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Foreign Direct Investment, Trade Openness And Gdp In China, India And Mexico

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  • ANIL K. LAL

    (Department of Economics, Finance & Banking Kelce College of Business, Pittsburg State University, Pittsburg, KS 66762, USA)

Abstract

This paper examines the short and long-run relationships between Foreign Direct Investment (FDI), Trade Openness and GDP in China, India and Mexico from 1980 to 2011. Based on the properties of individual time series data, the paper estimates the VAR or VECM of the three variables to determine short and long-run causal relationships. The results confirm the existence of long-run causal relationships between the three variables for China and Mexico. The results also point to sharp differences in short-run causal relationships in the three countries and several plausible explanations consistent with the findings are offered.

Suggested Citation

  • Anil K. Lal, 2017. "Foreign Direct Investment, Trade Openness And Gdp In China, India And Mexico," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(05), pages 1059-1076, December.
    • Handle: RePEc:wsi:serxxx:v:62:y:2017:i:05:n:s0217590815501076
    DOI: 10.1142/S0217590815501076
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    Keywords

    FDI; trade openness; GDP; China; India; Mexico;
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