The Impact of Trade Openness, Foreign Direct Investment and Domestic Investment on Economic Growth: New Evidence from Asian Developing Countries
Sayef Bakari () and
MPRA Paper from University Library of Munich, Germany
The objective of this paper is to examine the impact of openness, foreign investment inflows, and domestic investment on economic growth for the case of 24 Asian economies over the time span 2002-2017 through the use of the fixed and random effect models. Our empirical results pointed out that domestic investment positively influences economic growth. However, we found that foreign direct investment and exports are negatively affecting the growth path. Also, the population, imports, and final consumption expenditure have no real impact on economic growth. Due to the importance of the positive externalities linked to the trade openness and foreign direct investments inflow, in terms of technology transfer bias, financial capacities, human expertise, large markets size, and spillover effect added to the domestic capacities and the national investment, the pace of the phenomenal economic performance of the Asian economies is very well justified.
Keywords: Trade openness; FDI; Domestic Investment; Economic Growth. (search for similar items in EconPapers)
JEL-codes: E22 F14 F15 O16 O47 O53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg, nep-int, nep-mac and nep-sea
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Journal Article: The Impact of Trade Openness, Foreign Direct Investment and Domestic Investment on Economic Growth: New Evidence from Asian Developing Countries (2019)
Working Paper: The Impact of Trade Openness, Foreign Direct Investment and Domestic Investment on Economic Growth: New Evidence from Asian Developing Countries (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:94453
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