Causal Links Between Foreign Direct Investment and Trade in Turkey

Kiran, Burcu

doi:10.5539/ijef.v3n2p150

Cited by 10 publications

(7 citation statements)

References 11 publications

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“…A 1% increase of direct investment by China into the CIS may accelerate energy export volumes by nearly 0.53%. This result corroborates the work of Santiago (1987), Dritsaki and Stiakakis (2014), and Sunde (2017), who discovered a positive relationship between FDI and trade flows, but it contradicts the work ofKiran (2011) who asserted that there exists no evidence of causality between FDI and trade.ⅴ. Among all of my regressors, the sign of the coefficient for PR is most interesting.…”

supporting

confidence: 86%

Energy Trade and Economic Integration between the Commonwealth Independent States and China

Rasoulinezhad

2020

Journal of Economic Integration

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The main purpose of this study is to conduct the traditional economic, political, and geopolitical factors to uncover the relationship between different factors and the volume of China's energy importing from the Commonwealth of Independent States. We conducted a panel data framework for our sample during the period between 2001 and 2017. My paper's main findings reveal that the economic sizes of Commonwealth of Independent States members have a positive effect on China's energy import flow from the Commonwealth of Independent States. Furthermore, the amount of the Commonwealth of Independent States 's annual energy exports to countries other than China has a significant negative effect on the level of China's energy imports from the Commonwealth of Independent States. In regard to geographic distance, findings showed a negative sign of its coefficient meaning that geographical distance might decelerate energy trade flows running from the Commonwealth of Independent States to China. I also discovered that China's foreign direct investment in Commonwealth of Independent States states might determine and accelerate energy export flows running from the Commonwealth of Independent States to China. Finally, our major findings proved the evidence of a positive relationship between political risk in the Commonwealth of Independent States and the energy importing flows of China.

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supporting

confidence: 86%

Energy Trade and Economic Integration between the Commonwealth Independent States and China

Rasoulinezhad

2020

Journal of Economic Integration

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“…Regarding the effect of FDI on exports, the evidence is also mixed. While some found that increased levels of FDI positively affect exports (e.g., Lin, 1995;Zhang & Song, 2000;Liu et al, 2001;Dritsaki et al, 2004;Kutan & Vuksic, 2007;Xuan & Xing, 2008;Bhatt, 2013), others reported evidence that FDI has insignificant or even negative effect on exports (e.g., Hsiao & Hsiao, 2006;Jayachandran & Seilan, 2010;Kiran, 2011;Dritsaki & Stiakakis, 2014). There is evidence that FDI inflows improve trade balance (Anwar & Nguyen, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Foreign Direct Investment on Trade Balance: Evidence from Cote d’Ivoire

Keho¹

2020

IJEF

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Foreign direct investment (FDI) inflows have been increasing in developing countries over the past decades. However, there is only a few evidence about their impact on the trade balance on the recipient countries. This study empirically examines the issue for Cote d’Ivoire from 1980 to 2017. To that end, we extend the traditional trade balance function to include FDI and employ alternative cointegration testing and estimation methods. The results show that domestic income, real effective exchange rate and foreign direct investment are important drivers of trade balance. A real depreciation of domestic currency improves the trade balance both in the long and short run, thus consistent with Marshall-Lerner condition. Furthermore, FDI adversely affects trade balance in the long run.

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“…It was suggested that expansion of FDI is beneficial for export promotion in selected countries. Kiran (2010) scrutinized the causal relationship between FDI and trade in Turkey by using quarterly data from 1992 to 2008. Results suggested no causal relationship between FDI and trade.…”

Section: Empirical Evidencementioning

confidence: 99%

Does Inward Foreign Direct Investment Lead Export Performance in Pakistan?

Jawaid

Raza

Mustafa

et al. 2016

Global Business Review

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This study is a pioneering attempt to investigate the impact of foreign direct investment (FDI) on export performance in Pakistan by using the long annual time series data from the period 1974–2012 and by using more rigorous econometric techniques. Autoregressive distributed lag-bound testing cointegration approach confirms the valid long-run relationship between considered variables. Results indicate the significant positive impact of FDI on real exports in long run as well as in short run. Results of Granger causality test, Toda and Yamamoto Modified Wald causality test and variance decomposition test confirm the bidirectional causal relationship between FDI and export performance in Pakistan. Results of rolling window analysis suggest that the coefficient of FDI in export model remains negative from 1983 to 1987, from 2001 to 2006 and in 2011. The coefficient of FDI in export model shows a positive coefficient in remaining years. It can be seen that FDI and real export are connected in complementary way in Pakistan. The policy makers should make policies that favour foreign investors so as to attract more FDI in Pakistan. It has been observed that a stable political and economic environment is desirable to attract more FDI in Pakistan.

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Causal Links Between Foreign Direct Investment and Trade in Turkey

Cited by 10 publications

References 11 publications

Energy Trade and Economic Integration between the Commonwealth Independent States and China

Energy Trade and Economic Integration between the Commonwealth Independent States and China

Impact of Foreign Direct Investment on Trade Balance: Evidence from Cote d’Ivoire

Does Inward Foreign Direct Investment Lead Export Performance in Pakistan?

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