دور أداء الأسواق المالية في تشجيع الاستثمار المحفظي الأجنبي في الدول النامية

Abstract EN

In the globalized economic system characterized by liberalized international economic participation, economic development strategy requires by developing countries is to take advantage of the benefits of international trade and investment by following policies that allow foreign direct and indirect (portfolio) investment flows.

The research aims to investigate the impact of financial market performance on foreign portfolio investment (FPI) in developing countries.

For this purpose, the panel data for the period 1996-2017 was used, to estimate the panel data linear regression models, in order to examine the impact of the financial market indicators represented by the number of companies listed in the stock market, the value of traded shares as a percent of GDP, market capitalization as a percent of GDP, and turnover ratio, on Portfolio investment flows rate in four developing countries: Argentina, Brazil, Mexico and Indonesia.

The results showed that there was a positive effect of market capitalization and turnover ratio indicators on portfolio investment, while the number of companies did not show a significant impact on portfolio investment flows.