Research Article
BibTex RIS Cite

The Effect of Foreign Direct Investments and Foreign Trade on Gross Domestic Product: The Case of the Eurasian Countries

Year 2017, , 117 - 133, 30.06.2017
https://doi.org/10.25229/beta.277502

Abstract

Foreign
direct investment has played a significant role for developing countries in
their transition and development process. Therefore, the aim of this study is
to examine the impact of the foreign direct investments and the foreign trade
on GDP for 7 Eurasian Countries by using panel data methods. Accordingly to the
results of analysis, there is an evidence of a long-term relationship between
foreign direct investments, foreign trade and GDP for the 1996-2013 period. On
the other hand, according to the results of AMG Estimator, import and export
has a positive impact on GDP. However, there isn’t a statistically significant
relationship between foreign direct invesment and GDP.




References

  • Afxentiou, P. C., & Serletis, A., (1991). Exports and GNP Causality in the Industrial Countries: 1950-1985. Kyklos, 44(2), 167-79.
  • Balassa, B. (1978). Exports and Economic Growth: Further Evidence. Journal of Development Economics, 5(2), 181-189.
  • Balassa, B. (1985). Exports, Policy Choices, and Economic Growth in Developing Countries After the 1973 Oil Shock. Journal of Development Economics, 4(1), 23-35.
  • Bahmani-Oskooee, M., & Alse, J., (1993). Export Growth and Economic Growth: an Application of Cointegration and Error-Correction Modelling. The Journal of Developing Areas, 27, 535-542.
  • Borensztein, E., De Gregorio J & Lee, J-W., (1998). How Does Foreign Direct Investment Affect Economic Growth. Journal of International Economics, 45, 115-135.
  • Bosworth, B., & Collins, S. M., (1999). Capital Inflows, Investment, and Growth. Tokyo Clup Papers, 12, 55-74.
  • Breusch, T. S., & Pagan, A. R., (1980). The Lagrange Multiplier Test and its Applications to Model Spesification in Econometrics. The Review of Economic Studies, 47(1), 239-253.
  • Campos, N. F., & Kinoshita, Y., (2002) Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies. Alınan Yer http://deepblue.lib.umich.edu/bitstream/handle/2027.42/39822/wp438.pdf;jsessionid=D972ACA54F2A32EAB08861AD54DFD057?sequence=3.
  • Chow, P.C.Y. (1987). Causality Between Export Growth and Industrial Development: Empirical Evidence from the NICs. Journal of Development Economics, 26(1), 55-63.
  • Colombatto, E. (1990). An Analysis of Exports and Growth, Kyklos. 43(4), 579-97.
  • Cuadros, A., Orts V., & Alguacil, M., (2004). Openness and Growth: Re-examining Foreign Direct Investment, Trade and Output Linkages in Latin America. Journal of Development Studies, 26, 167–92.
  • Darrat, A.F. (1987). Are Exports an Engine of Growth? Another Look at the Evidence. Applied Economics 19(2), 277-283.
  • Djankov, S., & Hoekman, B., (2000). Foreign Investment and Productivity Growth in Czech Enterprises. The World Bank Economic Review, 14(1), 49–64.
  • Eberhardt, M., & Bond, S., (2009). Cross-Section Dependence in Nonstationary Panel Models: A Novel Estimator. Alınan yer https://mpra.ub.uni-muenchen.de/17692/.
  • Ericsson, J., & Irandoust, M., (2001). On the Causality Between Foreign Direct Investment and Output: A Comparative Study. The International Trade Journal, 15(1), 1-26.
  • Fedderke, J.W., & Romm A. T., (2006). Growth Impact and Determinants of Foreign Direct Investment Into South Africa, 1956–2003. Economic Modelling, 23, 738–760.
  • Feder, G. (1982). On Exports and Economic Growth. Journal of Development Economics, 12(2), 59-73.
  • Hermes, N., & Lensink, R., (2003). Foreign Direct Investment, Financial Development and Economic Growth. Alınan Yer http://www.rug.nl/staff/c.l.m.hermes/fdi_and_financial_development.pdf.
