scholarly journals Trade Openness, External Debt and Growth Nexus in Pakistan: Empirical Evidence from ARDL Modeling Approach & Co-Integration Causality Analysis

2016 ◽  
Vol 2 (2) ◽  
pp. 93-102
Author(s):  
Hina Ali ◽  
Fatima Farooq ◽  
Najma Mumtaz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Trade Openness ◽  
External Debt ◽  
Capital Formation ◽  
Series Data ◽  
Causality Analysis

This Empirical study Explores the Influence of trade openness and external debt on economic growth by using time series data from 1974 -2016. Gross domestic Product (GDP) as dependent variable while Foreign Direct Investment, Inflation, External debt, Capital formation and Trade as explanatory variable are used. Unit Root Test applies to check the stationary of data in which GDP & INF are integrate at level 1(0) while the channel of variables like FDI, T, ED, CF are integrate at 1stdifference. Auto-regressive distributed lagged model (ARDL) technique applies for estimation. The study finds out the relation between channels of variable that how these variables are interrelated. The findings indicate that External debt and capital formation has Inverse influence on Economic growth while Trade Openness, Inflation, foreign Direct Investment has positive impact on economic growth.

scholarly journals ANALISIS PENGARUH REMITANSI, INVESTASI ASING LANGSUNG, IMPOR DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Regina Septriani Putri ◽  
Ariusni Ariusni
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Positive Effect

Abstract : This study examined and analysis the effect of remittances, foreigndirect investment, imports, and economic growth in Indonesia in the long run andshort run. This study using Error Correction Model (ECM) method and using theannual time series data from 1989 to 2018. This study found that: (1) remittancehave an insignificant positive effect on economic growth in the long run and shortrun,(2)foreign direct investment have a significant positive impact on economicgrowth in the long run and short run, (3) import have an insignificant positiveimpact on economic growth both in the long run and short run. To increase theeconomic growth in the future, this study suggests the government to decresingimports of consume goods and increasing the inflow of capital goods, rawmaterial goods, remittances and foreign direct investment.Keyword : Remittance, Foreign Direct Investment, Import, Economic Growth andECM

scholarly journals Impact of Trade Openness on Economic Growth: A Case Study of Pakistan'

2017 ◽  
Vol 3 (1) ◽  
pp. 57-68
Author(s):  
Rashid Ahmad ◽  
Kashif Raza ◽  
Sobia Saher
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Trade Openness ◽  
Capital Formation ◽  
Fixed Capital ◽  
Series Data ◽  
Fixed Capital Formation ◽  
The Impact

Purpose: This paper estimates the impact of trade openness and economic growth in Pakistan by using time series data from period of 1975-2014. Econometric method was applied to estimate the impact of trade openness on economic growth. Gross fixed capital formation (proxy of investment), Foreign direct investment, Imports, Exports & trade openness (proxy of trade openness to check the volume of trade of a country) is used as explanatory variables while gross domestic product is treated as dependent variable in this study. Johansson co. integration approach developed by Johannes & Jeslius (1988) is used to evaluate the long run relationship among variables in this study. The results suggest that trade openness, imports, exports and foreign direct investment cast have positive impact on economic growth while on the other hand; gross fixed capital formation &labor force has negative impact on economic growth.

Trade Openness, Foreign Direct Investment and Economic Growth: Empirical Evidence from India

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Brajaballav Pal
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Series Data ◽  
Long Run ◽  
Integration Test ◽  
The Government

This paper examines the relationship among GDP, foreign direct investment and trade openness for India using time series data from 2001 to 2016. In this study unit root test is used to solve the problem of stationery and to determine the order of integration between the variables. Johnson co-integration test suggests that there is a long run equilibrium relationship among the variables by considering relationship between Gross Domestic Product (GDP), Foreign Direct Investment (FDI) and Trade Openness (TO). The result indicates that trade openness exerts influence on foreign direct investment. The government and policy makers should take up strategies to attract foreign investment so as to promote economic growth.

