The Relationships Between Foreign Direct Investments, Export and Economic Growth: Bootstrap Panel Causality Analysis on BRICS-T Countries (1992-2018)


Muharrem Akın DOĞANAY

Mustafa Kemal DEĞER

After the Second World War, the increase in trade relations between the countries with commercial globalization and regional economic agreements caused a significant increase in the studies dealing with the effects of exports on economic growth. Likewise, the globalization of production through Multinational Companies (MNC) has made Foreign Direct Investments (FDI) popular with economists. In this context, there is an expectation in the literature that FDIs will have more significant effects on economic growth in developing countries, which have savings and foreign exchange deficits compared to short and medium-term portfolio investments. This study aims to analyze the relationship between foreign direct investments, export and economic growth in the BRICS-T countries for the period 1992-2018. In the study, cross-section dependency, homogeneity and Kónya (2006) bootstrap panel Granger causality tests were used. The findings obtained from tests show that all panel data models used in the study have cross-section dependence and heterogeneity. On the other hand, according to the bootstrap panel causality test results, the causal relationships between foreign direct investment, export and economic growth differ by countries.
Keywords: Foreign Direct Investments, Export, Economic Growth, Panel Causality


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