Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach
FDI inflows are often regarded as the engine of economic growth, where an increase in FDI leads to higher productivity and higher international trade. Recognising that financial crises, political instability and trade wars may shape the asymmetric behaviour of FDI inflows, this paper utilises the NA...
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| Language: | English |
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Universiti Putra Malaysia Press
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/36148/ http://psasir.upm.edu.my/id/eprint/36148/1/4%29%20Crazy%20Rich%20Asian%20Countries.pdf |
| _version_ | 1848848251542831104 |
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| author | Goh, Lim Thye Kaliappan, Shivee Ranjanee Lin, Woon Leong |
| author_facet | Goh, Lim Thye Kaliappan, Shivee Ranjanee Lin, Woon Leong |
| author_sort | Goh, Lim Thye |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | FDI inflows are often regarded as the engine of economic growth, where an increase in FDI leads to higher productivity and higher international trade. Recognising that financial crises, political instability and trade wars may shape the asymmetric behaviour of FDI inflows, this paper utilises the NARDL model by Shin et al. (2014) over the period 1970-2017 to examine the asymmetric cointegration between the FDI inflows and economic growth of three economic nation groups in the Asian region. The empirical results indicate that 1) there is significant evidence of the asymmetric effects of FDI inflows on the economic growth of Asian developing countries. More specifically, an increase in FDI inflows tends to lead to an increase in economic growth, while a reduction in FDI inflows is detrimental to economic growth. 2) a higher human capital index and capital stock in the host country promotes economic growth. |
| first_indexed | 2025-11-15T09:31:32Z |
| format | Article |
| id | upm-36148 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:31:32Z |
| publishDate | 2020 |
| publisher | Universiti Putra Malaysia Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-361482020-06-15T07:30:49Z http://psasir.upm.edu.my/id/eprint/36148/ Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach Goh, Lim Thye Kaliappan, Shivee Ranjanee Lin, Woon Leong FDI inflows are often regarded as the engine of economic growth, where an increase in FDI leads to higher productivity and higher international trade. Recognising that financial crises, political instability and trade wars may shape the asymmetric behaviour of FDI inflows, this paper utilises the NARDL model by Shin et al. (2014) over the period 1970-2017 to examine the asymmetric cointegration between the FDI inflows and economic growth of three economic nation groups in the Asian region. The empirical results indicate that 1) there is significant evidence of the asymmetric effects of FDI inflows on the economic growth of Asian developing countries. More specifically, an increase in FDI inflows tends to lead to an increase in economic growth, while a reduction in FDI inflows is detrimental to economic growth. 2) a higher human capital index and capital stock in the host country promotes economic growth. Universiti Putra Malaysia Press 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/36148/1/4%29%20Crazy%20Rich%20Asian%20Countries.pdf Goh, Lim Thye and Kaliappan, Shivee Ranjanee and Lin, Woon Leong (2020) Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach. International Journal of Economics and Management, 14 (1). pp. 43-67. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol14no1/4)%20Crazy%20Rich%20Asian%20Countries.pdf |
| spellingShingle | Goh, Lim Thye Kaliappan, Shivee Ranjanee Lin, Woon Leong Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach |
| title | Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach |
| title_full | Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach |
| title_fullStr | Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach |
| title_full_unstemmed | Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach |
| title_short | Crazy rich Asian countries? The impact of FDI inflows on the economic growth of the economies of Asian countries: evidence from an NARDL approach |
| title_sort | crazy rich asian countries? the impact of fdi inflows on the economic growth of the economies of asian countries: evidence from an nardl approach |
| url | http://psasir.upm.edu.my/id/eprint/36148/ http://psasir.upm.edu.my/id/eprint/36148/ http://psasir.upm.edu.my/id/eprint/36148/1/4%29%20Crazy%20Rich%20Asian%20Countries.pdf |