Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis
Empirically we investigate how three types of private capital flows could promote economic growth in recipient developed and developing countries. Our focus is on the role of stock markets as a channel through which foreign capital flows could promote growth. The findings reveal that FDI exhibits a...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2010
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| Online Access: | http://psasir.upm.edu.my/id/eprint/16349/1/Private%20capital%20flows.pdf |
| _version_ | 1825945798879215616 |
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| author | Choong, Chee Keong Baharumshah, Ahmad Zubaidi Yusop, Zulkornain Habibullah, Muzafar Shah |
| author_facet | Choong, Chee Keong Baharumshah, Ahmad Zubaidi Yusop, Zulkornain Habibullah, Muzafar Shah |
| author_sort | Choong, Chee Keong |
| collection | UPM |
| description | Empirically we investigate how three types of private capital flows could promote economic growth in recipient developed and developing countries. Our focus is on the role of stock markets as a channel through which foreign capital flows could promote growth. The findings reveal that FDI exhibits a positive impact on growth, while both foreign debt and portfolio investment have a negative impact on growth in all sample countries. However, our results indicate that stock markets might be a significant channel or leading institutional factor through which capital flows affect economic growth. The findings provide clear implications that the negative impact of private capital flows can be transformed into a positive one if the stock market development has attained a certain threshold level, regardless of whether it is in developed or developing countries. |
| first_indexed | 2024-03-06T07:37:10Z |
| format | Article |
| id | upm.eprints-16349 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:37:10Z |
| publishDate | 2010 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | upm.eprints-163492019-10-18T04:00:02Z http://psasir.upm.edu.my/id/eprint/16349/ Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis Choong, Chee Keong Baharumshah, Ahmad Zubaidi Yusop, Zulkornain Habibullah, Muzafar Shah Empirically we investigate how three types of private capital flows could promote economic growth in recipient developed and developing countries. Our focus is on the role of stock markets as a channel through which foreign capital flows could promote growth. The findings reveal that FDI exhibits a positive impact on growth, while both foreign debt and portfolio investment have a negative impact on growth in all sample countries. However, our results indicate that stock markets might be a significant channel or leading institutional factor through which capital flows affect economic growth. The findings provide clear implications that the negative impact of private capital flows can be transformed into a positive one if the stock market development has attained a certain threshold level, regardless of whether it is in developed or developing countries. Elsevier 2010-03 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/16349/1/Private%20capital%20flows.pdf Choong, Chee Keong and Baharumshah, Ahmad Zubaidi and Yusop, Zulkornain and Habibullah, Muzafar Shah (2010) Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis. Japan and the World Economy, 22 (2). pp. 107-117. ISSN 0922-1425 10.1016/j.japwor.2009.07.001 |
| spellingShingle | Choong, Chee Keong Baharumshah, Ahmad Zubaidi Yusop, Zulkornain Habibullah, Muzafar Shah Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis |
| title | Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis |
| title_full | Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis |
| title_fullStr | Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis |
| title_full_unstemmed | Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis |
| title_short | Private capital flows, stock market and economic growth in developed and developing countries: a comparative analysis |
| title_sort | private capital flows stock market and economic growth in developed and developing countries a comparative analysis |
| url | http://psasir.upm.edu.my/id/eprint/16349/1/Private%20capital%20flows.pdf |
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