Financial development, FDI and economic growth: evidence from Sudan.

Item request has been placed! ×
Item request cannot be made. ×
loading   Processing Request
  • Additional Information
    • Publication Year:
      2018
    • Author-Supplied Keywords:
      Economic growth
      FDI
      Financial development
      Sudan
    • NAICS/Industry Codes:
      NAICS/Industry Codes 522291 Consumer Lending
      522293 International Trade Financing
    • Abstract:
      Purpose The effect of foreign direct investment (FDI) on economic growth is widely believed to be contingent on the development of the financial sector. Nevertheless, as the possibility that the effect of financial development on growth being contingent on FDI has been neglected in existing literature, the authors have investigated it in this paper. In general, the purpose of this paper is to examine the effect of financial development and FDI on economic growth in Sudan using annual data from 1970 to 2014.Design/methodology/approach Since most of the macroeconomic variables are subject to unit root problem, the time series data are assessed using unit root and cointegration tests with/without structural break. Moreover, the study uses the fully modified ordinary least squares and the dynamic ordinary least squares techniques to estimate the long-run model.Findings The results of the cointegration tests provide evidence that a long-run relationship exists among variables even after accounting for the structural break. The results show that financial development and FDI are positive and significant in explaining economic growth in Sudan. Financial development is found to be more beneficial to economic growth than FDI. Moreover, the findings reveal that FDI leads to better economic performance through financial development. Interestingly, the findings of the study show that the effect of financial development on economic growth is further enhanced by the inflows of FDI.Research limitations/implications The government should focus on promoting FDI in more productive sectors. In addition, further cooperation with multinational enterprises is needed to increase FDI in the country.Originality/value This is the first paper that empirically examines both the interlinked impact of FDI on growth through financial development and the impact of financial development on economic growth through FDI in Sudan using appropriate econometric methods. [ABSTRACT FROM AUTHOR]
    • Abstract:
      Copyright of International Journal of Social Economics is the property of Emerald Publishing and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
    • ISSN:
      03068293
    • Accession Number:
      131095575
  • Citations
    • ABNT:
      SIRAG, A.; SIDAHMED, S.; ALI, H. S. Financial development, FDI and economic growth: evidence from Sudan. International Journal of Social Economics, [s. l.], v. 45, n. 8, p. 1236, 2018. Disponível em: http://widgets.ebscohost.com/prod/customlink/proxify/proxify.php?count=1&encode=0&proxy=&find_1=&replace_1=&target=http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edb&AN=131095575&authtype=sso&custid=s5834912. Acesso em: 30 set. 2020.
    • AMA:
      Sirag A, SidAhmed S, Ali HS. Financial development, FDI and economic growth: evidence from Sudan. International Journal of Social Economics. 2018;45(8):1236. Accessed September 30, 2020. http://widgets.ebscohost.com/prod/customlink/proxify/proxify.php?count=1&encode=0&proxy=&find_1=&replace_1=&target=http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edb&AN=131095575&authtype=sso&custid=s5834912
    • APA:
      Sirag, A., SidAhmed, S., & Ali, H. S. (2018). Financial development, FDI and economic growth: evidence from Sudan. International Journal of Social Economics, 45(8), 1236.
    • Chicago/Turabian: Author-Date:
      Sirag, Abdalla, Samira SidAhmed, and Hamisu Sadi Ali. 2018. “Financial Development, FDI and Economic Growth: Evidence from Sudan.” International Journal of Social Economics 45 (8): 1236. http://widgets.ebscohost.com/prod/customlink/proxify/proxify.php?count=1&encode=0&proxy=&find_1=&replace_1=&target=http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edb&AN=131095575&authtype=sso&custid=s5834912.
    • Harvard:
      Sirag, A., SidAhmed, S. and Ali, H. S. (2018) ‘Financial development, FDI and economic growth: evidence from Sudan’, International Journal of Social Economics, 45(8), p. 1236. Available at: http://widgets.ebscohost.com/prod/customlink/proxify/proxify.php?count=1&encode=0&proxy=&find_1=&replace_1=&target=http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edb&AN=131095575&authtype=sso&custid=s5834912 (Accessed: 30 September 2020).
    • Harvard: Australian:
      Sirag, A, SidAhmed, S & Ali, HS 2018, ‘Financial development, FDI and economic growth: evidence from Sudan’, International Journal of Social Economics, vol. 45, no. 8, p. 1236, viewed 30 September 2020, .
    • MLA:
      Sirag, Abdalla, et al. “Financial Development, FDI and Economic Growth: Evidence from Sudan.” International Journal of Social Economics, vol. 45, no. 8, Aug. 2018, p. 1236. EBSCOhost, widgets.ebscohost.com/prod/customlink/proxify/proxify.php?count=1&encode=0&proxy=&find_1=&replace_1=&target=http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edb&AN=131095575&authtype=sso&custid=s5834912.
    • Chicago/Turabian: Humanities:
      Sirag, Abdalla, Samira SidAhmed, and Hamisu Sadi Ali. “Financial Development, FDI and Economic Growth: Evidence from Sudan.” International Journal of Social Economics 45, no. 8 (August 2018): 1236. http://widgets.ebscohost.com/prod/customlink/proxify/proxify.php?count=1&encode=0&proxy=&find_1=&replace_1=&target=http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edb&AN=131095575&authtype=sso&custid=s5834912.
    • Vancouver/ICMJE:
      Sirag A, SidAhmed S, Ali HS. Financial development, FDI and economic growth: evidence from Sudan. International Journal of Social Economics [Internet]. 2018 Aug [cited 2020 Sep 30];45(8):1236. Available from: http://widgets.ebscohost.com/prod/customlink/proxify/proxify.php?count=1&encode=0&proxy=&find_1=&replace_1=&target=http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edb&AN=131095575&authtype=sso&custid=s5834912