The impact of OFDI on economic growth countries: an econometric approach using panel data and time-series evidence

• Main Author: Ambrosini, Mattia
• Other Authors: Marçal, Emerson Fernandes
• Language: English
• Published: 2013
• Subjects: Emerging countries; Economic growth; OFDI; Panel data; Time-series causality analysis; Ciência política; Áreas subdesenvolvidas; Desenvolvimento econômico; Análise de séries temporais; Investimentos estrangeiros; Análise de regressão
• Online Access: http://hdl.handle.net/10438/10483

Submitted by Eliene Soares da Silva ([e-mail]) on 2013-02-14T11:32:36Z No. of bitstreams: 1 MPGI MasterThesis Mattia Ambrosini 645094.pdf: 1221533 bytes, checksum: 1117aaa68ec08569df715c16c4e0e0d0 (MD5) === Approved for entry into archive by Eliene Soares da Silva ([e-mail]) on 2013-02-14T11:44:31Z (GMT) No. of bitstreams: 1 MPGI MasterThesis Mattia Ambrosini 645094.pdf: 1221533 bytes, checksum: 1117aaa68ec08569df715c16c4e0e0d0 (MD5) === Made available in DSpace on 2013-02-14T12:08:26Z (GMT). No. of bitstreams: 1 MPGI MasterThesis Mattia Ambrosini 645094.pdf: 1221533 bytes, checksum: 1117aaa68ec08569df715c16c4e0e0d0 (MD5) Previous issue date: 2012-12-20 === The thesis at hand adds to the existing literature by investigating the relationship between economic growth and outward foreign direct investments (OFDI) on a set of 16 emerging countries. Two different econometric techniques are employed: a panel data regression analysis and a time-series causality analysis. Results from the regression analysis indicate a positive and significant correlation between OFDI and economic growth. Additionally, the coefficient for the OFDI variable is robust in the sense specified by the Extreme Bound Analysis (EBA). On the other hand, the findings of the causality analysis are particularly heterogeneous. The vector autoregression (VAR) and the vector error correction model (VECM) approaches identify unidirectional Granger causality running either from OFDI to GDP or from GDP to OFDI in six countries. In four economies causality among the two variables is bidirectional, whereas in five countries no causality relationship between OFDI and GDP seems to be present.