FDI and trade: A Granger causality analysis in a heterogeneous panel

Raphaël Chiappini

Economics Bulletin, 2011, vol. 31, issue 4, 2975-2985

Abstract: This paper will investigate the Granger causality between outward Foreign Direct Investment (FDI) and the exports of goods and services in 11 European countries from 1996 to 2008. Using a new method to evaluate causality in a heterogeneous panel, we find that the causal relationship from FDI to exports is homogeneous among the panel. However, we find strong evidence of a heterogeneity of the causal relationship from exports to FDI in our sample.

Keywords: Foreign direct investment; exports; Granger causality; heterogeneous panel (search for similar items in EconPapers)
JEL-codes: F2 F4 (search for similar items in EconPapers)
Date: 2011-10-21
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Citations: View citations in EconPapers (12)

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Working Paper: FDI and trade: A Granger causality analysis in a heterogeneous panel (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-11-00521

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