External and Domestic Growth Forces in the Performance of European Union Economies

Apostolos Serletis, Panos Afxentiou and Kazem Yavari
Additional contact information
Panos Afxentiou: University of Calgary, Department of Economics, Postal: 2500 University Drive NW Calgary Alberta Canada T2N 1N4, http://econ.ucalgary.ca/
Kazem Yavari: Department of Economics, University of Tarbiat Modares, Postal: P.O.Box 14115-175, Tehran, Iran, http://www.modares.ac.ir/

Economia Internazionale / International Economics, 2004, vol. 57, issue 1, 41-57

Abstract: The interaction of the export ratio and the investment ratio, including foreign direct investment ratio, with income per capita was examined for all members in the EU using Granger-causality tests. Best results were obtained when the investigated variables were expressed in levels. These results bring to light a significant number of causality relations. From bidirectional causalities between (a) the export ratio and GDP per capita and (b) the investment ratio and GDP per capita there is prima facie evidence in support of Myrdal’s hypothesis of cumulative circular causation, and of small countries being primary beneficiaries from EU participation. Evidence for the importance of foreign direct investment was generally lacking, suggesting that the new EU members will be disappointed if they wrongly expect stimulation of their economies from foreign capital inflows.

JEL-codes: F15 F33 F36 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:ris:ecoint:0142

Access Statistics for this article

Economia Internazionale / International Economics is currently edited by Giovanni Battista Pittaluga

More articles in Economia Internazionale / International Economics from Camera di Commercio Industria Artigianato Agricoltura di Genova Via Garibaldi 4, 16124 Genova, Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Angela Procopio ().