Causal links between trade, foreign direct investment and economic growth for Bangladesh
This study investigates empirically the causal relationship between trade, foreign direct investment (FDI) and economic growth of Bangladesh for the period of 1973 to 2008. To analyze this Johansen cointegration test and Granger causality test are used. The cointegration analysis suggests that there is a long run equilibrium relationship among the variables. The results of Granger causality test identifies that there is a causal relationship among the mentioned variables. According to the study, economic growth of Bangladesh leads both FDI and export growth and there is a unidirectional causal relationship between FDI and export with direction from export to FDI.
|Date of creation:||Jan 2012|
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- Ozturk, Ilhan & Kalyoncu, Huseyin, 2007.
"Foreign Direct Investment and Growth: An Empirical Investigation based on Cross-Country Comparison,"
Economia Internazionale / International Economics,
Camera di Commercio di Genova, vol. 60(1), pages 75-81.
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- Kalirajan, Kaliappa & Miankhel, Adil & Thangavelu, Shandre, 2009. "Foreign direct investment, exports, and economic growth in selected emerging countries: Multivariate VAR analysis," MPRA Paper 22763, University Library of Munich, Germany.
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