- 권한신청
- E-ISSN2233-5382
- KCI
What Determines Foreign Direct Investment in Finances of OECD Countries
What Determines the Foreign Direct Investment in Finances of OECD Countries
CHOI, Baek-Ryul (Department of International Trade, Jeonbuk National University)
Abstract
Purpose: Global economic integration has provided good opportunities and conditions for the development of foreign direct investment in Finances. Therefore, this paper attempts to explore what determines foreign direct investment in Finances of Organization for Economic Co-operation and Development (OECD) countries. Research design, data and methodology: This paper employs the panel data over the period 2005-2017 and uses the random effect model to estimate this proposition. Results: The results indicate that the foreign direct investment in services, growth rate of GDP, interest rate and saving are positively related with foreign direct investment in finances. Conversely, the growth rate of wage and fluctuation rate of exchange rate are negatively related with foreign direct investment in finances. Moreover, the results verify that the effect of these variables on foreign direct investment in finances is different before and after 2008 (global economic crisis). In addition, the results also manifest that the regional effect exists. Namely, the effect of these variables on foreign direct investment in finances between G7 countries and G20 countries exist significant difference. Conclusions: Those variables used in this paper are related with foreign direct investment in Finances of (OECD) countries.
- keywords
- Foreign Direct Investment in Finances, Global Economic Crisis, Regional Effect, Random Effect Model
참고문헌
Alam, A., & Zulfiqar Ali Shah, S. (2013). Determinants of foreign direct investment in OECD member countries. Journal of Economic Studies, 40 (4), 515-527.
Belgibayeva, A., & Plekhanov, A. (2019). Does corruption matter for sources of foreign direct investment?. Review of World Economics, 155 (3), 487-510.
Belloumi, M. (2014). The relationship between trade, FDI and economic growth in Tunisia: An application of the autoregressive distributed lag model. Economic S ystems, 38 (2), 269-287.
Boateng, A., Hua, X., Nisar, S., & Wu, J. (2015). Examining the determinants of inward FDI: Evidence from Norway. Economic Modelling, 47 , 118-127. https://doi.org/10.1016/j.econmod.2015.02.018.
Buckley, P. J., & Casson, M. (2010). The optimal timing of a foreign direct investment. In The Multinational Enterprise Revisited (pp. 25-40). Palgrave Macmillan, London. https://doi.org/10.1057/9780230250468_2.
Cantah, G. W., Brafu Insaidoo, G. W., Wiafe, E. A., & Adams, A. (2018). FDI and Trade Policy Openness in Sub Saharan Africa. Eastern Economic Journal, 44 (1), 97-116.
Chen, Z., Ge, Y., & Lai, H. (2011). Foreign direct investment and wage inequality: Evidence from China. World Development, 39 (8), 1322-1332.
Cole, M. A., Elliott, R. J., & Zhang, J. (2011). Growth, foreign direct investment, and the environment:E vidence from Chinese citie s. Journal of Regional Science, 51 (1), 121-138.
Figini, P., & Gö rg, H. (2011 ). Does foreign direct investment affect wage inequality? An empirical investigation. The World Economy, 34 (9), 1455-1475.
Gordon, L. A., Loeb, M. P., & Zhu, W. (2012). The impact of IFRS adoption on foreign direct investment. Journal of A ccounting and P ublic P olicy, 31 (4), 374-398.
Hale, G., & Long, C. (2011). Did foreign direct investment put an upward pressure on wages in China?. IMF Economic Review, 59 (3), 404-430.
Keeley, A. R., & Ikeda, Y. (2017). Determinants of foreign direct investment in wind energy in developing countries. Journal of C leaner P roduction, 161 , 1451-1458. https://doi.org/10.1016/j.jclepro.2017.05.106.
Kim, D. H., Lin, S. C., & Suen, Y. B. (2013). Investment , trade openness and foreign direct investment: Social capability matters. International Review of Economics &Finance, 26 , 56-69. https://doi.org/10.1016/j.iref.2012.08.008.
Kivyiro, P., & Arminen, H. (2014). Carbon dioxide emissions, energy consumption, economic growth, and foreign direct investment: Causality analysis for Sub Saharan Africa. Energy, 74 , 595-606. https://doi.org/10.1016/j.energy.2014.07.025.
Klasra, M. A. (2011). Foreign direct investment, trade openness and economic growth in Pakistan a nd Turkey:An investigation using bounds test. Quality & Quantity, 45 (1), 223-231.
Kolstad, I., & Villanger, E. (2008). Determinants of foreign direct investment in services. European Journal of Political Economy, 24 (2), 518-533.
Liargovas, P. G., & Skandalis, K. S. (2012). Foreign direct investment and trade openness: The case of developing economies. Social Indicators Research, 106 (2), 323-331.
Omri, A., Nguyen, D. K., & Rault, C. (2014). Causal interactions between CO2 emissions, FDI, and economic growth : Evidence from dynamic simultaneous equation models. Economic Modelling, 42 , 382-389. https://doi.org/10.1016/j.econmod.2014.07.026.
Pao, H. T., & Tsai, C. M. (2011). Multivariate Granger causality between CO2 emissions, energy consumption, FDI (foreign d irect investment) and GDP (gross domestic product): Evidence from a panel of BRIC (Brazil, Russian Federation, India, and China) countries. Energy, 36 (1), 685-693.
Pradhan, R. P., Arvin, M. B., Hall, J. H., & Nair, M. (2017). Trade openness, foreign direct investment, and finance growth nexus in the Eurozone countries. The Journal of International Trade & Economic Development, 26 (3), 336-360.
Ramasamy, B., & Yeung, M. (2010). The determinants of foreign direct investment in services. World Economy, 33 (4), 573-596.
Ramasamy, B., Yeung, M., & Laforet, S. (2012). China's outward foreign direct investment: Location choice and firm ownership. Journal of W orld B usiness, 47 (1), 17-25.
Selaya, P., & Sunesen, E. R. (2012). Does foreign aid increase foreign direct inv estment?. World Development, 40 (11), 2155-2176.
Seyoum, M., Wu, R., & Lin, J. (2014). Foreign direct investment and trade openness in Sub‐Saharan economies: A panel data granger causality analysis. South African Journal of E conomics, 82 (3), 402-421.
Tokunaga, M., & Iwasaki, I. (2017). The d eterminants of f oreign d irect i nvestment in t ransition e conomies: A M eta analysis. The World Economy, 40 (12), 2771-2831.
Ullah, S., Haider, S. Z., & Azim, P. (2012). Impact of exchange rate volatility on foreign direct investment: A case study of Pakistan. Pakistan Economic and Social Review, 50(2), 121-138.
- 다운로드 수
- 조회수
- 0KCI 피인용수
- 0WOS 피인용수