Empirical Investigation of Foreign Direct Investment and Current Account Balance in East Asian Economies
Among the Asian regions the East Asia is the largest recipient of foreign direct investment (FDI). The FDI by affecting the host country’s exports and imports may also influence the current account balance (CAB) of that country. The East Asian economies are facing the persistent current account d...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Johar Education Society
2019-09-01
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| Series: | Pakistan Journal of Commerce and Social Sciences |
| Subjects: | |
| Online Access: | http://jespk.net/publications/4361.pdf |
| _version_ | 1818468310472196096 |
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| author | Mahnaz Muhammad Ali Tusawar Iftikhar Ahmad Rozina Sadiq |
| author_facet | Mahnaz Muhammad Ali Tusawar Iftikhar Ahmad Rozina Sadiq |
| author_sort | Mahnaz Muhammad Ali |
| collection | DOAJ |
| description | Among the Asian regions the East Asia is the largest recipient of foreign direct
investment (FDI). The FDI by affecting the host country’s exports and imports may also
influence the current account balance (CAB) of that country. The East Asian economies
are facing the persistent current account deficit. The current study investigates the impact
of FDI inflows on CAB and on its components (exports and imports) for a panel of
selected East Asian economies. The study employs System Generalized Method of
Moments (Sys GMM) estimation technique on a panel of five countries for the years
2000-2016. FDI is found to have negative effect on current account deficit and positive
effect on exports and imports of the selected economies. It is concluded that by
improving the host country’s exports, FDI inflows can improve CAB in case of East
Asian selected economies. |
| first_indexed | 2024-04-13T21:11:08Z |
| format | Article |
| id | doaj.art-27a583a58d434605995222ac7fa1dc48 |
| institution | Directory Open Access Journal |
| issn | 1997-8553 2309-8619 |
| language | English |
| last_indexed | 2024-04-13T21:11:08Z |
| publishDate | 2019-09-01 |
| publisher | Johar Education Society |
| record_format | Article |
| series | Pakistan Journal of Commerce and Social Sciences |
| spelling | doaj.art-27a583a58d434605995222ac7fa1dc482022-12-22T02:29:49ZengJohar Education SocietyPakistan Journal of Commerce and Social Sciences1997-85532309-86192019-09-01133779795Empirical Investigation of Foreign Direct Investment and Current Account Balance in East Asian EconomiesMahnaz Muhammad Ali 0Tusawar Iftikhar Ahmad 1Rozina Sadiq 2Department of Economics, The Islamia University of Bahawalpur, PakistanDepartment of Economics, The Islamia University of Bahawalpur, PakistanThe Islamia University of Bahawalpur, PakistanAmong the Asian regions the East Asia is the largest recipient of foreign direct investment (FDI). The FDI by affecting the host country’s exports and imports may also influence the current account balance (CAB) of that country. The East Asian economies are facing the persistent current account deficit. The current study investigates the impact of FDI inflows on CAB and on its components (exports and imports) for a panel of selected East Asian economies. The study employs System Generalized Method of Moments (Sys GMM) estimation technique on a panel of five countries for the years 2000-2016. FDI is found to have negative effect on current account deficit and positive effect on exports and imports of the selected economies. It is concluded that by improving the host country’s exports, FDI inflows can improve CAB in case of East Asian selected economies.http://jespk.net/publications/4361.pdffdi inflowscurrent account deficitexportsimportseast asia |
| spellingShingle | Mahnaz Muhammad Ali Tusawar Iftikhar Ahmad Rozina Sadiq Empirical Investigation of Foreign Direct Investment and Current Account Balance in East Asian Economies Pakistan Journal of Commerce and Social Sciences fdi inflows current account deficit exports imports east asia |
| title | Empirical Investigation of Foreign Direct Investment and Current Account Balance in East Asian Economies |
| title_full | Empirical Investigation of Foreign Direct Investment and Current Account Balance in East Asian Economies |
| title_fullStr | Empirical Investigation of Foreign Direct Investment and Current Account Balance in East Asian Economies |
| title_full_unstemmed | Empirical Investigation of Foreign Direct Investment and Current Account Balance in East Asian Economies |
| title_short | Empirical Investigation of Foreign Direct Investment and Current Account Balance in East Asian Economies |
| title_sort | empirical investigation of foreign direct investment and current account balance in east asian economies |
| topic | fdi inflows current account deficit exports imports east asia |
| url | http://jespk.net/publications/4361.pdf |
| work_keys_str_mv | AT mahnazmuhammadali empiricalinvestigationofforeigndirectinvestmentandcurrentaccountbalanceineastasianeconomies AT tusawariftikharahmad empiricalinvestigationofforeigndirectinvestmentandcurrentaccountbalanceineastasianeconomies AT rozinasadiq empiricalinvestigationofforeigndirectinvestmentandcurrentaccountbalanceineastasianeconomies |