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Foreign Direct Investment-Led Growth Hypothesis: Evidence from the Greek Economy

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  • Constantinos Alexiou Persefoni V. Tsaliki

    (Bussiness Administration and Economics Department, City Liberal Studies, Thessaloniki, Greece Department of Economics, Aristotle University, Thessaloniki, Greece)

Abstract

In this paper, authors explore the Foreign Direct Investment-Led Growth hypothesis for the Greek economy in the Post-War era. In doing so, they engage in testing the cointegration of the series and explore the causal dimension between Foreign Direct Investment and GDP growth through Granger Causality tests and VAR models. The empirical findings cast serious doubts on the FDI-led growth hypothesis permeating the existing academic literature.

Suggested Citation

  • Constantinos Alexiou Persefoni V. Tsaliki, 2007. "Foreign Direct Investment-Led Growth Hypothesis: Evidence from the Greek Economy," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 10(1), pages 85-97, May.
    • Handle: RePEc:zag:zirebs:v:10:y:2007:i:1:p:85-97
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    Cited by:

    1. Verónica Cañal-Fernández & Julio Tascón Fernández, 2018. "The long run impact of foreign direct investment, exports, imports and GDP: evidence for Spain from an ARDL approach," Working Papers 0128, European Historical Economics Society (EHES).
    2. Polyxeni Kechagia & Theodore Metaxas, 2023. "Capital Inflows and Working Children in Developing Countries: An Empirical Approach," Sustainability, MDPI, vol. 15(7), pages 1-18, April.
    3. Christie Dike, 2018. "Effects of Foreign Direct Investment in Sub-Saharan Africa Economic Growth: Evidence from Panel Data Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 255-261.
    4. Sergio Castello & Anindya Biswas, 2021. "Foreign Direct Investment, Exports and Long-term Economic Growth in Alabama: A Co-integration Analysis," Arthaniti: Journal of Economic Theory and Practice, , vol. 20(1), pages 86-94, June.

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