scholarly journals The Impact of Foreign Direct Investment on Economic Growth in Nigeria

2015 ◽  
Vol 7 (4) ◽  
pp. 90-97
Author(s):  
Sani Ali Ibrahim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Empirical Studies ◽  
Trade Openness ◽  
National Income ◽  
Series Data ◽  
Long Run ◽  
The Impact

The economic development performance can be used to measure the economic growth of a given country. In economic analysis, a country can attain economic growth through the growth in national income measurement. However, there were rigorous discussions on the role of foreign direct investment (FDI) on economic growth and continued to be a topic of discussion on the contemporary economy. This paper serves as an extension to the previous empirical studies on the issue by providing some evidence from time series data for the period 1971 to 2013 of Nigeria. The primary aim of this study is to analyze the impact of FDI on economic growth of Nigeria taking trade openness, Gross Fixed Capital Formation and human capital as control variables. To investigate the long run equilibrium relationship, Johansen and Juselius co-integration approach is analyzed, while the speed of adjustment in the short run is analyzed through the use of VECM method. In Nigeria, FDI, GFCF and HK have long run relationship with economic growth. However, the coefficient of ECM in Nigeria is statistically significant at 1% level of significance. Thus, 10.8% of the adjustment is achieved due to the correction of the adjustment speed in a year.

An empirical analysis among foreign direct investment, trade openness and economic growth: evidence from the Indian economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reenu Kumari ◽  
Malik Shahzad Shabbir ◽  
Sharjeel Saleem ◽  
Ghulam Yahya Khan ◽  
Bilal Ahmed Abbasi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Fdi Inflows ◽  
Content Type ◽  
Study Results

PurposeThis study examines the long-term and causal relationship among foreign direct investment (FDI) inflows, trade openness and economic growth from India.Design/methodology/approachThis study has used annual time series data from the period 1985–2018 and applied the Johansen cointegration and vector autoregression (VAR) model.FindingsThe results of Johansen's cointegration confirm no long-term relationship among all the above three variables. Further, the results of VAR Granger causality indicate that FDI causes economic growth and economic growth causes FDI, which confirms the bi-directional causality. In contrast, this study found that there is no bi-directional causality between trade openness and economic growth.Social implicationsThrough this study, the government could take the decisions related to foreign investment after adopting more trade openness because the study results revealed that if India follows more trade openness, then how FDI will flow (upward and downward). With impulse analysis, researchers, government and policymakers take the decision-related FDI inflows for the forthcoming ten years after 2018.Originality/valueThis study has found the most exciting results from the impulse functions of FDI inflows, trade openness and economic growth, which showed the situation of these three variables as increase and decrease in the forthcoming ten years.

Impact of Trade Openness, FDI, Exchange Rate and Inflation on Economic Growth: A Case Study of Pakistan

2014 ◽  
Vol 1 (1) ◽  
pp. 236 ◽  
Author(s):  
Sadia Bibi ◽  
Syed Tauqeer Ahmad ◽  
Hina Rashid
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Time Series Data ◽  
Negative Impact ◽  
Trade Openness ◽  
Least Square ◽  
Series Data ◽  
Trade Surplus

This study focuses on empirical analysis to find out the role of trade openness, inflation, imports, exports, real exchange rate and foreign direct investment in enhancing economic growth in Pakistan. The analysis based on time series data for the period 1980 to 2011. This paper uses ADF; PP and DF-GLS tests to find out stationarity of the variables and Co-integration and DOLS (Dynamic Ordinary Least Square) techniques have been used for the estimation. Co integration results indicated the long run relationship among the variables. However, negative impact of trade openness can be overcome by producing import substitutes and creating conditions for trade surplus. Furthermore, foreign direct investment and trade are considered vital elements that improve the influence of economic growth.  

scholarly journals Elections, Foreign Direct Investment, and Economic Growth in Ghana’s Fourth Republic: 1993 to 2016

