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
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: Suggested Citation