Endogenous determination of FDI growth and economic growth: the OECD case
AbstractThis paper tests the endogenous relationship between Foreign Direct Investment (FDI) growth and economic growth using a panel data set for 23 Organisation for Economic Co-operation and Development (OECD) countries for the period 1975-2004. In particular we estimate a two-equation simultaneous equation system with the Generalised Methods of Moments (GMM) that treat economic growth and FDI growth as endogenous variables. We find that FDI growth and economic growth are significant determinants of each other. We also find that export growth rate and human capital are statistically significant determinants of both FDI growth and economic growth. Our findings lead us to conclude that FDI growth and economic growth have an endogenous relationship.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Public Policy.
Volume (Year): 5 (2010)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=97
FDI growth; foreign direct investment; economic growth; panel data; generalised methods of moments; Organisation for Economic Cooperation and Development; OECD; two-equation simultaneous equations; endogenous variables; significant determinants; exports; human capital; statistics; endogenous relationships; public policy; governance.;
Other versions of this item:
- Burcu Türkcan & I. Hakan Yetkiner, 2008. "Endogenous Determination of FDI Growth and Economic Growth:The OECD Case," Working Papers 0807, Izmir University of Economics.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If references are entirely missing, you can add them using this form.