Global Outward Foreign Direct Investment and Economic Growth Across Income Groups
The Mediating Effect of Home Country Institutions
Bibliographic Data
| ID | 4182235 |
|---|---|
| Authors | Osabuohien-Irabor Osarumwense (0000-0001-8731-2557, Ural Federal University), Drapkin Igor M (0000-0002-5989-8463, Ural Federal University) |
| Year | 2023 |
| Volume | 13 |
| Issue | 2 |
| Publication date | 2023-04-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | SAGE Open (JOURNAL) |
| Journal identifiers | ISSN: 2158-2440 • E-ISSN: 2158-2440 |
| Publisher | SAGE Publications Inc (PUBLISHER) |
| DOI | 10.1177/21582440231163843 |
| OpenAlex | W4366685183 |
| Language | EN |
| Citations received | 1 |
| References cited | 81 |
Although some empirical studies have examined the direct impact of outward foreign direct investment (outward FDI) on economic growth, but the indirect role play by home country institutions in outward FDI-induced economic growth remain unexplored. To cover this research gap, this study examines the impact of outward FDI on economic growth mediated by home country institutions in global panel of 161 economies, divided into World Bank income clusters such as high, upper-middle, lower-middle, and low-income economies for the period 1998 to 2019. For empirical analysis, this study utilized the Cross-Sectionally Augmented ARDL (CS-ARDL) and the Common Correlated Effect Mean Group (CCEMG) techniques robust to numerous econometric problems. In low-income countries, results indicate that outward FDI internationalization activities have adverse effect on economic growth, and the impact of home country institutions in stimulating outward FDI-induced growth appears weak both in the short term and long-term. In the case of high income, upper-middle income and lower-middle income countries, finding highlights that the joint impact of outward FDI and home country institutions stimulate higher economic growth and accelerate economic integration into the global economy. These impacts were found to diminish moving from high to low-income countries, which suggests that home country institutional development and income economy level matters for outward FDI-induced growth effects. The study also discusses key implications for policy
Demographic economics · Economics · Empirical research · Foreign direct investment · International economics · Macroeconomics · Panel data · Energy, Environment, Economic Growth · Global trade and economics · International Business and FDI
Governance Matters VIII
Analysis of Panel Data
Estimating long-run relationships from dynamic heterogeneous panels
A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test
Efficient Inference in a Random Coefficient Regression Model
The local power of some unit root tests for panel data
Financial development and environmental degradation
The Interrelationships Among Informal Institutions, Formal Institutions, and Inward Foreign Direct Investment
Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors
Large panels with common factors and spatial correlation
Institutions, trade, and growth
Institutions and the OLI paradigm of the multinational enterprise
Dynamic panel estimation and homogeneity testing under cross section dependence
The Eclectic (OLI) Paradigm of International Production
Unit root tests in panel data
Testing for unit roots in heterogeneous panels
Pooled Mean Group Estimation of Dynamic Heterogeneous Panels
Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure
Bounds testing approaches to the analysis of level relationships
Firm Resources and Sustained Competitive Advantage
Testing slope homogeneity in large panels
A simple panel unit root test in the presence of cross‐section dependence
International Strategy and Institutional Environments
Corruption – Poverty Nexus
Global Foreign Direct Investment Flows
Foreign Direct Investment and Economic Growth
Endogenous Technological Change
How does foreign direct investment affect economic growth
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,33 |
| Citation span | 2023 - 2023 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |