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Impact of public expenditures on FDI inflows into developing countries


Othman, Norashida and Andaman, Gul and Yusop, Zulkornain and Ismail, Mohd Mansor (2018) Impact of public expenditures on FDI inflows into developing countries. Pertanika Journal of Social Sciences & Humanities, 26 (2). pp. 751-768. ISSN 0128-7702; ESSN: 2231-8534


This paper uses Pesaran et al.'s (1999) Pooled Means Group (PMG) estimation to explore the role of government expenditures of the host countries on Foreign Direct Investment (FDI) inflows. The PMG estimator allows for a greater degree of parameter heterogeneity by imposing common long-run relationships across countries. A panel data from 24 developing countries was utilised for the study period between 1982 and 2014. The empirical results show government expenditure significantly promotes FDI inflows in the long-term. The results also suggest that market size plays an important role in FDI inflows.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Institute of Agricultural and Food Policy Studies
Putra Business School
Publisher: Universiti Putra Malaysia Press
Keywords: FDI inflows; Government expenditures; Pooled means group; Market size
Depositing User: Nabilah Mustapa
Date Deposited: 12 Feb 2019 06:52
Last Modified: 12 Feb 2019 06:52
URI: http://psasir.upm.edu.my/id/eprint/66247
Statistic Details: View Download Statistic

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