{"title":"Investigating the impact of FDI on regional economic misery – A nonlinear panel data analysis","authors":"Syed Jaffar Abbas , Noman Arshed , Asim Iqbal","doi":"10.1016/j.rie.2024.100983","DOIUrl":null,"url":null,"abstract":"<div><p>The present study uses fixed effect models, random effect models, and the System Generalized Method of Moments technique for the period 2002–2021 to analyze the drivers of economic misery in six distinct regions around the world with a total of 198 nations. The objective of this study is to analyze the factors contributing to economic misery, specifically, the impact of political stability, broad money growth, imports relative to exports, foreign direct investment, and gross national expenditure. The estimated result demonstrates that the causes of economic misery vary in nature across different regions of the world. Political stability lessened economic misery across all six regions. In four regions, broad money growth has decreased economic misery. The imports relative to exports had decreased economic misery in five regions. In all six regions, the level of economic misery grew with gross national expenditure. FDI inflow decreased economic misery in four regions, although the relationship between FDI and economic misery is found to be nonlinear. Policymakers need to take into account the particular connection between economic misery and FDI because this relationship can have a different nature depending on the particular region. Moreover, they should understand the main factors contributing to economic misery in their particular region so that they can make an effective policy mechanism.</p></div>","PeriodicalId":46094,"journal":{"name":"Research in Economics","volume":"78 4","pages":"Article 100983"},"PeriodicalIF":1.2000,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in Economics","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1090944324000474","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
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Abstract
The present study uses fixed effect models, random effect models, and the System Generalized Method of Moments technique for the period 2002–2021 to analyze the drivers of economic misery in six distinct regions around the world with a total of 198 nations. The objective of this study is to analyze the factors contributing to economic misery, specifically, the impact of political stability, broad money growth, imports relative to exports, foreign direct investment, and gross national expenditure. The estimated result demonstrates that the causes of economic misery vary in nature across different regions of the world. Political stability lessened economic misery across all six regions. In four regions, broad money growth has decreased economic misery. The imports relative to exports had decreased economic misery in five regions. In all six regions, the level of economic misery grew with gross national expenditure. FDI inflow decreased economic misery in four regions, although the relationship between FDI and economic misery is found to be nonlinear. Policymakers need to take into account the particular connection between economic misery and FDI because this relationship can have a different nature depending on the particular region. Moreover, they should understand the main factors contributing to economic misery in their particular region so that they can make an effective policy mechanism.
期刊介绍：
Established in 1947, Research in Economics is one of the oldest general-interest economics journals in the world and the main one among those based in Italy. The purpose of the journal is to select original theoretical and empirical articles that will have high impact on the debate in the social sciences; since 1947, it has published important research contributions on a wide range of topics. A summary of our editorial policy is this: the editors make a preliminary assessment of whether the results of a paper, if correct, are worth publishing. If so one of the associate editors reviews the paper: from the reviewer we expect to learn if the paper is understandable and coherent and - within reasonable bounds - the results are correct. We believe that long lags in publication and multiple demands for revision simply slow scientific progress. Our goal is to provide you a definitive answer within one month of submission. We give the editors one week to judge the overall contribution and if acceptable send your paper to an associate editor. We expect the associate editor to provide a more detailed evaluation within three weeks so that the editors can make a final decision before the month expires. In the (rare) case of a revision we allow four months and in the case of conditional acceptance we allow two months to submit the final version. In both cases we expect a cover letter explaining how you met the requirements. For conditional acceptance the editors will verify that the requirements were met. In the case of revision the original associate editor will do so. If the revision cannot be at least conditionally accepted it is rejected: there is no second revision.
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