Endogenous Determination of FDI Growth and Economic Growth:The OECD Case

(2004)

1986 - 2004

Analysis, Unit
Root Tests
GMM method

contribution to economic growth.

Mencinger
__________(2003)__________

8 EU countries

1994 - 2001

Granger Causality
_______Test_______

FDI affects economic growth but economic growth doesn’t affect FDI.

Choe
___________(2003)__________

80 countries

1971 - 1995

Granger Causality
_______Test_______

FDI is Granger cause of economic growth and economic growth is Granger cause of FDI. However
_____________________________economic growth affects FDI growth more.______________________________

Basu, Chakraborty &
Reagle
__________(2003)__________

23 developing
countries
1978 - 1996

Unit Root Tests
and Panel
Cointegration Test

There is a steady state relationship between FDI and GDP growth in the long - run.

Zhang
(2001)

11 East Asia and
Latin America
countries
1957 - 1997
(different time
periods among
these years)

Granger Causality
Test

It’s more possible FDI to affect economic growth in export promoting countries than import substituting
countries.

Duttaray
__________(2001)__________

66 developing
countries
1970 - 1996

Granger Causality
Test, Non-
Stationarity Test

In less than %50 of selected countries, FDI affects economic growth.