Quaye, E. and Acquaye, Adolf and Yamoah, Fred and Ndiaye, M. (2023) FDI interconnectedness and sustainable economic development: a linear and non linear Granger Causality Assessment. Journal of Business Research 164 (113981), ISSN 0148-2963.
|
Text
Accepted Version_JOBR-D-22-02652_April_2023.pdf - Author's Accepted Manuscript Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (1MB) | Preview |
Abstract
Previous studies on foreign direct investment (FDI) have not examined the hidden effects of its inherent connectedness characteristics among different economies. In order to uncover such hidden effects, this study conducts two sets of analyses. Firstly, the systemic risk-based approach constructed using Granger-causality networks and Principal Component Analysis is used to examine the level and degree of the network of pairwise statistical relationships among countries in the Latin American and Caribbean (LAC) region. Secondly, the determinants of the observed connectedness index are examined using regression models. This set of analysis shows that region-specific and global macroeconomic conditions such as the Consumer Price Index of the LAC region, US term spread, and interest rates impact the degree of interconnectedness. The complexity and stability of the system of FDI capital expenditure connectedness within the LAC region offers interesting prospects for macro-economic analysis, policy and stakeholder decision-making and further research development.
Metadata
| Item Type: | Article |
|---|---|
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Depositing User: | Fred Yamoah |
| Date Deposited: | 24 Apr 2023 05:31 |
| Last Modified: | 03 Nov 2024 01:10 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/51078 |
Statistics
Additional statistics are available via IRStats2.
Archive Staff Only (login required)
