scholarly journals Foreign direct investment and economic growth of Nepal: An application of bound testing approach to cointegration

2020 ◽  
Vol 1 ◽  
pp. 104-113
Author(s):  
Keshar Bahadur Kunwar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Percent Level ◽  
Series Data ◽  
Long Run ◽  
Percent Increase ◽  
Annual Time Series ◽  
Level Of Significance

This study employed bounds test based cointegration technique using annual time series data from the period 1990/91 to 2015/16 for exploring relationship between RGDP and FDI in Nepal. This paper examines the effect of FDI on RGDP is insignificant at five percent level of significance. The coefficient (0.35) of (FDI) shows that one percent increase in FDI leads to over 0.35 percent increase RGDP in the long-run. There is no causality between foreign direct investment and 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 The Relationship between Electric Power Consumption, Foreign Direct Investment and Economic Growth in Sri Lanka

2020 ◽  
pp. 21-31
Author(s):  
S. Maheswaranathan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Time Series Data ◽  
Empirical Finding ◽  
Electricity Consumption ◽  
Series Data ◽  
Long Run ◽  
Bound Test

Purpose: This paper investigates the long run relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka. Design/Methodology/Approach: The annual time series data over the period 1970–2017 is considered to this study. Augmented Dickey–Fuller (ADF) unit root analysis is employed for examining the stationary properties of the variables. Consequently, Autoregressive Distributed Lag (ARDL) analysis is employed to examining the short- run and long-run relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka. Further, this study used the diagnostic tests such as the residual normality test, heteroskedasticity and serial autocorrelation tests for misspecification to validate the parameter estimation outcomes achieved by the estimated model. CUSUM test is applied to test the stability of the model. Collected data were analyzed using STATA version 15. Findings: The findings of the bound test confirm that the variables are cointegrated. Further the results reveal that there is a statistically positive significant relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka in the long run and short term. The empirical finding reveals that one percent increase in electricity consumption and foreign direct investment increases the GDP by 1.5 percent and 12.9 percent in the long run respectively.

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 Foreign direct investment and economic growth in Albania: a co-integration analysis

2016 ◽  
pp. 234-244
Author(s):  
Eglantina Hysa ◽  
Livia Hodo
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Strongly Correlated ◽  
Real Effects ◽  
Positive Effects ◽  
Long Run ◽  
The Government

Theoretical studies strongly support the positive effects of Foreign Direct Investment (FDI) in the Gross Domestic Product (GDP) of the host country through technology transfer, human capital formation, etc. This study aims to examine the real effects of FDI in the economic growth of Albania, since FDI was one of the first pillars of the economy that the government gave priority to after 1990. This relationship was investigated by using the Co-Integration approach for the quarterly data from 1991 to 2012. The time series data are taken from the Bank of Albania. As expected, the empirical findings of this study reveal the existence of a long run relationship of GDP growth and FDI to GDP ratio. Being strongly correlated to each other, FDI to GDP ratio shows its significant contribution to Albanian 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.

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.

scholarly journals The Accessing Foreign Aid’s Long Run Contribution to Economic Growth of Pakistan: An Evidence from Time Series Data

2021 ◽  
Vol 3 (1) ◽  
pp. 25-36
Author(s):  
Hina Ali ◽  
Javeria Masood ◽  
Afifa Sadar Ud Din
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Direct Investment ◽  
Time Series Data ◽  
Development Aid ◽  
Series Data ◽  
Annual Data ◽  
Long Run ◽  
Domestic Savings

Purpose: This research examines the effectiveness of foreign aid on Pakistan’s economic growth.  The foreign aid efficiency is still under question. Some researches show positive affiliation of foreign aid with economic growth while some show negative affiliation. If foreign aid is not replacing or used as a substitute for domestic savings then foreign aid is useful for growth. To fill the two gaps of the economy the Two-Gap theory suggest that poor nations have to depend on overseas funds. Those two gaps are the Savings-Investment Gap and Import-Export Gap. There’re many kinds of international funds. Like foreign loans, development and non-development aid, FDI, and technological help. But underdeveloped nations like Pakistan have not a favorable speculation policy. Therefore, these nations are dependent on international aid and balance quite than foreign direct investment. Design/Methodology/Approach: For the analysis of this study the time era used is 1974 to 2016. The GDP is the dependent variable. Independent variables are population growth, foreign aid, inflation, foreign direct investment (FDI), and domestic savings. The annual data is collected from different sources. The technique for analysis is OLS and ARDL bound testing. Findings: Concluding remarks show that in Pakistan foreign aid affects economic growth negatively. Implications/Originality/Value: The  current  study  was  based  on the least  considered  variables  and  the  pioneer  in  testing  the  complex relationship through OLS and ARDL estimation.

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.

scholarly journals The Impact of Key Macroeconomic Determinants on Pakistan’s Economy

2020 ◽  
Vol V (II) ◽  
pp. 260-272
Author(s):  
Faaeza Atiq ◽  
Mudassir Uddin ◽  
Irfan Hussain Khan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Price Index ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper intended to analyze key Macroeconomic factor’s effect on Pakistan’s economic development. The annual time-series data has been taken from 1980 to 2018 on External Debts, Foreign Direct investment. Consumer Price Index and Term of Trade. Variables stationarity is analyzed by ADF and Ng-Perron tests; afterwards, JJ test and Granger Causality test are used for Long-run (LR) & Short-run(SR) associations between variables, respectively. Also, Residuals Diagnostic Test used for checking residuals assumptions and CUSUM and CUSUMSQ are used for checking parameter constancy. The result shows significantly negative and positive long-run effects of External Debts and Foreign Direct Investment (FDI) respectively on the economic growth of Pakistan. Albeit, Consumer Price Index (CPI), Term of Trade (TOT) and, FDI significantly Granger cause economic growth in the short-run. Research suggests that economic policies devised in such a way that deteriorates External Debts and attract foreign investments and strengthen the economic growth of Pakistan in the long-term.

scholarly journals Surveying sources of economic growth: empirical evidence from Malaysia

2017 ◽  
Vol 15 (4) ◽  
pp. 114-123 ◽  
Author(s):  
Muhammad Azam ◽  
Abdul Qayyum Khan ◽  
B. Bakhtyar
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Direct Investment ◽  
Time Series Data ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Annual Time Series ◽  
High Competence

The main objective of this study is to evaluate the effect of various economic and social factors namely (foreign direct investment (FDI), energy consumption, exports, tourism, foreign remittances, human capital represented by educational expenditure and health expenditure) on economic growth represented by GDP per capita in Malaysia. Annual time series data during the period 1995–2015 and the Cobb-Douglas production function with Ordinary Least Squares (OLS) based on various analytical tests are used for empirical investigation. The empirical results confirm that incoming foreign direct investment, human capital, energy consumption, and tourism are the main sources of economic growth in Malaysia during the period under study. Findings of the study suggest to initiate a motivational promotion for the inhabitant towards utilization of high competence technology, constructing solid policy for export promotion, creating conducive environment for inward foreign investment, introducing effective educational and health policies for further enhancement of the pace of economic growth.

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