Asia-Pacific Management Accounting Journal-2021:The influence of political and social globalization on foreign direct inivestment inflow in developing countries: the role of financial development as a moderating factor. 16(1), 297-322.

PM Dr. Farha, Abdol Ghapar (2021) Asia-Pacific Management Accounting Journal-2021:The influence of political and social globalization on foreign direct inivestment inflow in developing countries: the role of financial development as a moderating factor. 16(1), 297-322. Asia-Pacific Management Accounting Journal, 16 (1). pp. 298-322. ISSN 297-322.

Text 21. The influence of political and social globalization on foreign direct inivestment inflow in developing countries_ the role of financial development as a moderating factor.pdf Download (1MB)

Abstract

This study presents the effect of political and social globalisation on Foreign Direct Investment (FDI) inflow in developing countries. The eminence of decomposed globalisation element in the FDI area is argued here. New insights into empirical evidence are offered by dropping economic globalisation as one of the decomposed components. A panel data of 42 developing countries from 1984 until 2016 was used by applying the CS ARDL approach. The study is also on the impact of political and social globalisation in developing countries by splitting them into two income stratification: Upper Middle-income Countries and Lower Middle-Income Countries by incorporating financial development as a moderating variable. It documents that political globalisation postulates a U-shaped relationship after addressing the Cross-Sectional Dependence (CD) problem, while social globalisation reverses the U-shaped relationship. It was found that political globalisation and social globalisation are conditional to the level of income rather than the overall developing countries’ stream. Besides, the prominent role of financial development in promoting FDI inflow, especially to income level, was observed. We suggest that developing countries should increase the capacity to absorb political and social globalisation in promoting FDI.

Item Type:	Article
Uncontrolled Keywords:	FDI inflow, globalisation, political globalisation, social globalisation, financial development, CS-ARDL
Divisions:	Institute of Graduate Studies (IGS)
Depositing User:	Mrs Shariffah Shuhaiza Syed Mohd Nor
Date Deposited:	27 May 2025 02:20
Last Modified:	27 May 2025 02:20
URI:	http://eprints.kuptm.edu.my/id/eprint/4121

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