The effect of foreign direct investment on financial development

Autor:	Ayman Abdalmajeed Alsmadi, Mohammad Salem Oudat
Rok vydání:	2019
Předmět:	izravna strana ulaganja financijski razvoj domaći krediti Bahrein uzročni odnos Economics Foreign Direct Investment Financial Development Domestic Credit Bahrain Casualty relationship Monetary economics Foreign direct investment Empirical evidence General Economics Econometrics and Finance
Zdroj:	Ekonomski pregled Volume 70 Issue 1
ISSN:	1848-9494 0424-7558
DOI:	10.32910/ep.70.1.2
Popis:	The aim of this paper is to analyze the relationship between foreign direct investments and financial development in Bahrain. The estimation financial development effects was performed for the period 1978 to 2015, which covers the political conflicts that recently happened in Middle East area (Arab Spring). On the other hand, the paper sought to examine the causality relationship between foreign direct investments and financial development. The study empirically investigates the short and long run equilibrium relationship between the variables by applied co-integration and Autoregressive Distributed Lags Approach (ARDL). The Granger causality test was employed to capture causality relationship. The obtained results show that there is a significant positive relationship between FDI and financial development in short and long run, while, a significant negative relationship between Arab Spring and financial development. However, the results also revealed bidirectional causality relationship between FDI and financial development. Cilj je ovog rada analizirati odnos izravnih stranih ulaganja i financijskog razvoja u Bahreinu. Procjena učinaka na financijski razvoj provedena je za razdoblje od 1978. do 2015. godine, koja obuhvaća političke sukobe koji su se nedavno dogodili na području Bliskog istoka (Arapsko proljeće). S druge strane, rad je nastojao ispitati uzročni odnos između izravnih stranih ulaganja i financijskog razvoja. Rad empirijski istražuje kratkotrajni i dugoročni odnos ravnoteže između varijabli primjenom kointegracijskog i ARDL pristupa. Grangerov test uzročnosti primijenjen je kako bi se otkrio uzročni odnos. Rezultati pokazuju da postoji značajan pozitivan odnos između izravnih stranih ulaganja i financijskog razvoja u kratkom i dugom roku, ali značajan negativan odnos između Arapskog proljeća i financijskog razvoja. Međutim, rezultati također upućuju na dvosmjerni uzročni odnos između izravnih stranih ulaganja i financijskog razvoja.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::10459d98b327a98d5d8b99cc1610e060 https://doi.org/10.32910/ep.70.1.2 Zobrazit plný text záznamu