Foreign direct investment and growth causal nexus in economic community of West African States: Evidence from spectral causality
Journal Title: Business and Economic Horizons - Year 2018, Vol 14, Issue 1
Abstract
The paper examines the causal relationship between FDI and economic growth (GDP) in thirteen ECOWAS countries using both time domain and frequency domain testing procedures using annual data from 1970 to 2015. The results showed that time domain is not adequate in detecting causality. The time domain detected causality in only four out of thirteen countries whilst the frequency domain detected causality at different frequencies and cycles in nine out of thirteen countries. The findings of this study indicate the importance of frequency domain causality, that it decomposes causality at different frequencies and subsequently detects causality at certain cycles lengths. The general observation that economic growth leads FDI calls for ECOWAS leaders to rethink about painful sacrifices they make to attract FDI into the region.
Authors and Affiliations
Anokye M. Adam
Keywords
Related Articles
- EP ID EP448144
- DOI 10.15208/beh.2018.2
- Views 48
- Downloads 0
Examining the dimensions of governance that are relevant for private investment
Which types of governance indicators matter the most for private investment? This short paper answers the question by examining the impact of specific governance indicators on private investment in a cross-section of dev...
Underpricing and long-term market performance of initial public offerings in Indonesia: A quantile regression approach
This study aims to identify the relationship between underpricing and long-term market performance of IPOs in the Indonesian Stock Exchange (IDX), as well as determinants of IPOs' market performance. We based our paper o...
Does the retirement saving motive foster higher savings? The evidence from the Polish household survey
This study focuses on the role of the retirement motive for saving behaviour. It examines empirically the research hypothesis that controlling for a set of economic and sociodemographic individual characteristics, househ...
Methodological approaches to assessment of the efficiency of business entities activity
The management of stable development of business entities requires the improvement of methodological approaches regarding their efficiency assessment. We think that the efficiency assessment should conduct a comparative...
Demographic structure and housing prices: East Asia and Europe
The recent booms in the global housing markets have been suspected to be bubbles owing to the weak economic circumstances after the 2008 financial crisis. While the behavioral economics stresses the role of irrational hu...