THE RELATIONSHIP BETWEEN INTERNATIONAL TOURIST ARRIVALS AND FOREIGN DIRECT INVESTMENT: A GRANGER CAUSALITY ANALYSIS

This paper examines the co-movement and causal impact of foreign direct investment (FDI) and exports on economic growth in 21 Asian countries over the period 1980 to 2013, using the panel cointegration and Granger causality analysis. Findings strongly confirm that there is a long-run steady-state relationship between FDI, exports, and GDP for the selected countries. Based on the panel Granger causality analysis, there is long-run bidirectional causality between FDI and GDP and between exports and GDP. This can be concluded that FDI and exports do have causal impact on long-run growth in the countries being investigated.

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Foreign Direct Investment and Current Account Deficit - A Causality Analysis in Context of India

10.51240/jibe.2012.2.4 ◽

2012 ◽

Vol 13 (2) ◽

pp. 85-106

Author(s):

Manpreet Kaur ◽

Surendra Yadav ◽

Vinayshil Gautam

Keyword(s):

Foreign Direct Investment ◽

Granger Causality ◽

Current Account ◽

Direct Investment ◽

Current Account Deficit ◽

Impulse Response Function ◽

Causality Analysis ◽

Long Run ◽

The Impact ◽

The Relationship

Current Account Deficit is one of the major macroeconomic problems facing India. In this paper, we have tried to investigate the relationship between Foreign Direct Investment (FDI) and current account in the context of India. Using the Toda-Yamamoto (T-Y) granger causality technique for the period 1975-2009, our results indicate that FDI and current account are co-integrated in the long run. There is evidence of unidirectional causality from FDI to current account. Furthermore, the analysis of FDI and international trade components (Exports and Imports), which are the major constituents of current account, supports our results of granger causality. Also, an attempt has been made to provide for the impact of FDI on current account through impulse response function.

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Foreign Direct Investment And Air Pollution: Granger Causality Analysis

IOSR Journal of Business and Management ◽

10.9790/487x-15010020212-17 ◽

2016 ◽

Vol 02 (02) ◽

pp. 12-17

Author(s):

Vinod Kumar

Keyword(s):

Air Pollution ◽

Foreign Direct Investment ◽

Granger Causality ◽

Direct Investment ◽

Causality Analysis ◽

Granger Causality Analysis

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Foreign Direct Investment, External Debt, and Balance of Payment: A Causality Analysis for Bangladesh

Bangladesh Journal of Public Administration (BJPA) ◽

10.36609/bjpa.v27i2.67 ◽

2020 ◽

Author(s):

Muhammad Mahmud Mostafa

Keyword(s):

Foreign Direct Investment ◽

Granger Causality ◽

Direct Investment ◽

Negative Impact ◽

External Debt ◽

Causality Analysis ◽

Causality Test ◽

Long Run ◽

Significant Negative Impact ◽

Short Run

The purpose of this study is to analyze the causal relationship of external debt and balance of payment with foreign direct investment (FDI) in Bangladesh for the period of 1980 to 2017 through the application of Johansen Cointegration technique, Vector Error Correction Model (VECM), and Granger Causality approach. Results of cointegration and VECM indicate a significant long-run relationship between dependent (FDI) and independent variables (external debt and balance of payment). External debt is found to have a significant negative impact on FDI in the long-run, but it is found insignificant in the short-run. In contrast, the balance of payment has a significant positive effect on FDI both in the long-run and short-run. Results of the Granger causality test reveal that there exists bidirectional short-run causality between the balance of payment and FDI; that is, both the balance of payment and FDI affect each other. But no unidirectional or bidirectional short-run causality is found between external debt and FDI. Keywords: FDI, external debt, balance of payment, cointegration, VECM, causality

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