Foreign direct investment and economic growth: The role of financial development

Nguyen, My-Linh Thi Article Foreign direct investment and economic growth: The role of financial development Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Nguyen, My-Linh Thi (2022) : Foreign direct investment and economic growth: The role of financial development, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 9, Iss. 1, pp. 1-15, https://doi.org/10.1080/23311975.2022.2127193 This Version is available at: https://hdl.handle.net/10419/289269 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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Published online: 27 Sep 2022. Submit your article to this journal Article views: 6366 View related articles View Crossmark data Citing articles: 9 View citing articles BANKING & FINANCE | RESEARCH ARTICLE Foreign direct investment and economic growth: The role of financial development My-Linh Thi Nguyen 1 * Abstract: This study was conducted with the aim of examining the role of financial development in the impact of foreign direct investment on economic growth. The interesting point of this study is expressed through the effort to determine the level of financial development to maximize the spillover effects of foreign direct investment on economic growth, whereby financial development is measured through the development of the banking sector and the stock market. The data were collected from 6 countries of the Association of Southeast Asian Nations (ASEAN-6) in the period 2002– 2019, including: Indonesia, Malaysia, Thailand, Singapore, the Philippines, and Vietnam. Regarding the method of analysis, this study uses threshold effects and system GMM to estimate research models. The estimation results show that there are threshold values of financial development through the banking sector (85.64%) and the stock market (21.95%). Furthermore, this study found a positive impact of foreign direct investment on economic growth in the regions before and after these threshold values. In particular, the positive impact of foreign direct investment on economic growth becomes stronger when financial development exceeds the defined threshold value. This result is found in the case where financial development is measured through both the banking sector and the stock market. Subjects: Mathematical Economics; Development Economics; Corporate Finance; Banking; Investment & Securities; Economics; International Economics; Finance My-Linh Thi Nguyen ABOUT THE AUTHOR My-Linh Thi Nguyen is an Associate Professor of the Faculty of Finance and Banking, University of Finance – Marketing (UFM), Vietnam. Her main areas of research are finance, public policy and the real estate market. With more than 18 years of research and teaching experience, she has published many prestigious international articles, and has been in charge of many research topics as well as projects in Vietnam. Furthermore, she is the author and co-author of numerous books on finance, public policy, and the real estate market. She also works as a reviewer for many journals of reputable publishers. In addition, she is a senior financial advisor at Cat Linh Real Estate Group. PUBLIC INTEREST STATEMENT In the context of increasing international economic integration, host countries are making every effort to attract foreign direct investment to stimulate economic growth. However, the spillover effects of foreign direct investment on economic growth depend significantly on the absorptive capacity as well as on the characteristics of the host country, whereby the characteristics of the level of financial development of countries can be mentioned. This study was conducted to highlight the role of financial development in spreading the impact of foreign direct investment on economic growth. The findings in this paper also show that the positive impact of foreign direct investment on economic growth is greater when financial development exceeds the threshold value determined. Accordingly, ASEAN-6 countries need to improve the level of financial development comprehensively in both the banking sector and the stock market in order to maximize the effectiveness of foreign direct investment for economic growth. Nguyen, Cogent Business & Management (2022), 9: 2127193 https://doi.org/10.1080/23311975.2022.2127193 Page 1 of 15 Received: 02 October 2021 Accepted: 17 September 2022 *Corresponding author: My-Linh Thi Nguyen, Faculty of Finance and Banking, University of Finance – Marketing (UFM), Ho Chi Minh City, Vietnam Email: [email protected] Reviewing editor: David McMillan, University of Stirling, Stirling, United Kingdom Additional information is available at the end of the article © 2022 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. Keywords: ASEAN-6; domestic credit; economic growth; foreign direct investment; market capitalization Subjects: F38; F43; G15 1. Introduction Foreign direct investment (FDI) is defined when an investor makes an investment of 10% or more voting shares in an enterprise operating in a country different from the investor’s country, where foreigners are identified by place of residence and not by nationality (IMF, 1993). In other words, FDI occurs when an investor invests