Work

Foreign direct investment, exports and economic growth: evidence from two panels of developing countries

Year: 2016

Type: article

Abstract: The purpose of this article is to examine the causal relationship between foreign direct investment (FDI), exports and economic growth in two panels of developing countries (eight European developing countries and eight Asian developing countries). Panel-VECM causality is employed for investigating a tri-variate model of FDI, exports and GDP. Causality results in the European developing panel indicate bidirectional causality between GDP and FDI, and unidirectional causality from GDP and FDI to exports in the short-run. The empirical results of the Asian developing panel indicate bidirectional causality between exports and economic growth in the short-run. Moreover, there is evidence of long-run causality from export and FDI to economic growth, and long-run causality from economic growth and export to FDI for both of the aforementioned panels.

Source: Economic Research-Ekonomska Istraživanja

DOI: 10.1080/1331677x.2016.1164922

Authors: Majid Mahmoodi, Elahe Mahmoodi

Institutions: Velayat University, Yazd University

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $944