Foreign Direct Investment Inward and Foreign Direct Investment Outward: Evidence from Panel Data
21 Pages Posted: 3 Jun 2007 Last revised: 4 Feb 2008
Date Written: March 2007
This paper examines empirically the association between Foreign Direct Investment (FDI) inward and FDI outward. Using a panel data set for 35 economies over the period 1981-2004 as well as the methodology of panel cointegration and panel causality tests, the empirical findings show that FDI inward does exhibit a significant relationship with FDI outward. This evidence is supportive to the indirect link of the development path theory.
Keywords: FDI inward, FDI outward, transitional economies, panel cointegration, panel causality
JEL Classification: F21, C33
Suggested Citation: Suggested Citation