Business, Management and Accounting
4 years ago

Financial development key to boosting economic growth through foreign investment.

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Jurnal Pengurusan
Foreign Direct Investment, Financial Development and Economic Growth: A Panel Data Analysis
Langsung Asing, Pembangunan Kewangan, Dan Ekonomi, Elya Nabila, Abdul Bahri, Abu Hassan, Shaari Md Nor, Nor Hakimah, Haji Mohd Nor, Iaitu Kaedah, Momen Teritlak

Paper Summary

This study looked at how financial development helps foreign investment boost economic growth in developing countries. They studied 65 countries from 2009 to 2015 using a method called Generalized Method of Moment. The results showed that better financial development helps foreign investment have a positive impact on economic growth. But in countries with low financial development, foreign investment can have a negative effect on growth. This suggests that improving financial development can make foreign investment more beneficial for a country's economy.

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