EN
Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries
Abstract
The aim of this study is to empirically analyse the linkages among domestic investment, FDI, trade, interest rate and economic growth in the ASEAN-5 regions in the period 1970-2012. The Johansen-Juselius cointegration approach is applied to examine the long-run relationship and the Granger causality approach is applied to evaluate the causal linkages among the variables. The results confirm the existence of long-term causal links between domestic investment and FDI for the ASEAN-5. This means that collaboration of domestic and foreign investors is essential as the development of domestic firms contributes to further participation by multinational investors. We also reveal that domestic investment and FDI are growth enhancing and their impact is felt in both short- and long-run in the majority of the ASEAN-5 markets, indicating that these three variables are interrelated since they could be attracted to the growing economies. Thus, economic policies that aim at improving and promoting both local and foreign enterprises are indeed necessary in stimulating economic growth in the ASEAN-5 nations.
Keywords
Details
Primary Language
English
Subjects
Economics
Journal Section
Conference Paper
Publication Date
March 1, 2016
Submission Date
March 1, 2016
Acceptance Date
-
Published in Issue
Year 2016 Volume: 6 Number: 1
APA
Tan, B. W., & Tang, C. F. (2016). Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries. International Journal of Economics and Financial Issues, 6(1), 214-220. https://izlik.org/JA23GU47BU
AMA
1.Tan BW, Tang CF. Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries. IJEFI. 2016;6(1):214-220. https://izlik.org/JA23GU47BU
Chicago
Tan, Bee Wah, and Chor Foon Tang. 2016. “Examining the Causal Linkages Among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries”. International Journal of Economics and Financial Issues 6 (1): 214-20. https://izlik.org/JA23GU47BU.
EndNote
Tan BW, Tang CF (March 1, 2016) Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries. International Journal of Economics and Financial Issues 6 1 214–220.
IEEE
[1]B. W. Tan and C. F. Tang, “Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries”, IJEFI, vol. 6, no. 1, pp. 214–220, Mar. 2016, [Online]. Available: https://izlik.org/JA23GU47BU
ISNAD
Tan, Bee Wah - Tang, Chor Foon. “Examining the Causal Linkages Among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries”. International Journal of Economics and Financial Issues 6/1 (March 1, 2016): 214-220. https://izlik.org/JA23GU47BU.
JAMA
1.Tan BW, Tang CF. Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries. IJEFI. 2016;6:214–220.
MLA
Tan, Bee Wah, and Chor Foon Tang. “Examining the Causal Linkages Among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries”. International Journal of Economics and Financial Issues, vol. 6, no. 1, Mar. 2016, pp. 214-20, https://izlik.org/JA23GU47BU.
Vancouver
1.Bee Wah Tan, Chor Foon Tang. Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries. IJEFI [Internet]. 2016 Mar. 1;6(1):214-20. Available from: https://izlik.org/JA23GU47BU