The Macroeconomic Determinants of Cross-Country FDI Flows: A Comparative Analysis through the Driscoll–Kraay, 2SLS and GMM Models

Asian Economic and Financial Review

article

Sujan Chandra Paul¹  Md Harun Or Rosid²  Zhao Xuefeng²  Mohammad Rakibul Islam¹ 

[1] Department of Accounting & Information Systems, University of Barishal;School of Management, Huazhong University of Science and Technology

关键词: Foreign direct investment;    Gross domestic product;    Gross capital formation;    Agriculture;    Forestry;    Fishing;    Industry;    Export;    Import;    Inflation rate;    Unemployment rate.;   

DOI  :  10.18488/journal.aefr.2021.112.129.140

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This study investigates the relationship of foreign direct investment (FDI) with major macroeconomic variables, explicitly gross domestic product (GDP), gross capital formation (GCF), agriculture, forestry and fishing (AFF), industry, import, export, inflation, and unemployment rate. Panel data from 205 countries from 1990 to 2018 were collected from the website of the World Bank. Robustness of the result has been ensured through the combined use of ordinary least squares (OLS), pooled ordinary least squares (POLS), Driscoll–Kraay (DK), two-stage least squares (2SLS) and generalized method of moments (GMM) models. This research has found that GDP and GCF had a significant positive relationship with FDI across all the models, while AFF and the unemployment rate had a significant negative and positive relationship with FDI in all models except the GMM model. Industry and import had a significant positive relationship with FDI in the POLS model, and export and inflation had no significant relationship with FDI in any model.

【 授权许可】

CC BY