Institutions, inward foreign direct investment, trade openness and credit level in emerging market economies
Document Type
Article
Publication Date
1-1-2018
Abstract
This study investigates the effects of institutional quality, inward FDI, trade openness, and their interaction on the domestic credit equilibrium in 33 emerging economies between 2002 and 2015. Through two system-GMM estimators, our study shows that inward FDIs have a booming effect on the domestic credit in emerging market economies while the trade openness exhibits a crowding-out effects. Institutions help moderating these effects of inward FDIs and trade openness on the domestic credit suggesting a particular policy.
Keywords
Institutional quality, Inward FDI, Trade openness, Credit equilibrium
Divisions
Faculty_of_Business_and_Accountancy
Funders
University of Economics, Ho Chi Minh
Publication Title
Review of Development Finance
Volume
8
Issue
2
Publisher
Elsevier
Additional Information
Felicia Chong. University of Malaya.