scholarly journals The Causal Relationship among Foreign Direct Investment, Domestic Saving and Economic Growth in Jordan during the Period (1975–2013)

2014 ◽  
Vol 10 (1) ◽  
Author(s):  
Atif Issa Batarseh ◽  
Izz Eddien N. Ananzeh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Direct Investment ◽  
Domestic Saving

scholarly journals Causal Relationship between Economic Growth, Financial Deepening, Foreign Direct Investment and Innovation: Evidence from China

2018 ◽  
Vol 8 (8) ◽  
pp. 1086-1101 ◽  
Author(s):  
Mollah Aminul Islam ◽  
Haiyun Liu ◽  
Muhammad Asif Khan ◽  
Sultanuzzaman MD Reza ◽  
Yassin Elshain Yahia ◽  
...  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Direct Investment ◽  
Financial Deepening

scholarly journals Triangular Policy Inference from Renewable Energy, Foreign Direct Investment (FDI) and Urbanization Towards Climate Goal: Insight from Indonesia

2021 ◽  
Author(s):  
Edmund Ntom Udemba ◽  
Lucy Davou Philip
Keyword(s):  
Economic Growth ◽  
Energy Source ◽  
Renewable Energy Source ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Causal Relationship ◽  
Granger Causality ◽  
Direct Investment ◽  
Carbon Emission ◽  
Fossil Fuels

Abstract This is an expository study towards ascertaining the ability of Indonesia in mitigating carbon emission. Indonesia is positioned as among the best performing economies in Southeast Asia because of its vigorous fiscal management and sustained economic growth over the years. The country’s foreign investment inflow increased to 14% in 2019, largely in gas, electricity, water, and transportation because of the viability of its macroeconomic reforms. To test the environmental implication of this macroeconomic performance of Indonesia and to see its ability to achieve carbon neutrality, we adopt Indonesian quarterly data of 1990Q1- 2018Q4 for empirical analysis. Relevance Instruments in the economic performance of Indonesia such as urbanization, foreign direct investment (FDI) and renewable energy source are all adopted for accurate estimations and analysis of this topic. Different approaches such as structural break test, autoregressive distributed lag (ARDL)-bounds testing and granger causality are all adopted in this study. Our analysis and policy recommendations are based on short run and long run ARDL dynamics and granger causality. Findings from ARDL confirmed, negative relationship between carbon emission and renewable energy source, FDI and urbanization. Also, a U-shape instead of inverted U-shape EKC is found confirming the impeding implication of Indonesian economic growth to its environmental performance if not checkmate. From granger causality analysis, all the variables are seen transmitting to urbanization in a one-way causal relationship. Also, FDI and renewable energy prove to be essential determinants of the country’s environment development, hence, FDI is seen transmitting to both energy source (fossil fuels and renewables) in a one- way causal relationship. Renewable energy is as well seen having two ways causal relationship with both carbon emission and fossil fuels. This result has equally exposed the significant position of the three instruments (urbanization, FDI and renewable energy source) in Indonesia environment development.

scholarly journals Policy Insight from Renewable Energy, Foreign Direct Investment (FDI) and Urbanization towards Climate Goal: Insight from Indonesia

2022 ◽  
Author(s):  
Edmund Ntom Udemba ◽  
Lucy Davou Philip
Keyword(s):  
Economic Growth ◽  
Energy Source ◽  
Renewable Energy Source ◽  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Causal Relationship ◽  
Granger Causality ◽  
Direct Investment ◽  
Carbon Emission ◽  
Fossil Fuels

Abstract This is an expository study towards ascertaining the ability of Indonesia in mitigating carbon emission. Indonesia is positioned as among the best performing economies in Southeast Asia because of its vigorous fiscal management and sustained economic growth over the years. The country’s foreign investment inflow increased to 14% in 2019, largely in gas, electricity, water, and transportation because of the viability of its macroeconomic reforms. To test the environmental implication of this macroeconomic performance of Indonesia and to see its ability to achieve carbon neutrality, we adopt Indonesian quarterly data of 1990Q1- 2018Q4 for empirical analysis. Relevance Instruments in the economic performance of Indonesia such as urbanization, foreign direct investment (FDI) and renewable energy source are all adopted for accurate estimations and analysis of this topic. Different approaches such as structural break test, autoregressive distributed lag (ARDL)-bounds testing and granger causality are all adopted in this study. Our analysis and policy recommendations are based on short run and long run ARDL dynamics and granger causality. Findings from ARDL confirmed, negative relationship between carbon emission and renewable energy source, FDI and urbanization. Also, a U-shape instead of inverted U-shape EKC is found confirming the impeding implication of Indonesian economic growth to its environmental performance if not checkmate. From granger causality analysis, all the variables are seen transmitting to urbanization in a one-way causal relationship. Also, FDI and renewable energy prove to be essential determinants of the country’s environment development, hence, FDI is seen transmitting to both energy source (fossil fuels and renewables) in a one- way causal relationship. Renewable energy is as well seen having two ways causal relationship with both carbon emission and fossil fuels. This result has equally exposed the significant position of the three instruments (urbanization, FDI and renewable energy source) in Indonesia environment development.

