Welcome to the InfoSci Platform
Reference Hub2
The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries

The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries

Metin Gürler, Funda Kara
Copyright: © 2020 |Pages: 21
ISBN13: 9781799825593|ISBN10: 1799825590|EISBN13: 9781799825609
DOI: 10.4018/978-1-7998-2559-3.ch010
Cite Chapter Cite Chapter

MLA

Gürler, Metin, and Funda Kara. "The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries." Handbook of Research on Decision-Making Techniques in Financial Marketing, edited by Hasan Dinçer and Serhat Yüksel, IGI Global, 2020, pp. 206-226. https://doi.org/10.4018/978-1-7998-2559-3.ch010

APA

Gürler, M. & Kara, F. (2020). The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries. In H. Dinçer & S. Yüksel (Eds.), Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 206-226). IGI Global. https://doi.org/10.4018/978-1-7998-2559-3.ch010

Chicago

Gürler, Metin, and Funda Kara. "The Relationship Between Foreign Direct Investment and Financial Development in OECD Countries." In Handbook of Research on Decision-Making Techniques in Financial Marketing, edited by Hasan Dinçer and Serhat Yüksel, 206-226. Hershey, PA: IGI Global, 2020. https://doi.org/10.4018/978-1-7998-2559-3.ch010

Export Reference

Mendeley
Favorite

Abstract

This chapter investigates the relationship between the OECD-FRRI issued by OECD and IMF-FDI issued by IMF for 36 OECD member countries. Cross-section data (CSD) analysis and panel data (PD) analysis consisting of random and fixed effects estimations were used in the study to investigate the relationship between Foreign Direct Investment (FDI) and Financial Development for OECD countries for the years 1997, 2003, and 2006 and the 7-year period of 2010-2016. Granger Causality Test (GCT) is also applied to test the direction of causality between two indicators. According to the Random Effects Model (RAM) and Fixed Effects Model (FEM) with PD analysis in the study OECD-FRRI is found as one of the determinants of IMF-FDI and IMF-FDI is found as one of the determinants of OECD-FRRI in OECD member countries. For CSD analysis, there is no significant proof to say OECD-FRRI is one of the main determinants of IMF-FDI and IMF-FDI is one of the determinants of OECD-FRRI in OECD member countries. For CSD, OECD-FRRI does not cause IMF-FDI whereas IMF-FDI causes OECD-FRRI.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.