Professor Parantap Basu parantap.basu@durham.ac.uk
Professor
Liberalization, FDI and growth in developing countries: A panel cointegration approach
Basu, P.; Chakraborty, C.; Reagle, D.
Authors
C. Chakraborty
D. Reagle
Abstract
Using a panel cointegration framework, the article explores the two-way link between FDI and growth for a panel of 23 developing countries. In addition, it investigates the impact of liberalization on the dynamics of the FDI and GDP relationship. A long-run cointegrating relationship is found between FDI and GDP after allowing for heterogeneous country effects. The cointegrating vectors reveal a bidirectional causality between GDP and FDI for more open economies. For relatively closed economies, long-run causality appears unidirectional and runs from GDP to FDI, implying that growth and FDI are not mutually reinforcing under restrictive trade and investment regimes.
Citation
Basu, P., Chakraborty, C., & Reagle, D. (2003). Liberalization, FDI and growth in developing countries: A panel cointegration approach. Economic Inquiry, 41(3), 510-516. https://doi.org/10.1093/ei/cbg024
Journal Article Type | Article |
---|---|
Publication Date | Jul 1, 2003 |
Deposit Date | Feb 20, 2008 |
Journal | Economic Inquiry |
Print ISSN | 0095-2583 |
Electronic ISSN | 1465-7295 |
Publisher | Wiley |
Peer Reviewed | Peer Reviewed |
Volume | 41 |
Issue | 3 |
Pages | 510-516 |
DOI | https://doi.org/10.1093/ei/cbg024 |
Public URL | https://durham-repository.worktribe.com/output/1601728 |
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