2012). Does domestic financial development enhance the linkages between foreign direct investment and economic growth? Empirical Economics, 42(3), 819-834.
  24. Çelik, İ. E. (2019). The role of financial development level on foreign direct investments: An assessment for fragile five countries. Marmara University İ.İ.B.F. Magazine, 41 (1), 65-82.
  25. Desbordes, R., & Wei, S. J. (2014). The effects of financial development on foreign direct investment. Policy Research Working Paper, No. 7065, World Bank.
  26. https://openknowledge.worldbank.org/handle/10986/20515
  27. Desbordes, R., & Wei, S. J. (2017). The effects of financial development on foreign direct investment. Journal of Development Economics, 127(C), 153-168.
  28. Dutta, N., & Roy, S. (2011). Foreign direct investment, financial development and political risks. The Journal of Developing Areas, 44(2), 303-327.
  29. Eicher, T. S., Helfman, L., & Lenkoski, A. (2012). Robust FDI determinants: Bayesian model averaging in the presence of selection bias. Journal of Macroeconomics, 34(3), 637-651.
  30. Ege, İ., & Şahin, S. (2014). Direct Foreign Capital Investment, Labor Foreign Currency and Banking Sector Development: Case of Türkiye. Finance Political & Economic Comments Journal, 51 (598), 9-17.
  31. Ghosh, A., (2015). Banking-industry specific and regional economic determinants of non-performing loans: Evidence from US States. Journal of Financial Stability, 20, 93-104.
  32. Goldberg, L. S. (2009). Understanding banking sector globalization. IMF Staff Papers, 56(1), 171-197.
  33. Erdogan, A. (2012). Direct Foreign Capital Investments in developing countries and the Case of Türkiye (1st Edition). Ankara: Nobel Academic Publishing, November.
  34. Geise, A., & Piłatowska, M. (2022). Oil (gas) prices and economic activity in selected European countries: Evidence from time and frequency domain causality. Available at SSRN: https://ssrn.com/abstract=4190874
  35. Görg, H., & Greenaway, D. (2004). Much ado about nothing? Do domestic firms really benefit from foreign direct investment? World Bank Research Observer, 19(2), 171-97.
  36. Hanson, G. H. (2001). Should countries promote foreign direct investment? G-24 Discussion Paper Series No. 9, United Nations Conference on Trade and Development, UN.
  37. Hermes, N., & Lensink, R. (2003). Foreign direct investment, financial development and economic growth. The journal of Development Studies, 40(1), 142-163.
  38. Hye, Q. M. A. (2011). Financial development index and economic growth: Empirical evidence from India. The Journal of Risk Finance, 12(2), 98-111.
  39. Hye, Q. M. A., & Islam, F. (2013). Does financial development hamper economic growth: Empirical evidence from Bangladesh. Journal of Business Economics and Management, 14(3), 558-582.
  40. İnal, V., & Beşel, F. (2018). Causality Analysis of Foreign Foreign Investment-Financial Development-Economic Growth Relations. 5. International Political, Economic and Social Research Congress, 2 (2), 165-171.
  41. Jha, C. K. (2019). Financial reforms and corruption: Evidence using GMM estimation. International Review of Economics & Finance, 62, 66-78.
  42. Karhan, G., & Akbulut, V. (2019). Evidence for the relation between financial development, financial stability and foreign direct investments. Journal of Business Research-Türk, 11(1), 227-238.
  43. Keykanloo, M., Hosseini, S., Emami Jazeh, K., & Askari, A. (2019). The effect of financial development on foreign direct investment. Iranian Economic Review, 24(4), 885-906.
  44. Klein, P. O., & Turk-Ariss, R. (2022). Bank capital and economic activity. Journal of Financial Stability, 62, 101068.
  45. Kılınç, E. C. (2020). The relation between direct foreign capital inflows with financial development and commercial clarity: The Case of E7 Countries. Aksaray University İ.İ.B.F. Journal, 12 (2), 45-54.
  46. Kim, G., & Vera, D. (2022). The effect of oil price fluctuation on the economy: What can we learn from alternative models? Journal of Applied Economics, 25(1), 856-877.