  • Herzer, D., Klasen, S., & Nowak-Lehmann D., (2008). In Search of FDI-led Growth in Developing Countries: The Way Forward. Economic Modelling, 25, 793-810.
  • Jin, Jang C. (2006). Openness, Growth, and Inflation: Evidence from South Korea Before the Economic Crisis. Journal of Asian Economics, 17, 738-757.
  • Kar, M., & Tatlısöz, F., (2008). Türkiye’de Doğrudan Yabancı Sermaye Hareketlerini Belirleyen Faktörlerin Ekonometrik Analizi. KMU İİBF Dergisi, 10(14).
  • Katerina, L., John, P., & Athanasios, V., (2004). Foreign Direct Investment and Economic Growth in Transition Economies. South Eastern Europe Journal of Economies, 1, 97-110.
  • Konya, L. (2006). Exports and Growth: Granger Causality Analysis on OECD Countries with a Panel Data Approach. Economic Modelling , 23, 978-992.
  • Kugler, P. (1991). Growth, Exports and Cointegration: an Empirical Investigation. Weltwirtschaffliches Archiv. 127(1), 73-82.
  • Levine, R., & Renelt, D., (1992). A Sensitivity Analysis of Cross-Country Growth Regressions. American Economic Review 82(4), 942-963.
  • Mahadevan, R., & Suardi, S., (2008). A Dynamic Analysis of the Impact of Uncertainty on Import-and/or Export-led Growth: the Experience of Japan and the Asian Tigers. Japan and the World Economy, 20(2), 155-174.
  • Marwah, K., & Tavakoli, A., (2004). The Effect of Foreign Capital and Imports on Economic Growth: Further Evidence from Four Asian Countries (1970-1998). Journal of Asian Economics, 15, 399-413.
  • Özağ, F. E. (1994). Ev Sahibi Ülke Açısından Yabancı Sermaye Yatırımlarını Etkileyen Faktörler ve Türkiye Üzerine Bir Uygulama. Ekonomik Yaklaşım, 5(12), 63-77.
  • Pesaran, M. H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. Alınan Yer http://www.dspace.cam.ac.uk/bitstream/1810/446/1/cwpe0435.pdf.
  • Pesaran, H. M. (2007). A Simple Panel Unit Root Test in the Presence of Cross-Section Dependence. Journal of Applied Econometrics, 22, 265-312.
  • Pesaran, M. H., & Yagamata, T., (2008). Testing Slope Homogeneity in Large Panels. Journal of Econometrics, 142(1), 50-93.
  • Ram, R. (1985). Exports and Economic Growth: Some Additional Evidence. Economic Development and Cultural Change, 33(2), 415-25.
  • Ramos, F.F.R. (2001). Exports, Imports, and Economic Growth in Portugal: Evidence from Causality and Cointegration Analysis. Economic Modelling, 18, 613-623.
  • Razin, A. (2002). FDI Contribution to Capital Flows and Intestment in Capacity. Alınan Yer http://www.nber.org/papers/w9204.pdf?new_window=1.
  • Sengupta J. K. (1991). Rapid Growth in NICs in Asia: Tests of New Growth Theory for Korea. Kyklos, 44(4), 561-579.
  • Shirazi, N.S. & Abdul Manap, T. A., (2005). Export-led Growth Hypothesis: Further Econometric Evidence from South Asia. The Developing Economies, 18(4), 472-488.
  • Vu, T.B., & Noy I., (2009). Sectoral Analysis of Foreign Direct Investment and Growth in the Developed Countries. Journal of International Financial Merkets, 19(2), 402-413.
  • Westerlund, J. (2008). Panel Cointegration Tests of the Fisher Effect. Journal of Applied Econometrics, 23(2), 193-233.
  • Willamson, R. (1978). The Role of Exports and Foreign Capital in Latin American Economic Growth. Southern Economic Journal, 45(2), 410-20.
  • Xu, B. (2000). Multinational Enterprises, Technology Diffusion, and Host Country Productivity Growth. Journal of Development Economics, 62, 477-493.
  • Yang, B. (2008). FDI and Growth: a Varying Relationship Across Regions and Over Time. Applied Economics Letters, 15, 105-108.
  • Yao, S., & Wei, K., (2007). Economic Growth in the Presence of FDI: The Perspective of Newly Industrialising Economies. Journal of Comparative Economics, 35, 211-234.

