Theoretical and Applied Economics
No. 1 / 2018 (614), Spring
Macroeconomic uncertainty and FDI in developing countries
Department of Economics, Pondicherry University, India
Abstract. In this research analysis, the main aspect is to estimate the macroeconomic uncertainty and its impact on Foreign Direct Investment. Keeping in view of the rising importance of developing countries in attracting Foreign Direct Investment (FDI), this study has included 28 developing countries for the empirical analysis. At first, Macroeconomic uncertainty is measured with the help of conditional variance technique i.e. ARCH (GARCH). After measuring the macroeconomic uncertainty, impact of macroeconomic uncertainty along with other macroeconomic variables on the FDI flow is analyzed. Relying on the non-dynamic panel threshold model, the presence of single threshold value is found. The impact of macroeconomic uncertainty on FDI is found to be varied with the change in the level of income of the concerned host country. Others factors like GDP growth, Trade Openness and FDI stock are found to be statistically significant in influencing FDI flow towards an economy.
Keywords: macroeconomic uncertainty, ARCH (GACRH), Foreign Direct Investment (FDI), developing countries.
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Contents
- Macroeconomic uncertainty and FDI
in developing countries
Pradeep Kumar DAS
- Impact of foreign direct investment inflows
on tax revenues in OECD countries:
A panel cointegration and causality analysis
Yilmaz BAYAR
Omer Faruk OZTURK
- Macroprudential stability indicators of financial systems:
Analysis of Bosnia and Herzegovina and Croatia
Merim KASUMOVIĆ
Mirna MEŠIĆ
- Does exchange rate always affect the number of inbound
tourists significantly in China?
Xue GAO
Hsu-Ling CHANG
Chi-Wei SU
- The effects of Turkish-Russian political relations on bilateral
trade balance: Cointegration and causal analysis
Abidin ÖNCEL
Liudmila LIAPINA
- The relationship between financial deepening
and economic growth: Bootstrap causality approach
for the selected upper middle income countries
Mesut Alper GEZER
- Financial development, trade openness
and growth in India
Raghutla CHANDRASHEKAR
T. SAMPATH
Krishna Reddy CHITTEDI
- The impact of carbon dioxide (CO2) emissions on tourism:
Does the source of emission matter?
Can Tansel TUGCU
Mert TOPCU
- Effect of exchange rate policy on GDP and GDP components:
The Kyrgyz Republic Case
Fuat SEKMEN
Nurbek MADMAROV
- Dynamic linkages between corruption, economic growth,
and income inequality in Pakistan:
Say ‘No’ to corruption
Sheraz Ahmad CHOUDHARY
Khalid Zaman
Shakira EJAZ
