FDI and trade: A Granger causality analysis in a heterogeneous panel
AbstractThis paper will investigate the Granger causality between outward Foreign Direct Investment (FDI) and the exports of goods and services in 11 European countries from 1996 to 2008. Using a new method to evaluate causality in a heterogeneous panel, we find that the causal relationship from FDI to exports is homogeneous among the panel. However, we find strong evidence of a heterogeneity of the causal relationship from exports to FDI in our sample.
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.
Bibliographic InfoPaper provided by HAL in its series Post-Print with number halshs-00853441.
Date of creation: 2011
Date of revision:
Publication status: Published, Economics Bulletin, 2011, 31, 4, 2975-2985
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00853441
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
FDI; trade; Granger causality tests;
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.:
- Sinn, Hans-Werner, 2006.
"The pathological export boom and the bazaar effect: How to solve the German puzzle,"
Munich Reprints in Economics, University of Munich, Department of Economics
19602, University of Munich, Department of Economics.
- Hans-Werner Sinn, 2006. "The Pathological Export Boom and the Bazaar Effect: How to Solve the German Puzzle," The World Economy, Wiley Blackwell, vol. 29(9), pages 1157-1175, 09.
- Hans-Werner Sinn, 2006. "The Pathological Export Boom and the Bazaar Effect - How to Solve the German Puzzle," CESifo Working Paper Series 1708, CESifo Group Munich.
- Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 8(3), pages 297-321, May.
- Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988.
"Estimating Vector Autoregressions with Panel Data,"
Econometrica, Econometric Society,
Econometric Society, vol. 56(6), pages 1371-95, November.
- Tom Doan, . "RATS program to demonstrate IV estimation of VAR in panel data," Statistical Software Components RTZ00185, Boston College Department of Economics.
- Lipsey, Robert E & Weiss, Merle Yahr, 1981. "Foreign Production and Exports in Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 488-94, November.
- Markusen, James R., 1984. "Multinationals, multi-plant economies, and the gains from trade," Journal of International Economics, Elsevier, Elsevier, vol. 16(3-4), pages 205-226, May.
- Helpman, Elhanan, 1984.
"A Simple Theory of International Trade with Multinational Corporations,"
3445092, Harvard University Department of Economics.
- Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 92(3), pages 451-71, June.
- Jim Markusen & Caroline Ekholm, Rikard Forslid, 2005.
"Export-Platform Foreign Direct Investment,"
The Institute for International Integration Studies Discussion Paper Series, IIIS
- Karolina Ekholm & Rikard Forslid & James R. Markusen, 2007. "Export-Platform Foreign Direct Investment," Journal of the European Economic Association, MIT Press, MIT Press, vol. 5(4), pages 776-795, 06.
- Karolina Ekholm & Rikard Forslid & James Markusen, 2003. "Export-Platform Foreign Direct Investment," NBER Working Papers 9517, National Bureau of Economic Research, Inc.
- Ekholm, Karolina & Forslid, Rikard & Markusen, James R., 2003. "Export-Platform Foreign Direct Investment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3823, C.E.P.R. Discussion Papers.
- Emanuele Breda & Rita Cappariello & Roberta Zizza, 2008.
"Vertical specialisation in Europe: Evidence from the import content of exports,"
Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area
682, Bank of Italy, Economic Research and International Relations Area.
- Emanuele Breda & Rita Cappariello & Roberta Zizza, 2007. "Vertical Specialisation in Europe: Evidence from the Import Content of Exports," Rivista di Politica Economica, SIPI Spa, SIPI Spa, vol. 97(3), pages 189, May-June.
- Kemal Turkcan, 2007. "Outward Foreign Direct Investment and Intermediate Goods Exports: Evidence from the USA," Economie Internationale, CEPII research center, CEPII research center, issue 112, pages 51-71.
- Pasaran, M.H. & Im, K.S. & Shin, Y., 1995.
"Testing for Unit Roots in Heterogeneous Panels,"
Cambridge Working Papers in Economics, Faculty of Economics, University of Cambridge
9526, Faculty of Economics, University of Cambridge.
- Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-52, Special I.
- Bruce A. Blonigen, 1999.
"In Search of Substitution Between Foreign Production and Exports,"
NBER Working Papers
7154, National Bureau of Economic Research, Inc.
- Blonigen, Bruce A., 2001. "In search of substitution between foreign production and exports," Journal of International Economics, Elsevier, Elsevier, vol. 53(1), pages 81-104, February.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies, Wiley Blackwell,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Robert Hoffmann & Chew-Ging Lee & Bala Ramasamy & Matthew Yeung, 2005.
"FDI and pollution: a granger causality test using panel data,"
Journal of International Development,
John Wiley & Sons, Ltd., vol. 17(3), pages 311-317.
- Robert Hoffmann & Lee Chew Ging & Bala Ramasamy & Matthew Yeung, 2004. "FDI and Pollution: A Granger Causality Test using Panel Data," CEABuR Working Papers, Centre for Europe-Asia Business Research 2, Centre for Europe-Asia Business Research.
- Peter C. B. Phillips & Donggyu Sul, 2003. "Dynamic panel estimation and homogeneity testing under cross section dependence *," Econometrics Journal, Royal Economic Society, Royal Economic Society, vol. 6(1), pages 217-259, 06.
- Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, Econometric Society, vol. 37(3), pages 424-38, July.
- Harald Oberhofer & Michael Pfaffermayr, 2008.
"FDI versus Exports Substitutes or Complements? A Three Nations Model and Empirical Evidence,"
FIW Working Paper series, FIW
- Harald Oberhofer & Michael Pfaffermayr, . "FDI versus Exports. Substitutes or Complements? A Three Nation Model and Empirical Evidence," Working Papers, Faculty of Economics and Statistics, University of Innsbruck 2007-28, Faculty of Economics and Statistics, University of Innsbruck.
- Lionel Fontagné & Michaël Pajot, 1997. "How Foreign Direct Investment Affects International Trade and Competitiveness: an Empirical Assessment," Working Papers 1997-17, CEPII research center.
- Venet, Baptiste & Hurlin, Christophe, 2001. "Granger Causality Tests in Panel Data Models with Fixed Coefficients," Economics Papers from University Paris Dauphine 123456789/6159, Paris Dauphine University.
- Brainard, S Lael, 1997. "An Empirical Assessment of the Proximity-Concentration Trade-off between Multinational Sales and Trade," American Economic Review, American Economic Association, American Economic Association, vol. 87(4), pages 520-44, September.
- Clausing, Kimberly A, 2000. "Does Multinational Activity Displace Trade?," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 38(2), pages 190-205, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.