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MEDIATING EFFECT OF THE GOVERNANCE INDICATORS IN THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC PERFORMANCE: EMPIRICAL EVIDENCE FROM THE BRICS COUNTRIES

Year 2016, Volume: 12 Issue: 27, 1 - 22, 01.01.2016
https://doi.org/10.17130/10.17130/ijmeb.2016.12.27.995

Abstract

In this study, the relationship between Foreign Direct Investment FDI and economic performance considering governance indicators’ mediating effect investigated for the BRICS countries using hierarchical panel regression analysis for the period 2000-2013. The results exhibit that there is a partial mediating effect between FDI and per capita Gross Domestic Product. FDI increases the economic performance expected as an expected result, however, this finding shows that governance indicators’ mediating effect seems to be an obstacle in the increasing of the economic performance. General findings emphasis on the improving of governance indicators’ mediating effect policies

References

  • Ayaydın, H. (2010). Doğrudan yabancı yatırımlar ile ekonomik büyüme arasındaki ilişkinin incelenmesi: Türkiye örneği. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 26.
  • Anghel, B. (2006). Foreign direct investment in transition countries: A dynamic analysis at firm level
  • http://www.nottingham.ac.uk/shared/shared_levevents/conferences/2006-pdf
  • Baltagi, B. H. (2005). Econometric analysis of panel data. 3rd edition, London: John Wiley & Sons.
  • Baron, R. M. & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182.
  • Bengoa, M., & Sanchez-Robles, B. (2003). Foreign direct investment, economic freedom and growth: New evidence from Latin America. European Journal of Political Economy, 19, 529 – 545.
  • Bellos, S. & Subasat, T. (2012). Governance and foreign direct investment: A panel gravity model approach. International Review of Applied Economics, Taylor & Francis Journals, 26(3), 303-328.
  • Chakraborty, C. & Basu, P. (2002). Foreign direct investment and growth in India: A cointegration approach. Applied Economics, 34, 1061-1073.
  • Chowdhury, A., & Mavrotas, G. (2005). FDI and growth: A causal relationship. United Nations University, WIDER, Research Paper No: 2005/25.
  • DEİK, (2012). Dünya’da ve Türkiye’de yurtdışı doğrudan yatırımlar. Yurtdışı Yatırımlar Çalışma Grubu, İstanbul.
  • DPT. (2000). VIII. beş yıllık kalkınma planı doğrudan yabancı sermaye yatırımları ÖİK raporu, Ankara.
  • Gani, A. (2007). Governance and foreign direct investment links: Evidence from panel data estimations. Applied Economics Letters, 14 (10). 753-756. ISSN 1350-4851.
  • Görmezöz, K. K. (2007). Türkiye’ye doğrudan gelen yabancı sermaye yatırımlarının istihdam üzerindeki etkileri. Uzmanlık Tezi, Ankara, 17-21.
  • Hsiao, C. (2003). Analysis of panel data. 2nd ed., Cambridge: Cambridge University Press.
  • Hines, J. (1995). Forbidden payment: Foreign bribery and American business after 1977. NBER Working Paper, 5266.
  • Jensen, N., & McGillivray, F. (2005). Federal institutions and multinational investors: Federalism, government credibility, and foreign direct investment. International Interactions, 31, 303–325.
  • Karimi, M. S., & Yusop, Z. (2009). FDI and economic growth in Malaysia. MPRA Paper, 14999.
  • Kumar, N., & Pradhan, J. P. (2002). Foreign direct investment, externalities, and economic growth in developing countries: Some emprical explorations and implications for WTO negotations in investment. RIS Discussion Papers, Global Develoment Finance.
  • Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics, 108(1), 1-24.
  • Ludoşean, B. M. (2012). A VAR analysis of the connection between FDI and economic growth in Romania. Theoretical and Applied Economics. GAER Review, AGER, ISSN 1841- 8678, ZDB-ID 26409707. 115-130.
