The Impact of Foreign Direct Investment, Capital Formation, Inflation, Money Supply and Trade Openness on Economic Growth of Asian Countries

Xiuyun Yang () and Muhammad Nouman Shafiq ()
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Muhammad Nouman Shafiq: Xi’an Jiaotong University, Xi’an, Shaanxi Province, 710061, P.R. China.

iRASD Journal of Economics, 2020, vol. 2, issue 1, 25-34

Abstract: Economic growthis currently anessential phenomenonfor emerging countries worldwide and has gained the researchers' intentions. Thus, the current study aims toexamine the role of foreign direct investment (FDI), capital formation, inflation, money supply, and trade openness on the economic growthof Asian countries. The data has been extracted from the twenty emerging Asian countries from 2007 to2018 using the most popular database named World Development Indicators(WDI). The fixed-effectsmodel, along with the robust standard error, has been used for checking the impact of predictorson the economic growthof Asian countries. The results revealed that the predictorssuch as FDI, capital formation, money supply, and trade openness havepositive association with economic growth, while inflation has a negative association with the economic growthof Asian countries. These findings are suitable for the new arrivals who want to examine this area in the future and for the regular traders who want todevelop policies related toeconomic growth.

Keywords: Foreign direct investment; Capital formation; Inflation; Money supply; Trade openness; Economic growth; Asian countries (search for similar items in EconPapers)
JEL-codes: E31 E51 F21 O40 P33 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:ani:irdjoe:v:2:y:2020:i:1:p:25-34

DOI: 10.52131/joe.2020.0101.0013

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