  47. Levine, R. (2005). Finance and growth: Theory and evidence. In: P. Aghion & S. Durlauf (Eds.), Handbook of economic growth (1th Edition), 1(12), 865-934.
  48. Louail, B., & Zouita, M. S. (2021). The relation between foreign direct investment, financial development and growth economic in Next-11 countries: A PMG/ARDL estimation. Management, 25(1), 28-50.
  49. Mamingi, N., & Martin, K. (2018). Foreign direct investment and growth in developing countries: Evidence from the countries of the organization of Eastern Caribbean States. CEPAL Review, 124, 79-98.
  50. Moran, T. (2011). Foreign direct investment and development: Re-evaluating policies for developed and developing countries. Washington D.C.: Peterson Institute for International Economics.
  51. Navaretti, G. B., & Venables, A. J. (2005). Multinational firms in the world economy. Princeton: Princeton University Press.
  52. Nasir, N. M., Rehman, M. Z., & Ali, N. (2017). Foreign direct investment, financial development and economic growth. International Journal of Financial Research, 8(4), 228-239.
  53. Nwosa, P. I., & Emma-Ebere, O. O. (2017). The impact of financial development on foreign direct investment in Nigeria. Journal of Management and Social Sciences, 6(1), 181-197.
  54. ORISAY, G., & Mike, F. (2016). An analysis on socio-political determinants of foreign direct investments. Journal of Academic Research and Studies, 8 (14), 97-107.
  55. Onyekachukwu, N., & Samuel, W. O. (2022). The Impact of Rural Financial Incusion on Economic Growth in Nigeria: 1990- 2016. African Journal of Business and Economic Development, 2 (7), 79-90.
  56. Son, B. (2022). Examination of the effect of financial development on tax revenues in Turkey with time series analysis. Kahramanmaraş Sütçü Imam University Journal of Social Sciences, 19 (2), 967-979.
  57. Özcan B., & Arı, A. (2010). Analysis on the determinants of foreign direct investments: OECD Case, Istanbul University Faculty of Economics and Statistics Journal, 0 (12), 65-88.
  58. Özen, A., & Senior, M. (2020). An econometric analysis on the determinants of foreign direct investments in Turkey. Journal of Economics, Politics & Finance Research, 5 (3), 643-666.
  59. Ozturk, Ö. F., & Bayar, Y. (2021). Analysis of the Interaction between Foreign Capital Investments, Economic Growth, Employment and Financial Development: Example of OECD countries. Journal of Human and Social Sciences Research, 10 (3), 2582-602.
  60. Saira, A., Kashif, M., & Hadeeqa, N. (2019). Relation between foreign direct ınvestment & financial market development - Evidence from South Asian markets. Journal of Independent Studies and Research Management and Social Sciences and Economics, 17(2), 53-66.
  61. Séraphin, P. Y., & Cyrille, K. K. (2022). Nonlinear effect of financial development on income inequality: The case of Ivory Coast. International Journal of Business and Management, 17(6), 57-74.
  62. Schneider, F., & Frey, B. S. (1985). Economic and political determinants of foreign direct investment, World Development, 13(2), 161-175.
  63. Shahbaz, M., Sinha, A., Raghutla, C., & Vo, X. V. (2022). Decomposing scale and technique effects of financial development and foreign direct investment on renewable energy consumption. Energy, 238(PB), 121758.
  64. Singh, T. (2022). Do terms of trade affect economic growth? Robust evidence from India. Economics of Transition and Institutional Change, 1-31.
  65. Swamy, V. (2015). Government debt and its macroeconomic determinants: An empirical ınvestigation. MPRA Paper 64106, University Library of Munich, Germany.
  66. Svirydzenka, K. (2016). Introducing a new broad-based index of financial development. International Monetary Fund, Working Paper No. 2016/005. https://ssrn.com/abstract=2754950b (Erişim Tarihi: 5.06.2022).
  67. Topaloglu, E. E., & Korkmaz, T. (2021). The impact of political risk on foreign direct investments and share market index returns: An application on G7 countries. Journal of Productivity, 1, 97-115.
  68. Uygur, E. (2012). Waiting for foreign investment. Discussion Paper, No. 2012/55, Turkish Economic Association, Ankara