Title: The role of FDI uncertainty on financial development: evidence from panel data

Authors: Zunaidah Sulong; Ibrahim Sambo Farouq

Addresses: Faculty of Business and Management, Universiti Sultan Zainal Abidin, Gong Badak Campus, Terengganu, Malaysia ' Faculty of Business and Management, Universiti Sultan Zainal Abidin, Gong Badak Campus, Terengganu, Malaysia

Abstract: The financial sector is one of the most crucial sectors in an economy that requires development considering the role it plays in any of the economic structures. In view of that, this study investigates the role financial globalisation uncertainty and the Global Financial Crisis 2007 plays in relation to the financial development of some selected leading African economies. To support the model, the study includes economic growth and trade openness as control variables in the research. The empirical co-integration result using Westerlund and Edgerton (2007) confirmed the presence of long-run relationship among the variables. Our result from the dynamic common correlated effect estimator also reveals that GDP, FGU and trade openness are positively related to the financial development. However, the Global Financial Crisis 2007 shows a negative effect towards financial development. Thus, proper policy implications are discussed in the final section of the study.

Keywords: globalisation uncertainty; financial development; economic growth; trade openness; panel Westerlund.

DOI: 10.1504/IJBIR.2023.129370

International Journal of Business Innovation and Research, 2023 Vol.30 No.3, pp.352 - 369

Received: 16 Dec 2019
Accepted: 21 Jan 2021
Published online: 07 Mar 2023 *

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