The Relationship between Foreign Investment, Financial Development and Economic Growth

Year 2021, Volume: 17 Issue: 3, 681 - 710, 30.09.2021

Erkan Ustaoğlu

https://doi.org/10.17130/ijmeb.840733

Cited By: 2

Abstract

The aim of the study is to investigate the possible effects of foreign investments (foreign direct investment and foreign portfolio investments) and financial development on economic growth. For study, data from 133 countries between 1990 and 2017 were investigated using the system generalized moments method and multiple mediator analysis. In the study, it was determined that foreign direct investment (FDI), foreign portfolio investments (FPI) and financial development increase economic growth. In addition, while FDIs entering the country are found to increase economic growth indirectly by affecting financial markets and domestic investments, FPIs only support economic growth through financial markets. In addition to these results, another striking result is the existence of the threshold effect of the financial development level in the country on the effect of FDI and FPI on economic growth. In other words, after the financial development level in the country exceeds a certain level, the positive effect of foreign investment (FDI and FPI) on economic growth will disappear. Another important result is related to the level of financial development in the country. It was determined that financial development has a non-linear "inverse-U" effect on economic growth. Financial development has a positive effect on growth up to a certain level. After exceeding this level, the increase in financial development has a negative effect on growth.

Keywords

Foreign direct investment, Foreign portfolio investment, Financial development, Economic growth, System-GMM

YABANCI YATIRIM, FİNANSAL GELİŞME VE EKONOMİK BÜYÜME İLİŞKİSİ

Abstract

Çalışmanın amacı, yabancı yatırımların (doğrudan yabancı yatırım ve yabancı portföy yatırımları) ve finansal gelişmenin ekonomik büyüme üzerindeki olası etkilerini araştırmaktır. Çalışmanın amacı doğrultusunda 133 ülkenin 1990-2017 dönemine ait verileri sistem genelleştirilmiş momentler yöntemi ve çoklu aracılık analizi ile araştırılmıştır. Çalışmada, doğrudan yabancı yatırım (DYY), yabancı portföy yatırımları (YPY) ve finansal gelişmenin ekonomik büyümeyi arttırdığı tespit edilmiştir. Ayrıca ülkeye giren DYY’ler, finansal piyasaları ve yerli yatırımları etkileyerek ekonomik büyümeyi dolaylı olarak da arttırdığı tespit edilirken, YPY’ler sadece finansal piyasalar aracılığı ile ekonomik büyümeyi desteklemektedir. Bu sonuçlara ek olarak çalışmada tespit edilen diğer çarpıcı bir sonuç ise DYY’nin ve YPY’nin ekonomik büyüme üzerindeki etkisinde, ülkedeki finansal gelişme seviyesinin eşik etkisinin varlığıdır. Yani ülkedeki finansal gelişme seviyesi belirli bir seviyeyi aştıktan sonra yabancı yatırımın (DYY ve YPY) ekonomik büyüme üzerindeki pozitif etkisi kaybolacaktır. Çalışmada tespit edilen önemli diğer bir sonuç ise ülkedeki finansal gelişme seviyesi ile ilgilidir. Finansal gelişmenin ekonomik büyüme üzerinde doğrusal olamayan “ters-U” şeklinde etkisi tespit edilmiştir. Finansal gelişme belli bir seviyeye kadar büyüme üzerinde olumlu etkiye sahiptir. Bu seviyeyi aştıktan sonra, finansal gelişmedeki artış büyüme üzerinde olumsuz etkisi vardır.

Keywords

Doğrudan yabancı yatırım, Yabancı portföy yatırımları, Finansal gelişme, Ekonomik büyüme, Sistem GMM

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