Please use this identifier to cite or link to this item:
http://repository.elizadeuniversity.edu.ng/jspui/handle/20.500.12398/383
Title: | Causality Testing between Trade Openness, Foreign Direct Investment and Economic Growth: Fresh Evidence from Sub-Saharan Africa Countries |
Authors: | Lau, E. Olabode, Olabisi E. |
Keywords: | JEL-codes: F14 F43 O49 O55 Trade Openness (search for similar items in EconPapers) FDI Real GDP per capital Pooled Mean Group |
Issue Date: | 2018 |
Publisher: | Camera di Commercio di Genova |
Citation: | Olabisi, O. E., & Lau, E. (2018). Causality Testing between Trade Openness, Foreign Direct Investment and Economic Growth: Fresh Evidence from Sub-Saharan African Countries. Economia Internazionale/International Economics, 71(4), 437-464. |
Abstract: | Previous works are yet to reach a consensus about the direction of causality between Trade Openness (TO), Foreign Direct Investment (FDI) and Economic Growth (EG), in particular, using a panel data analysis for Sub-Saharan African (SSA) countries. This study adopts first and second generation econometric methods to analyse the relationships between trade openness, FDI and economic growth in Sub-Saharan Africa countries over the period 1980-2016. The Westerlund cointegration, the Common Correlated Effect Mean Group (CCEMG), and the Bootstrapp Granger causality econometric techniques were adopted. Findings show there is a cross-sectional dependence among the 23 SSA countries examined. A long-run cointegration among trade openness, FDI and economic growth also exists. A positive and significant relationship exists between trade openness and economic growth. FDI indicates a positive and significant relationship with economic growth. The panel error correction term (ECT) result further confirmed the long-run relationship among the variables. A bidirectional causal relationship exists among trade openness, foreign direct investment net inflows and economic growth for Gambia, Senegal and South African countries. |
URI: | http://repository.elizadeuniversity.edu.ng/jspui/handle/20.500.12398/383 |
Appears in Collections: | Research Articles |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Causality Testing between Trade Openness, Foreign Direct Investment and Economic Growth_ Fresh Evidence from Sub-Saharan Africa Countries.pdf | Article full-text | 231.98 kB | Adobe PDF | View/Open |
Items in EUSpace are protected by copyright, with all rights reserved, unless otherwise indicated.