resources in production and business activities outside their home country (Yavas & Malladi, 2020). The reality is that FDI plays an important role in many host countries, especially countries with capital and technology shortages. Moreover, FDI can be many times more effective than domestic investment in stimulating economic growth in the host country (Gregorio, 2005). The impact of FDI on economic growth can be explained through the neoclassical growth theory (Solow, 1956) and the endogenous growth theory (Romer, 1990). Accordingly, FDI is more efficient than domestic investment through promoting technological innovation and specialization in the production process in the host country, thereby stimulating economic growth in this country (Herzer et al., 2008). The impact of FDI on economic growth has also been found in many empirical studies in different economies and regions, for example: Caves (1996), Borensztein et al. (1998), Durham (2004), Ayanwale (2007), and Adegbite and Ayadi (2010), and Wong and Tang (2011), and Gui-Diby (2014). However, some studies reveal that this impact may be vague and insignificant (for instance, Akinlo, 2004; Ayanwale, 2007; Hanson, 2001; Herzer et al., 2008; Ibhagui, 2019). The reality shows that the impact of FDI on economic growth can significantly depend on the absorptive capacity as well as the conditions of the host country (Borensztein et al., 1998; Durham, 2004). To demonstrate this, a number of studies have attempted to identify favorable conditions that play a role in stimulating the spillover effects of FDI on economic growth. Accordingly, financial development in the host country is one of the important conditions to improve the absorptive capacity as well as stimulate the spillover effects of FDI on economic growth (Alfaro et al., 2004; Durham, 2004; Ibhagui, 2019). The important role of financial development in the impact of FDI on economic growth has been confirmed in many empirical studies (Alfaro et al., 2004; Blomstrom et al., 1992; Bluedorn et al., 2013; Kong et al., 2020; Makiela & Ouattara, 2018; Nair-Reichert & Weinhold, 2001). However, there are still many conflicting views in determining the level of financial development to maximize the spillover effects of FDI on economic growth. For example, Azman-Saini et al. (2010) argue that the positive impact of FDI on economic growth only appears after domestic credit exceeds the minimum threshold value of 49.7%. Meanwhile, others assume that financial development should not be too high; specifically, domestic credit should not exceed the maximum threshold value of 14.58% (Ibhagui, 2019) or 95.6% (Osei & Kim, 2020). This shows that the appropriate level of financial development to maximize the spillover effects of FDI on economic growth is still a question that has not been satisfactorily answered in previous studies. This fact indicates that the role of financial development in the impact of FDI on economic growth can vary depending on the characteristics of each data sample. Therefore, it is essential to provide empirical evidence on this issue in different economies and regions to supplement the existing literature. On the other hand, previous studies often encountered great limitations when they only focused on identifying financial development through domestic credit, i.e. financial development through the banking sector, without paying much attention to financial development through the size of the stock market. Nowadays, together with the banking sector, the stock market in many countries has affirmed its important role in supplying capital as well as creating a favorable investment environment for the private sector. Overall, financial development will be viewed more comprehensively if it is determined through the development of the banking sector and the stock market. Nguyen, Cogent Business & Management (2022), 9: 2127193 https://doi.org/10.1080/23311975.2022.2127193 Page 2 of 15 Although there are still many conflicting views in previous studies on the impact of FDI on economic growth, the governments of many countries are still making efforts to attract FDI. This is because they believe that FDI will bring significant benefits through stimulating economic growth. This is quite evident in the ASEAN countries. Accordingly, these countries presume that FDI is more stable than domestic investment flows, which will bring high efficiency for the economy, even in the period of economic difficulties. This stability was clearly demonstrated when the ASEAN countries had a financial crisis in the period 1997–1998 (Diaconu, 2014). Nevertheless, there is still a lack of empirical studies examining the role of financial development in the impact of FDI on economic growth in the context of the ASEAN countries. This has created many difficulties for the governments of these countries in making appropriate policies to stimulate the positive impact of FDI on economic growth. Therefore, it is essential for the ASEAN countries to provide empirical evidence on the role of financial development in the impact of FDI on economic growth. Accordingly, these countries will have a reliable basis to determine the appropriate level of financial development to maximize the spillover