Panel Cointegration and Granger Causality Approach to Foreign Direct Investment and Economic Growth in South Asian Countries

Timothy , Aderemi

doi:10.12816/0055276

Article Details

Panel Cointegration and Granger Causality Approach to Foreign Direct Investment and Economic Growth in South Asian Countries

Authors:

Timothy , Aderemi

Publisher:

Zainab Arabian Research Society for Multidisciplinary Issues ( ZARSMI )

Main Topics:

Economics and Finance

Journal:

International Journal of Accounting Research 2019 Vol.4 Issue 2, pp.21-34

Document Type:

Article

Publication Date:

11/2019

Document Language:

English

Document ID (Org No.):

139116

Frequency:

Monthly

pISSN:

2311326X

DOI:

10.12816/0055276

Descriptors:

Keywords:

Abstract:

 The aim of this study is to examine the long run equilibrium relationship between FDI, growth rate and economic growth in the developing countries of South Asia. Data was collected from the United Nations Conference on Trade and Development and World Bank Development Indicator from 1990 to 2017. However, Johansen Fisher Panel Cointegration and Pairwise Dumitrescu Hurlin Panel Causality Tests were utilized to address the objective of this paper. Consequently, it was discovered that a long run equilibrium relationship exists between FDI, growth rate of economy and economic growth in the developing countries of South Asia within the period under consideration. Moreover, there is an existence of unidirectional causality running from both growth rate and economic growth to FDI inflows in these countries. This implies that whenever the target of the policy makers in these economies is to facilitate the sporadic inflows of foreign capital, expanding the market size and manipulating the rate of economic growth would induce an increase in FDI inflows in the long run. Finally, the important findings that emerged in this work made this paper to recommend the following vital policy for the policy makers, investors, financial institutions regulators and future researchers. Therefore, the policy makers in the developing countries of South Asia should come up with the strategic policy measure that will expand the market size and ensure a sustainable growth rate in this sub region.

Article Details

Panel Cointegration and Granger Causality Approach to Foreign Direct Investment and Economic Growth in South Asian Countries

Authors:

Timothy , Aderemi

Publisher:

Zainab Arabian Research Society for Multidisciplinary Issues ( ZARSMI )

Main Topics:

Economics and Finance

Journal:

International Journal of Accounting Research 2019 Vol.4 Issue 2, pp.21-34

Document Type:

Article

Publication Date:

11/2019

Document Language:

English

Document ID (Org No.):

139116

Frequency:

Monthly

pISSN:

2311326X

DOI:

10.12816/0055276

Descriptors:

FOREIGN DIRECT INVESTMENT

ECONOMIC GROWTH

GROWTH RATE

ECONOMIC DEVELOPMENT

SOUTH ASIA

FDI

Market Size

Growth Rate

Cointegration

Granger Causality and South Asia

Issues

Article Details

Authors: Timothy , Aderemi

Publisher: Zainab Arabian Research Society for Multidisciplinary Issues ( ZARSMI )

Main Topics: Economics and Finance

Journal: International Journal of Accounting Research 2019 Vol.4 Issue 2, pp.21-34

Document Type: Article

Publication Date: 11/2019

Document Language: English

Document ID (Org No.): 139116

Frequency: Monthly

pISSN: 2311326X

DOI: 10.12816/0055276

Descriptors:

Issues

Authors:

Timothy , Aderemi

Publisher:

Zainab Arabian Research Society for Multidisciplinary Issues ( ZARSMI )

Main Topics:

Economics and Finance

Journal:

International Journal of Accounting Research 2019 Vol.4 Issue 2, pp.21-34

Document Type:

Article

Publication Date:

11/2019

Document Language:

English

Document ID (Org No.):

139116

Frequency:

Monthly

pISSN:

2311326X

DOI:

10.12816/0055276