Exports and FDI: A Granger causality analysis in a heterogeneous panel
AbstractThis paper investigates the heterogenous panels Granger causality between exports and Foreign Direct Investment (FDI) for the twelve new EU countries from 1995 until 2010. The cointegration test by Pedroni (1999) shows a long run heterogenous relationship. A two-stage Engle and Granger procedure (1987), allowing for testing of heterogeneity of panel data on dynamic models, shows a bilateral causal relationship between exports and foreign direct investment both in the long and short run for the examined countries.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 4 ()
Contact details of provider:
Foreign Direct Investment; Exports; Granger Causality; and Heterogenous Panel; Τwelve new EU countries;
Find related papers by JEL classification:
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
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