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

  • Raphaël Chiappini

    ()

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS - UNS - Université Nice Sophia Antipolis)

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    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.

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    File URL: https://halshs.archives-ouvertes.fr/halshs-00853441/document
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    Date of creation: 2011
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    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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