The interrelationship between merchandise trade, economic growth and FDI inflows in India
Part of : SEEJE ; Vol.9, No.2, 2011, pages 229-244
Issue:
Pages:
229-244
Abstract:
The purpose of the paper is to investigate whether the volume of merchandise trade and FDI inflows influences economic growth. The period of the study is 1996-97:Q1 to 2008-09:Q3. After investigating the stationarity of the variables, cointegration analysis has been conducted followed by VECM analysis and Granger Causality Test. The variables are I(1) processes. While unidirectional causality is observed from merchandise trade to economic growth, feedback causality has been observed between FDI inflows and economic growth.
Subject (LC):
Keywords:
FDI inflows, multivariate granger causality test, VECM, co-integration analysis, economic growth
Notes:
Περιέχει διάγραμμα, πίνακες και βιβλιογραφία, JEL Classification: F43
