Direct and indirect influence of national culture on foreign direct investment

Journal article

Izadi, Selma, Rashid, Mamunur and Izadi, Parviz 2023. Direct and indirect influence of national culture on foreign direct investment. Research in International Business and Finance. 66, p. 102037. https://doi.org/10.1016/j.ribaf.2023.102037
AuthorsIzadi, Selma, Rashid, Mamunur and Izadi, Parviz
AbstractThis study investigates whether extending cultural dimensions leads to different conclusions about foreign direct investment (FDI) inflows. We consider data from 33 developing and developed countries from 2001 to 2017. Several proxies for traditional FDI determinants are considered alongside proxies for financial channels and six-dimensional (6-D) measures of Hofstede’s national culture. The study employs a host of tests based on ordinary least squares, random effects, two-stage GMM, panel vector autoregressive, and estimated generalized least squares tests. Our results indicate the strong influences of economic growth, financial and trade openness, and three cultural variables on FDI inflow in the selected countries. Concerning culture, nations with lower “masculinity” and higher “individualism” and “indulgence” scores attract more FDIs. After controlling for economic growth endogeneity and employing cultural factors as instrumental variables, we conclude that culture affects FDI inflows indirectly through economic growth.
KeywordsFDI inflows; Financial channel; Hofstede culture; Instrumental variable estimation
Year2023
JournalResearch in International Business and Finance
Journal citation66, p. 102037
PublisherElsevier
ISSN02755319
Digital Object Identifier (DOI)https://doi.org/10.1016/j.ribaf.2023.102037
Official URLhttps://www.sciencedirect.com/science/article/abs/pii/S0275531923001630?via%3Dihub
Publication dates
Online19 Jul 2023
Publication process dates
Deposited26 Jul 2023
Accepted15 Jul 2023
Accepted author manuscript
License
Output statusPublished
Permalink -

https://repository.canterbury.ac.uk/item/9527x/direct-and-indirect-influence-of-national-culture-on-foreign-direct-investment

File access - Request a copy

Restricted files

Accepted author manuscript

  • 72
    total views
  • 0
    total downloads
  • 2
    views this month
  • 0
    downloads this month

