The Relationship between Foreign Direct Investment and Economic Growth: Evidence from Transitional Countries

19 Pages Posted: 1 Jun 2007

See all articles by Nicholas Apergis

Nicholas Apergis

University of Piraeus; University of Derby

Katerina Lyroudi

University of Macedonia - Accounting and Finance

Thanasis Vamvakidis

International Monetary Fund (IMF)

Date Written: October 2006

Abstract

This paper examines the importance of Foreign Direct Investment (FDI) on economic growth. Using a panel data set for 27 transition economies over the period 1991-2004 as well as the methodology of panel cointegration and causality tests, the empirical findings show that FDI does exhibit a significant relationship with economic growth, at least, for those transition countries that are characterized by high levels of income and have implemented successful privatization programs.

Keywords: Foreign Direct Investment (FDI), economic growth, transition economies, panel cointegration, panel causality

JEL Classification: F23, P2, F21, O16, C33, P27

Suggested Citation

Apergis, Nicholas and Lyroudi, Katerina and Vamvakidis, Thanasis, The Relationship between Foreign Direct Investment and Economic Growth: Evidence from Transitional Countries (October 2006). Available at SSRN: https://ssrn.com/abstract=990251 or http://dx.doi.org/10.2139/ssrn.990251

Nicholas Apergis

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

Katerina Lyroudi (Contact Author)

University of Macedonia - Accounting and Finance ( email )

156 Egnatia Str.
Thessaloniki, 54006
Greece
+30 31 891 674 (Phone)
+30 31 844 536 (Fax)

Thanasis Vamvakidis

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
1,534
Abstract Views
6,207
rank
11,533
PlumX Metrics