Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa
Yıl: 2018 Cilt: 9 Sayı: 4 Sayfa Aralığı: 749 - 760 Metin Dili: İngilizce DOI: 10.20409/berj.2018.136 İndeks Tarihi: 16-01-2020
Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa
Öz: This paper examines the impact of foreign direct investment and tradeopenness on economic growth for 34 Sub-Saharan African countries. The methodologyinvolves estimating the augmented endogenous growth model using panel data thatruns from 2006 to 2015. The coefficients of the estimated REM model are statisticallysignificant with all the signs compatible as expected. Our findings show that all thevariables are significant in explaining SSA growth. Specifically, foreign direct investmentand trade openness positively impact growth except inflation with a negative effect ongrowth. This study will assist the policy makers to increase effort towards the creationof favorable business climate that attract more foreign direct investment to SSA andenhance long term growth.
Anahtar Kelime: Konular:
Belge Türü: Makale Makale Türü: Araştırma Makalesi Erişim Türü: Erişime Açık
- Ahmed, E. M. (2012). Are the FDI inflow spillover effects on Malaysia’s economic growth input driven?. Economic Modelling, 29(4), 1498–1504. http://doi.org/10.1016/j.econmod.2012.04.010
- Aitken, B., & Harrison, A. E. (1999). Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. The American Economic Review, 89(3), 605-618.
- Akwaowo, E. (2013). Exploring foreign direct investments in developing african countries : their effects on the economic growth in Cameroon (2006-2011). Business & Economics, 5(1), 18–35.
- Ali, W., & Abdullah, A. (2015). The impact of trade openness on economic growth of Pakistan: 1980-2010. Global Business and Management Research: An International Journal, 7(2), 120–129.
- Andersen, L., & Babula, R. (2008). The link between openness and long-run economic growth. Journal of International Commerce and Economics, 1–20. Retrieved from http://66.7.151.178/publications/332/journals/openness_growth_link.pdf.
- Asghar, N., Nasreen, S., & Rehman, H. (2011). Relationship between FDI and economic growth in selected Asian countries: A panel data analysis. Review of Economics & Finance, 2, 84–96.
- Azam, M., & Ahmed, A. M. (2015). Role of human capital and foreign direct investment in promoting economic growth. International Journal of Social Economics, 42(2), 98–111. http://doi.org/10.1108/IJSE-05-2014-0092
- Bayar, Y. (2016). Impact of openness and economic freedom on economic growth in the transitional economies of european union. South-Eastern Europe Journal of Economics, 1, 7-19.
- Berber, M., & Artan, S. (2004) .Türkiye’de enflasyon-ekonomik büyüme ilişkisi: Teori-literatür ve uygulama. Atatürk Üniversitesi İİBF Dergisi, 18(3-4), 103-117.
- Can, M., Doğan, B., & Değer, O. (2017). The Relationship between research & development investment expenditure, foreign direct investment and economic growth. Journal of Applied Economic Sciences, 12(1), 58-62.
- Chang, S. C. (2010). Estimating relationships among FDI inflow, domestic capital, and economic growth using the threshold error correction approach. Emerging Markets Finance and Trade, 46(1), 6–15. http://dx.doi.org/10.2753/REE1540-496X460101
- Chanie, M. (2017). Effect of foreign direct investment on economic growth in ethiopia : an empirical investigation. International Journal of Current Research, 9(9), 58301–58306. Retrieved from http://theglobaljournals.com/paripex/file.php?val=November_2012_1353430209_c1e2b_09.pdf
- Chowdhary, R., & Kushwaha, V. (2013). Domestic investment, foreign direct investment and economic growth in India since economic reforms. Journal of Transformative Entrepreneurship, 1(2), 74–82. http://dx.doi.org/10.14239/JTE.2013.01201
- Demirsel, M. T., Öğüt, A. & Mucuk, M. (2014). The effect of foreign direct investment on economic growth: The case of Turkey. 01-04 September 2014, 12th International Academic Conference, Prague, 312-321.
- Doğan, E. (2013). Foreign direct investment and economic growth: A time series analysis of Turkey: 1979-2011. Çankırı
- Karatekin University Journal of the Faculty of Economics and Administrative Sciences, 3(2), 239–252.
- Emmanuel, O. N. B. (2014). Foreign direct investment and economic growth: The experience of cemac countries. Journal of Finance & Economics, 2(1), 1–14. http://doi.org/10.12735/jfe.v2i1p1
- Faizal, P. R. M., Ridhwan, A. A. M., & Kalsom, A. W. (2013). The Entrepreneurs characteristic from al-Quran and al-Hadis. International Journal of Trade, Economics and Finance, 4(4), 191–196. http://doi.org/10.7763/IJTEF.2013.V4.284
- Gujarati, D. (2004). Basic econometric (4th edn.). USA: The McGraw−Hill Company.
