IS THE ASSOCIATION BETWEEN FDI AND INFLATION SYMMETRIC OR ASYMMETRIC? EVIDENCE FROM ARDL AND NARDL TECHNIQUES-Reference-Cited by-同舟云学术

IS THE ASSOCIATION BETWEEN FDI AND INFLATION SYMMETRIC OR ASYMMETRIC? EVIDENCE FROM ARDL AND NARDL TECHNIQUES

Published:2023-10-11 Issue: Volume: Page:1-27
ISSN:0217-5908
Container-title:The Singapore Economic Review
language:en
Short-container-title:Singapore Econ. Rev.

Author:

HOSSAIN SADDAM¹,HOSEN MOSHARROF²^ORCID,MOHD THAS THAKER HASSANUDIN³,SHARMA GAGAN DEEP⁴,MASIH MANSUR⁵,PEK CHUEN-KHEE⁶

Affiliation:

1. INCEIF University, Jalan Tun Ismail, 50480 Kuala Lumpur, Malaysia

2. Department of Accounting and Finance, UCSI University, Kuala Lumpur, Malaysia

3. Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia

4. University School of Management Studies, Guru Gobind Singh Indraprastha University, Sector 16 C, Dwarka, New Delhi, India

5. Universiti Kuala Lumpur, 50250 Kuala Lumpur, Malaysia

6. Taylor’s Business School, Faculty of Business and Law, Taylor’s University, Malaysia

Abstract

Based on the demand-pull and cost-push theory, this study examines the relationship between foreign direct investment (FDI) and inflation nexus by using time series technique of Autoregressive Distributed Lags (ARDL). Asymmetry assumption was investigated by employing relatively advanced Nonlinear Autoregressive Distributed Lag (NARDL) method. Annual data from 1973 to 2017 has been collected from the World Bank database and DataStream. The results revealed that Bangladesh’s FDI inflow has a significant impact on the inflation rate, which augurs well for the economy. In addition, we also discover an asymmetric relationship in the long run and symmetric relationship in the short run. Several policy recommendations of these findings are provided.

Publisher

World Scientific Pub Co Pte Ltd

Subject

Economics and Econometrics

Link

https://www.worldscientific.com/doi/pdf/10.1142/S0217590823500455

Reference65 articles.

1. The role of exports, FDI and imports in development: evidence from Sub-Saharan African countries

2. Foreign direct investment and economic growth in Latin America