effects of FDI on economic growth. In this study, the author fills the gap in previous studies by providing empirical evidence on the role of financial development in the impact of FDI on economic growth. In particular, financial development is measured through the development of the banking sector and the stock market, which is expected by the author to bring more interesting findings than previous studies. In addition, the data sample used in this study includes ASEAN-6 countries (Indonesia, Malaysia, Thailand, Singapore, the Philippines, and Vietnam) with many similarities; thus, the reliability of the estimation results is guaranteed. This study is structured as follows: part 2 presents an overview of previous studies and hypothesis development, part 3 describes the estimation method and data, part 4 focuses on empirical analysis, and the last part is conclusions and policy implications. 2. Literature review and hypothesis development 2.1. The impact of foreign direct investment on economic growth The impact of FDI on economic growth can be explained through the neoclassical growth theory and the endogenous growth theory. According to the neoclassical growth theory, economic growth depends on capital, labor and technology (Solow, 1956). In addition to capital and labor, this theory emphasizes the role of exogenous technology towards economic growth. It can be seen that the neoclassical growth theory is an important foundation to explain the impact of FDI on economic growth. However, the neoclassical growth theory is limited because it does not explain the spillover effects of FDI on economic growth in the host country. To overcome this limitation, the endogenous growth theory is developed to better explain the spillover effects of FDI in the host country, thereby stimulating economic growth in the host country (Romer, 1990). Accordingly, FDI promotes the host country to receive technology transfer from countries with advanced technology. This contributes to the improvement in technological progress in the host country. Simultaneously, the host country has favorable conditions to specialize in production and develop advantageous products at a lower cost compared to other countries. In the endogenous growth theory, FDI is estimated to be more effective than domestic investment in stimulating economic growth in the host country (Herzer et al., 2008). Different from the neoclassical growth theory, the endogenous growth theory emphasizes the role of governmental policies towards economic growth. The above problems show that the neoclassical growth theory and the endogenous growth theory have provided a relatively complete theoretical framework to explain the impact of FDI on economic growth. It can be seen that investment capital is an important resource to improve economic growth in any country (Adegbite & Ayadi, 2010). In the context of limited domestic investment capital, many countries have made efforts to attract FDI because these countries believe that FDI is a stable and necessary source of capital to enable them to effectively supplement the shortfall (Noorzoy, 1979). Nguyen, Cogent Business & Management (2022), 9: 2127193 https://doi.org/10.1080/23311975.2022.2127193 Page 3 of 15 More importantly, FDI also helps these countries improve technology and increase employment (Gui-Diby, 2014). Therefore, a significant number of empirical studies have found the positive impact of FDI on economic growth in different economies and regions, such as: Caves (1996), Borensztein et al. (1998), Durham (2004), Ayanwale (2007), and Adegbite and Ayadi (2010), and Wong and Tang (2011), and Miao et al. (2021). Furthermore, the degree of the positive impact of FDI on economic growth also depends significantly on the homogeneity as well as the characteristics of the countries in the sample. To illustrate this, Blomstrom et al. (1992) emphasized that the positive impact of FDI on economic growth in high-income countries is often more evident than in lower-income countries. Although the positive impact of FDI on economic growth has been found in most of the previous studies, some views have suggested that FDI can have a negative impact on economic growth. Accordingly, when FDI increases excessively and is not used efficiently, it can be detrimental to the host country, thereby hindering economic growth. This result has been reported in the studies of Gorg and Greenaway (2004), Sumner (2005), and Gui-Diby (2014). In particular, Gui-Diby (2014) found the negative impact of FDI on economic growth in 50 African countries in the period 1980– 1994, but this impact turned positive in the period 1995–2009. Other views argue that the impact of FDI on economic growth can become vague and insignificant, such as Hanson (2001), Akinlo (2004), Ayanwale (2007), and Herzer et al. (2008), and Ibhagui (2019). This may exist if the host country fails to ensure certain conditions to absorb and create the spillover effects of FDI on economic growth (Ibhagui, 2019). In particular, there have been many cases where foreign investors buy the assets of domestic investors who are limited in liquidity, but foreign investors do not have technological strengths or special know-how, which may not create the