2021_The Role of Economic Growth, Foreign Direct Investment and Financial Globalization Uncertainty on Financial Development Among African Leading Countries
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| date | 2021-12-30 |
| format | General Document |
| id | 15913 |
| institution | UniSZA |
| internalnotes | Sila masukkan subject wajib Dissertations, Academic. Terima kasih... |
| originalfilename | 15913_10cbb0a6dd88a74.pdf |
| person | Ibrahim Sambo Farouq |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15913 |
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| spelling | 15913 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15913 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 364 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 2021-12-30 Financial Development Foreign Direct Investment Finance Investments, Foreign 15913_10cbb0a6dd88a74.pdf 2021_The Role of Economic Growth, Foreign Direct Investment and Financial Globalization Uncertainty on Financial Development Among African Leading Countries Ibrahim Sambo Farouq Role Of Economic Growth Financial Globalization Uncertainty African Leading Countries Economic development—Africa Globalization—Economic aspects Uncertainty—Economic aspects Financial development is recognized as an integral part of a nation's economic prosperity. Competent financial system can assist and transform savings into investments, optimize resource allocation and spread less risks for investors. The African region economies have all it takes to develop their financial systems. However, despite the effort vested, their financial systems remain under-developed alongside weakened economic activities. The under-development of the financial system also obstructs foreign direct investment inflows. Equally, the growing globalization, which is usually associated with financial uncertainty, impedes the under-developed financial systems from being shock-resilient. Specifically, the study examined the effects of growth domestic product (RGDP), foreign direct investment (FDI) and financial globalization uncertainty (FGU) on financial development (FD) in the selected African countries. The study also observed the causality direction among RGDP, FDI, FGU and FD, and assessed the impacts of the driving forces of FD on RGDP, FDI and FGU among those countries. Further, the study investigated the effect of the 2007 global financial crisis (GFC) on FD of the selected African countries. This study used a panel dataset of six selected leading African countries from years 1970 to 2018. The data were sourced from the World Development Indicators 2019. Two measures of FD were used (domestic credit and money supply). Cross-sectional dependence test was applied to ascertain the appropriate econometric techniques to be used for data analysis, while the homogeneity test validates the heterogeneity nature of the parameters. The two unitroot tests of cross-sectional augmented Dickey-Fuller and cross-sectional Im-Pesaran examine the stationary feature of the variables. The use of these tests is to avoid bias regression estimation. Further, the study used Westerlund (2007) co-integration test, dynamic common correlated effect estimates, panel Dumitrescu and Hurlin causality test, and quantile regression. The findings have revealed that both RGDP and FDI had a positive relationship with FD. While FGU showed a significant and negative relationship with FD. The causality test displayed a one-way causal relationship moving from RGDP to FD. Another one-way causality from FD to FDI and FD to FGU were observed. Results of quantile regression indicated that the impact of RGDP and FDI on FD is stronger in the upper quantile, yet higher in the lower quantile for FGU. Finally, the 2007 GFC had negative significant effect in relation to FD. The study recommended the policy makers to formulate policies that would attract more FDI, whilst strengthen and diversify the economies. Moreover, since financial globalization has become an inescapable phenomenon, there should be sustainable financial policies that offer shock-resilient pathways. Lastly, capital regulatory policies should be encouraged to improve risk management and administrative control of the financial systems to avoid being badly hit by global financial crisis. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis |
| spellingShingle | 2021_The Role of Economic Growth, Foreign Direct Investment and Financial Globalization Uncertainty on Financial Development Among African Leading Countries |
| state | Terengganu |
| subject | Finance Investments, Foreign Economic development—Africa Globalization—Economic aspects Uncertainty—Economic aspects Dissertations, Academic |
| summary | Financial development is recognized as an integral part of a nation's economic prosperity. Competent financial system can assist and transform savings into investments, optimize resource allocation and spread less risks for investors. The African region economies have all it takes to develop their financial systems. However, despite the effort vested, their financial systems remain under-developed alongside weakened economic activities. The under-development of the financial system also obstructs foreign direct investment inflows. Equally, the growing globalization, which is usually associated with financial uncertainty, impedes the under-developed financial systems from being shock-resilient. Specifically, the study examined the effects of growth domestic product (RGDP), foreign direct investment (FDI) and financial globalization uncertainty (FGU) on financial development (FD) in the selected African countries. The study also observed the causality direction among RGDP, FDI, FGU and FD, and assessed the impacts of the driving forces of FD on RGDP, FDI and FGU among those countries. Further, the study investigated the effect of the 2007 global financial crisis (GFC) on FD of the selected African countries. This study used a panel dataset of six selected leading African countries from years 1970 to 2018. The data were sourced from the World Development Indicators 2019. Two measures of FD were used (domestic credit and money supply). Cross-sectional dependence test was applied to ascertain the appropriate econometric techniques to be used for data analysis, while the homogeneity test validates the heterogeneity nature of the parameters. The two unitroot tests of cross-sectional augmented Dickey-Fuller and cross-sectional Im-Pesaran examine the stationary feature of the variables. The use of these tests is to avoid bias regression estimation. Further, the study used Westerlund (2007) co-integration test, dynamic common correlated effect estimates, panel Dumitrescu and Hurlin causality test, and quantile regression. The findings have revealed that both RGDP and FDI had a positive relationship with FD. While FGU showed a significant and negative relationship with FD. The causality test displayed a one-way causal relationship moving from RGDP to FD. Another one-way causality from FD to FDI and FD to FGU were observed. Results of quantile regression indicated that the impact of RGDP and FDI on FD is stronger in the upper quantile, yet higher in the lower quantile for FGU. Finally, the 2007 GFC had negative significant effect in relation to FD. The study recommended the policy makers to formulate policies that would attract more FDI, whilst strengthen and diversify the economies. Moreover, since financial globalization has become an inescapable phenomenon, there should be sustainable financial policies that offer shock-resilient pathways. Lastly, capital regulatory policies should be encouraged to improve risk management and administrative control of the financial systems to avoid being badly hit by global financial crisis. |
| title | 2021_The Role of Economic Growth, Foreign Direct Investment and Financial Globalization Uncertainty on Financial Development Among African Leading Countries |
| title_full | 2021_The Role of Economic Growth, Foreign Direct Investment and Financial Globalization Uncertainty on Financial Development Among African Leading Countries |
| title_fullStr | 2021_The Role of Economic Growth, Foreign Direct Investment and Financial Globalization Uncertainty on Financial Development Among African Leading Countries |
| title_full_unstemmed | 2021_The Role of Economic Growth, Foreign Direct Investment and Financial Globalization Uncertainty on Financial Development Among African Leading Countries |
| title_short | 2021_The Role of Economic Growth, Foreign Direct Investment and Financial Globalization Uncertainty on Financial Development Among African Leading Countries |
| title_sort | 2021_the role of economic growth, foreign direct investment and financial globalization uncertainty on financial development among african leading countries |