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Correlates of economic growth in developing countries: a panel cointegration approach

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Author Info

  • James P. Neelankavil
  • Lonnie K. Stevans
  • Francisco L. Roman

Abstract

The inflow of foreign direct investment (FDI) has been found to play a crucial role in the economic growth of receiving countries. Using panel cointegration techniques, this perception was found to be mitigated by an empirical approach that yields different results from previous studies. While the growth in real FDI has an influence on real GDP growth across developing countries in the short-run, year-to-year periods, it does not explain real GDP in the long-run. Rather, it appears to be the economic factors internal to a country that have the most influence on real GDP over time: human capital (measured by literacy rates), export trade, and monetary and fiscal policy.

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File URL: http://hdl.handle.net/10.1080/02692171.2011.557048
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Bibliographic Info

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

Volume (Year): 26 (2012)
Issue (Month): 1 (January)
Pages: 83-96

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Handle: RePEc:taf:irapec:v:26:y:2012:i:1:p:83-96

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Cited by:
  1. Kurt A. Hafner & David Mayer-Foulkes, 2012. "Fertility, Human Development, and Economic Growth: Long- term Short-term Causal Links," DEGIT Conference Papers c017_024, DEGIT, Dynamics, Economic Growth, and International Trade.

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