Foreign direct investment and economic growth: dynamic extreme bounds analysis | |
| Author | Pham Huyen Linh |
| Call Number | AIT Diss. no.SM-20-03 |
| Subject(s) | Investments, Foreign Economic development |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Management, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | In econometrics, the extreme bounds analysis (EBA) method is a convincing way of examining the strength of independent variables. However, the results obtained when using the EBA method contain little information, and some strong variables may be omitted because of econometric problems such as multicollinearity, omitted variables and inclusion of irrelevant variables. Therefore, in order to overcome these limitations, this study proposes a new analysis method, dynamic extreme bounds analysis (DEBA). We employ the DEBA method to determine the factors which impact foreign direct investment (FDI). Our finding is that in developing countries the level of previous FDI, a high degree of openness, large market size, and development of service industries and infrastructure help to attract FDI; whereas availability of energy deters it. In developed countries, FDI is lured by the level of previous FDI stock, a high degree of openness, large market size, macroeconomic instability and financial development. The DEBA is also applied to determine the direct as well as the indirect impacts on growth in FDI’s interaction with education and technology. The result is that there is no evidence of such impacts in developed countries, whilst FDI stimulates growth both directly and indirectly by interacting with education in developing countries. Keywords: foreign direct investment (FDI), extreme bounds analysis (EBA), dynamic extreme bounds analysis (DEBA), multicollinearity, omitted variables, irrelevant variables |
| Keyword | Investments, Foreign; Economic development |
| Year | 2020 |
| Type | Dissertation |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Doctor of Philosophy in Management (Publication code = SM) |
| Chairperson(s) | Winai Wongsurawat |
| Examination Committee(s) | Juthathip Jongwanich;Huynh Trung Luong |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2020 |