Foreign Portfolio Inflows and Economic Growth: Evidence from ASEAN5

Actual Problems of Economics, Vol. 179, No. 5, pp. 57-69, 2016

13 Pages Posted: 4 Jun 2015 Last revised: 19 May 2016

See all articles by Fayyaz Ahmad

Fayyaz Ahmad

Lanzhou University

Muhammad Umar Draz

Universiti Teknologi PETRONAS

Su-chang Yang

Lanzhou University

Date Written: March 3, 2015

Abstract

The aim of this study is to examine the causal relationship between foreign portfolio inflows (FPI) and economic growth of ASEAN5. We have used the data of FPI, GDP and FDI from 2001 to 2013 to determine the impact of FPI on the economy. The results of Granger causality and M-Wald test reveal interesting facts about the ASEAN5. The empirical analyses suggest that a significant relationship exists between FPI and the economic growth of ASEAN5, except for Singapore. The results also indicate a positive impact of FDI on economic development, in particular, for Singapore, Indonesia and Malaysia.

Keywords: ASEAN5, Granger Causality, FDI, FPI, GDP

JEL Classification: F21, F43, O53

Suggested Citation

Ahmad, Fayyaz and Draz, Muhammad Umar and Yang, Su-chang, Foreign Portfolio Inflows and Economic Growth: Evidence from ASEAN5 (March 3, 2015). Actual Problems of Economics, Vol. 179, No. 5, pp. 57-69, 2016, Available at SSRN: https://ssrn.com/abstract=2613806 or http://dx.doi.org/10.2139/ssrn.2613806

Fayyaz Ahmad

Lanzhou University ( email )

199 Donggang West Road
Lanzhou City, Gansu Province 730000
China

Muhammad Umar Draz (Contact Author)

Universiti Teknologi PETRONAS ( email )

Department of Management and Humanities
Seri Iskandar, Perak 32610
Malaysia

Su-chang Yang

Lanzhou University ( email )

Lanzhou University
199 Donggang West Road
Lanzhou, Gansu 730000
China

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