IDEAS home Printed from
   My bibliography  Save this article

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




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

    Download full text from publisher

    File URL:
    Download Restriction: no


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

    Cited by:

    1. repec:gam:jecomi:v:5:y:2017:i:3:p:22-:d:102241 is not listed on IDEAS

    More about this item


    FDI; Exports; Economic Growth; Causality;

    JEL classification:

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


    Access and download statistics


    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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudiu Chiru). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.