Drivers of Foreign Direct Investment Inflows to Emerging Asian Economies

IF 1.2 Q3 BUSINESS, FINANCE

Journal of Emerging Market Finance Pub Date : 2023-11-14 DOI:10.1177/09726527231196722

Pami Dua, Neha Verma

引用次数: 0

Abstract

This article examines the role of domestic and global factors in driving foreign direct investment (FDI) inflows to Asian emerging economies. Conventional panel estimations do not adequately account for the interdependence among countries caused by common global shocks and spatial effects. This article, employing a novel technique, augments the panel cointegration estimations with a proxy for unobserved common factors extracted from the augmented mean group regression. Our estimations control for nonstationarity, endogeneity, cross-sectional dependence, and heterogeneity. Based on the data of six Asian emerging economies from 2000Q1 to 2019Q4, we find a significant impact of both push (global) and pull (domestic) factors in attracting FDI. Our policy implication suggests the sequential opening of the capital account with capital controls and macroprudential regulations in place. JEL Codes: F21, F30, F41

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外国直接投资流入亚洲新兴经济体的驱动因素

本文考察了国内和全球因素在推动外国直接投资(FDI)流入亚洲新兴经济体中的作用。传统的面板估计没有充分考虑到共同的全球冲击和空间效应造成的各国之间的相互依存关系。本文采用一种新技术，用从增广均值组回归中提取的未观察到的共同因素的代理来增强面板协整估计。我们的估计控制了非平稳性、内生性、横断面依赖性和异质性。基于2000年第一季度至2019年第四季度六个亚洲新兴经济体的数据，我们发现推动因素(全球)和拉动因素(国内)对吸引外国直接投资都有显著影响。我们的政策建议是，在资本管制和宏观审慎监管到位的情况下，逐步开放资本账户。JEL代码:F21, F30, F41

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Emerging Market Finance BUSINESS, FINANCE-

CiteScore

1.80

自引率

33.30%

发文量

期刊介绍： The Journal of Emerging Market Finance is a forum for debate and discussion on the theory and practice of finance in emerging markets. While the emphasis is on articles that are of practical significance, the journal also covers theoretical and conceptual aspects relating to emerging financial markets. Peer-reviewed, the journal is equally useful to practitioners and to banking and investment companies as to scholars.