Open Access Article Economics Digital Economy

Sustainable Practice of Ifrs And Economic Growth: Evidence From A Case Study on A Developing Country

Authors

Sarfaraz Javed(1), Sajjad Nazir(2), Ghulam Mustafa Malik(3), Azeem Ahmad Khan(4), Syed Jalil(5)

  1. Department of accounting and finance, Sohar University, Oman
  2. Department of Management, Faculty of Business, Sohar University
  3. Department of Business Management, Nizwa university
  4. Department of Accounting, Faculty of Business Administration, Al-Baha University
  5. Department of Management, Faculty of Business, Sohar University

https://doi.org/10.36923/iefrontiers.v27i2.242

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Abstract

This research aims to investigate whether there is a link between the adoption of International Financial Reporting Standards (IFRS) and the benefits of Foreign Direct Investment (FDI), both of which were significant contributors to Afghanistan's economic growth between 2003 and 2020. This study uses panel integration and causality assessment. It looks into the underlying causes of the problem in terms of short- and long-term partnerships, as well as diversity. The findings of this study support the existence of a positive and significant relationship between the adoption of IFRS and the flow of FDI, as well as the correlation between them. Furthermore, the examination of causes shows that IFRS-related FDI is both a short-term source of EG and a long-term cause of diversification. The analysis of causes demonstrates this. This study investigates Afghanistan and expands on the relationship between IFRS acquisition and FDI income. This research could help developing countries that use IFRS and those that do not use IFRS identify the financial implications of IFRS practices and boost economic growth.

Article information

Keywords
Foreign Direct InvestmentInternational Financial Reporting StandardsEconomics growthComparabilityQualityTransparencyOpportunity and risk
Section
Articles
Issue
Vol. 27 No. 2 (2024)
Submitted
February 5, 2024
Published
June 30, 2024
Corresponding author
Sarfaraz Javed
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How to Cite

Javed, S., Nazir, S., Malik, G. M., Khan, A. A., & Jalil, S. (2024). Sustainable Practice of Ifrs And Economic Growth: Evidence From A Case Study on A Developing Country. Innovation Economics Frontiers, 27(2), 57-70. https://doi.org/10.36923/iefrontiers.v27i2.242

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