Foreign direct investment and trade: A causality analysis

Authors
Bajo-Rubio, O Montero-Munoz, M
Citation
O. Bajo-rubio et M. Montero-munoz, Foreign direct investment and trade: A causality analysis, OPEN ECON R, 12(3), 2001, pp. 305-323
Citations number
39
Categorie Soggetti
Economics
Journal title
OPEN ECONOMIES REVIEW
ISSN journal
09237992 → ACNP
Volume
12
Issue
3
Year of publication
2001
Pages
305 - 323
Database
ISI
SICI code
0923-7992(2001)12:3<305:FDIATA>2.0.ZU;2-8
Abstract
In this article, we analyze the relationship between outward foreign direct investment (FDI) and exports, using Spanish quarterly data for the period 1977-1998, by means of Granger causality tests in a cointegration framework . Our results point to the existence of a relationship of complementarity b etween both variables, with Granger causality running in the short run from outward FDI to exports, and bilateral Granger causality in the long run.