The impact of foreign direct investment on financial development in Asian countries

Viet Nhu Anh Tran and Cong Minh Huynh ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper empirically studies the impact of foreign direct investment (FDI) on financial development from 37 Asian nations covering the period 2001-2020 from a panel data set. The findings show that FDI has a positive impact on financial development, implying the spill-over effect of FDI in Asian financial markets. Furthermore, this study discovers that trade openness and population growth have a positive impact on financial development, while inflation affects financial development negatively. However, it is found that there is no relationship between government consumption and financial development in the Asian context.

Keywords: Asian countries; Financial development; FDI; Panel data (search for similar items in EconPapers)
JEL-codes: B22 F21 G20 O16 O53 (search for similar items in EconPapers)
Date: 2022-08-24
New Economics Papers: this item is included in nep-fdg, nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:114311

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