Growth, foreign investment and trade-openness interactions in ten OECD countries: a panel-VAR approach
This paper investigates statistical relationships between economic growth, foreign direct investment (FDI) and trade openness, using panel-VAR methods in relation to ten significant OECD countries: Austria, Canada, Finland, Iceland, Ireland, Japan, Norway, Spain, Switzerland and the USA, between 197...
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ftunivwollongong:oai:ro.uow.edu.au:buspapers-1148 2023-05-15T16:48:59+02:00 Growth, foreign investment and trade-openness interactions in ten OECD countries: a panel-VAR approach Pradhan, Rudra P Bagchi, Tapan P Chowdhury, Khorshed Norman, Neville R 2012-01-01T08:00:00Z https://ro.uow.edu.au/buspapers/146 unknown Research Online https://ro.uow.edu.au/buspapers/146 Faculty of Business - Papers var panel countries oecd ten approach interactions growth openness trade investment foreign Business article 2012 ftunivwollongong 2020-02-25T10:19:02Z This paper investigates statistical relationships between economic growth, foreign direct investment (FDI) and trade openness, using panel-VAR methods in relation to ten significant OECD countries: Austria, Canada, Finland, Iceland, Ireland, Japan, Norway, Spain, Switzerland and the USA, between 1970 and 2010. We find that foreign direct investment, trade openness and economic growth are co-integrated, suggesting the presence of long-run equilibrium relationships between them. Our Granger-causality tests indicate the presence of bidirectional causality linking foreign direct investment to trade openness, with unidirectional causality from foreign direct investment to economic growth, and also from trade openness to economic growth. Significantly, the pattern of causal relationships varies between the countries we studied Article in Journal/Newspaper Iceland University of Wollongong, Australia: Research Online Canada Norway |
institution |
Open Polar |
collection |
University of Wollongong, Australia: Research Online |
op_collection_id |
ftunivwollongong |
language |
unknown |
topic |
var panel countries oecd ten approach interactions growth openness trade investment foreign Business |
spellingShingle |
var panel countries oecd ten approach interactions growth openness trade investment foreign Business Pradhan, Rudra P Bagchi, Tapan P Chowdhury, Khorshed Norman, Neville R Growth, foreign investment and trade-openness interactions in ten OECD countries: a panel-VAR approach |
topic_facet |
var panel countries oecd ten approach interactions growth openness trade investment foreign Business |
description |
This paper investigates statistical relationships between economic growth, foreign direct investment (FDI) and trade openness, using panel-VAR methods in relation to ten significant OECD countries: Austria, Canada, Finland, Iceland, Ireland, Japan, Norway, Spain, Switzerland and the USA, between 1970 and 2010. We find that foreign direct investment, trade openness and economic growth are co-integrated, suggesting the presence of long-run equilibrium relationships between them. Our Granger-causality tests indicate the presence of bidirectional causality linking foreign direct investment to trade openness, with unidirectional causality from foreign direct investment to economic growth, and also from trade openness to economic growth. Significantly, the pattern of causal relationships varies between the countries we studied |
format |
Article in Journal/Newspaper |
author |
Pradhan, Rudra P Bagchi, Tapan P Chowdhury, Khorshed Norman, Neville R |
author_facet |
Pradhan, Rudra P Bagchi, Tapan P Chowdhury, Khorshed Norman, Neville R |
author_sort |
Pradhan, Rudra P |
title |
Growth, foreign investment and trade-openness interactions in ten OECD countries: a panel-VAR approach |
title_short |
Growth, foreign investment and trade-openness interactions in ten OECD countries: a panel-VAR approach |
title_full |
Growth, foreign investment and trade-openness interactions in ten OECD countries: a panel-VAR approach |
title_fullStr |
Growth, foreign investment and trade-openness interactions in ten OECD countries: a panel-VAR approach |
title_full_unstemmed |
Growth, foreign investment and trade-openness interactions in ten OECD countries: a panel-VAR approach |
title_sort |
growth, foreign investment and trade-openness interactions in ten oecd countries: a panel-var approach |
publisher |
Research Online |
publishDate |
2012 |
url |
https://ro.uow.edu.au/buspapers/146 |
geographic |
Canada Norway |
geographic_facet |
Canada Norway |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
Faculty of Business - Papers |
op_relation |
https://ro.uow.edu.au/buspapers/146 |
_version_ |
1766039056409427968 |