The effects of FDI, ICT, green finance policies and financial development on economic growth: Evidence from the APEC

Abstract

In the current volatile global economic context, aspects surrounding economic growth have always received much attention from researchers. Because of the importance of FDI capital, financial development, the urgent situation of the environment, the strong development of the industrial revolution 4.0, and the need for development policies suitable to the current situation, we conduct research on the impact of foreign direct investment (FDI), information and communication technology (ICT), financial development and green finance policies on economic growth. The study was carried out using the OLS regression method with data from 20 countries and territories belonging to the Asia-Pacific Economic Forum (APEC) period 2000 - 2020. Empirical results find that Foreign Direct Investment (FDI) has a positive impact on economic growth, while the development of the information and communication technology (ICT) system has a negative effect. Besides, the impact of financial development on economic growth is studied based on two aspects: credits to private sector, and liquidity index of the financial system. As a result, credits to private sector (DPRICE) does not affect economic growth, while the financial liquidity index (LIQLIA) has a negative effect on economic growth. In addition, domestic financial development is not a catalyst for FDI to have an impact on economic growth in that country. And green financial policies have no impact on economic growth. The results have practical implications from which to make policy proposals for economic growth, environmental protection, and effective access to technology.