Endogenous Determination of FDI Growth and Economic Growth:The OECD Case

Burcu Türkcan and Ibrahim Yetkiner ()

No 807, Working Papers from Izmir University of Economics

Abstract: This paper tests the endogenous relationship between FDI growth and economic growth using a panel dataset for 23 OECD countries for the period 1975-2004. In particular we estimate a two-equation simultaneous equation system with the generalized methods of moments (GMM) that treats economic growth and FDI growth as endogenous variables. We find that FDI growth and economic growth are significant determinants of each other. We also find that export growth rate and human capital are statistically significant determinants of both FDI growth and economic growth. Our findings lead us to conclude that FDI growth and economic growth have an endogenous relationship.

Keywords: FDI growth; economic growth; Panel Data; GMM (search for similar items in EconPapers)
JEL-codes: C33 F21 O5 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2008-11
New Economics Papers: this item is included in nep-fdg and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://eco.ieu.edu.tr/wp-content/wp0807.pdf (application/pdf)

Related works:
Journal Article: Endogenous determination of FDI growth and economic growth: the OECD case (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:izm:wpaper:0807

Access Statistics for this paper

More papers in Working Papers from Izmir University of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ayla Ogus Binatli ().