Foreign direct investment, exports and economic growth: evidence from two panels of developing countries

Mahmoodi, Majid; Mahmoodi, Elahe

doi:10.1080/1331677x.2016.1164922

Cited by 112 publications

(93 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…For instance, their research advocates that the capacity of public policies may exist for the development of economic growth through attracting FDI from the foreign investors and in the creation of investment friendly free trade zone, the quality of infrastructure, providing tax holidays, financial system, improving the human capital and financial market regulations. Another study (Majid & Elahe, 2016) aims to test the effect of FDI, exports and economic growth through Tri-Variate Panel vector error correction (VECM) model in eight European developing countries and eight Asian developing countries. The study reveals that there is a bi-directional relationship between GDP and FDI and uni-directional relationship from GDP and FDI to exports through short-run analysis in the European developing countries.…”

Section: Empirical Literaturementioning

confidence: 99%

The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach

Sultanuzzaman

Fan

Akash³

et al. 2018

Cogent Economics & Finance

View full text Add to dashboard Cite

This paper examines the long-run and short-run relationship between Foreign Direct Investment (FDI) inflows, exports, and economic growth in Sri Lanka over 1980-2016. The study implies Autoregressive Distributed Lag (ARDL) bounds testing approach to reveal the relationship between the variables. The study indicates that FDI inflows have a positive and significant relationship with economic growth in the long-run and short run. If FDI inflows increase, GDP growth will increase. But for exports, it has a negative and significant relationship with economic growth in the long-run. If exports increase, the GDP growth will decrease. Sri Lankan exports strongly depend on primary goods. There is a risk of finite resources and price volatility. It's not surprising for developing economy like Sri Lanka. Also, in the short run, exports have a positive and significant relationship with economic growth. If exports increase, GDP growth will increase significantly. The findings suggest that both FDI inflows and exports influence economic progress in Sri Lanka. Based on emerging market economies, FDI inflows are useful in improving the production process in the host country, and hereafter it will contribute to quality exports and the economic growth of Sri Lanka. Policymakers should emphasize to gear up all the barriers for the economic development of Sri Lanka.

show abstract

Section: Empirical Literaturementioning

confidence: 99%

The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach

Sultanuzzaman

Fan

Akash³

et al. 2018

Cogent Economics & Finance

View full text Add to dashboard Cite

show abstract

“…During this decade, there have been a number of interesting studies on the role of foreign direct investment in stimulating economic growth and vice versa (Adams, 2009;Mahmoodi & Mahmoodi, 2016 Croatia was the first country in the region to assume a positive attitude towards foreign financing and direct investments. The Foreign Investment Promotion Act was passed in the year 2000.…”

Section: Overview Of Previous Researchesmentioning

confidence: 99%

Economic development of the Western Balkans and European Union investments

Popović

Erić

2018

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

Long-run economic growth represents a precondition for the development of the Western Balkans countries. Continuous investments are required to achieve high rates of economic growth, while investments sources are national savings and foreign investments. The national savings level in the Western Balkans (W.B.) is not sufficient to finance radical changes, so external sources, in particular foreign direct investment (F.D.I.), are necessary for the development, as well as the official development assistance (O.D.A.). In view of the European intentions for the Western Balkans Region and the level of economic relations with the European Union, this paper seeks to explore the European Union (E.U.) investments and W.B. development. Results of the panel analysis and V.A.R. model show a statistically significant relationship between G.D.P. per capita and the length of the road network and E.U. investments. This confirms the significance of these development variables for the inflow of investment from the E.U. Panel analysis, explanatory variables of trade openness and signing of the Stabilisation and Association Agreement with the E.U. did not prove to be significant for E.U. investments inflow. A statistically significant relationship does not exist between the unit labour costs and investments from the E.U. when applying a causality test.

show abstract

“…The main indicators analyzed in this research were foreign direct investment, gross domestic product, exports and imports, in the period 2000 -2012. These main macroeconomics indicators were chosen because they represent health of every single national economy and due frequency of usage in other similar researches [24][25][26][27].…”

Section: Methodsmentioning

confidence: 99%

“…This contribution is empirically documented by researches [24] who show that foreign direct investment and trade in particular contribute toward advancing economic growth in developing countries in a strong, positive interaction, and stimulate domestic investment. Others [25] indicate that in developing European countries there is bidirectional causality between gross domestic product and foreign direct investment and unidirectional causality to trade in shortrun. In addition, some researchers [26] exploring relationship between economic grow, gross domestic product, foreign direct investment, and trade found two-way causal connections existence…”

Section: Theorymentioning

confidence: 99%

Foreign Direct Investment in the Function of Economic Development - Example of Selected Countries in the Western Balkans

Domazet

Marjanović²

2017

ILSHS

View full text Add to dashboard Cite

Abstract. The main aim of this work is to determine, on the basis of empirical research, whether and to what extent foreign direct investment has impact on the overall economic development of selected countries in the Western Balkans. Analyses made for the purpose of this paper were performed on the basis of available secondary data possessed by the World Bank for the period of 2000-2012. The research methodology involved the use of the techniques of linear regression and correlation analysis. The first task was to determine whether there is an impact of foreign direct investment on the overall economic development of these countries. Where such influence occurred, it was necessary to define its level in comparison to the influence of other variables. The results of the analysis in this paper suggest that inflow of foreign direct investment does not affect to a significant extent the economic development of selected countries in the Western Balkans.

show abstract

Foreign direct investment, exports and economic growth: evidence from two panels of developing countries

Cited by 112 publications

References 26 publications

The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach

The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach

Economic development of the Western Balkans and European Union investments

Foreign Direct Investment in the Function of Economic Development - Example of Selected Countries in the Western Balkans

Contact Info

Product

Resources

About