Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/22235
Title: Assessing Foreign Direct Investment Long-Run Contribution to Financial Development: Evidence from Namibia
Authors: Gupta, P
Jaezuruka, VM
Keywords: Foreign Direct Investment;Financial Development;Economic Growth;Human Capital;ARDL bounds;Granger Causality
Issue Date: 2020
Publisher: Economics Bulletin
Citation: Economics Bulletin, 2020, 40 (4)
Abstract: We investigate the impact of Foreign Direct Investment on financial development using Domestic Credit to the Private Sector and Private Credit by Deposit money banks as a broader measure of financial indicators. We use the autoregressive distributed lag bounds co-integration analysis for long-run estimation on the Namibia economy as a case study for the periods 1990 to 2017. The Error Correction Model and the Granger causality approach are further used to examine the short-run dynamics and the direction of causality. Our results confirm the presence of a long-run association between FDI and financial development along with economic growth and human capital, the existence of uni-directional causal association from FDI to financial development measured in terms of domestic credit to the private sector, and bi-directional causation when measured in terms of private credit by deposit money banks. We conclude that FDI benefits Namibia financial system whilst playing a critical role in promoting human capital and economic development. Keywords: Foreign Direct Investment, Financial Development, Economic Growth, Human Capital, ARDL bounds, Granger Causality
URI: http://bura.brunel.ac.uk/handle/2438/22235
ISSN: 1545-2921
Appears in Collections:Dept of Economics and Finance Research Papers

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