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

Türkcan, Burcu; Yetkiner, I. Hakan

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/175901

Title:

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

Authors:

Türkcan, Burcu
Yetkiner, I. Hakan

Year of Publication:

2008

Series/Report no.:

Working Papers in Economics No. 08/07

Publisher:

Izmir University of Economics, Department of Economics, Izmir

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.

Subjects:

FDI growth
economic growth
Panel Data
GMM

JEL:

C33
O5
F21

Document Type:

Working Paper

Appears in Collections:

Working Papers in Economics, Department of Economics, Izmir University of Economics

Files in This Item:

File

Description

Size