EN
The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries
Abstract
Developing countries needs FDI to be at par with the progress of developed countries. The dearth of study on the effects of financial crisis on FDI justifies the objective which is to examine the potential effect of financial crisis inclusive of macroeconomic factors as control variables on FDI in dataset 23 developing countries for the period 1993-2013. This study includes descriptive analysis, correlation test, stationary test and regression analysis. The random effects generalized least square (GLS) estimator is used in the regression to examine the potential effect of financial crisis and macroeconomic factors on the inflow of FDI. Foremost, the US financial crisis has a positive significance to the inflow of FDI which validates Krugman’s theory on fire-sale FDI. However, country specific economic recession, lending rates and natural resources discourage inflow of FDI. Nonetheless, trade openness, domestic currency, money supply and domestic fixed investment encourage FDI in developing countries.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
March 1, 2017
Submission Date
March 1, 2017
Acceptance Date
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Published in Issue
Year 2017 Volume: 7 Number: 1
APA
Hasli, A., Ibrahim, N. A., & Ho, C. S. (2017). The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries. International Journal of Economics and Financial Issues, 7(1), 31-36. https://izlik.org/JA32PC85UT
AMA
1.Hasli A, Ibrahim NA, Ho CS. The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries. IJEFI. 2017;7(1):31-36. https://izlik.org/JA32PC85UT
Chicago
Hasli, Anita, Nurhani Aba Ibrahim, and Catherine S.f. Ho. 2017. “The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries”. International Journal of Economics and Financial Issues 7 (1): 31-36. https://izlik.org/JA32PC85UT.
EndNote
Hasli A, Ibrahim NA, Ho CS (March 1, 2017) The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries. International Journal of Economics and Financial Issues 7 1 31–36.
IEEE
[1]A. Hasli, N. A. Ibrahim, and C. S. Ho, “The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries”, IJEFI, vol. 7, no. 1, pp. 31–36, Mar. 2017, [Online]. Available: https://izlik.org/JA32PC85UT
ISNAD
Hasli, Anita - Ibrahim, Nurhani Aba - Ho, Catherine S.f. “The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries”. International Journal of Economics and Financial Issues 7/1 (March 1, 2017): 31-36. https://izlik.org/JA32PC85UT.
JAMA
1.Hasli A, Ibrahim NA, Ho CS. The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries. IJEFI. 2017;7:31–36.
MLA
Hasli, Anita, et al. “The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries”. International Journal of Economics and Financial Issues, vol. 7, no. 1, Mar. 2017, pp. 31-36, https://izlik.org/JA32PC85UT.
Vancouver
1.Anita Hasli, Nurhani Aba Ibrahim, Catherine S.f. Ho. The Effect of Financial Crisis and Macroeconomic Factors on FDI in Developing Countries. IJEFI [Internet]. 2017 Mar. 1;7(1):31-6. Available from: https://izlik.org/JA32PC85UT