Doğrudan Yabancı Yatırımlar ve Dış Ticaret’in Gayri Safi Yurtiçi Hasıla Üzerine Etkisi: Avrasya Ülkeleri Örneği

Year 2017, , 117 - 133, 30.06.2017
https://doi.org/10.25229/beta.277502

Abstract

Son
yıllarda küreselleşme olgusuyla beraber hem dış ticaret hem de doğrudan yabancı
yatırımlar ekonomik büyüme üzerine etkisi olan önemli faktörler olarak
karşımıza çıkmaktadırlar. Dış ticaretin ve doğrudan yabancı yatırımların
ekonomik büyüme üzerine etkisi birçok iktisatçı için önemli bir araştırma alanı
olmuştur. Bu bağlamda, bu çalışma 1996-2013 dönemine ait yıllık veriler
kullanılarak 7 Avrasya Ülkesi için Durbin Hausman Panel Eşbütünleşme Analizi ve
Panel AMG tahmincisi yardımıyla GSYH üzerine doğrudan yabancı yatırımların ve
dış ticaretin etkisini araştırmaktadır. Elde edilen bulgular değişkenler
arasında uzun dönemli bir ilişkinin olduğunu göstermektedir. Eşbütünleşme
katsayılarının sonuçları, ithalat ve ihracatın olumlu bir etkiye sahip olduğunu
fakat doğrudan yabancı yatırımlarının GSYİH ile ilişkisinin istatistiksel
olarak anlamlı olmadığını göstermektedir.




