The DOI matches its Crossref record; 35 of the 35 references it cites were found in a registry or an index.
FDI and Growth: What Causes What?
Abstract
This paper examines the causal relationship between FDI and economic growth by using an innovative econometric methodology to study the direction of causality between the two variables. We apply our methodology, based on the Toda-Yamamoto test for causality, to time-series data covering the period 1969–2000 for three developing countries, namely Chile, Malaysia and Thailand, all of them major recipients of FDI with a different history of macroeconomic episodes, policy regimes and growth patterns. Our empirical findings clearly suggest that it is GDP that causes FDI in the case of Chile and not vice versa, while for both Malaysia and Thailand, there is a strong evidence of a bi-directional causality between the two variables. The robustness of the above findings is confirmed by the use of a bootstrap test employed to test the validity of our results.
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Cites
Investigating causal relations by econometric models and cross-spectral methods
Granger, C. W. J. (1969) · Econometrica · doi:10.2307/1912791 · Cited by 22,989
Information Theory and an Extension of the Maximum Likelihood Principle
Akaike, H. (1998) · Springer Series in Statistics · doi:10.1007/978-1-4612-1694-0_15 · Cited by 17,781
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Statistical inference in vector autoregressions with possibly integrated processes
Toda, H. Y., & Yamamoto, T. (1995) · Journal of Econometrics · doi:10.1016/0304-4076(94)01616-8 · Cited by 6,108
How does foreign direct investment affect economic growth?
Borensztein, E., De Gregorio, J., & Lee, J.-W. (1998) · Journal of International Economics · doi:10.1016/s0022-1996(97)00033-0 · Cited by 6,038
Investigating Causal Relations by Econometric Models and Cross-Spectral Methods
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Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela
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Cited by
Does Foreign Direct Investment Reduce Poverty in Africa and are There Regional Differences?
Gohou, G., & Soumaré, I. (2012) · World Development · doi:10.1016/j.worlddev.2011.05.014 · Cited by 308
FDI and ICT effects on productivity growth
Yazdan, G. F., & Hossein, S. S. M. (2013) · Procedia - Social and Behavioral Sciences · doi:10.1016/j.sbspro.2013.10.104 · Cited by 51
Role of economic and political freedom in the emergence of global middle class
Kandogan, Y., & Johnson, S. D. (2016) · International Business Review · doi:10.1016/j.ibusrev.2015.02.005 · Cited by 24
Metadata
- Authors
- Chowdhury, A., & Mavrotas, G.
- Venue
- The World Economy
- Publisher
- Wiley
- Published
- 2006-01
- Volume
- 29
- Issue
- 1
- Pages
- 9-19
- ISSN
- 0378-5920 (ISSN-L)
- 1467-9701
- OpenAlex
- W2122172204
- Cited by
- 498
- References
- 35
- FWCI
- 47.98
- Type
- journal article
- Language
- en
- Open access
- closed
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