- Hatemi-J, A., & Irandoust, M. (2000). Export performance and economic growth causality: An empirical analysis. Atlantic Economic Journal, 28(4), 412–426. Retrieved from http://link.springer.com/article/10.1007/BF02298394.
- Heteş, R., Moldovan, N., & Miru, O. (2009). Foreign direct investments and economic growth in Central and Eastern European countries. Megatrend Review: The International Review of Applied Economics, 6(2), 239–252.
- Hidalgo, C., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy of the Sciences of the United States of America, 106(26), 10570–10575. http://doi.org/10.1073/pnas.0900943106
- Huchet-Bourdon, M., Mouël, C. L., & Vijil, M. (2018). The relationship between trade openness and economic growth: Some new insights on the openness measurement issue. World Economy, 41(1), 59–76. http://doi.org/10.1111/twec.12586
- Hussain, M. E., & Haque, M. (2016). Foreign direct investment, trade, and economic growth: An empirical analysis of Bangladesh. Economies, 4(7), 1-14, http://doi.org/10.3390/economies4020007
- Letto-Gillies, G. (2002). Hymer, the nation-state and the determinants of multinational corporations’ activities. Contributions to Political Economy, 21(1), 43-54.
- Javed, K., Sher, F., Awan, R. U., & Ashfaq, M. (2012). Foreign direct investment, trade and economic growth: A comparison of selected South Asian countries. International Journal of Humanities and Social Science, 2(5), 210- 220.
- Kamara, Y. U. (2013). Foreign direct investment and growth in Sub-Saharan Africa what are the channels?. Working Paper University of Kansas, 1-29.
- Kar, M., Nazlıoğlu, S., & Ağır, H. (2014). Trade openness, financial development, and economic growth in Turkey: Linear and nonlinear causality analysis. Journal of BRSA Banking and Financial Markets, 8(1), 63–86.
- Katerina, L., John, P., & Athanasios, V. (2004). Foreign direct investment and economic growth in transition economies. South Eastern Europe Journal of Economics, 1, 97–110. http://doi.org/10.1080/00036840701579176
- Keho, Y. (2017). The impact of trade openness on economic growth: The case of Cote d'Ivoire, Cogent Economics & Finance, 5(1), 1-14.
- Krugman, P. (2000). Fire-sale FDI. University of Chicago Press, Capital flows and the emerging economies: Theory, evidence, and controversies. 43–58.
- Lean, H. H., & Tan, B. W. (2011). Linkages between foreign direct investment, domestic investment and economic growth in Malaysia. Journal of Economic Cooperation & Development, 32(4), 75–96.
- Mencinger, J. (2003). Does foreign direct investment always enhance economic growth? Kiyklos, 56(4), 491–508.
- Mercan, M., & Göçer, İ. (2013). The effect of financial development on economic growth in BRIC-T countries: Panel data analysis. Journal of Economic and Social Studies, 3(1), 199-216. http://doi.org/10.5539/ijef.v6n11p72
- Mohamed, M. R., Singh, K. S. J., & Liew, C. Y. (2013). Impact of foreign direct investment & domestic investment on economic growth of Malaysia. Malaysian Journal of Economic Studies, 50(1), 21–35.
- Ndambiri H. et al. (2012). Determinants of economic growth in Sub-Saharan Africa: A panel data approach. International Journal of Economics and Management Sciences, 2(2), 18–24.
- Nketsiah, I., & Quaidoo, M. (2017). The effect of foreign direct investment on economic growth in Ghana. Journal of Business and Economic Development, 2(4), 227–232. http://doi.org/10.11648/j.jbed.20170204.14
- Nursini, N. (2017). Effect of fiscal policy and trade openness on economic growth in Indonesia: 1990-2015. International Journal of Economics and Financial Issues, 7(1), 358–364. Retrieved from http:%0Awww.econjournals.com
- Pyndick, R. S., & Solimano, A. (1993). Economic instability and aggregate investment. NBER Working Paper Series, 1-55.
- Raičević, B., Ignjatijević, S., & Milojević, I. (2016). Financial analysis of foreign direct investment on economic growth of developing countries. Economics of Agriculture Review Paper, 2, 649–664.
- Rodrick, D. (1999). The new global economy and developing countries: Making openness work. Washington DC: Overseas Development Council (ODC) Policy Essay No. 24.
- Saaed, A. A. J., & Hussain, M. A. (2015). The causal relationship among trade openness, financial development and economic growth: Evidence from Kuwait. Journal of Emerging Issues in Economics, Finance and Banking, 4(1), 1385–1413.
