Three essays on the macroeconomic impact of foreign direct investment in low and middle income countries
| dc.contributor.author | Abdullah, Md. | |
| dc.contributor.examiningcommittee | Serieux, John (Economics) Morrill, Janet (Accounting and Finance) | en_US |
| dc.contributor.supervisor | Loxley, John (Economics) | en_US |
| dc.date.accessioned | 2017-02-15T18:08:03Z | |
| dc.date.available | 2017-02-15T18:08:03Z | |
| dc.date.issued | 2017 | |
| dc.degree.discipline | Economics | en_US |
| dc.degree.level | Doctor of Philosophy (Ph.D.) | en_US |
| dc.description.abstract | This dissertation comprises three essays on macroeconomic impacts of foreign direct investment (FDI). The first essay analyses the impact of FDI on the growth rate of total factor productivity of host countries. The essay focuses on 77 low- and middle-income countries and is based on balanced panel data for the period 1980-2008. The system GMM and common correlated effects (CCE) panel data methods are applied to estimate the models. Estimated coefficients show that FDI does not have any significant impact on the growth rate and the levels of TFP. The second essay investigates the relationship between FDI and domestic investment focusing on low- and middle-income countries, and using panel data for the period 1980-2012. It applies common parameter and heterogeneous parameter, static and dynamic, single equation and simultaneous equation panel data econometric techniques to study the relationship. Empirical findings suggest that FDI crowds our domestic investment. Our estimated coefficients also suggest that countries that have weak institutions, less developed financial systems, less human capital, less developed infrastructure, or economies that are more open, are more exposed to foreign competition and experience stronger crowding out from inward FDI. In the third essay, the influence of capital flows on the real exchange rate of recipient countries is analysed. The influence of three important capital flows, viz. foreign direct investment (FDI), foreign aid, and remittances, are assessed on the real exchange rate, using data for 45 middle- and low-income countries for the period 1980–2013. Both heterogeneous and homogeneous panel data methods are applied to estimate the real exchange rate models. The estimated coefficients of these models imply that foreign direct investment (FDI) and remittances do not influence the real exchange rate. Aid tends to depreciate the real exchange rate. Findings also suggest that financial development does not influence the exchange rate impact of aid in our sample countries. The study further finds that while aid tends to increase real exchange rate volatility, FDI and remittances do not have any robust influence on volatility. | en_US |
| dc.description.note | February 2017 | en_US |
| dc.identifier.uri | http://hdl.handle.net/1993/32133 | |
| dc.language.iso | eng | en_US |
| dc.rights | open access | en_US |
| dc.subject | Foreign direct investment | en_US |
| dc.subject | total factor productivity | en_US |
| dc.subject | technology spillovers | en_US |
| dc.subject | domestic capital formation | en_US |
| dc.subject | crowding out | en_US |
| dc.subject | capital flows | en_US |
| dc.subject | real exchange rate | en_US |
| dc.title | Three essays on the macroeconomic impact of foreign direct investment in low and middle income countries | en_US |
| dc.type | doctoral thesis | en_US |