scholarly journals The Impact of Foreign Direct Investment on Trade (Export and Import) in Turkey

2019 ◽  
Vol 5 (1) ◽  
pp. 6
Author(s):  
Mehman Karimov
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Granger Causality ◽  
Direct Investment ◽  
Empirical Studies ◽  
Causality Test ◽  
Lag Selection ◽  
Causality Tests ◽  
The Impact ◽  
The Relationship

It is said that after globalization processes foreign direct investment start to influence trade moreover it is very complicated to deduce the relationship between trade and FDI according to theoretical analysis. Therefore, empirical studies showed that until the 1980s international trade generated direct investment but after 1980s FDI started to heavily influencing international trade. Also, results showed that the relationship can differ from one country to another. Thus, this paper is aimed to analyze the impact of Foreign Direct Investment inflow on the macroeconomic variable as a Trade (Export, Import) in Turkey. The paper covers the time period from 1974 to 2017. The time series datasets, those are obtained from World Bank and IMF database are utilized in employed statistical models as ADF Unit Root, VAR lag selection, Johansen co-integration, and the Granger Causality tests, to fulfill empirical part of the paper. Based on results, it was confirmed that there was the presence of the co-integration between analyzed series. Additionally, results of Granger causality test showed that there is unidirectional causality from Export and Import to FDI.

scholarly journals The Impact of Foreign Direct Investment on Trade (Export and Import) in Turkey

2019 ◽  
Vol 5 (1) ◽  
pp. 6
Author(s):  
Mehman Karimov
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Granger Causality ◽  
Direct Investment ◽  
Empirical Studies ◽  
Causality Test ◽  
Lag Selection ◽  
Causality Tests ◽  
The Impact ◽  
The Relationship

It is said that after globalization processes foreign direct investment start to influence trade moreover it is very complicated to deduce the relationship between trade and FDI according to theoretical analysis. Therefore, empirical studies showed that until the 1980s international trade generated direct investment but after 1980s FDI started to heavily influencing international trade. Also, results showed that the relationship can differ from one country to another. Thus, this paper is aimed to analyze the impact of Foreign Direct Investment inflow on the macroeconomic variable as a Trade (Export, Import) in Turkey. The paper covers the time period from 1974 to 2017. The time series datasets, those are obtained from World Bank and IMF database are utilized in employed statistical models as ADF Unit Root, VAR lag selection, Johansen co-integration, and the Granger Causality tests, to fulfill empirical part of the paper. Based on results, it was confirmed that there was the presence of the co-integration between analyzed series. Additionally, results of Granger causality test showed that there is unidirectional causality from Export and Import to FDI.

scholarly journals Investigating the Relationship between Unemployment and Inflation in Nigeria

2021 ◽  
Vol 04 (03) ◽  
Author(s):  
Charity I. Anoke I. Anoke ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Economic Status ◽  
Government Expenditure ◽  
Negative Relationship ◽  
Granger Causality Test ◽  
Causality Test ◽  
Long Run ◽  
The Impact

This study considered the impact of inflation on unemployment in Nigeria viz avis selected macroeconomic variables. The researcher adopted co integration, vector error correction model and VEC Granger causality test econometric procedure in the analysis of the data employed. The specific objectives of the study are; (i) to determine the extent to which inflation impact on unemployment in Nigeria within the period of study, (ii) to examine if government expenditure have any significant impact on unemployment in Nigeria within the period of study, (iii) to estimate the significant impact of foreign direct investment on unemployment in Nigeria within the period of study; (iv) to investigate the extent of direction of causality between unemployment and inflation in Nigeria within the period of study. The results of the research revealed long run relationship among estimated variables, VECM result showed a positive significant relationship between inflation and unemployment in the short run and long run, government expenditure and foreign direct investment maintained negative relationship with unemployment both in the short and long run. The VEC Granger causality test indicated causality among UNEM, INF and TGEX. The research recommended that (i) government should focus on policy and strategy that can attract foreign direct investment into the country, (ii) government should try to maintain low inflation rate through suitable monetary policy; (iii) government should encourage investment platforms and enabling environment for effective and efficient national output; and (iv) Government should consciously increase fiscal space for capital activities and projects that are capable of generating income, increase domestic and public spending, improve economic status and reduce unemployment. This paper concluded that the Philip’s curve hypothesis does not apply in Nigeria within the period of study as the result failed to establish an inverse relationship as postulated by A.W. Philips.

