Do export, financial development, and institutions affect FDI outflows? Insights from Asian developing countries

Pragyanrani Behera, Prajukta Tripathy and Bikash Mishra
Additional contact information
Pragyanrani Behera: National Institute of Technology Rourkela, Odisha, India
Prajukta Tripathy: National Institute of Technology Rourkela, Odisha, India

Theoretical and Applied Economics, 2020, vol. XXVII, issue 2(623), Summer, 175-190

Abstract: Focussing on the importance of FDI outflows (OFDI) from Asian developing countries, this study examines the impact of export, institutions and financial development on OFDI. Using a balanced panel of 10 Asian developing countries during 2002-2016, this study employs the Pooled Mean Group (PMG) cointegration test and Granger causality test of Dumitrescu and Hurlin (2012) to explore the long-run causal relationship. To validate the results robustness test is conducted. Overall, the findings show that improvement in institutions encourages OFDI in the short-run, but it impedes more OFDI in the long-run. The financial development and export are positively related to OFDI in the long-run. The Granger causality test confirms that there is a unidirectional causality that runs from the quality of institutions and financial development to OFDI, while OFDI induces more export.

Keywords: OFDI; export; financial development; institutions; panel data. (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://store.ectap.ro/articole/1460.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1460&rid=139 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:2(623):y:2020:i:2(623):p:175-190

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().