Foreign Direct Investment and Economic Growth: A Time-Series Approach

Roy, Atrayee Ghosh; Berg, Hendrik F. Van den

doi:10.2202/1524-5861.1130

Cited by 30 publications

(14 citation statements)

References 56 publications

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“…The positive relationship between FDI at the aggregate level, and real income per capita, was found by Khawar (2005). Roy & Berg (2006) revealed that even an industrially advanced country benefits from FDI, and the gains from FDI are significant in the long run. Behname's (2012) study shows that FDI has a positive effect on Southern Asia's economic growth and that human capital, trade, economic infrastructure, and capital had a positive effect on attracting FDI.…”

Section: Literature Reviewmentioning

confidence: 96%

The Impact of Foreign Direct Investment by Economic Activity on Gross Domestic Product Growth in Kosovo

Govori¹,

Fejzullahu²

2020

AJIS

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The effects of the foreign direct investment (FDI) on economic growth, both in developed and non-developed countries, have been investigated for decades. In Kosovo's new economy, the FDI's presence is essential for economic and social development. This study aims to examine the impact of FDI by economic activities, known as "high-level aggregation," on the gross domestic product (GDP) growth for the period 2010-2019. The multiple regression is used to analyze the strength and direction of the FDI's impact on the GDP. The results show that FDI in the activities belonging to the primary sector has negatively impacted the GDP. In contrast, the FDI in activities of the secondary sector indicates a positive impact. Concerning the tertiary sector, the result differs among the types of activities. The FDI in real estate, renting, and business activities have a positive impact on GDP. Also, the FDI in public administration, education, human health, and social work activities has a substantial impact on GDP growth. The other FDIs belonging to the tertiary sector showed adverse impacts. So, the findings suggest that in a new economy, the FDI in activities that are more apt to induce positive externalities has more potential to increase the GDP in the long run. Otherwise, the impact may be low or adverse.

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Section: Literature Reviewmentioning

confidence: 96%

The Impact of Foreign Direct Investment by Economic Activity on Gross Domestic Product Growth in Kosovo

Govori¹,

Fejzullahu²

2020

AJIS

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“…Overseas direct investment on the growth driving element for the budget was mentioned by many studies such as Ghosh and Van den Berg (2006) and Iqbal et al (2010). An important issue that most of developing economies suffer is gap in savinginvestment and overseas direct investment limits this cavity by improving the output, recent expertise, producing opportunities for youth while also enhancing the competition (Kobrin, 2005).…”

Section: Existing Review Of Literaturementioning

confidence: 99%

Financial development, trade openness and economic growth in Pakistan: A granger causality approach

Chandio

Rehman

Jiang

et al. 2017

Int. j. adv. appl. sci

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This study aims to examine the direction of causality between financial development, trade openness and economic growth in Pakistan over the period 1970 to 2014. For this undertaking, statistical tools such as ADF and P-P unit root tests have been used to check stationery of the series and Cointegration test has been used to determine the long run relationship between the study variables. The causality relationship among variable is examined by Granger causality approach. The result of ADF test revealed that all variables become stationery at first difference which confirm to co integration test. Furthermore, the results of Johansen Co integration test indicate that there is existence of a long run relationship between the variables. On the other hand, the results of Granger causality test show that there is a causality relationship which is bi-directional running from economic growth to financial development. While, the results show that there is also causality relationship which is bi-directional running from trade openness to financial development. Our study results revealed that unidirectional causality relationship found out between trade openness to economic growth. The results suggest that financial development and trade openness plays an important role in boosting economic growth in Pakistan.

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“…Carkovic and Levine (2002) found no significant effect in either developed or developing countries for the period 1960-1995. Roy and Von den Berg (2006) examined the impact of foreign direct investment on economic growth in the United States. According to the results, there is a significant and positive relationship between FDI and U.S. economic growth.…”

Section: F Ebghaeimentioning

confidence: 99%

The Impact of Foreign Direct Investment on Economic Growth in the MENA Region

Ebghaei

2023

İzmir İktisat Dergisi

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Economic growth is one of the basic objectives of countries' economic programs, which is influenced by various factors such as the amount of capital available. Attracting capital and foreign direct investment is an important way to accelerate the economy towards development and job creation, which can be considered an engine of economic growth and development. Considering the special importance of foreign direct investment (FDI) in economic growth, this article examines the impact of FDI on economic growth. For this purpose, the data of some countries in the Middle East and North Africa (Egypt, Saudi Arabia, Morocco, Jordan, Tunisia, Iran, Turkey, and Yemen) were selected for the period from 1980 to 2020. A second-generation panel cointegration method was used to achieve the study's objective. According to the results, the impact of FDI on economic growth in Egypt, Saudi Arabia, Morocco, Tunisia, Turkey, and Yemen during the study period is positive and statistically significant. In Jordan and Iran, FDI was found to have no impact on economic growth. Moreover, the impact of capital stock and labor on the economic growth of member countries is positive and significant, except in Tunisia, Egypt, Jordan, and Yemen.

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Foreign Direct Investment and Economic Growth: A Time-Series Approach

Cited by 30 publications

References 56 publications

The Impact of Foreign Direct Investment by Economic Activity on Gross Domestic Product Growth in Kosovo

The Impact of Foreign Direct Investment by Economic Activity on Gross Domestic Product Growth in Kosovo

Financial development, trade openness and economic growth in Pakistan: A granger causality approach

The Impact of Foreign Direct Investment on Economic Growth in the MENA Region

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