IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries

The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries
View Sample PDF
Author(s): Metin Gürler (Uluslararası Rekabet Araştırmaları Kurumu, Turkey)and Funda Kara (Independent Researcher, Turkey)
Copyright: 2020
Pages: 21
Source title: Handbook of Research on Decision-Making Techniques in Financial Marketing
Source Author(s)/Editor(s): Hasan Dinçer (Istanbul Medipol University, Turkey)and Serhat Yüksel (İstanbul Medipol University, Turkey)
DOI: 10.4018/978-1-7998-2559-3.ch010

Purchase

View The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries on the publisher's website for pricing and purchasing information.

Abstract

This chapter investigates the relationship between the OECD-FRRI issued by OECD and IMF-FDI issued by IMF for 36 OECD member countries. Cross-section data (CSD) analysis and panel data (PD) analysis consisting of random and fixed effects estimations were used in the study to investigate the relationship between Foreign Direct Investment (FDI) and Financial Development for OECD countries for the years 1997, 2003, and 2006 and the 7-year period of 2010-2016. Granger Causality Test (GCT) is also applied to test the direction of causality between two indicators. According to the Random Effects Model (RAM) and Fixed Effects Model (FEM) with PD analysis in the study OECD-FRRI is found as one of the determinants of IMF-FDI and IMF-FDI is found as one of the determinants of OECD-FRRI in OECD member countries. For CSD analysis, there is no significant proof to say OECD-FRRI is one of the main determinants of IMF-FDI and IMF-FDI is one of the determinants of OECD-FRRI in OECD member countries. For CSD, OECD-FRRI does not cause IMF-FDI whereas IMF-FDI causes OECD-FRRI.

Related Content

Maria Elisabete Ferreira-Fernandes, Eva Maria de la Torre García, Maria de Lourdes Machado-Taylor. © 2026. 42 pages.
Jyoti Rani, Ramratan Guru, Sakthivel Santhanam, Madhuri Singh, Bhaskar Mitra. © 2026. 32 pages.
Jyoti Rani, Ramratan Guru, Sakthivel Santhanam, Madhuri Singh. © 2026. 36 pages.
Shalin Hai-Jew. © 2026. 18 pages.
Shalin Hai-Jew. © 2026. 14 pages.
Mustafa Kayyali. © 2026. 34 pages.
Ujjwal Tyagi, Amit Kumar. © 2026. 30 pages.
Body Bottom