IDEAS home Printed from https://ideas.repec.org/a/ids/amerfa/v8y2024i2p164-181.html
   My bibliography  Save this article

Exploring the effects of financial liberalisation on foreign direct investment: moderating role of corruption and political instability

Author

Listed:
  • Ferdos Jamal
  • Yan Zhijun

Abstract

This study investigates the relationship between financial liberalisation (FL) and foreign direct investment (FDI) in Pakistan between 1996 and 2022, focusing on the moderating effects of political instability and corruption. To address the complicated factors that play a role in FDI decisions, this study considers FL impact while also considering the potential impact of corruption and political instability. This empirical study is based on a comprehensive dataset that contains information on the FL index, FDI inflow, corruption, and political instability. The findings indicate a substantial association between FL and FDI, with higher levels of FL having a tendency to attract more FDI than lower ones. In addition, significant interaction effects between corruption and political instability were found in the relationship between FL and FDI. The results help in understanding increasing FDI inflows by integrating efforts to combat corruption and ensuring political stability with projects involving FDI.

Suggested Citation

  • Ferdos Jamal & Yan Zhijun, 2024. "Exploring the effects of financial liberalisation on foreign direct investment: moderating role of corruption and political instability," American Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 8(2), pages 164-181.
    • Handle: RePEc:ids:amerfa:v:8:y:2024:i:2:p:164-181
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=141552
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:amerfa:v:8:y:2024:i:2:p:164-181. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=229 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.