Volume : IV, Issue : VI, June - 2014

Causal Relation Between Economic Growth And Fdi: Evidence from South and East Asia

Abdus Samad

Abstract :

This paper empirically teststhe direction of causality between the domestic economic product (GDP) growth and foreign direct investment (FDI) in twelve South East Asian countries using the vector error correction (VEC) model and the Granger causality test. The structural eak test and the JohansonCointegrationtest are performed before applying VEC. The study finds that GDP growth tends to be more likely to promote FDI to growth. In eight countries, causality runs from GDP growth to FDI. In two countries, FDI Granger causes GDP growth. The differences in causal relation among these countries are probably due to enormous cross–national diversity in economic structures

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Abdus Samad Causal Relation Between Economic Growth And Fdi: Evidence from South and East Asia Indian Journal of Applied Research, Vol.IV, Issue.VI June 2014

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