Regime Durability and Foreign Direct Investment – Growth nexus in Developing Countries

Muhammad Ayub, W. N.W. Azman-Saini, N. A.M. Naseem, Nur Syazwani Mazlan, Nisful Laila

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


This study examines the role of regime durability in moderating the economic growth-effect of FDI inflows in 67 developing countries over the 1984–2016 period. The results based on the generalized method-of-moments panel estimation technique reveal that countries with durable regime benefit more from FDI inflows. The empirical results are robust to two alternative indicators of regime durability and FDI. The finding is consistent with the growing view that FDI spillovers depends on the capacity of host countries to absorb and internalize new technology associated with FDI inflows. In this respect, policymakers should weigh the cost of policies aimed at attracting FDI versus those that seek to improve regime durability.

Original languageEnglish
Pages (from-to)435-446
Number of pages12
JournalInternational Journal of Economics and Management
Issue number3
Publication statusPublished - Dec 2020


  • Absorptive capacity
  • Economic growth
  • Foreign direct investment
  • Generalised method-of-moments
  • Regime durability


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