Relationship between FDI and Economic Growth in Selected Asian Countries: A Panel Data Analysis

Nabila Asghar (nabeelakhan83@gmail.com), Samia Nasreen and Hafeez Rehman
Additional contact information
Nabila Asghar: Department of Economics, GC University-Faisalabad, Pakistan

Review of Economics & Finance, 2012, vol. 2, 84-96

Abstract: This study examines empirically the relationship between FDI and economic growth using heterogeneous panel for the period 1983-2008. The empirical findings of Larsson panel co-integration show that FDI and economic growth are cointegrated. FMOLS results reveal that FDI and economic growth are positively related to each other. The results of panel homogeneous causality hypothesis show the existence of bi-directional causality between FDI and economic growth while the results of panel homogeneous non-causality hypothesis confirm the existence of unidirectional causality running from FDI to economic growth in selected panel. The results of heterogeneous causality hypothesis show the existence of bi-directional causality between FDI and economic growth only in case of Malaysia. The existence of uni-directional causality running from FDI to economic growth is observed in cases of Nepal, Singapore, Japan and Thailand whereas the uni-directional causality is also found running from economic growth to FDI for Pakistan, Bangladesh and Sri Lanka. However, no causality in any direction is found in cases of India, Maldives, Indonesia, China, Philippines, Korea Dem and Singapore.

Keywords: FDI; Economic growth; Panel data; Cointegration; Asian countries (search for similar items in EconPapers)
JEL-codes: C33 F21 F43 N25 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.bapress.ca/Journal-6/Relationship%20bet ... 0Data%20Analysis.pdf (application/pdf)

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:bap:journl:120107

Ordering information: This journal article can be ordered from
17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada
ref@bapress.ca

Access Statistics for this article

Review of Economics & Finance is currently edited by H. Carlson

More articles in Review of Economics & Finance from Better Advances Press, Canada 17 Alton Towers Circle, Unit 101 Toronto, ON, M1V3L8, Canada.
Bibliographic data for series maintained by Carlson (ref@bapress.ca this e-mail address is bad, please contact repec@repec.org).