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

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  • Raphaël Chiappini

    () (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux 4)

Abstract

This 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.

Suggested Citation

  • Raphaël Chiappini, 2011. "FDI and trade: A Granger causality analysis in a heterogeneous panel," Post-Print halshs-00853441, HAL.
  • Handle: RePEc:hal:journl:halshs-00853441
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00853441
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    References listed on IDEAS

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    1. Harald Oberhofer & Michael Pfaffermayr, "undated". "FDI versus Exports. Substitutes or Complements? A Three Nation Model and Empirical Evidence," Working Papers 2007-28, Faculty of Economics and Statistics, University of Innsbruck.
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    17. repec:dau:papers:123456789/6159 is not listed on IDEAS
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    Cited by:

    1. Raphael Chiappini, 2012. "Decomposition Internationale Des Processus Productifs Et « Economie De Bazar » :Une Analyse Sur Les Principaux Exportateurs De La Zone Euro," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(2), pages 205-234.
    2. Claudiu Tiberiu Albulescu & Daniel Goyeau, 2016. "The interaction between trade and FDI: the CEE countries experience," Papers 1609.02334, arXiv.org.
    3. Mebratu Seyoum & Renshui Wu & Jihong Lin, 2014. "Foreign Direct Investment and Trade Openness in Sub-Saharan Economies: A Panel Data Granger Causality Analysis," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 402-421, September.

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    Keywords

    trade; Granger causality tests; FDI;

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