 Causal Relationship between Exports, FDI and Income: The case of VietnamP.R. Bhatt Applied Econometrics and International Development, 2013, vol. 13, issue 1, 161-172 Abstract: The objectives of the paper are to study foreign trade and investment dimensions of Vietnam in comparison with its competitors such as Indonesia, Malaysia, Philippines, Singapore and Thailand as also to study the role of FDI to the growth of exports in Vietnam. Vector autoregression model (VAR) is adopted to estimate the long run causal relationship among exports, foreign direct investment and GDP. The cointegration test result shows that there exist a long run equilibrium relationship among exports, FDI and GDP. It is found from the estimated Error Correction Model that FDI is a significant variable and the result indicates that 1% increase in FDI will lead to 0.25% increase in exports with one year time gap. Granger Causality Test indicates that there is a unilateral relationship between exports and FDI and the direction is from FDI to exports which mean that FDI causes exports. Keywords: FDI; Exports; Vietnam; Error Correction Model; Cointegration; Granger Causality. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:13:y:2013:i:1_13 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development |
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