Investigating the crowding effect of FDI on domestic investments: Evidence from Bangladesh.
| Autor: | Guo AJ; School of Economics, Lanzhou University, Gansu, Lanzhou, China., Ahmed SF; Faculty of Business & Entrepreneurship, Daffodil International University, Daffodil Smart City, Ashulia, Dhaka, Bangladesh., Mohsin AKM; School of Economics, Lanzhou University, Gansu, Lanzhou, China.; Faculty of Business & Entrepreneurship, Daffodil International University, Daffodil Smart City, Ashulia, Dhaka, Bangladesh., Rahman A; School of Economics, Lanzhou University, Gansu, Lanzhou, China., Abdullah SN; Faculty of Business & Communications, INTI International University, Nilai, Malaysia., Onn CW; Faculty of Data Science and Information Technology, INTI International University, Nilai, Malaysia., Islam MS; School of International Trade and Economics, Jiangxi University of Finance and Economics Jiangxi, China. |
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| Jazyk: | angličtina |
| Zdroj: | Heliyon [Heliyon] 2024 May 10; Vol. 10 (10), pp. e31092. Date of Electronic Publication: 2024 May 10 (Print Publication: 2024). |
| DOI: | 10.1016/j.heliyon.2024.e31092 |
| Abstrakt: | This study empirically investigates the crowding effect of Foreign Direct Investment (FDI) on domestic investments in Bangladesh, utilizing annual time series data from 1972 to 2022. Initially, unit root tests are conducted with and without considering structural breaks in the dataset. This study employs the Johansen test of cointegration to investigate the enduring association between the variables and utilizes the Vector Error Correction Model (VECM) to accommodate this relationship over the long term. Following the estimation of the VECM, formulas about the magnitude of the crowding effect (CE) are applied to examine the impact of FDI on domestic investment in Bangladesh. Results indicate that FDI positively influences domestic investments in both the short and long run. Competing Interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper. (© 2024 The Authors.) |
| Databáze: | MEDLINE |
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