Munich Personal RePEc Archive

Foreign Direct Investment and Growth: An Empiricial Investigation Based on Cross-Country Comparison

Ozturk, Ilhan and Kalyoncu, Huseyin (2007): Foreign Direct Investment and Growth: An Empiricial Investigation Based on Cross-Country Comparison. Published in: Economia Internazionale , Vol. 60, No. 1, February : pp. 75-82.

[img]
Preview
PDF
MPRA_paper_9636.pdf

Download (326Kb) | Preview

Abstract

This paper investigates empirically the impact of FDI on economic growth of Turkey and Pakistan over the period of 1975-2004. To analyse the causal relationship between FDI and economic growth, the Engle-Granger cointegration and Granger causality tests are used. It is found that these two variables are cointegrated for both countries studied. Our empirical findings suggest that it is GDP that causes FDI in the case of Pakistan, while there is strong evidence of a bi-directional causality between the two variables for Turkey.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.