Template-Type: ReDIF-Article 1.0
Author-Name: Simon Okaja Epor
Author-Email: eporokaja@gmail.com
Author-Name: Henry Yua 
Author-Email: henryyua@gmail.com
Author-Name: Paul Terhemba Iorember
Author-Email: piorember1990@gmail.com
Title: Foreign direct investment and economic growth in developing countries: The role of international trade and foreign debt
Abstract: The existing literature is sparse on the role of international finance in modeling the FDI-growth nexus. This study integrates the role of international trade and external debt in the FDI-economic growth nexus for Brazil, Nigeria, and Vietnam. We apply the Autoregressive Distributed Lag (ARDL) model to annual data covering the period 1990-2021. The results show that FDI and trade have positive but insignificant effects on economic growth in all three countries. In addition, our results show that external debt hampers long-term economic growth in these countries. Based on the results, we propose country-specific recommendations that take into account specific economic and financial conditions, global market dynamics, and the long-term development goals of developing countries.
Keywords: foreign direct investment, trade openness, external debt, economic growth, developing countries, external finance, ARDL, autoregressive distributed lag model
Journal: Modern Finance
Pages: 1-17
Volume: 2
Issue: 1
Year: 2024
Subtitle : 
File-URL: https://mf-journal.com/article/view/87
File-Format: text/xml
Handle: RePEc:bdy:modfin:v:2:y:2024:i:1:p:1-17:id:87