Foreign direct investment and green GDP: the thresholds of financial development for economic policies
This study aims to examine the impact of foreign direct investment (FDI) on green GDP while analyzing the role of financial development thresholds in moderating the relationship in the ASEAN-6 countries. These are six leading countries in the ASEAN region. The study employs the Generalized Method of...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-12-01
|
| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2024.2437011 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850108168384806912 |
|---|---|
| author | Ngoc Toan Bui Thu-Trang Thi Doan |
| author_facet | Ngoc Toan Bui Thu-Trang Thi Doan |
| author_sort | Ngoc Toan Bui |
| collection | DOAJ |
| description | This study aims to examine the impact of foreign direct investment (FDI) on green GDP while analyzing the role of financial development thresholds in moderating the relationship in the ASEAN-6 countries. These are six leading countries in the ASEAN region. The study employs the Generalized Method of Moments (GMM) regression to estimate the models, in combination with Bayesian regression to check the results’ robustness. The findings indicate that FDI plays an important role in fostering green GDP in the countries. Furthermore, the financial development thresholds can moderate this impact. Specifically, the estimation results used threshold effects reveal that the threshold value for the financial market index is 0.38, and for the financial institution index, it is 0.68, which both represent financial development. The GMM and Bayesian regression results consistently show that the positive impact of FDI on green GDP becomes evident only when financial development surpasses these threshold values. Notably, financial institutions have shown themselves to be more effective than financial markets in amplifying this impact. These findings provide a reliable foundation for the ASEAN-6 countries to develop appropriate economic policies to promote green GDP. |
| format | Article |
| id | doaj-art-5b3e69ff7d06463a8022db99cdd11765 |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-5b3e69ff7d06463a8022db99cdd117652025-08-20T02:38:26ZengTaylor & Francis GroupCogent Economics & Finance2332-20392024-12-0112110.1080/23322039.2024.2437011Foreign direct investment and green GDP: the thresholds of financial development for economic policiesNgoc Toan Bui0Thu-Trang Thi Doan1University of Finance – Marketing (UFM), Ho Chi Minh City, VietnamIndustrial University of Ho Chi Minh City (IUH), Ho Chi Minh City, VietnamThis study aims to examine the impact of foreign direct investment (FDI) on green GDP while analyzing the role of financial development thresholds in moderating the relationship in the ASEAN-6 countries. These are six leading countries in the ASEAN region. The study employs the Generalized Method of Moments (GMM) regression to estimate the models, in combination with Bayesian regression to check the results’ robustness. The findings indicate that FDI plays an important role in fostering green GDP in the countries. Furthermore, the financial development thresholds can moderate this impact. Specifically, the estimation results used threshold effects reveal that the threshold value for the financial market index is 0.38, and for the financial institution index, it is 0.68, which both represent financial development. The GMM and Bayesian regression results consistently show that the positive impact of FDI on green GDP becomes evident only when financial development surpasses these threshold values. Notably, financial institutions have shown themselves to be more effective than financial markets in amplifying this impact. These findings provide a reliable foundation for the ASEAN-6 countries to develop appropriate economic policies to promote green GDP.https://www.tandfonline.com/doi/10.1080/23322039.2024.2437011Economic policyfinancial developmentforeign direct investmentgreen GDPthreshold effectsFinance |
| spellingShingle | Ngoc Toan Bui Thu-Trang Thi Doan Foreign direct investment and green GDP: the thresholds of financial development for economic policies Cogent Economics & Finance Economic policy financial development foreign direct investment green GDP threshold effects Finance |
| title | Foreign direct investment and green GDP: the thresholds of financial development for economic policies |
| title_full | Foreign direct investment and green GDP: the thresholds of financial development for economic policies |
| title_fullStr | Foreign direct investment and green GDP: the thresholds of financial development for economic policies |
| title_full_unstemmed | Foreign direct investment and green GDP: the thresholds of financial development for economic policies |
| title_short | Foreign direct investment and green GDP: the thresholds of financial development for economic policies |
| title_sort | foreign direct investment and green gdp the thresholds of financial development for economic policies |
| topic | Economic policy financial development foreign direct investment green GDP threshold effects Finance |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2024.2437011 |
| work_keys_str_mv | AT ngoctoanbui foreigndirectinvestmentandgreengdpthethresholdsoffinancialdevelopmentforeconomicpolicies AT thutrangthidoan foreigndirectinvestmentandgreengdpthethresholdsoffinancialdevelopmentforeconomicpolicies |