Foreign direct investment and profit outflows: a causality analysis for the Brazilian economy
AbstractMost empirical works have focused on the effects of foreign direct investment (FDI) to exports and other economic performance indicators, whereas its impacts to profit outflows has been relatively neglected. This paper investigates the nature of the causal relationship between FDI and profit remittance in Brazil using the Granger causality test procedure developed by Toda and Yamamoto (1995). The findings in this paper indicate that FDI causes profit remittance and emphasize significant adverse long-run effects of FDI attraction policies for the Brazilian economy.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 6 (2005)
Issue (Month): 1 ()
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- F3 - International Economics - - International Finance
- F2 - International Economics - - International Factor Movements and International Business
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