Foreign Direct Investment Inward and Foreign Direct Investment Outward: Evidence from Panel Unit Root and Cointegration Tests with a Certain Number of Structural Changes
20 Pages Posted: 3 Jun 2007
Date Written: April 2007
This paper examines empirically the association between foreign direct investment inward and foreign direct investment outward. Using a panel data set for 35 economies over the period 1981-2004 as well as the methodology of panel unit root and panel cointegration tests with a certain number of structural changes, the empirical findings show that FDI inward does exhibit a significant (long-run) relationship with FDI outward.
Keywords: FDI inward and FDI outward, panel unit root tests, panel cointegration test, structural breaks
JEL Classification: F21, C33
Suggested Citation: Suggested Citation