References

  • Afxentiou, P. C., & Serletis, A., (1991). Exports and GNP Causality in the Industrial Countries: 1950-1985. Kyklos, 44(2), 167-79.
  • Balassa, B. (1978). Exports and Economic Growth: Further Evidence. Journal of Development Economics, 5(2), 181-189.
  • Balassa, B. (1985). Exports, Policy Choices, and Economic Growth in Developing Countries After the 1973 Oil Shock. Journal of Development Economics, 4(1), 23-35.
  • Bahmani-Oskooee, M., & Alse, J., (1993). Export Growth and Economic Growth: an Application of Cointegration and Error-Correction Modelling. The Journal of Developing Areas, 27, 535-542.
  • Borensztein, E., De Gregorio J & Lee, J-W., (1998). How Does Foreign Direct Investment Affect Economic Growth. Journal of International Economics, 45, 115-135.
  • Bosworth, B., & Collins, S. M., (1999). Capital Inflows, Investment, and Growth. Tokyo Clup Papers, 12, 55-74.
  • Breusch, T. S., & Pagan, A. R., (1980). The Lagrange Multiplier Test and its Applications to Model Spesification in Econometrics. The Review of Economic Studies, 47(1), 239-253.
  • Campos, N. F., & Kinoshita, Y., (2002) Foreign Direct Investment as Technology Transferred: Some Panel Evidence from the Transition Economies. Alınan Yer http://deepblue.lib.umich.edu/bitstream/handle/2027.42/39822/wp438.pdf;jsessionid=D972ACA54F2A32EAB08861AD54DFD057?sequence=3.
  • Chow, P.C.Y. (1987). Causality Between Export Growth and Industrial Development: Empirical Evidence from the NICs. Journal of Development Economics, 26(1), 55-63.
  • Colombatto, E. (1990). An Analysis of Exports and Growth, Kyklos. 43(4), 579-97.
  • Cuadros, A., Orts V., & Alguacil, M., (2004). Openness and Growth: Re-examining Foreign Direct Investment, Trade and Output Linkages in Latin America. Journal of Development Studies, 26, 167–92.
  • Darrat, A.F. (1987). Are Exports an Engine of Growth? Another Look at the Evidence. Applied Economics 19(2), 277-283.
  • Djankov, S., & Hoekman, B., (2000). Foreign Investment and Productivity Growth in Czech Enterprises. The World Bank Economic Review, 14(1), 49–64.
  • Eberhardt, M., & Bond, S., (2009). Cross-Section Dependence in Nonstationary Panel Models: A Novel Estimator. Alınan yer https://mpra.ub.uni-muenchen.de/17692/.
  • Ericsson, J., & Irandoust, M., (2001). On the Causality Between Foreign Direct Investment and Output: A Comparative Study. The International Trade Journal, 15(1), 1-26.
  • Fedderke, J.W., & Romm A. T., (2006). Growth Impact and Determinants of Foreign Direct Investment Into South Africa, 1956–2003. Economic Modelling, 23, 738–760.
  • Feder, G. (1982). On Exports and Economic Growth. Journal of Development Economics, 12(2), 59-73.
  • Hermes, N., & Lensink, R., (2003). Foreign Direct Investment, Financial Development and Economic Growth. Alınan Yer http://www.rug.nl/staff/c.l.m.hermes/fdi_and_financial_development.pdf.
  • Herzer, D., Klasen, S., & Nowak-Lehmann D., (2008). In Search of FDI-led Growth in Developing Countries: The Way Forward. Economic Modelling, 25, 793-810.
  • Jin, Jang C. (2006). Openness, Growth, and Inflation: Evidence from South Korea Before the Economic Crisis. Journal of Asian Economics, 17, 738-757.
  • Kar, M., & Tatlısöz, F., (2008). Türkiye’de Doğrudan Yabancı Sermaye Hareketlerini Belirleyen Faktörlerin Ekonometrik Analizi. KMU İİBF Dergisi, 10(14).
  • Katerina, L., John, P., & Athanasios, V., (2004). Foreign Direct Investment and Economic Growth in Transition Economies. South Eastern Europe Journal of Economies, 1, 97-110.
  • Konya, L. (2006). Exports and Growth: Granger Causality Analysis on OECD Countries with a Panel Data Approach. Economic Modelling , 23, 978-992.
  • Kugler, P. (1991). Growth, Exports and Cointegration: an Empirical Investigation. Weltwirtschaffliches Archiv. 127(1), 73-82.
  • Levine, R., & Renelt, D., (1992). A Sensitivity Analysis of Cross-Country Growth Regressions. American Economic Review 82(4), 942-963.
  • Mahadevan, R., & Suardi, S., (2008). A Dynamic Analysis of the Impact of Uncertainty on Import-and/or Export-led Growth: the Experience of Japan and the Asian Tigers. Japan and the World Economy, 20(2), 155-174.
  • Marwah, K., & Tavakoli, A., (2004). The Effect of Foreign Capital and Imports on Economic Growth: Further Evidence from Four Asian Countries (1970-1998). Journal of Asian Economics, 15, 399-413.
  • Özağ, F. E. (1994). Ev Sahibi Ülke Açısından Yabancı Sermaye Yatırımlarını Etkileyen Faktörler ve Türkiye Üzerine Bir Uygulama. Ekonomik Yaklaşım, 5(12), 63-77.
  • Pesaran, M. H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. Alınan Yer http://www.dspace.cam.ac.uk/bitstream/1810/446/1/cwpe0435.pdf.
  • Pesaran, H. M. (2007). A Simple Panel Unit Root Test in the Presence of Cross-Section Dependence. Journal of Applied Econometrics, 22, 265-312.
  • Pesaran, M. H., & Yagamata, T., (2008). Testing Slope Homogeneity in Large Panels. Journal of Econometrics, 142(1), 50-93.
  • Ram, R. (1985). Exports and Economic Growth: Some Additional Evidence. Economic Development and Cultural Change, 33(2), 415-25.
  • Ramos, F.F.R. (2001). Exports, Imports, and Economic Growth in Portugal: Evidence from Causality and Cointegration Analysis. Economic Modelling, 18, 613-623.
  • Razin, A. (2002). FDI Contribution to Capital Flows and Intestment in Capacity. Alınan Yer http://www.nber.org/papers/w9204.pdf?new_window=1.
  • Sengupta J. K. (1991). Rapid Growth in NICs in Asia: Tests of New Growth Theory for Korea. Kyklos, 44(4), 561-579.
  • Shirazi, N.S. & Abdul Manap, T. A., (2005). Export-led Growth Hypothesis: Further Econometric Evidence from South Asia. The Developing Economies, 18(4), 472-488.
  • Vu, T.B., & Noy I., (2009). Sectoral Analysis of Foreign Direct Investment and Growth in the Developed Countries. Journal of International Financial Merkets, 19(2), 402-413.
  • Westerlund, J. (2008). Panel Cointegration Tests of the Fisher Effect. Journal of Applied Econometrics, 23(2), 193-233.
  • Willamson, R. (1978). The Role of Exports and Foreign Capital in Latin American Economic Growth. Southern Economic Journal, 45(2), 410-20.
  • Xu, B. (2000). Multinational Enterprises, Technology Diffusion, and Host Country Productivity Growth. Journal of Development Economics, 62, 477-493.
  • Yang, B. (2008). FDI and Growth: a Varying Relationship Across Regions and Over Time. Applied Economics Letters, 15, 105-108.
  • Yao, S., & Wei, K., (2007). Economic Growth in the Presence of FDI: The Perspective of Newly Industrialising Economies. Journal of Comparative Economics, 35, 211-234.
There are 42 citations in total.

Details

Subjects Business Administration
Journal Section x
Authors

Demet Yaman Songur

Publication Date June 30, 2017
Submission Date December 13, 2016
Acceptance Date June 28, 2017
Published in Issue Year 2017

Cite

APA Yaman Songur, D. (2017). The Effect of Foreign Direct Investments and Foreign Trade on Gross Domestic Product: The Case of the Eurasian Countries. Bulletin of Economic Theory and Analysis, 2(2), 117-133. https://doi.org/10.25229/beta.277502