Effect of Foreign Direct Investment on Economic Growth: New Evidence from OECD Countries

2021 ◽  
Vol 13 (1) ◽  
pp. 25-39
Author(s):  
Mengzhen Wang ◽  
Baek-ryul Choi ◽  
Yugang He
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Oecd Countries ◽  
New Evidence

scholarly journals Foreign Direct Investment as an Important Source of External Development Financing: New Evidence in Turkey

2019 ◽  
Author(s):  
Mohamed Isse Ibrahim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Labor Force ◽  
Significant Relationship ◽  
Direct Investment ◽  
Time Series Data ◽  
External Source ◽  
Series Data ◽  
New Evidence

Foreign direct investment is a critical source of external instruments for financing development for Turkey, FDI can contribute to technology diffusion, Economic growth, Employment generation and Sustainable development. However; the Objective of this research is to examine whether foreign direct investment as an external source of financing effects economic growth in Turkey, based on time series data from 2003 to 2016 during the Erdoğan administration. This study employed Harrod-domar growth model using under OLS method. The paper considerate main variables foreign direct investment, Exchange rate and labor force. Based on empirically investigated the study confirmed that foreign direct investment and Labor force has a positive significant relationship to economic growth in Turkey while exchange rate has a negative significant relationship to economic growth in Turkey. So this paper recommends that movement of Turkey should promote policies encourage and creation of a good microeconomic and macroeconomic a friendly environment and utilization of the careful of loose monetary policy to economic performance.

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.

scholarly journals Causal Relationship between Foreign Direct Investment, Growth and Exports: An Anecdote from Oecd Countries

2019 ◽  
Vol 8 (4) ◽  
pp. 6584-6593
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Direct Investment ◽  
Oecd Countries ◽  
Equilibrium Relationship ◽  
Augmented Dickey Fuller ◽  
Export Policies ◽  
Investment Growth

In the globalised world of today there is a process of integration between the countries and one way of integrating is by trade. In this instance export led growth surfaces and arises as an imperative factor. In the related pretext works offers rich acumens regarding role of Foreign Direct Investment and economic growth. In this paper we study the causal relationship between Foreign Direct Investment (FDI) and Exports on Growth of select 30 OECD countries. As a measure of economic growth Industrial Production Index (IPI) is used in the study. To examine the relationship Augmented Dickey Fuller Test and Phillip Perron Test was employed to test the unit Root and to examine the long term equilibrium relationship and direction of causality Johansen’s cointegration test and Granger causality was used. The study reveals important cointegrating relationship between IPI and FDI and IPI and Exports in 22 and 23 sample OECD countries respectively. In Granger lead relationship between IPI and FDI three bilateral relationships were revealed in Canada, Czech Republic and Spain and 16 Unilateral relationships were revealed in the same .In granger led relationship between FDI and IPI only 9 Unilateral relationships were revealed. In IPI and Exports only one bilateral Granger lead relationship was revealed in Finland followed by 6 unilateral relationships. In granger lead relationship between Exports and IPI 16 Unilateral relationship was exhibited. Hence to achieve economic growth FDI and exports are majorly instrumental. The empirical findings suggest that OECD countries should continue the policy aimed at attracting FDI and expanding the exports sector in FDI led Growth and exports led growth. This study has some major implications in strategizing FDI and export policies for OECD region.

Sign in / Sign up

Export Citation Format

Share Document