Pelaburan langsung asing, pertumbuhan ekonomi dan kualiti pembangunan pasaran saham ' analisis panel

Translated title of the contribution: Foreign direct investment, economic growth and quality of stock market development ' panel analysis

Nor Hakimah Haji Mohd Nor, Soo Wah Low, Abu Hassan Shaari Md Nor

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This study examines the role of stock market development quality in enabling foreign direct investment to promote economic growth for a sample of thirty developed and emerging countries over the period from 1999 to 2009, using dynamic panel GMM estimator. The quality of stock market development is examined using two indicators of market liquidity and pricing efficiency, measured using volume turnover scaled by return volatility and stock price synchronicity respectively. The findings indicate that higher stock market development quality as reflected by higher levels of market liquidity and pricing efficiency are more able to benefit from the growth effects of FDI. In the greater context, this study establishes a new form of absorptive capacity by showing that the quality dimension of stock market development constitutes an important element in influencing the impact of FDI on economic growth. Insights from this study suggest that it is important to address the quality aspect of stock market development in enabling FDI to serve as an important driver of economic growth. The findings expand the existing literature and provide a clearer understanding of the FDIfinancial development-growth nexus.

Original languageMalay
Pages (from-to)49-60
Number of pages12
JournalJurnal Ekonomi Malaysia
Volume49
Issue number1
DOIs
Publication statusPublished - 2015

Fingerprint

Stock market development
Panel analysis
Foreign direct investment
Economic growth
Pricing efficiency
Market liquidity
Turnover
Return volatility
Absorptive capacity
Emerging countries
Synchronicity
GMM estimator
Developed countries
Stock prices
Dynamic panel

Keywords

  • Economic growth
  • Foreign direct investment
  • Stock market development quality

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)

Cite this

Pelaburan langsung asing, pertumbuhan ekonomi dan kualiti pembangunan pasaran saham ' analisis panel. / Nor, Nor Hakimah Haji Mohd; Low, Soo Wah; Md Nor, Abu Hassan Shaari.

In: Jurnal Ekonomi Malaysia, Vol. 49, No. 1, 2015, p. 49-60.

Research output: Contribution to journalArticle

Nor, Nor Hakimah Haji Mohd ; Low, Soo Wah ; Md Nor, Abu Hassan Shaari. / Pelaburan langsung asing, pertumbuhan ekonomi dan kualiti pembangunan pasaran saham ' analisis panel. In: Jurnal Ekonomi Malaysia. 2015 ; Vol. 49, No. 1. pp. 49-60.
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