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Exports and FDI: A Granger causality analysis in a heterogeneous panel

Author

Listed:
  • Chaido Dritsaki

    (Technological University of Western Macedonia)

  • Melina Dritsaki

    (Brunel University)

Abstract

This paper investigates the heterogenous panels Granger causality between exports and Foreign Direct Investment (FDI) for the twelve new EU countries from 1995 until 2010. The cointegration test by Pedroni (1999) shows a long run heterogenous relationship. A two-stage Engle and Granger procedure (1987), allowing for testing of heterogeneity of panel data on dynamic models, shows a bilateral causal relationship between exports and foreign direct investment both in the long and short run for the examined countries.

Suggested Citation

  • Chaido Dritsaki & Melina Dritsaki, 2012. "Exports and FDI: A Granger causality analysis in a heterogeneous panel," Economics Bulletin, AccessEcon, vol. 32(4), pages 3128-3139.
    • Handle: RePEc:ebl:ecbull:eb-12-00455
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Foreign Direct Investment; Exports; Granger Causality; and Heterogenous Panel; Τwelve new EU countries;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

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