The causal relationship between foreign direct investment and financial development in ASEAN countrues

The purpose of this study is to seek the causal relationship between foreign direct investment (FDI) and financial development in selected ASEAN countries. This study used sampling of panel data of 92 observations of panel data taken from 1989 - 2011 from four different countries; Malaysia, Singapor...

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Main Author:	Roslan, Farah
Format:	Thesis
Published:	2014
Subjects:	HG Finance
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id	my-mmu-ep.5432
record_format	uketd_dc
spelling	my-mmu-ep.54322015-07-01T02:33:38Z The causal relationship between foreign direct investment and financial development in ASEAN countrues 2014-02 Roslan, Farah HG Finance HG4501-6051 Investment, capital formation, speculation The purpose of this study is to seek the causal relationship between foreign direct investment (FDI) and financial development in selected ASEAN countries. This study used sampling of panel data of 92 observations of panel data taken from 1989 - 2011 from four different countries; Malaysia, Singapore, Thailand and Philippines by using Granger causality approach. For indicators of financial development, we have grouped those indicators based on two broad components, which are stock market development indicators and financial institutions indicators. In a nutshell, based on financial institutions components, the causality analysis tests provides slight evidence for the hypothesis that FDI can promote to the expansion of the financial institutions sector in ASEAN countries. Moreover, the impact of FDI on the development of financial institutions also dissimilar from one country to one country. Only in certain ASEAN countries, FDI is proof to notably influence the development of financial institutions. This study also provides slight evidence that the development of financial institutions causes FDI. It is assume that the single presence of financial institutions development sector is not vital determinant in affecting the FDI to ASEAN. Contrary, this study provides strong evidence that FDI affect the development of local stock market in ASEAN and vice versa. Plus, the significant two-ways causation effect running from development of stock markets to FDI signifies that the fundamental and well-developed of stock market is necessary to promote FDI in ASEAN countries. This study contributes by filling the gap of analyst coverage literature where empirical studies on how FD indicators especially on the development of stock market and financial institutions in ASEAN are scarce. The second contribution is a better understanding of the impact of financial development on the performance of foreign direct investment in selected ASEAN countries. 2014-02 Thesis http://shdl.mmu.edu.my/5432/ http://library.mmu.edu.my/diglib/onlinedb/dig_lib.php masters Multimedia University Graduate School of Management
institution	Multimedia University
collection	MMU Institutional Repository
topic	HG Finance HG Finance
spellingShingle	HG Finance HG Finance Roslan, Farah The causal relationship between foreign direct investment and financial development in ASEAN countrues
description	The purpose of this study is to seek the causal relationship between foreign direct investment (FDI) and financial development in selected ASEAN countries. This study used sampling of panel data of 92 observations of panel data taken from 1989 - 2011 from four different countries; Malaysia, Singapore, Thailand and Philippines by using Granger causality approach. For indicators of financial development, we have grouped those indicators based on two broad components, which are stock market development indicators and financial institutions indicators. In a nutshell, based on financial institutions components, the causality analysis tests provides slight evidence for the hypothesis that FDI can promote to the expansion of the financial institutions sector in ASEAN countries. Moreover, the impact of FDI on the development of financial institutions also dissimilar from one country to one country. Only in certain ASEAN countries, FDI is proof to notably influence the development of financial institutions. This study also provides slight evidence that the development of financial institutions causes FDI. It is assume that the single presence of financial institutions development sector is not vital determinant in affecting the FDI to ASEAN. Contrary, this study provides strong evidence that FDI affect the development of local stock market in ASEAN and vice versa. Plus, the significant two-ways causation effect running from development of stock markets to FDI signifies that the fundamental and well-developed of stock market is necessary to promote FDI in ASEAN countries. This study contributes by filling the gap of analyst coverage literature where empirical studies on how FD indicators especially on the development of stock market and financial institutions in ASEAN are scarce. The second contribution is a better understanding of the impact of financial development on the performance of foreign direct investment in selected ASEAN countries.
format	Thesis
qualification_level	Master's degree
author	Roslan, Farah
author_facet	Roslan, Farah
author_sort	Roslan, Farah
title	The causal relationship between foreign direct investment and financial development in ASEAN countrues
title_short	The causal relationship between foreign direct investment and financial development in ASEAN countrues
title_full	The causal relationship between foreign direct investment and financial development in ASEAN countrues
title_fullStr	The causal relationship between foreign direct investment and financial development in ASEAN countrues
title_full_unstemmed	The causal relationship between foreign direct investment and financial development in ASEAN countrues
title_sort	causal relationship between foreign direct investment and financial development in asean countrues
granting_institution	Multimedia University
granting_department	Graduate School of Management
publishDate	2014
_version_	1747829573350850560

The causal relationship between foreign direct investment and financial development in ASEAN countrues

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