Dynamics of Economic Growth, Investment and Trade Openness: Evidence from Bangladesh

2017 ◽  
Vol 6 (1) ◽  
pp. 82-104 ◽  
Author(s):  
Champa Bati Dutta ◽  
Mohammed Ziaul Haider ◽  
Debasish Kumar Das
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Trade Openness ◽  
Jel Classification ◽  
Domestic Investment ◽  
Causality Test ◽  
Vector Error Correction ◽  
Causality Tests

This article investigates the causal relationship among foreign direct investment, domestic investment, trade openness and economic growth in Bangladesh over the period 1976–2014. Unit root tests, cointegration methods and Granger causality tests in Vector Error Correction Model (VECM) framework are used to investigate the relationships. The results of Granger causality test based on a stable VECM support a unidirectional causality running from foreign direct investment to growth, domestic investment to trade openness, growth to trade openness and bidirectional causality between domestic investment and growth and foreign direct investment and domestic investment. The results support the investment complementarities in Bangladesh. JEL Classification: E22, F1, O40

scholarly journals Foreign Direct Investment (FDI), Trade and Its Contribution to the Proposed Logistics Hub in Jamaica

2015 ◽  
Vol 2 (4) ◽  
pp. 44-48
Author(s):  
Kimberly Racquel Elizabeth Chin
Keyword(s):  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Mining Industry ◽  
Granger Causality Test ◽  
Causality Test ◽  
Independent Variables ◽  
Causality Relationship ◽  
The Government ◽  
The Relationship

In order to objectively analyze contribution of logistic operations to Jamaica’s Foreign Direct Investment (FDI), we perform the Granger causality test. This test was used to determine the relationship among Gross Domestic Product (as a dependent variable) and Government Income, Trade, FDI inflow and the Exchange rate (as independent variables). The Granger causality test produced evidence of a bidirectional causality relationship which suggests that FDI’s influence on efficiency lies in the government relaxing its dependency on the mining industry for economic growth. fdi logistics

scholarly journals A Case Study of Foreign Direct Investment and Economic Growth Relationship in Turkey

2018 ◽  
Vol 1 (3) ◽  
pp. 97
Author(s):  
Mehman Karimov ◽  
Davit Belkania
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Knowledge Spillovers ◽  
Causality Test ◽  
Technology Transfers ◽  
Causality Tests

Foreign direct investment is believed to enhance long-term economic growth of a country through knowledge spillovers and technology transfers. This paper is an empirical attempt to check the effects of the foreign direct investment (FDI) on the economic growth (GDP) of Turkey. The paper uses time span from 1980 to 2017 for statistical analysis. Johansen co-integration and Granger causality tests were applied for empirical analysis. The results of the tests confirmed the presence of the co-integration between GDP and FDI as it was expected from the beginning. Furthermore, Granger causality test showed the unidirectional causality from FDI to GDP.

scholarly journals Effect of Foreign Direct Investment on Bangladesh Economy: a Time Series Analysis from 1972 to 2013

2020 ◽  
Author(s):  
Rumana Rashid ◽  
Sk. Sharafat Hossen
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Export Performance ◽  
Granger Causality Test ◽  
Causality Test ◽  
Long Run ◽  
The Impact

This study investigates the impact of Foreign Direct Investment (FDI) on economic growth and examines the causality between FDI and economic growth in Bangladesh during 1972-2013. Gross Domestic Product (GDP), export performance (EXP), Foreign Direct Investment (FDI), and Gross Fixed Capital Formation (GFCF) are considered to capture the objective of the study. The study methodology includes some systematic steps. As the data used in the study is time-series in nature, the author employs unit root tests, and in this case, Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests are used. Then Johansen’s cointegration test, Granger causality test, regression with Newey-West Standard Error and Vector Error Correction Model (VECM) are applied. By using the ADF and PP test the study reveals that the variables of four-time series are integrated of I (1) i.e. they are stationary at first difference. Regression analysis result demonstrates that FDI has a positive effect on economic growth. The Granger Causality test discloses that there is a unidirectional relationship between FDI and economic growth. But the VECM estimation finds that in the long run FDI negatively affects economic growth.

scholarly journals Foreign Direct Investment and Youth Employment Causality: Evidence From ASEAN-5 Countries

2021 ◽  
Vol 17 (2) ◽  
pp. 208-219
Author(s):  
Axellina Muara Setyanti ◽  
Setyo Tri Wahyudi
Keyword(s):  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Granger Causality Test ◽  
Employment Relationship ◽  
Youth Employment ◽  
Causality Test ◽  
Employment Conditions ◽  
Bidirectional Relationship ◽  
The Relationship

