Foreign Direct Investment and Trade Openness in Sub-Saharan Economies: A Panel Data Granger Causality Analysis

2013 ◽  
Vol 82 (3) ◽  
pp. 402-421 ◽  
Author(s):  
Mebratu Seyoum ◽  
Renshui Wu ◽  
Jihong Lin
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Granger Causality ◽  
Direct Investment ◽  
Trade Openness ◽  
Causality Analysis ◽  
Granger Causality Analysis ◽  
Sub Saharan

scholarly journals Foreign Direct Investment, Exports, and Long-Run Economic Growth in Asia: Panel Cointegration and Causality Analysis

2015 ◽  
Vol 8 (1) ◽  
pp. 26 ◽  
Author(s):  
Seng Sothan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Panel Cointegration ◽  
Causality Analysis ◽  
Granger Causality Analysis ◽  
Long Run ◽  
Panel Granger Causality ◽  
Causal Impact

This paper examines the co-movement and causal impact of foreign direct investment (FDI) and exports on economic growth in 21 Asian countries over the period 1980 to 2013, using the panel cointegration and Granger causality analysis. Findings strongly confirm that there is a long-run steady-state relationship between FDI, exports, and GDP for the selected countries. Based on the panel Granger causality analysis, there is long-run bidirectional causality between FDI and GDP and between exports and GDP. This can be concluded that FDI and exports do have causal impact on long-run growth in the countries being investigated.

scholarly journals Foreign Direct Investment, External Debt, and Balance of Payment: A Causality Analysis for Bangladesh

2020 ◽  
Author(s):  
Muhammad Mahmud Mostafa
Keyword(s):  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Negative Impact ◽  
External Debt ◽  
Causality Analysis ◽  
Causality Test ◽  
Long Run ◽  
Significant Negative Impact ◽  
Short Run

The purpose of this study is to analyze the causal relationship of external debt and balance of payment with foreign direct investment (FDI) in Bangladesh for the period of 1980 to 2017 through the application of Johansen Cointegration technique, Vector Error Correction Model (VECM), and Granger Causality approach. Results of cointegration and VECM indicate a significant long-run relationship between dependent (FDI) and independent variables (external debt and balance of payment). External debt is found to have a significant negative impact on FDI in the long-run, but it is found insignificant in the short-run. In contrast, the balance of payment has a significant positive effect on FDI both in the long-run and short-run. Results of the Granger causality test reveal that there exists bidirectional short-run causality between the balance of payment and FDI; that is, both the balance of payment and FDI affect each other. But no unidirectional or bidirectional short-run causality is found between external debt and FDI. Keywords: FDI, external debt, balance of payment, cointegration, VECM, causality

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