The Interactive Effect of Financial Development and Foreign Direct Investment on Domestic Investment (Evidence from the East and West Asia, including Iran)
Since foreign direct investment has entered into the world's economic literature, countries have sought to attract more of this type of investment by creating appropriate incentive infrastructures. The impact of foreign direct investment on domestic investment may be affected by the different e...
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| Format: | Article |
| Language: | fas |
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Semnan University
2019-11-01
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| Series: | مدلسازی اقتصادسنجی |
| Subjects: | |
| Online Access: | https://jem.semnan.ac.ir/article_4149_56bf4b6275ab86f5e80c8d469ade6e00.pdf |
| _version_ | 1827342520540987392 |
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| author | Roohollah Babaki Mortaza Baky-Haskuee Mahnaz Efati |
| author_facet | Roohollah Babaki Mortaza Baky-Haskuee Mahnaz Efati |
| author_sort | Roohollah Babaki |
| collection | DOAJ |
| description | Since foreign direct investment has entered into the world's economic literature, countries have sought to attract more of this type of investment by creating appropriate incentive infrastructures. The impact of foreign direct investment on domestic investment may be affected by the different economic conditions of the host country, including their financial development. Accordingly, in this paper, the interactive effect of financial development and direct foreign investment on domestic investment in the East and West Asian countries (including Iran) during the period of 1980-2017 was estimated by using panel data analysis. The results of the research show that the interactive effect of financial development and foreign direct investment on domestic investment in West Asian countries was negative and in the East Asian countries was positive. In other word, developed financial markets and building trust among foreign investors has led to increasing domestic investment in the East Asian countries. Therefore to enhance domestic investment, it is necessary to prepare suitable conditions for financial development and foreign investors entrance to the country. |
| first_indexed | 2024-03-07T22:07:45Z |
| format | Article |
| id | doaj.art-02439f84263c4c75bbf91e77fcc32578 |
| institution | Directory Open Access Journal |
| issn | 2345-654X 2821-2150 |
| language | fas |
| last_indexed | 2024-03-07T22:07:45Z |
| publishDate | 2019-11-01 |
| publisher | Semnan University |
| record_format | Article |
| series | مدلسازی اقتصادسنجی |
| spelling | doaj.art-02439f84263c4c75bbf91e77fcc325782024-02-23T18:40:23ZfasSemnan Universityمدلسازی اقتصادسنجی2345-654X2821-21502019-11-014415517810.22075/jem.2019.18553.13624149The Interactive Effect of Financial Development and Foreign Direct Investment on Domestic Investment (Evidence from the East and West Asia, including Iran)Roohollah Babaki0Mortaza Baky-Haskuee1Mahnaz Efati2Assistant Professor of Economics, University of BojnordAssistant Professor and Head of Office of Economic Modelling. Imam Sadiq (a.s) UniversityMaster of Economics and lecturer of University of BojnordSince foreign direct investment has entered into the world's economic literature, countries have sought to attract more of this type of investment by creating appropriate incentive infrastructures. The impact of foreign direct investment on domestic investment may be affected by the different economic conditions of the host country, including their financial development. Accordingly, in this paper, the interactive effect of financial development and direct foreign investment on domestic investment in the East and West Asian countries (including Iran) during the period of 1980-2017 was estimated by using panel data analysis. The results of the research show that the interactive effect of financial development and foreign direct investment on domestic investment in West Asian countries was negative and in the East Asian countries was positive. In other word, developed financial markets and building trust among foreign investors has led to increasing domestic investment in the East Asian countries. Therefore to enhance domestic investment, it is necessary to prepare suitable conditions for financial development and foreign investors entrance to the country.https://jem.semnan.ac.ir/article_4149_56bf4b6275ab86f5e80c8d469ade6e00.pdfdomestic investmentfinancial developmentforeign direct investmentpanel data |
| spellingShingle | Roohollah Babaki Mortaza Baky-Haskuee Mahnaz Efati The Interactive Effect of Financial Development and Foreign Direct Investment on Domestic Investment (Evidence from the East and West Asia, including Iran) مدلسازی اقتصادسنجی domestic investment financial development foreign direct investment panel data |
| title | The Interactive Effect of Financial Development and Foreign Direct Investment on Domestic Investment (Evidence from the East and West Asia, including Iran) |
| title_full | The Interactive Effect of Financial Development and Foreign Direct Investment on Domestic Investment (Evidence from the East and West Asia, including Iran) |
| title_fullStr | The Interactive Effect of Financial Development and Foreign Direct Investment on Domestic Investment (Evidence from the East and West Asia, including Iran) |
| title_full_unstemmed | The Interactive Effect of Financial Development and Foreign Direct Investment on Domestic Investment (Evidence from the East and West Asia, including Iran) |
| title_short | The Interactive Effect of Financial Development and Foreign Direct Investment on Domestic Investment (Evidence from the East and West Asia, including Iran) |
| title_sort | interactive effect of financial development and foreign direct investment on domestic investment evidence from the east and west asia including iran |
| topic | domestic investment financial development foreign direct investment panel data |
| url | https://jem.semnan.ac.ir/article_4149_56bf4b6275ab86f5e80c8d469ade6e00.pdf |
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