Causality nexus of exports, FDI and economic growth of the ASEAN5 economies: evidence from panel data analysis

Ahmad, Fayyaz; Draz, Muhammad Umar; Yang, Shijian

doi:10.1080/09638199.2018.1426035

Cited by 71 publications

(40 citation statements)

References 52 publications

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“…However, more efforts are required to enhance the tax collection and technological spillovers from multinationals. Analyzing the FDI, growth, and exports association, Ahmad et al [35] found the bidirectional causal link between FDI and economic growth for ASEAN countries. Investigating the impact of FDI on poverty reduction in ASEAN, Uttama [36] found that FDI is conducive to poverty reduction and the effect of different variables varies in both individual and spatial aspects.…”

Section: Empirical Link Between Fdi and Poverty Reductionmentioning

confidence: 99%

Impact of FDI Inflows on Poverty Reduction in the ASEAN and SAARC Economies

Ahmad

Draz

et al. 2019

Sustainability

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The aim of this paper is to reinvestigate the impact of foreign direct investment (FDI) inflows on welfare or poverty reduction in the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC) economies. We used FDI net inflows per capita and the United Nations Development Program’s Human Development Index (HDI) as the principal variables ranging from 1990 to 2014. Our analyses confirm the positive and strongly significant relationship between FDI net inflows and poverty reduction in Asia. However, it indicates significant differences between South Asia and Southeast Asia. Generally, we find that FDI has a greater impact on welfare in SAARC countries than in ASEAN countries. Our results hold true for both HDI and real gross domestic product (GDP), and are shown to be robust using both panel and pool model specifications.

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Section: Empirical Link Between Fdi and Poverty Reductionmentioning

confidence: 99%

Impact of FDI Inflows on Poverty Reduction in the ASEAN and SAARC Economies

Ahmad

Draz

et al. 2019

Sustainability

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“…However, Gunby et al () suggested that FDI‐linked productivity spillovers are not significantly associated with Chinese economic growth. Analysing the FDI, growth, and exports association, Ahmad et al () found a bi‐directional causal link between FDI and economic growth for ASEAN countries.…”

Section: Literature Reviewmentioning

confidence: 99%

China's economic development: does exchange rate and FDI nexus matter?

Ahmad

Draz

Yang

2019

Asian-Pac Economic Lit

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This study aims to investigate the relationship between China's exchange rate, foreign direct investment (FDI) inflows, and economic development. We applied the bound testing approach on aggregate level data from 1981 to 2013. The results showed that the Chinese economy benefitted from a lower exchange rate over this period, and that there was a direct link between FDI inflows and economic development on an aggregate level both in the long and short run. The results of the Granger causality test identified a long‐ and short‐run association among these variables. The GMM estimations with dummies for financial crises and RMB exchange rate policy fluctuations also confirmed the growth enhancing impact of the exchange rate and FDI inflows. To promote sustainable economic development in the future, China should focus on improving the levels of domestic investment and human capital, as well as supervising the level of openness and capital controls.

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“…The empirical findings prove the strong causality (uni-directional) running from FDI to GDP in the long-run, while in the short-run, no causality found between FDI and economic growth of Cambodia. Ahmad, Draz, and Yang (2018) examine the causality between FDI, exports and economic growth for ASEAN5 (Indonesia, Malaysia, the Philippines, Singapore and Thailand) economies. They use Johansen cointegration and Granger causality for the period of the analysis of 1981-2013.…”

Section: Empirical Literaturementioning

confidence: 99%

The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach

Sultanuzzaman

Fan

Akash³

et al. 2018

Cogent Economics & Finance

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This paper examines the long-run and short-run relationship between Foreign Direct Investment (FDI) inflows, exports, and economic growth in Sri Lanka over 1980-2016. The study implies Autoregressive Distributed Lag (ARDL) bounds testing approach to reveal the relationship between the variables. The study indicates that FDI inflows have a positive and significant relationship with economic growth in the long-run and short run. If FDI inflows increase, GDP growth will increase. But for exports, it has a negative and significant relationship with economic growth in the long-run. If exports increase, the GDP growth will decrease. Sri Lankan exports strongly depend on primary goods. There is a risk of finite resources and price volatility. It's not surprising for developing economy like Sri Lanka. Also, in the short run, exports have a positive and significant relationship with economic growth. If exports increase, GDP growth will increase significantly. The findings suggest that both FDI inflows and exports influence economic progress in Sri Lanka. Based on emerging market economies, FDI inflows are useful in improving the production process in the host country, and hereafter it will contribute to quality exports and the economic growth of Sri Lanka. Policymakers should emphasize to gear up all the barriers for the economic development of Sri Lanka.

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Causality nexus of exports, FDI and economic growth of the ASEAN5 economies: evidence from panel data analysis

Cited by 71 publications

References 52 publications

Impact of FDI Inflows on Poverty Reduction in the ASEAN and SAARC Economies

Impact of FDI Inflows on Poverty Reduction in the ASEAN and SAARC Economies

China's economic development: does exchange rate and FDI nexus matter?

The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach

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