Testing for causality between the foreign direct investment, current account deficit, GDP and total credit: Evidence from G7

Abstract

In this study, countries were analyzed between 1990 and 2011 in order to determine whether a causal relationship exists among current account deficit, GDP, foreign direct investment, and total credits of G7. Analysis took into account the cross-sectional dependence and was applied to test the causality among the variables form the panel. Firstly, panel unit root tests were used for determining stationary of variables. As a result of the panel unit root tests, it was found that GDP and foreign direct investment have a stationary structure and that total credits and current account deficit contain unit root. In order to see whether there is a long-term relationship among the variables or not, the panel co-integration test was used. As a result of the test, it was concluded that there is a co-integration relationship among the series. The possibility of a causal relationship was analyzed among the variables using the causality test developed by Elena Ivona Dumitrescu and Christophe Hurlin (2012). Results of the analysis showed a unidirectional causal relationship from current account deficit and foreign direct investment to GDP. Bidirectional causality was found between current account deficit and total credits. Finally, a unidirectional relationship was found from foreign direct investment to current account deficit and total credits.

What have we learnt about board gender diversity as a business strategy? The appointment of board subcommittees

“…This result could be explained by the fact that the percentage of female directors on BDs is not an essential feature for firms listed on the Madrid Stock Exchange, as evidenced by Merino‐Madrid, Manzaneque‐Lizano, and Banegas‐Ochovo (), so the percentage of female directors on BDs is not a relevant factor in the establishment of all or some of the board subcommittees. The variable percentage of independent female directors on BDs (IWBD_P) shows a positive sign, as predicted, and it is statistically significant at the 1% level (see Akbas, Senturk, & Sancar, ). Hence, we cannot reject the second hypothesis.…”

Causality Between Female Fertility and Female Labour Force Participation in Asean-5

“…Table 5 reports the results from the DH Granger causality test. This test can be used even under the conditions of cross-sectional dependence (Akbas, Senturk, & Sancar, 2013). Bidirectional causality was found between female fertility and female labour force participation for ASEAN-5.…”

Taxation, growth and the stock traded nexus in emerging Asian countries: heterogeneous and semi-parametric panel estimates

“…This approach is more accurate compared to the traditional panel Granger causality test, where the DH causality test is specially designed for mixed I(0) and I(1) variables with nonlinear estimates. In this study, we used balanced heterogeneous panel estimates and this DH model is flexible for asymptotic (T>N) or semi-asymptotic (N>T) distributions as well as in emphasising the simulated critical values from thousands of replications (Akbas, Senturk, & Sancar, 2013). The DH statistic, which has the asymptotic and semi-asymptotic distributions can be written as follows:…”