positive spillover effects of FDI on economic growth (Blomstrom & Kokko, 2003). Therefore, FDI only creates the significant spillover effects on economic growth in the host country if foreign investors really have technological strengths or special know-how. In reality, the impact of FDI on economic growth depends significantly on the absorptive capacity as well as the conditions of the host country (Borensztein et al., 1998; Durham, 2004). This means that favorable domestic conditions can improve the host country’s absorptive capacity of FDI; thereby, the spillover effects of FDI will be highly effective. In other words, the absorptive capacity of the host country will improve the positive impact of FDI on economic growth. One of the reasons that has been used by previous studies to explain this is that FDI not only provides capital, but also helps the host country gain access to advanced technology. Therefore, if the host country does not guarantee the conditions to absorb FDI effectively, it is difficult to stimulate economic growth. To clarify this point of view, a number of studies have attempted to identify favorable conditions that play a role in stimulating the spillover effects of FDI on economic growth. Accordingly, financial development in the host country is one of the important conditions to improve the spillover effects of FDI on economic growth (Alfaro et al., 2004; Durham, 2004; Ibhagui, 2019). Indeed, financial development is an essential support resource for the private sector, contributing to improving the efficiency of FDI attraction and use in the host country, thereby promoting economic growth in the host country. In addition to financial development, economic growth in the host country depends on a number of other factors. For example, population growth, especially the increase in good quality human resources, will be a necessary condition for the process of technology transfer in the host country to be highly effective, thereby promoting economic growth (Adegbite & Ayadi, 2010; Borensztein et al., 1998; Ibhagui, 2019). Furthermore, the domestic macroeconomy is also a factor that foreign investors are interested in (Adegbite & Ayadi, 2010; Ibhagui, 2019). This is because the stability of the domestic macroeconomy shows a favorable investment environment as well as the ability to bring high efficiency to investors, thereby increasing the benefits for the host country. In addition, government policies also have a significant impact on economic growth (Hayakawa et al., 2013). Indeed, government policies can have a positive impact on economic growth through promoting domestic consumption, facilitating and stimulating private sector investment (Grossman, 1990; Ram, 1986). Nguyen, Cogent Business & Management (2022), 9: 2127193 https://doi.org/10.1080/23311975.2022.2127193 Page 4 of 15 Overall, the impact of FDI on economic growth is an interesting research topic and has been mentioned in many empirical studies in different countries. In particular, many studies have concluded that the impact of FDI on economic growth depends significantly on the absorption level as well as the conditions of the host country. It can be seen that one of the important conditions to improve the absorptive capacity as well as the spillover effects of FDI on economic growth is the level of financial development in the host country. In addition, economic growth depends on a number of other factors such as: population growth, macroeconomy, and government policies. 2.2. The role of financial development in the impact of foreign direct investment on economic growth Financial development focuses mainly on the improvement in the size of the banking sector and the stock market in comparison with the economy (Bencivenga & Smith, 1998; Greenwood & Jovanovic, 1990). Therefore, financial development is usually determined through the ratio of domestic credit to private sector (Choi & Park, 2017; Fisman & Love, 2003; Lim, 2018; Osei & Kim, 2020) and market capitalization (Choi & Park, 2017; Fisman & Love, 2003). Financial development can promote economic growth through financing investment and production (Schumpeter, 1911). Moreover, financial development also plays an important role in stimulating the spillover effects of FDI on economic growth. Indeed, the improvement in the financial development of the host country shows that this country is improving their ability to provide high-quality financial services at a low cost, which will help foreign investors save time and costs when accessing and using these financial services (Pradhan et al., 2014). Thanks to the financial development of the host country, FDI enterprises can access a necessary amount of capital to expand production and business (Desbordes & Wei, 2017); accordingly, these enterprises can maintain and develop projects that they may have abandoned due to lack of capital (Giovanni, 2005). In addition, financial development also helps FDI enterprises improve investment efficiency, monitor investments, and even improve investment efficiency through the improvement in risk management capacity for these enterprises (Bertocco, 2008). Overall, financial development can make the process of technology spillover to domestic enterprises