Does foreign direct investment deepen the financial system in Southeast Asian economies?

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE

Journal of Multinational Financial Management Pub Date : 2021-09-01 DOI:10.1016/j.mulfin.2021.100682

Mollah Aminul Islam , Haiyun Liu , Muhammad Asif Khan , Md Tariqul Islam , Md Reza Sultanuzzaman

引用次数: 12

Abstract

This study empirically examines the role of foreign direct investment (FDI) in triggering financial deepening (FD) in the Southeast Asian region. More specifically, it investigates the direct and indirect role of FDI in enhancing the level of FD. The findings of the robust feasible generalized least squares (FGLS) and panel-corrected standard errors (PCSE) estimators suggest that FDI acts as an essential stimulator to FD in the region – directly as well as indirectly through money supply. The results are robust under alternative specifications and institutional measures. The study recommends policymakers to carefully consider the channel of money supply that substantially influences FDI to stimulate the level of FD. In addition, it is important to understand the dynamic role of the institutional framework and other macroeconomic variables in this nexus.

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外国直接投资是否深化了东南亚经济体的金融体系?

本研究实证考察了外国直接投资(FDI)在引发东南亚地区金融深化(FD)中的作用。更具体地说，它考察了FDI对提高FDI水平的直接和间接作用。稳健可行广义最小二乘(FGLS)和面板修正标准误差(PCSE)估计的结果表明，FDI直接或间接通过货币供应对该地区的FD起到了重要的刺激作用。在不同的规范和制度措施下，结果是稳健的。研究建议政策制定者仔细考虑对FDI产生实质性影响的货币供给渠道，以刺激FDI水平。此外，重要的是要了解体制框架和其他宏观经济变量在这一关系中的动态作用。

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 Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.