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.

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 Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Lan Tan ◽  
Yifan Xu ◽  
Alemayehu Gashaw
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Close Association ◽  
Causality Test ◽  
Fdi Inflows ◽  
The Exchange Rate

Although it is widely recognized that Foreign Direct Investment (FDI) inflows have a dominant effect on economic growth of host countries, the determinants of FDI inflows are still unclear. Especially, about the effect of exchange rate on FDI inflow, the results reached by scholars vary across countries or regions. It is of great practical and theoretical significance to explore the influencing effects of exchange rate on FDI inflow and identify the mechanisms that underlie them in close association with regional economic characters so as to help local government implement targeted government policies to achieve sustainable FDI inflow and sustainable economic growth. For this purpose, the influencing effects and the influencing mechanisms of the exchange rate on FDI inflows are investigated for Zhejiang province, China, over 1985–2019 by employing the co-integration tests, vector error correction models, Granger causality tests, and impulse response tests. Empirical results indicate that there are long-term stable and unidirectional causal relationship between the exchange rate and FDI inflow. Continuous appreciation of RMB against USD discourages FDI inflow. The mechanism which underlies the long-term relationship is the wealth effect, rather than the cost effect or the demand effect. By contrast, in the short run, neither the exchange rate nor the three influencing mechanism has a significant impact on FDI inflow. These results suggest policy recommendations for improving FDI by accumulating human capital and improving infrastructure. These findings are also applicable for other countries or regions with similar economic characters.

Causal Relationship between Foreign Direct Investment and Economic Growth

2015 ◽  
pp. 319-330 ◽  
Author(s):  
Hasan Bakır ◽  
Filiz Eryılmaz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Direct Foreign Investment ◽  
Causality Test ◽  
Causality Tests ◽  
Causality Relationship ◽  
Granger Causality Tests ◽  
Per Capita

In this chapter, the authors investigate the causality relationship between the inflows of foreign direct investment (FDI) and economic growth as measured by Real Gross Domestic Product (GDP) per capita in Turkey during the period 1974-2012 by using the Granger causality tests. The causality test indicates that economic growth Granger-causes FDI. This means that there is bidirectional causality from Reel GDP to FDI in Turkey. So the author results support “the growth – driven FDI hypothesis”. This demonstrates that in the related time in Turkey, more direct foreign investment entered the economy together with an increase in economic growth.

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 Impact of Foreign Direct Investment on Economic Growth of Nepal

2019 ◽  
Vol 33 (2) ◽  
pp. 73-80
Author(s):  
Shiva Prasad Pokharel ◽  
Bishnu Prasad Pokharel
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Granger Causality ◽  
Unit Root ◽  
Direct Investment ◽  
Unit Root Test ◽  
Granger Causality Test ◽  
Capital Formation ◽  
Causality Test

 This paper aims to investigate the impact of Foreign Direct Investment (FDI) on the economic growth of Nepal for the period 2008/09 to 2017/18 A.D. yearly data. It evaluated the Gross Domestic Product (GDP) performance and the trends of FDI and Gross Fix Capital Formation (GFCF) in Nepal. To demonstrate the relationship between Nepalese Gross Domestic Product (GDP) and Foreign Direct Investment (FDI) and Gross Fix Capital Formation (GFCF) Multiple-Regression-Model has been applied along with various econometrics techniques such as Unit-Root Test, Granger-Causality Test and Ordinary Least Square (OLS). GDP in this model is used as dependent variable whereas FDI and GFCF are measured as independent variables. According to the results, Unit Root Test indicated that all the variables included in the model were not stationary at level except FDI, whereas GDP and GFCF are stationary at first difference. The model is overall significant with the positive and significant relationship of GDP, FDI and GFCF. Result also indicate a good fit for the model with R2=86%. The Granger Causality Test revealed that there was no causality between the variables since all p-value obtained are more than 5%. Based on the empirical result of this paper, policy recommendation proposed that for Nepal to generate more foreign direct investment, hard work should be made at solving problems of government involvement in business; relative closed economy; corruption; weak public institutions; and poor external image, and political instability.

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 Energy consumption, economic growth, foreign direct investment and globalization causality nexus in OECD countries: a symbolic transfer entropy analysis

2021 ◽  
Vol 10 (4) ◽  
pp. 408-415
Author(s):  
Ahdi Noomen AJMI ◽  
Seyi Saint Akadiri
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Direct Investment ◽  
Oecd Countries ◽  
Transfer Entropy ◽  
Entropy Analysis ◽  
Causality Test ◽  
Symbolic Transfer Entropy

In this paper, we investigate the validity and usefulness of the symbolic transfer entropy (STE) test for longitudinal data by examining causality relationships among foreign direct investment, energy consumption, globalization and economic growth respectively, between the periods 1970-2015 using Organization for Economic Co-operation and Development (OECD) countries as a case study. Also, a comparison to validate or contrast with other existing studies results generated using other forms of causality test is given. Our findings suggest that the STE causality test is suitable approach for our OECD panel of countries.

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