The Causality of Foreign Direct Investment and Its Effects on Economic Growth: Re-estimated by a Directed Graph Approach

dc.creatorLi, Yarui
dc.creatorWoodard, Joshua D.
dc.creatorLeatham, David J.
dc.date2017-04-01T20:03:24Z
dc.date.accessioned2026-07-09T05:28:32Z
dc.descriptionThis paper uses the directed acyclic graph approach to analyze the causal patterns among foreign direct investment and other economic, social, and political variables, including GDP per capita as a proxy for economic growth. We find that economic growth causes FDI inflows for developing countries, while FDI induces economic growth for developed countries. Also, stock market is found to be an intermediary that amplifies the influence on FDI from many causal variables of FDI.
dc.identifierdoi:10.22004/ag.econ.98791
dc.identifierhttps://ageconsearch.umn.edu/record/98791/files/Paper%20submitted.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/98791
dc.identifier.urihttp://hdl.handle.net/123456789/564176
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/98791
dc.titleThe Causality of Foreign Direct Investment and Its Effects on Economic Growth: Re-estimated by a Directed Graph Approach
dc.typeText

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