Foreign direct investment and economic growth: some evidence from across the world

Ghatak, Anita; Halıcıoğlu, Ferda

doi:10.1504/gber.2007.015101

Cited by 12 publications

(9 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For instance, Cuadros, Orts and Alguacil (2004), who used a trivariate vector autoregressive regression (VAR) model, found evidence of the FLGH in Mexico and Argentina but not in Brazil. Other findings that corroborate the FLGH can be found in Basu, Chakraborty and Reagle (2003), Hermes and Lensink (2003), Makki and Somwaru (2004), Li and Liu (2005), Lensink and Morrissey (2006), Ghatak and Halicioglu (2007), Batten and Vo (2009), and Alfaro, Areendam, Sebnem and Selin (2010). The cross-sectional study by Makki and Somwaru (2004), who used the three stage least squares (TSLS) estimation method, found a strong, positive interaction between FDI and trade, which in turn encouraged economic growth.…”

Section: Literature Reviewmentioning

confidence: 52%

Are Merchandise Exports and FDI Inflows an Engine of Growth for ASEAN-10 Countries? New Evidence Using the Pooled Mean Group Estimation Method

Goh¹,

Wong²,

Yew³

2018

Margin: The Journal of Applied Economic Research

View full text Add to dashboard Cite

The Association of Southeast Asian Nations (ASEAN) has made remarkable economic progress in terms of rapid economic growth and expanding export trade and foreign direct investment (FDI). Theoretically speaking, both merchandise exports and FDI can be regarded as the key driving forces behind the ‘economic miracle’ of the regional economy. The major contribution of this study is that it is the first effort to empirically analyse the short-run and long-run growth effects of merchandise exports and FDI on the ASEAN-10 countries using time-series panel data. In this regard, this study aims to ascertain whether the spectacular regional growth is export- and FDI-driven, based on the ASEAN-10 panel data spanning from 1970 to 2016 using the pooled mean group (PMG) method. The findings show that merchandise exports are a key source of growth for the regional economy, attributable to the joint liberalisation efforts of the member states to expand trade and FDI. The study does not find evidence of FDI-led growth because the bulk of the FDI was invested in only a few ASEAN countries, and the minor FDI-recipient countries are at an early stage to benefit from the growth impacts of FDI, owing to lower absorptive capacity. JEL Classification: C51, F21, F23, O19

show abstract

Section: Literature Reviewmentioning

confidence: 52%

Are Merchandise Exports and FDI Inflows an Engine of Growth for ASEAN-10 Countries? New Evidence Using the Pooled Mean Group Estimation Method

Goh¹,

Wong²,

Yew³

2018

Margin: The Journal of Applied Economic Research

View full text Add to dashboard Cite

show abstract

“…Many empirical studies have tried to explain the relationship between FDI and growth (Ozturk, 2007). In most of these studies, the researchers found that FDI has a positive effect on growth (Alfaro, Chanda, Kalemli-Ozcan, & Sayek, 2010; Basu, Chakraborty, & Reagle, 2003; Batten & Vo, 2009; Campos & Kinoshita, 2002; Ghatak & Halicioglu, 2007; Hansen & Rand, 2006; Hermes & Lensink, 2003; Lensink & Morrissey, 2006; Li & Liu, 2005; Makki & Somwaru, 2004). In many studies dealing with subsets of the countries, FDI or FDI in combination with some other factor or factors is positively related to growth, while several studies (Chakraborty & Basu, 2002; Chowdhury & Mavrotas, 2003; Dhakal, Rahman, & Upadhyaya, 2007) have found no significant relationship between FDI and growth.…”

Section: Review Literaturementioning

confidence: 99%

Does Inward FDI Lead to Export Performance in India? An Empirical Investigation

Mohanty

Sethi

2019

Global Business Review

View full text Add to dashboard Cite

This article investigates whether or not inward foreign direct investment (FDI) leads to export performance in India over the time period 1980—2017. We use Augmented Dickey–Fuller and Phillip–Perron unit root test to check the stationarity, and it confirms that all the variables are stationary at first differences I(1). The auto regressive distributed lag (ARDL)-bound testing co-integration approach confirms that there is no valid long-run relationship between considered variables. Results indicate the insignificant negative impacts of FDI on real exports in long run but not in short run. Result of Granger causality test confirms that there is a unidirectional causal relationship existing between the variables where FDI has a Granger cause to export. Results of stability test suggest that there is no structural instability in the residuals of equation of real exports. FDI does not work uniformly in all sectors, and policymakers should understand the difference and identify their sector-wise policies relating with FDI. The law and order should also be maintained, which is the essential part to attract the foreign investors. At this stage, we can also set the direction of future research, that is, sector-wise study should be done on the relationship between FDI and exports.

show abstract

“…There is a solid causal association among FDI and GDP for 31 non-industrial countries for time span ranges from 1970 to 2000. FDI has a positive development influence when the nation has fundamentally prepared a workforce that awards it to mishandle FDI floods [29,30]. FDI has positive and tremendous ramifications for the genuine per capita GDP for a panel of 140 nations [30].…”

Section: Literature Reviewmentioning

confidence: 99%

“…FDI has a positive development influence when the nation has fundamentally prepared a workforce that awards it to mishandle FDI floods [29,30]. FDI has positive and tremendous ramifications for the genuine per capita GDP for a panel of 140 nations [30]. FDI has a positive and gigantic effect on economic development for nations with large salaries [4].…”

Section: Literature Reviewmentioning

confidence: 99%

Exploration of the Impact of China’s Outward Foreign Direct Investment (FDI) on Economic Growth in Asia and North Africa along the Belt and Road (B&R) Initiative

Abdulsalam

Ameer

et al. 2021

Sustainability

View full text Add to dashboard Cite

This empirical study has examined the impact of Chinese investments, namely infrastructure, energy, services, other investment sectors, and trade openness on the economies of the 25 Asian and North African countries along with the Belt and Road (B&R) Initiative for a period of 2007 to 2016 using the Johansen Fisher Panel Cointegration Test, Panel Dynamic Ordinary Least Squares (PDOLS) model, and the Toda and Yamamoto technique for testing causality. The findings revealed cointegration among the variables and that the impact of Chinese investments on economic growth in the host countries is positive, but it has a weaker effect, to a certain extent, in all sectors of the host countries while trade openness positively impacts the countries. Furthermore, there is evidence of a unidirectional causality between some FDI (foreign direct investment) economies while the investment in services and other sectors does not cause economic growth in the host countries. Based on the results, the paper proposes that the host countries increase the FDI in the sector of infrastructure, energy, and technology to enhance their economies.

show abstract

Foreign direct investment and economic growth: some evidence from across the world

Cited by 12 publications

References 26 publications

Are Merchandise Exports and FDI Inflows an Engine of Growth for ASEAN-10 Countries? New Evidence Using the Pooled Mean Group Estimation Method

Are Merchandise Exports and FDI Inflows an Engine of Growth for ASEAN-10 Countries? New Evidence Using the Pooled Mean Group Estimation Method

Does Inward FDI Lead to Export Performance in India? An Empirical Investigation

Exploration of the Impact of China’s Outward Foreign Direct Investment (FDI) on Economic Growth in Asia and North Africa along the Belt and Road (B&R) Initiative

Contact Info

Product

Resources

About