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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 6 (2005)
Issue (Month): 1 ()
Contact details of provider:
Find related papers by JEL classification:
- F3 - International Economics - - International Finance
- F2 - International Economics - - International Factor Movements and International Business
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Manuel Agosin & Roberto Machado, 2005.
"Foreign Investment in Developing Countries: Does it Crowd in Domestic Investment?,"
Oxford Development Studies,
Taylor & Francis Journals, vol. 33(2), pages 149-162.
- Manuel R. AGOSIN & Ricardo MAYER, 2000. "Foreign Investment In Developing Countries, Does It Crowd In Domestic Investment?," UNCTAD Discussion Papers 146, United Nations Conference on Trade and Development.
- Jansen, Karel, 1995. "The macroeconomic effects of direct foreign investment: The case of Thailand," World Development, Elsevier, vol. 23(2), pages 193-210, February.
- Ihrig, Jane, 2000. "Multinationals' response to repatriation restrictions," Journal of Economic Dynamics and Control, Elsevier, vol. 24(9), pages 1345-1379, August.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
- Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
- Yamada, Hiroshi & Toda, Hiro Y., 1998. "Inference in possibly integrated vector autoregressive models: some finite sample evidence," Journal of Econometrics, Elsevier, vol. 86(1), pages 55-95, June.
- Dube, Smile, 2009. "Foreign Direct Investment and Electricity Consumption on Economic Growth: Evidence from South Africa," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 62(2), pages 175-200.
- Dierk Herzer & Stephan Klasen & Felicitas Nowak-Lehmann D., 2006.
"In search of FDI-led growth in developing countries,"
Ibero America Institute for Econ. Research (IAI) Discussion Papers
150, Ibero-America Institute for Economic Research.
- Klasen, Stephan & Herzer, Dierk & Nowak-Lehmann D., Felicitas, 2007. "In search of FDI-led growth in developing countries," Proceedings of the German Development Economics Conference, GÃ¶ttingen 2007 14, Verein für Socialpolitik, Research Committee Development Economics.
- Mutascu, Mihai & Shahbaz, Muhammad & Tiwari, Aviral Kumar, 2011.
"Revisiting the relationship between electricity consumption, capital and economic growth: Cointegration and causality analysis in Romania,"
29233, University Library of Munich, Germany.
- Shahbaz, Muhammad & Mutascu, Mihai & Tiwari, Aviral Kumar, 2012. "Revisiting the Relationship between Electricity Consumption, Capital and Economic Growth: Cointegration and Causality Analysis in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 97-120, September.
- A. Yasemin Yalta, 2011.
"Uncovering the Channels through which FDI affects current account: The Case of Turkey,"
1108, TOBB University of Economics and Technology, Department of Economics.
- A. Yasemin Yalta, 2012. "Uncovering the channels through which FDI affects current account: the case of Turkey," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 5(2), pages 158-167.
- SULIMAN, Osman, 2013. "Do Capital Inflows Cause Currency Black Markets In Mena Countries? Causality Tests For Heterogeneous Panels," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 187-202.
- Srđan Boljanović, 2012. "A Sustainability Analysis Of Serbia’S Current Account Deficit," Economic Annals, Faculty of Economics, University of Belgrade, vol. 57(195), pages 139-172, October -.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley).
If references are entirely missing, you can add them using this form.