Causal links between trade, foreign direct investment and economic growth for Bangladesh
AbstractThis study investigates empirically the causal relationship between trade, foreign direct investment (FDI) and economic growth of Bangladesh for the period of 1973 to 2008. To analyze this Johansen cointegration test and Granger causality test are used. The cointegration analysis suggests that there is a long run equilibrium relationship among the variables. The results of Granger causality test identifies that there is a causal relationship among the mentioned variables. According to the study, economic growth of Bangladesh leads both FDI and export growth and there is a unidirectional causal relationship between FDI and export with direction from export to FDI.
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Bibliographic InfoPaper provided by South Dakota State University, Department of Economics in its series SDSU Working Papers in Progress with number 12012.
Length: 6 pages
Date of creation: Jan 2012
Date of revision:
gross domestic product; foreign direct investment; export; Johansen cointegration test and Granger causality;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-DEV-2012-01-25 (Development)
- NEP-FDG-2012-01-25 (Financial Development & Growth)
- NEP-INT-2012-01-25 (International Trade)
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