Abstract: FDI - employment relationship has been a major concern of many researchers due to it's various findings. FDI is stated that able to trigger growth in employment, however, on the other hand, some have found that employment conditions affect FDI inflow. Meanwhile, several studies found a bidirectional relationship, or even no-relationship. With a focus on youth employment, this study aimed to examine the link between FDI and youth employment in ASEAN-5 countries. From the results of the Granger Causality test, it was found that in Indonesia, Malaysia, Philippines, and Singapore the FDI inflow is leading to youth employment, while in Thailand, the relationship is vice versa. Overall, there is no bidirectional causal relationship between FDI and youth employment in ASEAN-5 countries.Keywords: Foreign Direct Investment, Youth Employment, Granger Causality, ASEAN-5 Kausalitas Penanaman Modal Asing dan Penyerapan Tenaga Kerja Muda: Bukti dari Negara-negara ASEAN-5Abstrak: Keterkaitan antara FDI dan penyerapan tenaga kerja telah menjadi perhatian utama banyak peneliti karena temuan yang beragam. FDI dinyatakan dapat memicu pertumbuhan lapangan kerja, namun di sisi lain, beberapa peneliti menemukan bahwa kondisi ketenagakerjaanlah yang mempengaruhi arus masuk FDI. Sementara itu, beberapa penelitian lain menemukan adanya hubungan dua arah, atau bahkan tidak ada hubungan. Dengan fokus pada penyerapan tenaga kerja muda, penelitian ini bertujuan untuk mengkaji hubungan antara FDI dan penyerapan tenaga kerja muda di negara-negara ASEAN-5. Dari hasil uji kausalitas Granger ditemukan bahwa di Indonesia, Malaysia, Filipina, dan Singapura, aliran FDI yang masuk mengarah pada pada penciptaan lapangan kerja bagi kaum muda, sedangkan di Thailand ditemukan hubungan yang sebaliknya. Secara keseluruhan, tidak ditemukan hubungan kausal dua arah antara FDI dan penyerapan tenaga kerja muda di negara-negara ASEAN-5.Kata kunci: Penanaman Modal Asing, Penyerapan Tenaga Kerja Muda, Kausalitas Granger, ASEAN-5

scholarly journals An Assessment of the Impact of Foreign Direct Investment on Employment: The Case of Ghana’s Economy

2019 ◽  
pp. 143-158
Author(s):  
Addo Eric Osei
Keyword(s):  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Employment Growth ◽  
Positive Impact ◽  
Multiple Linear Regression Model ◽  
Wage Structure ◽  
Annual Data ◽  
Causality Test ◽  
The Impact

The literature is in respect of the fact that foreign direct investment has been a key aspect of the development strategy of most developing countries. The main objective of the study is to examine the extent FDI influence employment creation in the non-mining sector of Ghana for the period 2000 – 2016 using time series (annual) data conducted with the aid of OLS (Multiple Linear Regression) model, Autoregressive Distributed Lag (ARDL-ECM) Bounds Testing Approach and Granger-Causality test in the estimation of level relationship / cointegration and causality (respectively) between the study variables (for robustness checks). The result of this study shows that FDI has a statistically significant and a positive impact on employment growth via jobs creation in Ghana. Again, evidence shows that the study variables are cointegrated and have a long run relationship. Further robust test from Granger-causality shows no causal relationship from FDI to employment growth or from employment growth to FDI (at significance level of 5%). In addition, the study identifies factors such as wage structure, investment freedom and subsectors as important indicators influencing employment in the country. Finally, the study recommends policies to help create enabling political and socio-economic environment for FDI thereby creating more sustainable jobs and tackling the current high rates of unemployment in Ghana.

scholarly journals Exploring the linkages of Foreign Direct Investment in Spain since 1970’s: an ARDL approach

2020 ◽  
Vol 33 (1) ◽  
pp. 39-54
Author(s):  
Verónica Cañal Fernández ◽  
Julio Tascón Fernández ◽  
María Gómez Martín
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Bounds Testing ◽  
Causality Test ◽  
Long Run ◽  
The Relationship

This paper analyzes the relationship between foreign direct investment (FDI), exports and economic growth in Spain using annual time series data for the period 1970 to 2016. To examine these linkages the autoregressive distributed lag (ARDL) bounds testing approach to cointegration for the long-run is applied. The results confirm a long-run relationship among the examined variables. The Granger causality test indicates a strong unidirectional causality between FDI and exports with direction from FDI to exports. Besides, the results for the relationship between FDI and economic growth are interesting and indicate that there is no significant Granger causality from FDI to economic growth and vice-versa.

Foreign Direct Investment and International Trade in WAEMU- Panel Causality and Long-term Relationship Analysis

2019 ◽  
Vol 70 (2) ◽  
pp. 193-212
Author(s):  
Ousseini Amadou Maiga ◽  
Issoufou Oumarou ◽  
Salifou Kigbajah Coulibaly
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Granger Causality ◽  
Direct Investment ◽  
Trade Openness ◽  
Policy Implications ◽  
Relationship Analysis ◽  
Long Run ◽  
Causality Tests ◽  
Short Run

Abstract Using panel data from 1990 to 2016, this paper examines the Granger causality and long-run relationship between foreign direct investment, and trade (imports, exports, and trade openness) in the West African economic and monetary union (WAEMU). This study will determine the link between international trade and foreign direct investment to the policymakers. The study follows the short-run causality, cointegration, and long-run approach. The Granger causality tests that there is causality between trade and FDI. The analysis uses Kao and Pedroni method which reveal the existence of cointegration between trade and FDI. The long-run effect tests suggested that foreign direct investment has a positive long-run effect increasing export WAEMU. The tests also indicate that foreign direct investment has a positive long-run effect spurring import and leads to more trade openness in WAEMU. Additionally, the long run estimation indicates that FDI induces to more trade openness in WAEMU. Moreover, the analysis indicates also that export and import have a positive and significant long-run effect on foreign direct investment. Furthermore, the estimation indicates that trade openness has a positive and significant impact on attracting more foreign investment in WAEMU. We explored the economic and policy implications of our analyses in the conclusions.

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