A Causal Relationship Between Trade, Foreign Direct Investment and Economic Growth in Niger

Oumarou Issoufou () and Maiga Ousseini A. ()
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Oumarou Issoufou: Université de Tahoua / Niger, Faculté de droit d’économie et de gestion, Département d’économie et gestion
Maiga Ousseini A.: Hunan university / China, Department of economics and trade

Journal of Social and Economic Statistics, 2019, vol. 8, issue 2, 24-38

Abstract: Foreign direct investment and Trade were regarded as an important elements in enhancing economic development. This study used some time series econometric tests including the Augmented Dickey – Fuller (ADF) unit root test developed by Dickey – Fuller, stationary test developed by Kwiatkowski-Philips-Schmidt-Shin (KPSS), Johansen co-integration test and Granger causality test to analyse the connection between foreign direct investment, trade and economic growth in Niger. The tests results showed a bilateral relationship between trade and economic growth and a unidirectional causal relationship between trade and foreign direct investment with direction from trade to foreign direct investment. The long run effect tests revealed that trade has a positive effect on economic growth while foreign direct investment has a negative effect on economic growth in Niger. On average, ceteris paribus, the coefficients are statistically significant at 5% level.

Keywords: Trade; Foreign Direct investment; Economic growth; Niger (search for similar items in EconPapers)
JEL-codes: F14 F21 F23 F43 O1 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:jsesro:v:8:y:2019:i:2:p:24-38:n:3

DOI: 10.2478/jses-2019-0003

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