Journal ArticleDOI
An empirical investigation of foreign direct investment and economic growth in SAARC nations
TLDR
In this article, the causal nexus between foreign direct investment (FDI) and economic growth in SAARC countries was investigated, where Johansen's cointegration test was employed to examine the long-run relationship between FDI and economic development.Abstract:
Purpose – This paper aims to investigate the causal nexus between foreign direct investment (FDI) and economic growth in SAARC countries.Design/methodology/approach – Johansen's cointegration test was employed to examine the long‐run relationship between foreign direct investment and economic growth in SAARC countries. Besides, the vector error correction model (VECM) was employed to examine the causal nexus between foreign direct investment and economic growth in SAARC countries for the years 1970‐2007. Finally, the impulse response function (IRF) has been employed to investigate the time paths of log of foreign direct investment (LFDI) in response to one‐unit shock to the log of gross domestic product (LGDP) and vice versa.Findings – The Johansen cointegration result establishes a long‐run relationship between foreign direct investment and gross domestic product (GDP) for the sample of SAARC nations, namely, Bangladesh, India, Maldives, Nepal, Pakistan and Sri Lanka. The empirical results of the vector ...read more
Citations
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Modeling the nexus between coal consumption, FDI inflow and economic expansion: does industrialization matter in South Africa?
TL;DR: The causality tests suggest that a one-way causal link running from FDI to industrialization and from industrialization to coal consumption exists, and FDI inflow drives total natural resource rents in South Africa.
Journal ArticleDOI
Foreign direct investment in the energy and power sector in Bangladesh: Implications for economic growth
TL;DR: In this article, the causal relationship between FDI in the energy and power sector, and economic growth in Bangladesh for the period 1972-2010 was examined, and it was shown that there are robust positive and unidirectional short-run causal relationships running from FDI to energy use and from energy use to GDP growth.
Journal ArticleDOI
Does foreign direct investment cause economic growth? A dynamic panel data analysis for SADC countries
TL;DR: In this article, the causal relationship between inward foreign direct investment (FDI) and economic growth in Southern African Development Community (SADC) countries over the period 1980-2012 was examined.
Journal ArticleDOI
Foreign Direct Investment in the Power and Energy Sector, Energy Consumption, and Economic Growth: Empirical Evidence from Pakistan
Rashid Latief,Lin Lefen +1 more
TL;DR: In this paper, the authors analyzed the causality among the FDI in the power and energy sector, the energy consumption, and the economic growth of Pakistan for the period 1990-2017.
Journal ArticleDOI
Causal nexus between foreign direct investment and economic growth
Priya Gupta,Archana Singh +1 more
TL;DR: In this article, the cause and effect relationship between foreign direct investment (FDI) and economic growth (GDP) taken as proxy for Brazil, Russia, India, China and South Africa (BRICS nations) individually for the period 1992-2013 was determined by estimating a linear regression model consisting of both macroeconomic and institutional variables.
References
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Journal ArticleDOI
Co-integration and Error Correction: Representation, Estimation and Testing
TL;DR: The relationship between co-integration and error correction models, first suggested in Granger (1981), is here extended and used to develop estimation procedures, tests, and empirical examples.
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The mechanics of economic development
Abstract: This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
Journal ArticleDOI
Increasing Returns and Long-Run Growth
TL;DR: In this paper, the authors present a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity, which is essentially a competitive equilibrium model with endogenous technological change.
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