FDI And Economic Growth. Evidence From Simultaneous Equation Models

Gheorghe Ruxanda () and Andreea Muraru ()
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Gheorghe Ruxanda: The Academy of Economic Studies, Bucharest
Andreea Muraru: The Academy of Economic Studies, Bucharest

Journal for Economic Forecasting, 2010, issue 1, 45-58

Abstract: This paper analyses whether foreign direct investments have an impact on the Romanian economic growth. By means of simultaneous equation methods we obtained evidence of the bi-directional connection between the two, meaning that incoming FDI stimulates economic growth and, in its turn, a higher GDP attracts FDI. Two methods were used in performing the analysis, one considering the relation between the share of FDI in GDP and economic growth in a five-equation system and the second considering the levels of FDI and GDP, respectively, in a two-equation system.

Keywords: foreign direct investment; economic growth; simultaneous equation models (search for similar items in EconPapers)
JEL-codes: F21 F43 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2010:i:1:p:45-58

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