Casual nexus between economic growth, FDI and employment: An inquiry into BRICS and ASEAN

Mohd Irshad and Syed Hasan Qayed
Additional contact information
Mohd Irshad: Maulana Azad National Urdu University, Hyderabad, India
Syed Hasan Qayed: Maulana Azad National Urdu University, Hyderabad, India

Theoretical and Applied Economics, 2022, vol. XXIX, issue 2(631), Summer, 107-124

Abstract: This article discusses the documentary evidence on the Efficient Market Hypothesis (EMH) This study examines the nexus between economic growth, FDI and employment. We employ panel data for BRICS and ASEAN nations for the period 1993 to 2019. We have used FGLS considering the cross-section dependence and slope heterogeneity. Moreover, we apply the Pairwise Dumitrescu-Hurlin panel non-causality tests to confirm the direction of causality. The study finds that overall impact of FDI and employment on economic growth is ambiguous. However, in HIE, FDI positively impact economic growth. We observed bidirectional causality between FDI and economic growth. Human capital and globalization have positive impact on economic growth. The relation between FDI and employment is ambiguous. However, it may increase employment in high income economies. To receive the intended benefit of FDI, authorities should focus on the local development of the region. The positive sign of openness suggests restrictive trade policies should not be encouraged. However, the sophisticated policy is required to maintain the high economic growth and low unemployment.

Keywords: ASEAN; BRICS; feasible generalized least square; foreign direct investment; panel non causality. (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://store.ectap.ro/articole/1598.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1598&rid=147 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:2(631):y:2022:i:2(631):p:107-124

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().