FDI and Economic Growth in European Transition Economies: Panel Data Analysis

Yağmur SAĞLAM

Article Details

FDI and Economic Growth in European Transition Economies: Panel Data Analysis

Authors:

Yağmur SAĞLAM

Publisher:

Yasar University

Journal:

Journal of Yaşar University 2017 Vol.12 Issue 46, pp.123-135

Document Type:

Article

Publication Date:

4/2017

Document Language:

Turkish

Document ID (Org No.):

2000690862

Frequency:

Monthly

pISSN:

1305-970X

Abstract:

 


 The main purpose of this paper is to investigate relationship between foreign direct investment and economic growth based on 14 European Transition Economies for the period 1995 to 2014. Empirical model includes GDP per capita growth (% annual), foreign direct investment, net inflows (% GDP) and composite index of control variables which developed with PCA. Firstly homogeneity and cross sectional dependence among units are examined with Delta and  tests and it is found that all series have heterogeneity and cross sectional dependency. For that reason, second generation Multifactor error structure (Pesaran et al, 2013) panel unit root test is used and it is also taken into account effect of unobserved common factors as a prerequisite of CCE Model just after proving the co-integration relationship and causality between variables via of Durbin-Hausmann (Westerlund, 2008) co-integration and Dumetriscu-Hurlin (2012) causality tests. Obtained results strongly support one-way causality from foreign direct investments and composite index to economic growth. Unfortunately, there is no causality between foreign direct investments and composite index of control variables. Our findings indicate that foreign direct investments contribute negatively to economic growth in contrast to theory points out but control variables contribute positively at European transition countries.

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Article Details

FDI and Economic Growth in European Transition Economies: Panel Data Analysis

Authors: Yağmur SAĞLAM

Publisher: Yasar University

Journal: Journal of Yaşar University 2017 Vol.12 Issue 46, pp.123-135

Document Type: Article

Publication Date: 4/2017

Document Language: Turkish

Document ID (Org No.): 2000690862

Frequency: Monthly

pISSN: 1305-970X

Issues

Authors:

Yağmur SAĞLAM

Publisher:

Yasar University

Journal:

Journal of Yaşar University 2017 Vol.12 Issue 46, pp.123-135

Document Type:

Article

Publication Date:

4/2017

Document Language:

Turkish

Document ID (Org No.):

2000690862

Frequency:

Monthly

pISSN:

1305-970X