Nexus among foreign direct investment, financial development, and sustainable economic growth: Empirical aspects from Sudan
This study examined the nexus between foreign direct investment (FDI), financial development, and sustainable economic growth in Sudan during the period of the structural adjustment program and the full Islamization of the banking and financial system that took place in the 1980s. The research provi...
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| Format: | Article |
| Language: | English |
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AIMS Press
2022-12-01
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| Series: | Quantitative Finance and Economics |
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| Online Access: | https://www.aimspress.com/article/doi/10.3934/QFE.2022028?viewType=HTML |
| _version_ | 1797962677309407232 |
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| author | Mustafa Hassan Mohammad Adam |
| author_facet | Mustafa Hassan Mohammad Adam |
| author_sort | Mustafa Hassan Mohammad Adam |
| collection | DOAJ |
| description | This study examined the nexus between foreign direct investment (FDI), financial development, and sustainable economic growth in Sudan during the period of the structural adjustment program and the full Islamization of the banking and financial system that took place in the 1980s. The research provides a comprehensive analysis using the most recent time series secondary data from 1990 to 2020 and the study employed co-integration, Granger causality, and VAR error correction technique to estimate the models, to clarify the claimed relationship between FDI and its effect on the financial sector and subsequently attending a sustainable economic development in Sudan. In this research, Augmented Dickey-Fuller (ADF) unit root tests are applied to test the stationarity of data and the data was found stationary at first difference. The results of the ARDL bounds showed the existence of a long-term relationship between the FDI and other independent variables but the short-term showed otherwise. The Granger causality test implies that the past values of FDI don't significantly contribute to the prediction of sustainable economic growth. Also, results show that there's evidence of observed causality running from the country's trade openness and the financial sector's development. The implication of these results shows there is a complementary relationship between sustainable economic growth and both financial development and trade openness in the short run. Interestingly, the findings of the study show that the effect of financial development on economic growth is further enhanced by the inflows of FDI. |
| first_indexed | 2024-04-11T01:16:38Z |
| format | Article |
| id | doaj.art-c140ccdb38874ad3820da8a28ee14491 |
| institution | Directory Open Access Journal |
| issn | 2573-0134 |
| language | English |
| last_indexed | 2024-04-11T01:16:38Z |
| publishDate | 2022-12-01 |
| publisher | AIMS Press |
| record_format | Article |
| series | Quantitative Finance and Economics |
| spelling | doaj.art-c140ccdb38874ad3820da8a28ee144912023-01-04T02:31:47ZengAIMS PressQuantitative Finance and Economics2573-01342022-12-016464065710.3934/QFE.2022028Nexus among foreign direct investment, financial development, and sustainable economic growth: Empirical aspects from SudanMustafa Hassan Mohammad Adam0Business Administration Department, Komar University of Science and Technology, Sulaimani city, Kurdistan Region, IraqThis study examined the nexus between foreign direct investment (FDI), financial development, and sustainable economic growth in Sudan during the period of the structural adjustment program and the full Islamization of the banking and financial system that took place in the 1980s. The research provides a comprehensive analysis using the most recent time series secondary data from 1990 to 2020 and the study employed co-integration, Granger causality, and VAR error correction technique to estimate the models, to clarify the claimed relationship between FDI and its effect on the financial sector and subsequently attending a sustainable economic development in Sudan. In this research, Augmented Dickey-Fuller (ADF) unit root tests are applied to test the stationarity of data and the data was found stationary at first difference. The results of the ARDL bounds showed the existence of a long-term relationship between the FDI and other independent variables but the short-term showed otherwise. The Granger causality test implies that the past values of FDI don't significantly contribute to the prediction of sustainable economic growth. Also, results show that there's evidence of observed causality running from the country's trade openness and the financial sector's development. The implication of these results shows there is a complementary relationship between sustainable economic growth and both financial development and trade openness in the short run. Interestingly, the findings of the study show that the effect of financial development on economic growth is further enhanced by the inflows of FDI.https://www.aimspress.com/article/doi/10.3934/QFE.2022028?viewType=HTMLfdifinancial developmentsustainable economic growthsudanempirical evidence |
| spellingShingle | Mustafa Hassan Mohammad Adam Nexus among foreign direct investment, financial development, and sustainable economic growth: Empirical aspects from Sudan Quantitative Finance and Economics fdi financial development sustainable economic growth sudan empirical evidence |
| title | Nexus among foreign direct investment, financial development, and sustainable economic growth: Empirical aspects from Sudan |
| title_full | Nexus among foreign direct investment, financial development, and sustainable economic growth: Empirical aspects from Sudan |
| title_fullStr | Nexus among foreign direct investment, financial development, and sustainable economic growth: Empirical aspects from Sudan |
| title_full_unstemmed | Nexus among foreign direct investment, financial development, and sustainable economic growth: Empirical aspects from Sudan |
| title_short | Nexus among foreign direct investment, financial development, and sustainable economic growth: Empirical aspects from Sudan |
| title_sort | nexus among foreign direct investment financial development and sustainable economic growth empirical aspects from sudan |
| topic | fdi financial development sustainable economic growth sudan empirical evidence |
| url | https://www.aimspress.com/article/doi/10.3934/QFE.2022028?viewType=HTML |
| work_keys_str_mv | AT mustafahassanmohammadadam nexusamongforeigndirectinvestmentfinancialdevelopmentandsustainableeconomicgrowthempiricalaspectsfromsudan |