Theoretical and Applied Economics
No. 2 / 2022 (631), Summer
Casual nexus between economic growth, FDI and employment: An inquiry into BRICS and ASEAN
Maulana Azad National Urdu University, Hyderabad, India
Syed Hasan QAYED
Maulana Azad National Urdu University, Hyderabad, India
Abstract. This article discusses the documentary evidence on the Efficient Market Hypothesis (EMH) This study examines the nexus between economic growth, FDI and employment. We employ panel data for BRICS and ASEAN nations for the period 1993 to 2019. We have used FGLS considering the cross-section dependence and slope heterogeneity. Moreover, we apply the Pairwise Dumitrescu-Hurlin panel non-causality tests to confirm the direction of causality. The study finds that overall impact of FDI and employment on economic growth is ambiguous. However, in HIE, FDI positively impact economic growth. We observed bidirectional causality between FDI and economic growth. Human capital and globalization have positive impact on economic growth. The relation between FDI and employment is ambiguous. However, it may increase employment in high income economies. To receive the intended benefit of FDI, authorities should focus on the local development of the region. The positive sign of openness suggests restrictive trade policies should not be encouraged. However, the sophisticated policy is required to maintain the high economic growth and low unemployment.
Contents
International banking, crises and strategic interests
The importance of demand, uncertainty and monetary policy shocks from the euro area for the Romanian economy
Fiscal consolidation and public debt in the European Union: Reevaluating the relationship
Measuring the impact of philanthropy on small businesses: A case study of small business in Israel
Whether high frequency intraday data behave randomly: Evidence from NIFTY 50
Poverty in Romania: an analysis at regional level
The past, the present and the prospective future of efficient market hypothesis: a theoretical and empirical investigation of international stock markets
Casual nexus between economic growth, FDI and employment: An inquiry into BRICS and ASEAN
A comparative analysis of export-led and domestic demand-led growth hypotheses in BRICS economies
Reinsurance – an efficient solution of catastrophe risk transfer for the housing stock of Romania
Normative analysis of the impact of Covid-19 on prominent sectors of Indian economy by using ARCH Model
Linear and nonlinear effect of exchange rate on inflation in Pakistan
Assessing the performance of mutual funds
Model for estimating the profitability of placing asset portfolios on the capital market