Effect of Foreign Direct Investment on Stock Market Performance in USA

DOI

10.2991/aebmr.k.210803.041How to use a DOI?

Keywords

Foreign direct investment, Stock market performance, The monopolistic advantage theory, Neoclassical factor mobility theory

Abstract

Stock markets play a critical role in the economy, more so enhancing the economic growth and increasing prosperity of the citizens. The performance of the stock market is influenced by many factors, with foreign direct investment being one of them. Over between 2015 and 2020, FDI (foreign direct investments) fell consistently in the USA, but this was not accompanied by a decline in the stock market performance. In the earlier years, however, the two variables seem to commove. Thus, there is no clear relationship between these two variables. This is the relationship this study sought to find out. The main finding of the paper is that the coefficients of FDI are positive and statistically significant. An increase of FDI by one percent leads to a decrease in stock market index by 0.06 percent.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Xiqian Wang
PY  - 2021
DA  - 2021/08/04
TI  - Effect of Foreign Direct Investment on Stock Market Performance in USA
BT  - Proceedings of the  1st International Symposium on Innovative Management and Economics (ISIME 2021)
PB  - Atlantis Press
SP  - 304
EP  - 311
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210803.041
DO  - 10.2991/aebmr.k.210803.041
ID  - Wang2021
ER  -