期刊名称：International Research Journal of Finance and Economics
印刷版ISSN：1450-2887
电子版ISSN：1450-2887
出版年度：2019
期号：171
页码：63-77
出版社：European Journals Inc.
摘要：This paper examines the major constraints hindering domestic private investment, the nexus among domestic private investment, foreign direct investment and economic growth in frontier market nations. It employed the dynamic panel generalized methods of moments (System-GMM) approach. The paper finds that access to finance, infrastructure, corruption control and manageable inflation rates are the important drivers of domestic private investment. On the contrary, it observes that cost of finance and governance factors thwart domestic private investment participation and its smooth thrive. It further documents that foreign direct investment and domestic private investment have a one-way directional effect, and validates a bi-directional relationship between domestic private investment and economic growth. The findings of the study imply that domestic private investment thrives in the presence of ready access to finance, good infrastructure in the form of energy and telecommunication, well-managed inflation, and the ability to control corruption. However, it is obstructed by a high cost of finance, the inability of the government to formulate and implement sound policies and regulations, and ensure confidence in and acceptance of laws. Policy-makers of frontier markets should therefore, ensure FDI inflows are well-monitored to protect domestic private investors as they play an important spillover role in the process of economic growth.
