期刊名称：International Journal of Economic Practices and Theories
印刷版ISSN：2247-7225
出版年度：2013
卷号：3
期号：2
页码：115-121
语种：English
出版社：International Journal of Economic Practices and Theories
摘要：There exists mixed empirical evidence on the size of gains from Foreign Direct Investment (FDI) inflows for the economies of different countries. The paper thus investigated the relationship between economic growth and FDI inflows a dynamic framework. A study of this sort would inform policy on the role of lagged, coincident and leading effects of FDI on economic growth. An Engle-Granger two-step methodology for error correction was employed. The major empirical and methodological contribution of this study is the use of Dynamic Ordinary Least Squares (DOLS) technique. Dynamic OLS becomes better than OLS by coping with small sample sources of bias. The elasticity of economic growth with respect to FDI had a positive sign and also significant at the 1% level. However, the effect of a three (3) year lag of FDI on economic growth had a negative sign and significant at the 5% level. Policy makers should thus not concentrate on current macroeconomic inflows of FDI but consider effects of past FDI inflows on current levels of economic growth.
关键词：Macroeconomics;Dynamic ordinary least squares; error correction; leads and lags; inflation;F20, F21, O11