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.

scholarly journals The FDI-growth hypothesis: A VAR model for Nigeria

2004 ◽  
Vol 7 (1) ◽  
pp. 170-184
Author(s):  
PA Olomola
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Granger Causality ◽  
Foreign Investment ◽  
Direct Investment ◽  
Var Model ◽  
Annual Data ◽  
Endogenous Production ◽  
Growth Hypothesis

The objective of this study was to examine the causal relationship between foreign direct investment and economic growth in Nigeria using annual data covering the period 1970 to 2002. The study employed the Granger causality procedure to test the direction of causality between foreign direct investment and economic growth for the Nigerian economy. The endogenous production function was derived to accommodate foreign investment and other domestic policies that could influence growth and foreign investment. The study found a one-way causality between from foreign direct investment to economic growth. The implication arising from this study is that Nigeria should adopt policy whereby FDI is attracted to promote economic growth.

scholarly journals KAUSALITAS INFRASTRUKTUR TRANSPORTASI, FOREIGN DIRECT INVESTMENT (FDI) DAN PERTUMBUHAN EKONOMI DI INDONESIA

Jurnal Ecogen ◽  
2019 ◽  
Vol 1 (3) ◽  
pp. 659
Author(s):  
Hana Raghdsifa A W ◽  
Hasdi Aimon ◽  
Mike Triani
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Causal Relationship ◽  
Direct Investment ◽  
Time Series Data ◽  
Secondary Data ◽  
Transportation Infrastructure ◽  
Series Data ◽  
Var Analysis ◽  
Auto Regression

The aims of this study are to analyze the causal relationship between transportation infrastructure, foreign direct investment (FDI) and economic growth in Indonesia. The type of research used was descriptive associative. This study used secondary data and using time series data from 1987-2017 which were analyzed using Vector Auto Regression (VAR) analysis and continued with VECM analysis. The results of the VAR analysis have indicated that there is a causal relationship between the variables of transportation infrastructure and foreign direct investment (FDI), there is a one-way relationship between the variables of transportation infrastructure affecting economic growth and there is a one-way relationship between economic growth variables affecting foreign direct investment (FDI).  Keywords: Transportation Infrastructure, foreign direct investment (FDI), economic growth (GDP)

scholarly journals Healthcare Expenditure and Economic Growth in Sub-Saharan Africa

2020 ◽  
pp. 1-7
Author(s):  
Birhanu Yimer Ali ◽  
Robert Moracha Ogeto
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Health Expenditure ◽  
Generalized Method Of Moments ◽  
Health Sector ◽  
Sub Saharan Africa ◽  
Domestic Saving ◽  
African Countries ◽  
Sub Saharan

This paper investigated the effect of health expenditure on economic growth in Sub Saharan Africa. The linear dynamic generalized method of moments instrumental variable (GMM-IV) was used on a panel data of 38 Sub-Saharan African countries over the period 2000-2016. Findings reveal that health expenditure significantly improves economic growth in Sub Saharan Africa. The separate effects of Public and private health expenditures have also shown a significant positive relationship on economic growth. In addition to health expenditure, other determinants like gross domestic saving, foreign direct investment, and labor force brought a statistically significant improvement on economic growth, whereas official development assistance has a statistically insignificant effect on economic growth. This study concluded that health expenditure is an important element in attaining improved economic growth in Sub-Saharan African Countries as it assured a healthy workforce and the country’s populace. Therefore, increasing the amount of health expenditure allocated to the health sector yields a better economy. More on, revising policies to improve gross domestic savings and foreign direct investment also assure a better economic growth.

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