Foreign Direct Investment, Trade Openness and Economic Growth

Yusoff, Mohammed; Nuh, Ruslee

doi:10.1177/0015732515572055

Cited by 35 publications

(24 citation statements)

References 20 publications

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“…This shows that their impact on economic growth is minimal. Our results corroborate that of other studies such as Akinlo (2004), Sapsford (1996, 1999), Yusoff and Nuh (2015), and Alfaro et al (2004Alfaro et al ( , 2006Alfaro et al ( , 2010. These results also support the findings in the study of Shaikh (2010) where 47 developing countries were examined between 1981 and 1999 using the OLS regressions method, and a positive relationship between FDI and the manufacturing sector was discovered.…”

Section: Tansupporting

confidence: 92%

Analysis of Foreign Direct Investment and Economic Growth in Nigeria: Application of Spatial Econometrics and Fully Modified Ordinary Least Square (FMOLS)

Olofin

Aiyegbusi

Adebayo

2019

Foreign Trade Review

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Based on the controversy surrounding the determinants of foreign direct investment (FDI) inflow from one country to another and the suggestion that inflow of FDI might be a result of countries’ locations, this study therefore revisits the determinants of FDI and economic growth by testing for the roles of country’s location in the determination of the inflow of FDI to Nigeria. Unlike other studies, this study finds that countries’ locations do not play any significant role in determining FDI inflow to Nigeria. The study, therefore, employs fully modified ordinary least square (FMOLS) to examine the determinants of FDI in Nigeria. The FMOLS results show that FDI, manufacturing sector, tax revenue, financial development, health expenditure, net trade and human capital have a positive relationship with income growth. These results were statistically significant except for tax revenue, net trade and human capital. These results support the argument that these variables are important determinants of economic growth. The article also finds a negative and statistically significant relationship among FDI, income growth, import and capital formation. These results are in conformity with economic theory in the sense that import of goods and services constitutes a leakage in the economy. Negative impact of capital formation and security could be associated with the prevailing high level of corruption, sharing of security votes and misappropriation of funds among the public officials in Nigeria. JEL Codes: F23, F26, F21, H24

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Section: Tansupporting

confidence: 92%

Analysis of Foreign Direct Investment and Economic Growth in Nigeria: Application of Spatial Econometrics and Fully Modified Ordinary Least Square (FMOLS)

Olofin

Aiyegbusi

Adebayo

2019

Foreign Trade Review

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“…The nexus between trade openness and economic growth has attracted significant interest in the literature. Recent studies have investigated both regional and individual country experiences, incorporating other institutional, social, economic, and technological factors (see Dowrick and Golley, 2004;Yanikkaya, 2003;Awokuse, 2008;Shahbaz, 2012;Menyah et al, 2014;Olubiyi, 2014;Sakyi et al, 2015aSakyi et al, , 2015bYusoff & Nuh, 2015;Ee, 2016;Salahuddin & Gow, 2016;Zahonogo, 2016;Khamphengvong et al, 2017;Mireku et al, 2017;Keho & Grace Wang, 2017;Pradhan et al, 2017;Darku & Yeboah, 2018;IDRIS et al, 2018;Huchet-Bourdon et al, 2018;Benita, 2019;Burange et al, 2019;Ma et al, 2019;Tang et al, 2019;Duodu et al, 2020;Nwadike et al, 2020).…”

Section: A Brief Literature Reviewmentioning

confidence: 99%

Trade openness and economic growth nexus: Exploring the role of institutional quality in Nigeria

Omoke

Opuala–Charles

2021

Cogent Economics & Finance

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“…Similarly, Yusoff and Nuh (2015) investigated the determinants of Thailand's economic growth using the Granger causality tests. They found that there was an establishing link between international trade and economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Causal Links between Trade Openness and Foreign Direct Investment in Malaysia

Sazali¹,

Bakar²,

Huey³

et al. 2018

IJARBSS

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This study has examined the causal relationships between trade openness and foreign direct investment (FDI) in Malaysia using annual time series data. Throughout this study, the exchange rate and economic growth acted as the control variables. Data were collected from 1977 to 2015 and were analysed using the unit root test and the Granger causality test. The autoregressive model was employed to remove autocorrelation from rising in this model. The result of the Granger causality test indicated that there was a unidirectional causality between trade openness and FDI. It also showed that trade openness has a positive and significant impact on the FDI. All independent variables, namely, exchange rate, economic growth and trade openness, were significant in explaining FDI inflows in Malaysia. Therefore, this study has concluded that a good combination of these independent variables would attract more inflows of FDI into Malaysia. In addition, the Malaysian government has to implement policies that favour trade openness, such as reducing trade barriers, to encourage more FDI inflows into Malaysia to promote higher economic growth.

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Foreign Direct Investment, Trade Openness and Economic Growth

Cited by 35 publications

References 20 publications

Analysis of Foreign Direct Investment and Economic Growth in Nigeria: Application of Spatial Econometrics and Fully Modified Ordinary Least Square (FMOLS)

Analysis of Foreign Direct Investment and Economic Growth in Nigeria: Application of Spatial Econometrics and Fully Modified Ordinary Least Square (FMOLS)

Trade openness and economic growth nexus: Exploring the role of institutional quality in Nigeria

Causal Links between Trade Openness and Foreign Direct Investment in Malaysia

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