Types of foreign capital inflows and economic growth: new evidence on role of financial markets
This paper presents evidences on differential growth effects for three types of foreign capital inflows (foreign direct investment, portfolio equity and debt inflows). Two major results emerged from the application of threshold regression. First, we find strong evidence that the relationship between...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
John Wiley & Sons
2017
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/46782/ http://psasir.upm.edu.my/id/eprint/46782/1/Types%20of%20foreign%20capital%20inflows%20and%20economic%20growth%20new%20evidence%20on%20role%20of%20financial%20markets.pdf |
| _version_ | 1848850736873472000 |
|---|---|
| author | Baharumshah, Ahmad Zubaidi Mohd Ali, Ly Slesman @ Sulaiman Paul Devadason, Evelyn Shyamala |
| author_facet | Baharumshah, Ahmad Zubaidi Mohd Ali, Ly Slesman @ Sulaiman Paul Devadason, Evelyn Shyamala |
| author_sort | Baharumshah, Ahmad Zubaidi |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper presents evidences on differential growth effects for three types of foreign capital inflows (foreign direct investment, portfolio equity and debt inflows). Two major results emerged from the application of threshold regression. First, we find strong evidence that the relationship between private foreign capital inflows and growth is characterised by a nonlinear relationship based on financial development. Second, the positive benefits of the three types of capital inflows are only found in countries having a level of financial market development beyond a threshold level. A deeper and more active financial sector is crucial for economic progress. |
| first_indexed | 2025-11-15T10:11:02Z |
| format | Article |
| id | upm-46782 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:11:02Z |
| publishDate | 2017 |
| publisher | John Wiley & Sons |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-467822018-03-29T06:13:07Z http://psasir.upm.edu.my/id/eprint/46782/ Types of foreign capital inflows and economic growth: new evidence on role of financial markets Baharumshah, Ahmad Zubaidi Mohd Ali, Ly Slesman @ Sulaiman Paul Devadason, Evelyn Shyamala This paper presents evidences on differential growth effects for three types of foreign capital inflows (foreign direct investment, portfolio equity and debt inflows). Two major results emerged from the application of threshold regression. First, we find strong evidence that the relationship between private foreign capital inflows and growth is characterised by a nonlinear relationship based on financial development. Second, the positive benefits of the three types of capital inflows are only found in countries having a level of financial market development beyond a threshold level. A deeper and more active financial sector is crucial for economic progress. John Wiley & Sons 2017-08 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/46782/1/Types%20of%20foreign%20capital%20inflows%20and%20economic%20growth%20new%20evidence%20on%20role%20of%20financial%20markets.pdf Baharumshah, Ahmad Zubaidi and Mohd Ali, Ly Slesman @ Sulaiman and Paul Devadason, Evelyn Shyamala (2017) Types of foreign capital inflows and economic growth: new evidence on role of financial markets. Journal of International Development, 29 (6). pp. 768-789. ISSN 0954-1748; ESSN: 1099-1328 10.1002/jid.3093 |
| spellingShingle | Baharumshah, Ahmad Zubaidi Mohd Ali, Ly Slesman @ Sulaiman Paul Devadason, Evelyn Shyamala Types of foreign capital inflows and economic growth: new evidence on role of financial markets |
| title | Types of foreign capital inflows and economic growth: new evidence on role of financial markets |
| title_full | Types of foreign capital inflows and economic growth: new evidence on role of financial markets |
| title_fullStr | Types of foreign capital inflows and economic growth: new evidence on role of financial markets |
| title_full_unstemmed | Types of foreign capital inflows and economic growth: new evidence on role of financial markets |
| title_short | Types of foreign capital inflows and economic growth: new evidence on role of financial markets |
| title_sort | types of foreign capital inflows and economic growth: new evidence on role of financial markets |
| url | http://psasir.upm.edu.my/id/eprint/46782/ http://psasir.upm.edu.my/id/eprint/46782/ http://psasir.upm.edu.my/id/eprint/46782/1/Types%20of%20foreign%20capital%20inflows%20and%20economic%20growth%20new%20evidence%20on%20role%20of%20financial%20markets.pdf |