The Nexus Between Foreign Direct Investment and Domestic Investment in Myanmar: A Panel ARDL Approach

IF 2.3 Q3 BUSINESS
Meseret Ebabu Ejigu, Ei Thinzar Win
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Abstract

Foreign direct investment is the main driver of the growth. The development of Myanmar mainly depends on FDI and domestic investment. The objective of this article is to analyze the relationship between FDI and domestic investment in Myanmar from 1990 to 2020. The mean group estimator ARDL model was applied in this empirical study to evidence the relationship between them. This study employed newly collected sector-specific FDI inflows and domestic investment data for detailed examination. In line with the target of this article, the question arises whether FDI crowds in or crowds out DI in Myanmar. According to the outcomes, FDI and DI have a positive and insignificant relationship in the short-run results. However, they are positive and statistically significant in the long-run. There are unique causalities between FDI and DI; between EMP and DI and between EXCH and DI. Hence, FDI does Granger-cause DI. Thus, FDI crowds in DI in the short- and long-hauls in Myanmar. Therefore, the Government should actively do investment promotion for the investors to attract more FDI inflows into the country by facilitating business to sustain the country’s development and encourage the local businesspeople by educating how to use modern technology to shift from labor- to capital-intensive industries for increasing production and efficiency in Myanmar. Implications of the finding are explained with theoretical contributions, recommendations and research limitation are discussed.
缅甸外商直接投资与国内投资之间的关联:面板 ARDL 方法
外国直接投资是经济增长的主要驱动力。缅甸的发展主要依赖于外国直接投资和国内投资。本文旨在分析 1990 年至 2020 年缅甸外国直接投资与国内投资之间的关系。本实证研究采用均值组估计 ARDL 模型来证明两者之间的关系。本研究采用了最新收集的特定行业外国直接投资流入量和国内投资数据进行详细研究。根据本文的目标,问题在于外国直接投资是挤入还是挤出了缅甸的直接投资。研究结果表明,外国直接投资和直接投资在短期内呈正相关且不显著。然而,从长期来看,它们是正相关的,并且在统计上是显著的。外国直接投资与直接投资之间、经济增长与直接投资之间以及出口创汇与直接投资之间存在独特的因果关系。因此,外国直接投资确实是直接投资的格兰杰因果关系。因此,在缅甸,外国直接投资在短期和长期都会带来直接投资。因此,政府应积极为投资者开展投资促进活动,通过为企业提供便利来吸引更多的外国直接投资流入缅甸,以维持国家的发展,并通过教育当地商人如何利用现代技术从劳动密集型产业转向资本密集型产业来提高缅甸的生产和效率,从而鼓励当地商人。研究结果的意义、理论贡献、建议和研究局限均在讨论之列。
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
CiteScore
7.10
自引率
12.50%
发文量
107
期刊介绍: Global Business Review is designed to be a forum for the wider dissemination of current management and business practice and research drawn from around the globe but with an emphasis on Asian and Indian perspectives. An important feature is its cross-cultural and comparative approach. Multidisciplinary in nature and with a strong practical orientation, this refereed journal publishes surveys relating to and report significant developments in management practice drawn from business/commerce, the public and the private sector, and non-profit organisations. The journal also publishes articles which provide practical insights on doing business in India/Asia from local and global and macro and micro perspectives.
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