  • Mello, D. & Luiz, R. (1997). Foreign direct investment in developing countries and growth: A sellective survey. Journal of Development Studies, 34:(1), 1-34.
  • Narin, G. (2007). Türkiye’ye gelen doğrudan yabancı sermaye yatırımlarının özellikleri ve Türkiye ekonomisi üzerindeki olası etkileri. Ankara: Yüksek Lisans Tezi.
  • Nunnekamp, P., & Spatz, J. (2003). Foreign direct investment counries: How relavant are host- counry and industry chareteristics?. Kiel Institute For World Economics, Kiel Working Paper, 1176, July.
  • Nurkse, R. (1953). Problems of capital formation in underdeveloped countries. New York: Oxford University Press.
  • Paniagua, J. & Sapena, K. (2014). Is FDI doing good? A golden rule for FDI ethics. Journal of Business Research, 807-812.
  • Protsenko, A. (2003). Vertical and horizontal foreign direct investments in transition countries. Ludwig-Maximilians University Munich: Ph.D. Thesis.
  • Ramirez, M. D. (2000). Foreign direct investment in Mexico: A cointegration analysis. Journal of Development Studies, 37, 138–162.
  • Resnick, A. (2001). Investors, turbulence and transition: Democratic transition and foreign direct investment in nineteen developing countries. International Interactions, 27, 381– 98.
  • Resnick, A. & Li, Q. (2003). Reversal of fortunes: Democratic institutions and foreign direct investment inflows to developing countries. International Organization, 57, 175–211.
  • Saray, M. O. (2011). Doğrudan yabancı yatırımlar–istihdam ilişkisi: Türkiye örneği. Maliye Dergisi, 161, 381-403.
  • Skabic, I. K. (2013). Institutional development as a determinant of FDI attractiveness in Southeast Europe, doi:10.5559/di.22.2.01.
  • Sobel, M. E. (1982). Asymptotic intervals for indirect effects in structural equations models. Sociological Methodology, 13, 290-312. WB-WGI (2014), Retrieved February 04, 2015, from http://info.worldbank.org/governance/wgı/index.aspx#home.
  • Vandemoortel, M., Bird, K., Toit, D., Liu, M., Sen, K., & Soares, F. V. (2013). Building blocks for equitable growth: Lessons from the BRICS. Working Paper, 365, 26-29.
  • Wadhwa, K. (2011). Foreign direct ınvestment into developing asian countries: The role of market seeking, resource seeking and efficiency seeking factors. Canadian Center of Science and Education, 6(11), 219-220.
  • Walsh, P. J., & Yu, J. (2010). Determinants of foreign direct investment: A sectoral and institutional approach. International Monetary Fund, WP/10/187.
  • Wei, S. (1997). Why is corruption so much more taxing than tax? Arbitrariness kills. Cambridge, Massachusetts: National Bureau of Economic Research.
  • Wernick, D., Haar, J. & Singh, S. (2009). Do governing institutions affect foreign direct investment inflows? New evidence from emerging economies. International Journal of Economics and Business Research, 1(3), 317-332.
  • Wheeler, D. & Moody, A. (1992). International investment location decisions: The case of US firms. Journal of International Economics, 33(1992), 57–76.
  • Zhang, K. H. (2001). Does foreign direct investment promote economic growth? Evidence from East Asia and Latin America. Contemporary Economic Policy, 19 (2), 175-185.
  • Zhang, K. H. (2006), FDI and host countries’ export: The case of China. International Economics, LVIV, 1, 50-55.
  • Zheng, Y. (2011). Credibility and flexibility: Political institutions, governance, and foreign direct investment. International Interactions, 37, 293-319.

DOĞRUDAN YABANCI SERMAYE YATIRIMI VE İKTİSADİ PERFORMANS ARASINDAKI İLİŞKIDE YÖNETİŞİM GÖSTERGELERİNİN ARACILIK ETKİSİ: BRICS ÜLKELERİNDEN AMPİRİK BULGULAR

Year 2016, Volume: 12 Issue: 27, 1 - 22, 01.01.2016
https://doi.org/10.17130/10.17130/ijmeb.2016.12.27.995