Export as

Related outputs

Creating a religious identity and impression management by Islamic banks
Maali, B.M., Hassan, M. and Rashid, M. 2024. Creating a religious identity and impression management by Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management. 17 (4), pp. 693-710. https://doi.org/10.1108/IMEFM-05-2024-0240
Cushion hypothesis and credit risk: Islamic versus conventional banks from the MENA region.
Abdeljawad, I., Rashid, Mamunur, Abu Alia, Muiz, Qushtom, R., Irshaid, Mahmoud and Sahyouni, Ahmad 2024. Cushion hypothesis and credit risk: Islamic versus conventional banks from the MENA region. PLoS ONE. 19 (7), p. e0306901. https://doi.org/10.1371/journal.pone.0306901
The use of technology tools and learning experience: Insight from business school students
Adesina, F., Rashid, M. and Adesina, S. 2024. The use of technology tools and learning experience: Insight from business school students.
Capital structure and public corruption among non-financial firms in the MENA region: The impact of the Arab spring.
Abdeljawad, Islam, Hakawati, Ayat A, Abu Alia, Muiz and Rashid, Mamunur 2024. Capital structure and public corruption among non-financial firms in the MENA region: The impact of the Arab spring. Heliyon. 10 (11), p. e32527. https://doi.org/10.1016/j.heliyon.2024.e32527
Religiosity, financial risk taking, and reward processing: An experimental study
Vanheusden, F., Vadapalli, Sundara Kashyap, Rashid, Mamunur, Griffiths, Mark D. and Kim, Amee 2024. Religiosity, financial risk taking, and reward processing: An experimental study. Journal of gambling studies. https://doi.org/10.1007/s10899-024-10324-4
Small firm auditing using the analytical procedures (APs) in a politically challenging context
Alia, M.A., Abdeljawad, I., Rashid, M. and Frehat, R.A. 2024. Small firm auditing using the analytical procedures (APs) in a politically challenging context. International Journal of Islamic and Middle Eastern Finance and Management. https://doi.org/10.1108/IMEFM-05-2023-0187
A systematic literature review of risks in Islamic banking system: research agenda and future research directions
Sohel, M.N.I., Choudhury, T., Rashid, M. and Hassan, M Kabir 2024. A systematic literature review of risks in Islamic banking system: research agenda and future research directions. Risk Management. 26 (3), pp. 1-29. https://doi.org/10.1057/s41283-023-00135-z
The dynamics of bonds, commodities and bitcoin based on NARDL approach
Bouteska, A., Hassan, M. Kabir, Rashid, M. and Bilgin, Mehmet Hüseyin 2024. The dynamics of bonds, commodities and bitcoin based on NARDL approach. The Quarterly Review of Economics and Finance. 94, pp. 58-70. https://doi.org/10.1016/j.qref.2023.12.013
CSR and firm performance nexus in a highly unstable political context: institutional influence and community cohesion
Abdeljawad, I., Rashid, M., Arafat, N.A.R., Naifeh, H. and Ghanem, N. 2023. CSR and firm performance nexus in a highly unstable political context: institutional influence and community cohesion. International Journal of Business Governance and Ethics. https://doi.org/10.1504/IJBGE.2023.10054626
Introduction to Islamic Fintech: A challenge or an opportunity?
Rabbani, M. R., Hassan, M. K. and Rashid, M. 2022. Introduction to Islamic Fintech: A challenge or an opportunity? in: Hassan, M. K., Rabbani, M. R. and Rashid, M. (ed.) FinTech in Islamic Financial Institutions Scope, Challenges, and Implications in Islamic Finance Cham Palgrave Macmillan. pp. 1-27
Fintech and Islamic financial institutions: Applications and challenges
Abdeljawad, I., Hashem, S, Q. and Rashid, M. 2022. Fintech and Islamic financial institutions: Applications and challenges. in: Hassan, M. K., Rabbani, M. R. and Rashid, M. (ed.) FinTech in Islamic Financial Institutions Scope, Challenges, and Implications in Islamic Finance Cham Palgrave Macmillan. pp. 193-222
Islamic Fintech, blockchain and crowdfunding: Current landscape and path forward
Hassan, M. K., Rabbani, M. R., Rashid, M. and Trinugroho, I. 2022. Islamic Fintech, blockchain and crowdfunding: Current landscape and path forward. in: Hassan, M. K., Rabbani, M. R. and Rashid, M. (ed.) FinTech in Islamic Financial Institutions Scope, Challenges, and Implications in Islamic Finance Cham Palgrave Macmillan. pp. 307-340
COVID-19 challenges and the role of Islamic Fintech
Sitara, K., Rabbani, M. R., Rashid, M. and Anwer, Z. 2022. COVID-19 challenges and the role of Islamic Fintech. in: Hassan, M. K., Rabbani, M. R. and Rashid, M. (ed.) FinTech in Islamic Financial Institutions Scope, Challenges, and Implications in Islamic Finance Cham Palgrave Macmillan. pp. 341-356
Does the regional proximity lead to exchange rate spillover?
Anwer, Z., Hassan, M., Khan, A. and Rashid, M. 2022. Does the regional proximity lead to exchange rate spillover? Journal of International Financial Markets, Institutions and Money. https://doi.org/10.1016/j.intfin.2022.101676
Risk dimensions, risk clusters, and foreign direct investments in developing countries
Emeka, O., Hassan, M., Rashid, M., Prabu, Darniya and Sabit, Ahmed 2022. Risk dimensions, risk clusters, and foreign direct investments in developing countries. International Review of Economics & Finance. 82, pp. 636-649. https://doi.org/10.1016/j.iref.2022.07.013
Exploring the driving forces of stock-cryptocurrency comovements during COVID-19 pandemic: an analysis using wavelet coherence and seemingly unrelated regression
Abdul-Rahim, R., Khalid, A., Karim, Z. A. and Rashid, M. 2022. Exploring the driving forces of stock-cryptocurrency comovements during COVID-19 pandemic: an analysis using wavelet coherence and seemingly unrelated regression. Mathematics. 10 (12), p. 2116. https://doi.org/10.3390/math10122116
Voluntary disclosure-cost of equity nexus and the moderating role of corporate governance: evidence from an extremely politically unstable context
Alia, M. A., Abdeljawad, I., Jallad, S. E. and Rashid, M. 2022. Voluntary disclosure-cost of equity nexus and the moderating role of corporate governance: evidence from an extremely politically unstable context. International Journal of Islamic and Middle Eastern Finance and Management. https://doi.org/10.1108/IMEFM-02-2021-0069