Purpose

This paper aims to examine and compare the impact of foreign direct investment (FDI) inflows on bank deposits in aggregate as well as at the level of conventional and Islamic banks in Middle East and North Africa (MENA) countries. The study also tests hypotheses of direct and indirect impacts of FDI flow and FDI stock on bank deposits.

Design/methodology/approach

Static and dynamic panel generalized methods of moments (GMM) estimation techniques are applied to analyze a large data set of 491 commercial banks (422 conventional banks and 69 Islamic banks) across 18 MENA countries between 1993 and 2017 (12,275 year observations).

Findings

Empirical results indicate that inflowing FDI flow and FDI stock have a significant negative direct impact on deposits of MENA banks. The results lend support for the direct channel hypothesis for the effect of FDI on bank deposits and find no evidence in support of the indirect channel hypothesis. FDI inflows affect bank deposits directly via increased FDI-related excessive competition in the banking market. Deposits from conventional banks appear to be more affected than those from Islamic banks. The variation may due to the fact that Islamic banks have fewer multinational corporations (MNC) customers than conventional banks and therefore are less sensitive to fluctuations in FDI.

Practical implications

From this analysis, this study concludes that foreign investments have a higher productivity than local investments in MENA region. Attracting more FDI is aimed at increasing overall national productivity through competition. However, governments would be wise to enact such a policy to maximize benefits and minimize potential harm to local industry. Furthermore, FDI policy should encourage small to medium-size banks and firms (SMEs)’ participation and linkage with multinational banks and MNCs, while upgrading research and development institutions and innovation activities to help SMEs to benefit from potential spillovers from foreign presence in the industry. In addition, the linkage and connection between SMEs and foreign firms should be strengthened and promoted by government policy.

Originality/value

This study is the first of its kind to examine the effect of FDI inflows on bank deposits. It also provides an in-depth quantitative analysis of the impact of FDI flow and FDI stock, separately, on bank deposits for both conventional and Islamic banks. It distinguishes between direct and indirect channels through which FDI inflows may affect bank deposits. The study analyzes 25 years of panel data for 491 banks (12,275 year observations) and uses both static and dynamic panel GMM estimation techniques to analyze the data.

中文翻译：

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外国直接投资流入和银行存款：来自18个中东和北非经济体的证据

目的

本文旨在研究和比较外国直接投资（FDI）流入对总体银行存款以及中东和北非（MENA）国家的传统银行和伊斯兰银行的影响。该研究还检验了外国直接投资流量和外国直接投资存量对银行存款的直接和间接影响的假设。

设计/方法/方法

静态和动态面板广义矩量法（GMM）估计技术用于分析1993年至2017年间横跨18个中东和北非国家的491家商业银行（422家传统银行和69家伊斯兰银行）的大型数据集（年观测12,275年）。

发现

实证结果表明，流入的外国直接投资流量和外国直接投资存量对中东和北非银行的存款有重大的负面直接影响。结果为外国直接投资对银行存款的影响的直接渠道假设提供了支持，并且没有证据支持间接渠道假设。外国直接投资流入通过与外国直接投资有关的银行市场过度竞争而直接影响银行存款。传统银行的存款似乎比伊斯兰银行的存款受到的影响更大。这种变化可能是由于以下事实：伊斯兰银行比传统银行拥有更少的跨国公司（MNC）客户，因此对外国直接投资的波动较不敏感。

实际影响

根据这一分析，本研究得出的结论是，与中东和北非地区的本地投资相比，外国投资的生产率更高。吸引更多的外国直接投资旨在通过竞争来提高国民的整体生产率。但是，明智的做法是政府制定这样的政策，以最大程度地提高收益，并最大程度地减少对当地工业的潜在危害。此外，外国直接投资政策应鼓励中小型银行和公司（SME）参与并与跨国银行和跨国公司建立联系，同时升级研发机构和创新活动，以帮助SME受益于该行业外国势力的潜在溢出效应。此外，应通过政府政策加强和促进中小企业与外国公司之间的联系和联系。

创意/价值

这项研究是第一个研究外国直接投资流入对银行存款的影响的研究。它还分别对传统银行和伊斯兰银行的外国直接投资流量和外国直接投资存量对银行存款的影响进行了深入的定量分析。它区分了外国直接投资流入可能影响银行存款的直接和间接渠道。这项研究分析了491家银行25年的面板数据（12,275年的观察值），并使用了静态和动态面板GMM估计技术来分析数据。