Foreign Direct Investment and Economic Growth: Heterogeneous Causality in Panel Data

Volume 9, Issue 4 - Serial Number 4
Vol. 9, No. 4, Winter 2013
Winter 2012
Pages 45-65

Document Type : Research Paper

Abstract
In this paper causality between foreign direct investment and economic growth analyzed by 86 countries data from 1980 to 2012. We applied panel data granger non-causality and compare heterogamous and homogenous method results. In homogenous causality test, there is no causality between economic growth and FDI but in heterogeneous causality test null hypothesis of no causality, rejected in both directions. This result indicates that there is causality relationship in subset of countries. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . .. .. .

Keywords

  • Receive Date 16 September 2014
  • Revise Date 06 April 2015
  • Accept Date 12 October 2015
  • First Publish Date 12 October 2015
  • Publish Date 21 December 2012