more efficient (Hermes & Lensink, 2003). In other words, the impact of FDI on economic growth depends significantly on the level of financial development of the host country (Osei & Kim, 2020). This implies that the host country with the good level of financial development will be an important prerequisite for FDI to have a positive impact on economic growth (Alfaro et al., 2004; Azman-Saini et al., 2010; Borensztein et al., 1998; Xu, 2000). This claim has been found in several empirical studies. For example, Alfaro et al. (2004) suggested that the development of the financial market in the host country has an important contribution to stimulating the impact of FDI on economic growth, and this result is found based on the analysis of the data sample including both OECD countries and non-OECD countries. Meanwhile, some views argue that the impact of FDI on economic growth becomes significant when financial development exceeds the minimum threshold. From this viewpoint, Azman-Saini et al. (2010) concluded that the positive impact of FDI on economic growth in 91 countries was only found after domestic credit exceeded the threshold of 49.7%. In contrast, some views state that the impact of FDI on economic growth becomes insignificant when the host country promotes financial development on a large scale but inefficiently. This means that the financial sector only needs to develop on a small scale but with high efficiency, which can stimulate the positive impact of FDI on economic growth. The studies of Ibhagui (2019), Osei and Kim (2020) share the same view. Accordingly, Ibhagui (2019) shows that the response of economic growth to the increase in FDI in 45 countries of the Sub-Saharan African region depends on important economic catalysts, especially the level of financial development in the host country. This study has confirmed that the threshold value of domestic credit is 14.58%. Specifically, if Nguyen, Cogent Business & Management (2022), 9: 2127193 https://doi.org/10.1080/23311975.2022.2127193 Page 5 of 15 domestic credit is below this threshold value, the impact of FDI on economic growth is positive. However, the impact of FDI on economic growth turns negative and insignificant when domestic credit exceeds the threshold value of 14.58%. Sharing the same view, Osei and Kim (2020) reveal that the impact of FDI on economic growth in 62 middle-income and high-income countries becomes insignificant when domestic credit exceeds the threshold value of 95.6%. This implies that credit expansion can lead to credit bubbles or financial depression, destabilizing and hindering economic growth. In summary, the impact of FDI on economic growth can depend significantly on the level of financial development in the host country. However, there are still many conflicting views in determining the level of financial development to maximize the spillover effects of FDI on economic growth. Indeed, Azman-Saini et al. (2010) asserted that the positive impact of FDI on economic growth was only found after domestic credit exceeded the threshold of 49.7%. From a different viewpoint, Ibhagui (2019) advocates that the positive impact of FDI on economic growth only exists when domestic credit is below the threshold value of 14.58%. Meanwhile, Osei and Kim (2020) conclude that the positive impact of FDI on economic growth becomes significant when domestic credit is below the threshold value of 95.6%. In addition, the existing literature faces a major limitation when it only focuses on defining financial development through domestic credit, but has not paid much attention to financial development through the size of the stock market. Therefore, the creation of empirical evidence to determine the role of financial development in the impact of FDI on economic growth is a research topic with many gaps to be explored. Furthermore, this research topic will become more interesting if financial development is comprehensively defined through the development of the banking sector and the stock market. 2.3. Hypothesis development In this study, the author focuses on determining the role of financial development in the impact of FDI on economic growth in ASEAN-6 countries. Based on the ideas of Azman-Saini et al. (2010), Ibhagui (2019), and Osei and Kim (2020), there may be a threshold value of financial development, and before and after this threshold value, the impact of FDI on economic growth may vary. Moreover, statistically, the research model can have more than one threshold value of financial development (Hansen, 1999; Wang, 2015). Financial development is measured by the author through domestic credit and market capitalization. Thus, the author proposes the following research hypotheses: Hypothesis H 1a : One or more threshold values for domestic credit exist. Accordingly, the impact of FDI on economic growth may change when domestic credit exceeds these thresholds. Hypothesis H 1b : One or more threshold values for market capitalization exist. Accordingly, the impact of FDI on economic growth may change when market capitalization exceeds these thresholds. Not only stopping at estimating the threshold values of financial development, the author also considers the change in the level of impact