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A Causal Relationship Between Trade, Foreign Direct Investment and Economic Growth in Niger

Author

Listed:
  • Oumarou Issoufou

    (Université de Tahoua / Niger, Faculté de droit d’économie et de gestion, Département d’économie et gestion)

  • Maiga Ousseini A.

    (Hunan university / China, Department of economics and trade)

Abstract

Foreign direct investment and Trade were regarded as an important elements in enhancing economic development. This study used some time series econometric tests including the Augmented Dickey – Fuller (ADF) unit root test developed by Dickey – Fuller, stationary test developed by Kwiatkowski-Philips-Schmidt-Shin (KPSS), Johansen co-integration test and Granger causality test to analyse the connection between foreign direct investment, trade and economic growth in Niger. The tests results showed a bilateral relationship between trade and economic growth and a unidirectional causal relationship between trade and foreign direct investment with direction from trade to foreign direct investment. The long run effect tests revealed that trade has a positive effect on economic growth while foreign direct investment has a negative effect on economic growth in Niger. On average, ceteris paribus, the coefficients are statistically significant at 5% level.

Suggested Citation

  • Oumarou Issoufou & Maiga Ousseini A., 2019. "A Causal Relationship Between Trade, Foreign Direct Investment and Economic Growth in Niger," Journal of Social and Economic Statistics, Sciendo, vol. 8(2), pages 24-38, December.
    • Handle: RePEc:vrs:jsesro:v:8:y:2019:i:2:p:24-38:n:3
    DOI: 10.2478/jses-2019-0003
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Trade; Foreign Direct investment; Economic growth; Niger;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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