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FINANCING INCLUSIVE GROWTH THROUGH FDI INCORPORATING THE ROLE OF INSTITUTIONAL QUALITY

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03 Pages : 29-46

http://dx.doi.org/10.31703/ger.2020(V-II).03      10.31703/ger.2020(V-II).03      Published : Jun 2020

Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality

Abstract

    Countries need a tremendous amount of investment to utilize existing resources and enhance productivity in order to ensure inclusive growth in the economy. Foreign Direct Investment (FDI) by providing the required investment can fulfil the saving-investment gap. The paper makes an empirical investigation of the effectiveness of FDI as a financing tool for inclusive growth. The study also examines how the effectiveness of FDI varies across economies with varying level of institutional quality. The results suggest that FDI plays a significant role in achieving inclusive growth, especially in economies with a low and medium level of institutional Quality. A deep underpinning of our inclusive growth variable brought thoughtful insights such as low and middle-income economies, which mostly belong to the low and medium level of institutional quality cluster. They should adopt policies that enhance the existing spectrum of opportunities. Whereas equity should be the top-most priority for high-income economies.

    Inclusive Growth, Institutional Quality, Foreign Direct Investment, Equity

    (1) Muneza Munir
    PhD scholar, Applied Economics Research Centre, University of Karachi, Karachi, Sindh, Pakistan.
    (2) Ambreen Fatima
    Associate Professor, Applied Economics Research Centre, University of Karachi, Karachi, Sindh, Pakistan.
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Cite this article

APA

    APA : Munir, M., & Fatima, A. (2020). Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality. Global Economics Review, V(II), 29-46. https://doi.org/10.31703/ger.2020(V-II).03

CHICAGO

    CHICAGO : Munir, Muneza, and Ambreen Fatima. 2020. "Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality." Global Economics Review, V (II): 29-46 doi: 10.31703/ger.2020(V-II).03

HARVARD

    HARVARD : MUNIR, M. & FATIMA, A. 2020. Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality. Global Economics Review, V, 29-46.

MHRA

    MHRA : Munir, Muneza, and Ambreen Fatima. 2020. "Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality." Global Economics Review, V: 29-46

MLA

    MLA : Munir, Muneza, and Ambreen Fatima. "Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality." Global Economics Review, V.II (2020): 29-46 Print.

OXFORD

    OXFORD : Munir, Muneza and Fatima, Ambreen (2020), "Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality", Global Economics Review, V (II), 29-46

TURABIAN

    TURABIAN : Munir, Muneza, and Ambreen Fatima. "Financing Inclusive Growth through FDI: Incorporating the Role of Institutional Quality." Global Economics Review V, no. II (2020): 29-46. https://doi.org/10.31703/ger.2020(V-II).03