Overview of the Role of Financial Development as a Form of Absorptive Capacity in the FDI-Growth Nexus
Tinjauan Peranan Pembangunan Kewangan sebagai Pemangkin dalam Hubungan Pelaburan Langsung Asing dan Pertumbuhan Ekonomi
Keywords:
Foreign Direct Investment, Financial Development, Economic GrowthAbstract
This study provides extensive review of the literature that encompasses two broad underlying frameworks namely the FDI-growth nexus and the financial development-growth nexus. The discussion is extended to the literature on the FDI-financial development-growth nexus where the role of financial development is shown to be crucial in the FDI-growth link. The importance of absorptive capacity has been recognized by past studies to enhance the relationship of FDI and economic growth that so far empirically resulted in mixed findings. In serving the absorptive capacity, higher level of financial development is identified as one of the significant channels that would fulfill the purpose.
Kajian ini meninjau peranan kualiti pembangunan kewangan sebagai pemangkin kepada pelaburan langsung asing (FDI) dalam menggalakkan pertumbuhan ekonomi melalui sorotan literatur. Tinjauan merangkumi dua kajian besar yang melibatkan hubungan FDI-pertumbuhan ekonomi dan hubungan pembangunan kewangan-pertumbuhan ekonomi. Perbincangan dilanjutkan kepada pengembangan literatur hubungan FDI-pertumbuhan ekonomi di mana peranan pembangunan kewangan dibuktikan sebagai pemacu penting dalam pertalian FDI dan pertumbuhan ekonomi. Keupayaan menyerap telah diiktiraf oleh kajian lepas dalam membantu meningkatkan kesan hubungan FDI dan pertumbuhan ekonomi, di mana setakat ini hasil kajian hubungan tersebut tanpa pemangkin secara empirikal mendapati kesan yang bercampur. Kesimpulannya, sebagai memenuhi fungsi keupayaan menyerap, tahap pembangunan kewangan yang lebih tinggi dikenal pasti sebagai salah satu saluran penting yang akan memenuhi tujuan tersebut.
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