Title: A comparative assessment of growth determinants in advanced and emerging economies. The particular role of FDIs

Authors: Ioannis A. Tampakoudis; Demetres N. Subeniotis; Manolis I. Skouloudakis

Addresses: Department of Business Administration, School of Business Administration, University of Macedonia, Thessaloniki 540 06, Greece ' Department of Business Administration, School of Business Administration, University of Macedonia, Thessaloniki 540 06, Greece ' Department of Business Administration, School of Business Administration, University of Macedonia, Thessaloniki 540 06, Greece

Abstract: The paper examines the effects of a set of determinants on GDP growth in advanced and emerging economies. The countries of G7 represent the former, while the countries of BRICS, except Russia, plus Turkey stand for the latter. Empirical evidence highlights the primary role of FDIs on economic growth, while many other parameters have been examined as well. Our study reveals not statistically significant and controversial effects of inward FDIs on economic growth in advanced and emerging economies, while population, infrastructure and openness have diverging effects on the two samples as well. Indeed, financial sector developments proved to be the most significant parameter on GDP growth, underlying the importance of liquidity and the efficient allocation of funds in the economy. Empirical research should be more focused on countries with similar economic characteristics, while policy makers should be very cautious for the appropriate measures to achieve economic welfare.

Keywords: GDP growth; inward FDI; foreign direct investment; inflation; financial sector; trade openness; infrastructure; natural resources; population; G7; BRICS countries; emerging economies; liquidity.

DOI: 10.1504/GBER.2016.075525

Global Business and Economics Review, 2016 Vol.18 No.2, pp.177 - 198

Available online: 30 Dec 2015 *

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