IDEAS home Printed from https://ideas.repec.org/a/shc/jaresh/v2y2010i3p259-280.html
   My bibliography  Save this article

Foreign Direct Investment, Exports, And Economic Growth In The Developing Countries: A Panel Data Approach

Author

Listed:
  • MOHSEN MEHRARA
  • AMIN HAGHNEJAD
  • JALAL DEHNAVI
  • FERESHTEH JANDAGHI MEYBODI

Abstract

This paper uses recently developed econometric techniques such as panel unit roots tests, panel cointegration, and panel generalized method of moment (GMM) to investigate the existence and the nature of the dynamic causal relationships among GDP, exports, and Foreign Direct Investment (FDI) inflows for 57 developing countries from 1981 to 2006. The findings reveal that in the long-run equilibrium, exports and FDI inflows Granger cause GDP, and also exports and GDP do it for FDI inflows. The results also provide evidence of short-run causality running from exports and FDI inflows to GDP. On the other hand, GDP and FDI inflows do not cause exports in either the short run or the long run. Finally, the results of the strong causality are parallel to those of the long run causality.

Suggested Citation

  • Mohsen Mehrara & Amin Haghnejad & Jalal Dehnavi & Fereshteh Jandaghi Meybodi, 2010. "Foreign Direct Investment, Exports, And Economic Growth In The Developing Countries: A Panel Data Approach," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 2(3 (Decemb), pages 259-280.
    • Handle: RePEc:shc:jaresh:v:2:y:2010:i:3:p:259-280
    as

    Download full text from publisher

    File URL: http://www.jare-sh.com/downloads/abstract_dec_2010/mohsen_mehrara.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Petar Kurecic & Filip Kokotovic, 2017. "The Relevance of Political Stability on FDI: A VAR Analysis and ARDL Models for Selected Small, Developed, and Instability Threatened Economies," Economies, MDPI, vol. 5(3), pages 1-21, June.
    2. Durairaj Kumarasamy & Prabir De, 2019. "Promoting Foreign Direct Investment in the Indo-Pacific Region: Scope and Opportunities," India Quarterly: A Journal of International Affairs, , vol. 75(4), pages 490-509, December.
    3. Polyxeni Kechagia & Theodore Metaxas, 2022. "FDI and Institutions in BRIC and CIVETS Countries: An Empirical Investigation," Economies, MDPI, vol. 10(4), pages 1-23, March.

    More about this item

    Keywords

    FDI; Exports; Economic Growth; Causality;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:shc:jaresh:v:2:y:2010:i:3:p:259-280. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Claudiu Chiru (email available below). General contact details of provider: https://edirc.repec.org/data/fcuspro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.