of FDI on economic growth when financial development exceeds the threshold value that has been determined. The fact shows that financial development plays an important role in stimulating the spillover effects of FDI on economic growth. In other words, financial development contributes to stimulating the positive impact of FDI on economic growth, which is consistent with the previous statements of Azman-Saini et al. (2010), Ibhagui (2019), and Osei and Kim (2020). In ASEAN-6 countries, the level of financial development is still limited in comparison with developed countries in the world, especially in comparison with developed countries with a long history of financial development. Therefore, the improvement in the level of financial development in ASEAN-6 countries will play an important role in supporting as well as enhancing the spillover effects of FDI on economic growth. In other words, Nguyen, Cogent Business & Management (2022), 9: 2127193 https://doi.org/10.1080/23311975.2022.2127193 Page 6 of 15 the improvement in the level of financial development in ASEAN-6 countries will stimulate the positive impact of FDI on economic growth, and this impact may become more significant when financial development exceeds a certain threshold value. Therefore, the author proposes the following research hypotheses: Hypothesis H 2a : Before the threshold value of domestic credit, FDI has a positive impact on economic growth. Hypothesis H 3a : The impact of FDI on economic growth may increase when domestic credit exceeds defined threshold values. Hypothesis H 2b : Before the threshold value of market capitalization, FDI has a positive impact on economic growth. Hypothesis H 3b : The impact of FDI on economic growth may increase when market capitalization exceeds defined threshold values. 3. Estimation method and data 3.1. Estimation method According to Azman-Saini et al. (2010), Ibhagui (2019), and Osei and Kim (2020), there may be a threshold value (λ) of financial development, where the impact of FDI on economic growth may change when financial development exceeds this threshold. Based on this, the author builds a research model on the impact of FDI on economic growth as follows: EGit¼αþβ1FDIitIðFDit �λÞþβ2FDIitIðFDit>λÞþδCVitþεit (1) In model (1), EG is economic growth, measured through the natural logarithm of GDP per capita, which is consistent with the previous views of Ibhagui (2019), Osei and Kim (2020). FDI is measured through the net inflows of foreign direct investment (% of GDP), which are investment flows that bring direct and lasting benefits for the host country. This measure has been used in most of the previous studies, such as: Alfaro et al. (2004), Ibhagui (2019), and Osei and Kim (2020). Financial development (FD) is determined through domestic credit (FD_1) and market capitalization (FD_2). Accordingly, FD_1 is domestic credit to private sector (% of GDP), FD_2 is market capitalization of listed domestic companies (% of GDP). By using this measure, the author expects FD to be considered more comprehensively in comparison with previous studies. Indeed, FD_1 has been used in most of the previous studies, such as: Alfaro et al. (2004), Ibhagui (2019), and Osei and Kim (2020). However, almost no studies have examined the role of FD_2 when analyzing the impact of FDI on economic growth. Meanwhile, FD_1 and FD_2 are two important components representing financial development in each country (Bencivenga & Smith, 1998; Choi & Park, 2017; Fisman & Love, 2003; Greenwood & Jovanovic, 1990). The important component in model (1) is the threshold value λ of financial development; this threshold value can be determined corresponding with two indicators representing financial development, namely credit domestic market (λ a ) and market capitalization (λ b ). I(.) is an indicator function of financial development. CV is a set of control variables used in the research model, including: government expenditure (GE), population growth (PG), and inflation (INF). Accordingly, GE is general government final consumption expenditure (% of GDP); this variable is included in the research model based on the endogenous Nguyen, Cogent Business & Management (2022), 9: 2127193 https://doi.org/10.1080/23311975.2022.2127193 Page 7 of 15 IMF Working Paper WP/13/183, International Monetary Fund. https://www.imf.org/external/pubs/ ft/wp/2013/wp13183.pdf Borensztein, E., Gregorio, D. J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth? 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Foreign direct investment and financial markets influences: Results from the United States. North American Journal of Economics and Finance, 53, 101182. https://doi.org/10.1016/j.najef. 2020.101182 © 2022 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. You are free to: Share — copy and redistribute the material in any medium or format. Adapt — remix, transform, and build upon the material for any purpose, even commercially. The licensor cannot revoke these freedoms as long as you follow the license terms. Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. No additional restrictions You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits. 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