EconPapers    
Economics at your fingertips  
 

Types of Foreign Capital Inflows and Economic Growth: New Evidence on Role of Financial Markets

Ahmad Zubaidi Baharumshah (), Ly Slesman () and Evelyn Devadason ()

Journal of International Development, 2017, vol. 29, issue 6, 768-789

Abstract: This paper presents evidences on differential growth effects for three types of foreign capital inflows (foreign direct investment, portfolio equity and debt inflows). Two major results emerged from the application of threshold regression. First, we find strong evidence that the relationship between private foreign capital inflows and growth is characterised by a nonlinear relationship based on financial development. Second, the positive benefits of the three types of capital inflows are only found in countries having a level of financial market development beyond a threshold level. A deeper and more active financial sector is crucial for economic progress. Copyright © 2015 John Wiley & Sons, Ltd.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/

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:wly:jintdv:v:29:y:2017:i:6:p:768-789

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-06-19
Handle: RePEc:wly:jintdv:v:29:y:2017:i:6:p:768-789