Exports, Foreign Direct Investment, and Economic Growth for Five European Countries: Granger Causality Tests in Panel Data

2014 ◽  
Vol 60 (4) ◽  
pp. 253-272 ◽  
Author(s):  
Nikolaos Dritsakis, ◽  
Pavlos Stamatiou
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Granger Causality ◽  
Direct Investment ◽  
European Countries ◽  
Causality Tests ◽  
Granger Causality Tests

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.

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 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 Do Operating Profits Induce a Wage Premium Equally Shared among Employees Earning High or Low Incomes?

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 81
Author(s):  
Jarle Aarstad ◽  
Olav A. Kvitastein
Keyword(s):  
Panel Data ◽  
Granger Causality ◽  
Wage Inequality ◽  
Wage Premium ◽  
Wage Increase ◽  
Low Incomes ◽  
Causality Tests ◽  
Granger Causality Tests

Panel data show that between 2001 and 2014 Norwegian industries’ increasing aggregated operating profits per employee increased average wages and wage inequality. The data imply that increasing profits, perhaps unsurprisingly, induce a wage premium. The data further imply that employees earning high incomes at the outset had the highest wage increase percentage-wise. Decreasing operating profits per employee had opposite but less robust effects on average wages and wage inequality. Panel data Granger causality tests finally showed that average wages, but not wage inequality, reversely and positively affect operating profits per employee.

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