Abstract

Bu çalışma, BRICS ülkeleri için yönetişim göstergelerinin aracılık etkisi rolüne odaklanarak, doğrudan yabancı sermaye yatırımları DYSY ve iktisadi performans arasındaki ilişkiyi belirlemeye çalışmaktadır. 2010-2013 dönemi yıllık panel verilerin kullanıldığı çalışmada hiyerarşik panel regresyon analizleri uygulanmıştır. Hiyerarşik panel regresyon analizinden elde edilen sonuçlar, DYSY ve kişi başına GSYH arasındaki ilişkide yönetişim göstergelerinin kısmi aracılık etkisi olduğunu ortaya koymaktadır. Bu bulgu, iktisadi performansı artırması beklenen DYSY’nın, küresel yönetişim göstergelerinin aracılık rolüne bağlı olarak iktisadi performansın artmasına engel teşkil ettiğini göstermektedir. Genel bulgular, BRICS ülkeleri için küresel yönetişim göstergelerini iyileştirmeye yönelik politikaların önemine vurgu yapmaktadır.

References

  • Ayaydın, H. (2010). Doğrudan yabancı yatırımlar ile ekonomik büyüme arasındaki ilişkinin incelenmesi: Türkiye örneği. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 26.
  • Anghel, B. (2006). Foreign direct investment in transition countries: A dynamic analysis at firm level
  • http://www.nottingham.ac.uk/shared/shared_levevents/conferences/2006-pdf
  • Baltagi, B. H. (2005). Econometric analysis of panel data. 3rd edition, London: John Wiley & Sons.
  • Baron, R. M. & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182.
  • Bengoa, M., & Sanchez-Robles, B. (2003). Foreign direct investment, economic freedom and growth: New evidence from Latin America. European Journal of Political Economy, 19, 529 – 545.
  • Bellos, S. & Subasat, T. (2012). Governance and foreign direct investment: A panel gravity model approach. International Review of Applied Economics, Taylor & Francis Journals, 26(3), 303-328.
  • Chakraborty, C. & Basu, P. (2002). Foreign direct investment and growth in India: A cointegration approach. Applied Economics, 34, 1061-1073.
  • Chowdhury, A., & Mavrotas, G. (2005). FDI and growth: A causal relationship. United Nations University, WIDER, Research Paper No: 2005/25.
  • DEİK, (2012). Dünya’da ve Türkiye’de yurtdışı doğrudan yatırımlar. Yurtdışı Yatırımlar Çalışma Grubu, İstanbul.
  • DPT. (2000). VIII. beş yıllık kalkınma planı doğrudan yabancı sermaye yatırımları ÖİK raporu, Ankara.
  • Gani, A. (2007). Governance and foreign direct investment links: Evidence from panel data estimations. Applied Economics Letters, 14 (10). 753-756. ISSN 1350-4851.
  • Görmezöz, K. K. (2007). Türkiye’ye doğrudan gelen yabancı sermaye yatırımlarının istihdam üzerindeki etkileri. Uzmanlık Tezi, Ankara, 17-21.
  • Hsiao, C. (2003). Analysis of panel data. 2nd ed., Cambridge: Cambridge University Press.
  • Hines, J. (1995). Forbidden payment: Foreign bribery and American business after 1977. NBER Working Paper, 5266.
  • Jensen, N., & McGillivray, F. (2005). Federal institutions and multinational investors: Federalism, government credibility, and foreign direct investment. International Interactions, 31, 303–325.
  • Karimi, M. S., & Yusop, Z. (2009). FDI and economic growth in Malaysia. MPRA Paper, 14999.
  • Kumar, N., & Pradhan, J. P. (2002). Foreign direct investment, externalities, and economic growth in developing countries: Some emprical explorations and implications for WTO negotations in investment. RIS Discussion Papers, Global Develoment Finance.
  • Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics, 108(1), 1-24.
  • Ludoşean, B. M. (2012). A VAR analysis of the connection between FDI and economic growth in Romania. Theoretical and Applied Economics. GAER Review, AGER, ISSN 1841- 8678, ZDB-ID 26409707. 115-130.
  • Mello, D. & Luiz, R. (1997). Foreign direct investment in developing countries and growth: A sellective survey. Journal of Development Studies, 34:(1), 1-34.
