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Financial Innovation

Table 17 Foreign capital inflows (fc1 = pc1 = comp1), of which portfolio registers the highest eigenvector of 0.6796, interacts with financial development

From: The interaction effect of foreign capital inflows and financial development on economic welfare in sub-Saharan Africa

 

Domestic credit

Money supply

level

lag

level

lag

Partial direct effect of FCF1

−.3456396

–

.7379674

.8461276

Interactive effect of FCF1 and financial development

.0716798

–

.1687956

.1969856

Partial indirect effect of FCF1 conditional on the mean of financial development

.0716798 × 2.725 = 0.195327455

–

.1687956 × 3.371 = 0.5690099676

.1969856 × 3.371 = 0.6640384576

  1. ∂HEWEi, t/∂FCF1i, t = βc1 + (ρc1 x mean of FDi, t; Mean of Domestic Credit = 2.725; mean of Money Supply = 3.371. Values are significant at 5% level
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