2019 ◽  
pp. 1-8
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

Foreign Direct Investment (FDI) has been seen as an important factor influencing economic growth directly and indirectly in both developed and developing countries. This study assesses the impact of FDI on growth in Ghana since the return to constitutional rule in 1993. The study uses time series data from 1993 to 2016. Using the Autoregressive Distributed Lagged model (ARDL), the study finds a positive impact of FDI on growth both in the short-run and long-run. However, there is a lag period of two. The study equally finds that Gross Saving has a positive impact on growth. On the other hand inflation has a negative effect on growth both in the short and long run. The study also discovered that FDI granger causes growth but GDP does not granger cause FDI. Post-election years with incidence of political uncertainty slow down FDI inflow into Ghana. The study recommends the adoption of stringent fiscal and monetary policies to keep inflation low. It also recommends maintaining and improving the liberal market environment to attract investors, policies to encourage saving, and improving on political transitions to avoid uncertainties for investors.

The Impact of Foreign Direct Investment on the Economic Growth in Cambodia: Empirical Evidence

2018 ◽  
Vol 4 (5) ◽  
pp. 31-38 ◽  
Author(s):  
Khun Sokang
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Correlation Matrix ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Fdi Inflows ◽  
Analysis Techniques ◽  
The Impact

The foreign direct investment (FDI) inflows are often seen as an important catalyst for economic growth in developing countries. This study aims to investigate the impact of FDI on the economic growth of Cambodia by utilizing the time series data throughout 2006-2016. The correlation matrix and multiple regression analysis techniques were used to analyze the collected data. The results of the study reveal that FDI has a positive impact on the economic growth of Cambodia. The study recommends that government should bring reforms in the domestic market to attract more FDI in Cambodia.

RELATIONSHIP BETWEEN ECONOMIC GROWTH AND FOREIGN DIRECT INVESTMENT: THE CASE OF DONG NAI PROVINCE, VIETNAM

2019 ◽  
pp. 50-59
Author(s):  
Hung Tran Van ◽  
Huong Le Thi Mai
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Foreign Investments ◽  
Use Of Time ◽  
The Relationship ◽  
Opening Up

The study focuses on analyzing the relationship between economic growth and foreign direct investment in Dong Nai. This study is based on the use of time series data collected from Dong Nai Statistical Office during the period 1997-2017 and using the VAR model to analyze this data. The results show there is a two-way relationship between foreign direct investment and economic growth in Dong Nai province. In other words, attracting of foreign investments has a positive impact on economic growth and vice versa. At the same time, the results also show that students and the opening up of the economy have impact on attracting foreign direct investment into the province. Based on the results achieved, the article puts forward some proposals on how to attract FDI in order to contribute to economic growth in Dong Nai.

scholarly journals Interaksi Hubungan antara Foreign Direct Investment dan Pertumbuhan Ekonomi

2019 ◽  
Vol 9 (2) ◽  
pp. 65-77
Author(s):  
KHOIRUL IFA ◽  
Neny Tri Indrianasari ◽  
Nawangsih Nawangsih
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Time Series Data ◽  
The Philippines ◽  
Series Data ◽  
Causality Analysis ◽  
Causality Test ◽  
Close Relationship

In ASEAN 5 countries namely Indonesia, Vietnam, Thailand, the Philippines and Malaysia have almost the same culture, in terms of social and economic aspects, the 5 countries have links between one country and another, so it is possible that the flow of foreign investment has a close relationship with economic growth. This study aims to determine the relationship between Foreign Direct Investment (FDI) and Economic Growth in ASEAN 5 Periods 1986-2017. This research is a two-way relationship research between the independent variable and the dependent variable that are reciprocal. The type of data used is the 1986-2017 time series data. Sources of data obtained from the World Bank. Data analysis technique uses Granger Causality analysis to see the 2-way relationship, and VAR (Vector Auto Regression) analysis by looking at the implus response factor for non-stationary data using VECM (Vector Error Correction Model) analysis. The results of the study state that based on the Granger Causality test there is no relationship between FDI and GDP and vice versa between GDP and FDI. Based on the VECM test there is a relationship between FDI and GDP.

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