  • Narin, G. (2007). Türkiye’ye gelen doğrudan yabancı sermaye yatırımlarının özellikleri ve Türkiye ekonomisi üzerindeki olası etkileri. Ankara: Yüksek Lisans Tezi.
  • Nunnekamp, P., & Spatz, J. (2003). Foreign direct investment counries: How relavant are host- counry and industry chareteristics?. Kiel Institute For World Economics, Kiel Working Paper, 1176, July.
  • Nurkse, R. (1953). Problems of capital formation in underdeveloped countries. New York: Oxford University Press.
  • Paniagua, J. & Sapena, K. (2014). Is FDI doing good? A golden rule for FDI ethics. Journal of Business Research, 807-812.
  • Protsenko, A. (2003). Vertical and horizontal foreign direct investments in transition countries. Ludwig-Maximilians University Munich: Ph.D. Thesis.
  • Ramirez, M. D. (2000). Foreign direct investment in Mexico: A cointegration analysis. Journal of Development Studies, 37, 138–162.
  • Resnick, A. (2001). Investors, turbulence and transition: Democratic transition and foreign direct investment in nineteen developing countries. International Interactions, 27, 381– 98.
  • Resnick, A. & Li, Q. (2003). Reversal of fortunes: Democratic institutions and foreign direct investment inflows to developing countries. International Organization, 57, 175–211.
  • Saray, M. O. (2011). Doğrudan yabancı yatırımlar–istihdam ilişkisi: Türkiye örneği. Maliye Dergisi, 161, 381-403.
  • Skabic, I. K. (2013). Institutional development as a determinant of FDI attractiveness in Southeast Europe, doi:10.5559/di.22.2.01.
  • Sobel, M. E. (1982). Asymptotic intervals for indirect effects in structural equations models. Sociological Methodology, 13, 290-312. WB-WGI (2014), Retrieved February 04, 2015, from http://info.worldbank.org/governance/wgı/index.aspx#home.
  • Vandemoortel, M., Bird, K., Toit, D., Liu, M., Sen, K., & Soares, F. V. (2013). Building blocks for equitable growth: Lessons from the BRICS. Working Paper, 365, 26-29.
  • Wadhwa, K. (2011). Foreign direct ınvestment into developing asian countries: The role of market seeking, resource seeking and efficiency seeking factors. Canadian Center of Science and Education, 6(11), 219-220.
  • Walsh, P. J., & Yu, J. (2010). Determinants of foreign direct investment: A sectoral and institutional approach. International Monetary Fund, WP/10/187.
  • Wei, S. (1997). Why is corruption so much more taxing than tax? Arbitrariness kills. Cambridge, Massachusetts: National Bureau of Economic Research.
  • Wernick, D., Haar, J. & Singh, S. (2009). Do governing institutions affect foreign direct investment inflows? New evidence from emerging economies. International Journal of Economics and Business Research, 1(3), 317-332.
  • Wheeler, D. & Moody, A. (1992). International investment location decisions: The case of US firms. Journal of International Economics, 33(1992), 57–76.
  • Zhang, K. H. (2001). Does foreign direct investment promote economic growth? Evidence from East Asia and Latin America. Contemporary Economic Policy, 19 (2), 175-185.
  • Zhang, K. H. (2006), FDI and host countries’ export: The case of China. International Economics, LVIV, 1, 50-55.
  • Zheng, Y. (2011). Credibility and flexibility: Political institutions, governance, and foreign direct investment. International Interactions, 37, 293-319.
There are 41 citations in total.

Details

Primary Language Turkish
Journal Section Research Article
Authors

Harun Bal This is me

Emrah Eray Akça This is me

Müge Manga This is me

Publication Date January 1, 2016
Published in Issue Year 2016 Volume: 12 Issue: 27

Cite

APA Bal, H., Akça, E. E., & Manga, M. (2016). DOĞRUDAN YABANCI SERMAYE YATIRIMI VE İKTİSADİ PERFORMANS ARASINDAKI İLİŞKIDE YÖNETİŞİM GÖSTERGELERİNİN ARACILIK ETKİSİ: BRICS ÜLKELERİNDEN AMPİRİK BULGULAR. Uluslararası Yönetim İktisat Ve İşletme Dergisi, 12(27), 1-22. https://doi.org/10.17130/10.17130/ijmeb.2016.12.27.995