Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/242271 
Year of Publication: 
2019
Citation: 
[Journal:] European Financial and Accounting Journal [ISSN:] 1805-4846 [Volume:] 14 [Issue:] 2 [Publisher:] University of Economics, Faculty of Finance and Accounting [Place:] Prague [Year:] 2019 [Pages:] 27-42
Publisher: 
University of Economics, Faculty of Finance and Accounting, Prague
Abstract: 
The aim of this study is to investigate the relationship between foreign direct investment and economic growth in seven emerging countries. Past empirical studies have failed to estimate the long run relationship between the variables in these countries, which has created a gap in the literature. Data was collected from the United Nations Conference on Trade and Development and World Bank Indicator from 1990 to 2017, and the Johansen Fisher Panel Cointegration and Pairwise Dumitrescu Hurlin Panel Causality Tests were utilised to address the objective of the study. Consequently, the empirical results show that FDI, GDP per capita, growth rate and economic growth have a long run equilibrium relationship. Also, there is an existence of one-way feedback which runs from FDI to economic growth. Based on these findings, this study recommends among others that the policy makers in the emerging countries should ensure the sustainability of the rate of economic growth and embark on more foreign investment-oriented policies that would catalyse further attraction of FDI inflows into their economies.
Subjects: 
FDI
GDP
Growth Rate
Long Run Relationship and Emerging Countries
JEL: 
F21
F23
F36
G24
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size
393.96 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.