Foreign direct investment, anti-money laundering regulations and economic growth

Isaac Ofoeda; Elikplimi Komla Agbloyor; Joshua Yindenaba Abor; Kofi Osei Achampong

doi:10.1002/jid.3582

Foreign direct investment, anti-money laundering regulations and economic growth

Isaac Ofoeda
, Elikplimi Komla Agbloyor
, Joshua Yindenaba Abor
, Kofi Osei Achampong

University of Professional Studies, Accra
University of Ghana Business School

Research output: Contribution to journal › Article › peer-review

16 Citations (Scopus)

Abstract

This study seeks to establish the impact of anti-money laundering (AML) regulations on economic growth as well as how AML regulations influence the foreign direct investment (FDI)–growth nexus for 165 economies across the globe. We employ Prais–Winsten and the Hansen (2000) panel threshold regression estimation techniques to test the hypotheses of the study. We use data ranging from 2012 to 2018. We provide evidence that AML regulations generally stimulate growth; however, AML regulations only stimulate growth below the threshold value. Again, although we report that FDI stimulates growth, the growth-enhancing impact of FDI is more pronounced at higher levels of AML regulations.

Original language	English
Pages (from-to)	670-692
Number of pages	23
Journal	Journal of International Development
Volume	34
Issue number	3
DOIs	https://doi.org/10.1002/jid.3582
Publication status	Published - Apr 2022
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities

Keywords

anti-money laundering regulations
economic growth
foreign direct investment
threshold analysis

Access to Document

10.1002/jid.3582

Cite this

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title = "Foreign direct investment, anti-money laundering regulations and economic growth",

abstract = "This study seeks to establish the impact of anti-money laundering (AML) regulations on economic growth as well as how AML regulations influence the foreign direct investment (FDI)–growth nexus for 165 economies across the globe. We employ Prais–Winsten and the Hansen (2000) panel threshold regression estimation techniques to test the hypotheses of the study. We use data ranging from 2012 to 2018. We provide evidence that AML regulations generally stimulate growth; however, AML regulations only stimulate growth below the threshold value. Again, although we report that FDI stimulates growth, the growth-enhancing impact of FDI is more pronounced at higher levels of AML regulations.",

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author = "Isaac Ofoeda and Agbloyor, \{Elikplimi Komla\} and Abor, \{Joshua Yindenaba\} and Achampong, \{Kofi Osei\}",

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doi = "10.1002/jid.3582",

language = "English",

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T1 - Foreign direct investment, anti-money laundering regulations and economic growth

AU - Ofoeda, Isaac

AU - Agbloyor, Elikplimi Komla

AU - Abor, Joshua Yindenaba

AU - Achampong, Kofi Osei

PY - 2022/4

Y1 - 2022/4

N2 - This study seeks to establish the impact of anti-money laundering (AML) regulations on economic growth as well as how AML regulations influence the foreign direct investment (FDI)–growth nexus for 165 economies across the globe. We employ Prais–Winsten and the Hansen (2000) panel threshold regression estimation techniques to test the hypotheses of the study. We use data ranging from 2012 to 2018. We provide evidence that AML regulations generally stimulate growth; however, AML regulations only stimulate growth below the threshold value. Again, although we report that FDI stimulates growth, the growth-enhancing impact of FDI is more pronounced at higher levels of AML regulations.

AB - This study seeks to establish the impact of anti-money laundering (AML) regulations on economic growth as well as how AML regulations influence the foreign direct investment (FDI)–growth nexus for 165 economies across the globe. We employ Prais–Winsten and the Hansen (2000) panel threshold regression estimation techniques to test the hypotheses of the study. We use data ranging from 2012 to 2018. We provide evidence that AML regulations generally stimulate growth; however, AML regulations only stimulate growth below the threshold value. Again, although we report that FDI stimulates growth, the growth-enhancing impact of FDI is more pronounced at higher levels of AML regulations.

KW - anti-money laundering regulations

KW - economic growth

KW - foreign direct investment

KW - threshold analysis

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DO - 10.1002/jid.3582

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JO - Journal of International Development

JF - Journal of International Development

IS - 3

ER -

Foreign direct investment, anti-money laundering regulations and economic growth

Abstract

UN SDGs

Keywords

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