FDI and trade: A Granger causality analysis in a heterogeneous panel
AbstractThis paper will investigate the Granger causality between outward Foreign Direct Investment (FDI) and the exports of goods and services in 11 European countries from 1996 to 2008. Using a new method to evaluate causality in a heterogeneous panel, we find that the causal relationship from FDI to exports is homogeneous among the panel. However, we find strong evidence of a heterogeneity of the causal relationship from exports to FDI in our sample.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 31 (2011)
Issue (Month): 4 ()
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Foreign direct investment; exports; Granger causality; heterogeneous panel;
Find related papers by JEL classification:
- F2 - International Economics - - International Factor Movements and International Business
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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