IDEAS home Printed from https://ideas.repec.org/a/hyp/journl/v1y2013i2p60-66.html
   My bibliography  Save this article

Export and FDI in Asian countries: panel causality analysis

Author

Listed:
  • Abbas Rezazadeh Karsalari

    (Department of Management, Islamic Azad University, Tafresh Branch, Tafresh, Iran)

  • Mohsen Mehrara

    (Faculty of Economics, University of Tehran, Tehran, Iran)

  • Maysam Musai

    (Faculty of Social Sciences, University of Tehran, Tehran, Iran)

Abstract

The FDI of Multinational Companies (MNCs) can be export-oriented or market-oriented, intended to capture the international or local markets respectively. Since the MNCs have better export performance than local firms, in case of export-oriented FDI, this would lead local firms to mimic foreign firms in the same way. On the other hand, the reverse causality running from exports to FDI can also exist. It is argued that FDI is attracted to countries with a higher trade potential both in terms of imports and exports. This paper investigates the causal relationship between Foreign Direct Investment (FDI) and exports in 40 Asian countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. The results show a strong causality from exports to FDI in these countries. Moreover, FDI does have significant effects on export in short- and long-run. So, the findings imply bidirectional causality between foreign direct investment and export in these countries.

Suggested Citation

  • Abbas Rezazadeh Karsalari & Mohsen Mehrara & Maysam Musai, 2013. "Export and FDI in Asian countries: panel causality analysis," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 1(2), pages 60-66, June.
    • Handle: RePEc:hyp:journl:v:1:y:2013:i:2:p:60-66
    as

    Download full text from publisher

    File URL: http://www.hej.hyperion.ro/articles/2(1)_2013/HEJ%20nr2(1)_2013_Y1Karsalari.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    panel unit root; panel cointegration; Granger causality; foreign direct investment (FDI); MENA region countries;
    All these keywords.

    JEL classification:

    • F39 - International Economics - - International Finance - - - Other
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hyp:journl:v:1:y:2013:i:2:p:60-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iulian Panait (email available below). General contact details of provider: https://edirc.repec.org/data/fehypro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.