Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Relationship Between Growth, Total Investment and Inward FDI: Evidence from Time Series Data

Contents:

Author Info

  • Liangshu Qi
Registered author(s):

    Abstract

    This paper explores the causal relationship between growth, total investment and inward FDI in 47 countries. Using error-correction model, the significance, direction and sign of long-run and short-run causal effects between GDP, capital stock and FDI stock are investigated. The miscellaneous results echo the divergent theoretical viewpoints and the mixed empirical results of previous works. However, the evidence found in this study suggests that there are differences in growth mechanism between developed and developing countries, between various developing regions, and between oil-exporting and non-oil-exporting countries. The main policy implication is that capital investment is essential for growth while FDI's effect is uncertain in developing countries. FDI as well as total investment enhances growth only under some conditions.

    Download Info

    If 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.
    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170601035058
    Download Restriction: Access to full text is restricted to subscribers.

    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 Info

    Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

    Volume (Year): 21 (2007)
    Issue (Month): 1 ()
    Pages: 119-133

    as in new window
    Handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:119-133

    Contact details of provider:
    Web page: http://www.tandfonline.com/CIRA20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/CIRA20

    Related research

    Keywords: Growth; capital investment; FDI; causal relationship;

    References

    References listed on IDEAS
    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.:
    as in new window
    1. V N Balasubramanyam & D Sapsford & M A Salisu, . "Foreign Direct Investment and Growth," Working Papers ec13/94, Department of Economics, University of Lancaster.
    2. Blomström, Magnus & Lipsey, Robert E & Zejan, Mario, 1993. "Is Fixed Investment the Key to Economic Growth?," CEPR Discussion Papers 870, C.E.P.R. Discussion Papers.
    3. L.R. de Mello Jr., 1996. "Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data," Studies in Economics 9615, Department of Economics, University of Kent.
    4. Hsiao, Cheng & Shen, Yan, 2003. "Foreign Direct Investment and Economic Growth: The Importance of Institutions and Urbanization," Economic Development and Cultural Change, University of Chicago Press, vol. 51(4), pages 883-96, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:119-133. See general 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: (Michael McNulty).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.