THE IMPLICATIONS OF EMERGENCE OF CHINA TOWARDS ASEAN-5: FDI-GDP PERSPECTIVE
Chin-Hong Puah (),
Jerome Kueh () and
Evan Lau ()
MPRA Paper from University Library of Munich, Germany
The relationship between Foreign Direct Investment (FDI) and Gross Domestic Products (GDP) had become the centre piece of recent researches in identifying the short run and long run implications between the two variables. Using the hypotheses of FDI led GDP and GDP led FDI as theoretical framework, this study intends to analyze the implications of the rise of China towards the ASEAN-5 countries, namely Indonesia, Malaysia, the Philippines, Singapore and Thailand from the perspective of FDI and GDP. The cointegration and vector error correlation estimate test results showed that there is a significant positive long run relationship between FDI of China and GDP of ASEAN-5. However, we failed to detect any short run causal relationship among the variables under study.
Keywords: Cointegration; Granger causality; FDI; ASEAN-5 (search for similar items in EconPapers)
JEL-codes: C32 O53 F21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-fdg and nep-sea
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Working Paper: THE IMPLICATIONS OF EMERGENCE OF CHINA TOWARDS ASEAN-5: FDI-GDP PERSPECTIVE (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:5219
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