Assessing the Role of FDI Inflows and Money Supply in Driving Manufacturing Success: A Case of Singapore

Dr. Hira Aftab, Arifa Saeed, Muhammad Mudassar Naushahi and Hafiz Muhammad Irfan
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Dr. Hira Aftab: Assistant Professor; Institute of Business and Information Technology, University of the Punjab, Lahore, Pakistan
Arifa Saeed: Assistant Professor; Department of Economics and Finance, Greenwich University, Karachi, Pakistan
Muhammad Mudassar Naushahi: PhD Scholar; Department of Economics and Quantitative Methods, Dr. Hasan Murad School of Management (HSM), University of Management and Technology, Lahore, Pakistan
Hafiz Muhammad Irfan: Administrative Manager, Zonergy Corporation Limited, Pakistan

Bulletin of Business and Economics (BBE), 2024, vol. 13, issue 2, 1034-1039

Abstract: The manufacturing value added is an important macroeconomic indicator that drives economic activities through supply chain, exports, employment opportunities, public revenue and living standards. This research paper aims to identify the major macroeconomic factors that determine manufacturing value added in Singapore. The study applies ARDL method over annual ranging from 1981 to 2022. The results indicates long run cointegrating relation between manufacturing value added and its determinants, while money supply acts as a tool of monetary policy and foreign direct investment to boost manufacturing value added. The results obtained further indicates that although in the short run imports might increase manufacturing value added, but over time they reduce it instead. The study therefore recommends expansionary monetary policy may be promoted to boost manufacturing value added while actively encouraging FDI inflows so that domestic manufacturing can be stimulated.

Keywords: FDI Inflows; Monetary Policy, Manufacturing Value Added, ARDL, Singapore (search for similar items in EconPapers)
Date: 2024
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