- Saqib, N., Masnoon, M., & Rafique, N. (2013). Impact of foreign direct investment on economic growth of Pakistan. Advances in Management & Applied Economics, 3(1), 35–45.
- Sukar, A., Ahmed, S., & Hassan, S. (2010). The Effects of foreign direct investment on economic growth: The case of SubSahara Africa. Southwestern Economic Review Economic, 34, 61–74.
- Ullah, I., Shah, M., & Khan, F. U. (2014). Domestic investment, foreign direct investment, and economic growth nexus: A case of Pakistan. Economics Research International, 2014, 1–5. http://doi.org/10.1155/2014/592719
- World Development Indicators, https://data.worldbank.org/products/wdi
- Yalçınkaya, Ö., & Aydın, H. I. (2017). Doğrudan yabanci sermaye yatirimlarinin ekonomik büyüme üzerindeki etkileri: Seçili yükselen piyasa ekonomileri örneği (1992-2015). Ağrı İbrahim Çeçen Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 3(1), 39-64.
- Yanıkkaya, H. (2003). Trade openness and economic growth: A cross-country empirical investigation. Journal of Development Economics, 72(1), 57-89.
- Yapraklı, S. (2007). Enflasyon ve ekonomik büyüme arasindaki ilişki: Türkiye için eş-bütünleşme ve nedensellik analizi. Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 10(2), 287-301.
- Yücel, F. (2009). Causal relationships between financial development, trade openness and economic growth: The case of Turkey. Journal of Social Sciences, 5(1), 33–42.
- Zekarias, S. M. (2016). The impact of foreign direct investment (fdi) on economic growth in Eastern Africa: Evidence from panel data analysis. Applied Economics and Finance, 3(1), 145–160. http://doi.org/10.11114/aef.v3i1.1317
- Zenasni, S., & Benhabib, A. (2013). The determinants of foreign direct investment and their impact on growth: Panel data analysis for AMU countries. International Journal of Innovation and Applied Studies, 2(3), 300- 313.
- Zeren, F., & Ari, A. (2013). Trade openness and economic growth: A panel causality test. International Journal of Business and Social Science, 4(9), 317–324. http://www.ijbssnet.com/journals/Vol_4_No_9_August_2013/32.pdf
| APA | ÇINAR M, NULAMBEH N (2018). Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. , 749 - 760. 10.20409/berj.2018.136 |
| Chicago | ÇINAR Mehmet,NULAMBEH Ndzembanteh Aboubakary Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. (2018): 749 - 760. 10.20409/berj.2018.136 |
| MLA | ÇINAR Mehmet,NULAMBEH Ndzembanteh Aboubakary Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. , 2018, ss.749 - 760. 10.20409/berj.2018.136 |
| AMA | ÇINAR M,NULAMBEH N Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. . 2018; 749 - 760. 10.20409/berj.2018.136 |
| Vancouver | ÇINAR M,NULAMBEH N Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. . 2018; 749 - 760. 10.20409/berj.2018.136 |
| IEEE | ÇINAR M,NULAMBEH N "Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa." , ss.749 - 760, 2018. 10.20409/berj.2018.136 |
| ISNAD | ÇINAR, Mehmet - NULAMBEH, Ndzembanteh Aboubakary. "Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa". (2018), 749-760. https://doi.org/10.20409/berj.2018.136 |
| APA | ÇINAR M, NULAMBEH N (2018). Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. Business and Economics Research Journal, 9(4), 749 - 760. 10.20409/berj.2018.136 |
| Chicago | ÇINAR Mehmet,NULAMBEH Ndzembanteh Aboubakary Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. Business and Economics Research Journal 9, no.4 (2018): 749 - 760. 10.20409/berj.2018.136 |
| MLA | ÇINAR Mehmet,NULAMBEH Ndzembanteh Aboubakary Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. Business and Economics Research Journal, vol.9, no.4, 2018, ss.749 - 760. 10.20409/berj.2018.136 |
| AMA | ÇINAR M,NULAMBEH N Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. Business and Economics Research Journal. 2018; 9(4): 749 - 760. 10.20409/berj.2018.136 |
| Vancouver | ÇINAR M,NULAMBEH N Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa. Business and Economics Research Journal. 2018; 9(4): 749 - 760. 10.20409/berj.2018.136 |
| IEEE | ÇINAR M,NULAMBEH N "Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa." Business and Economics Research Journal, 9, ss.749 - 760, 2018. 10.20409/berj.2018.136 |
| ISNAD | ÇINAR, Mehmet - NULAMBEH, Ndzembanteh Aboubakary. "Foreign Direct Investment, Trade Openness and Economic Growth: A Panel Data Analysis for Sub-Saharan Africa". Business and Economics Research Journal 9/4 (2018), 749-760. https://doi.org/10.20409/berj.2018.136 |
