CAUSAL NEXUS BETWEEN FDI, EXPORTS, UNEMPLOYMENT AND ECONOMIC GROWTH FOR THE OLD EUROPEAN UNION MEMBERS. EVIDENCE FROM PANEL DATA

Authors

  • Nikolaos Dritsakis University of Macedonia, Economics and Social Sciences, Greece Author
  • Pavlos Stamatiou University of Macedonia, Economics and Social Sciences, Greece Author

DOI:

https://doi.org/10.20472/ES.2018.7.2.002

Keywords:

Economic growth, Foreign direct investments, Exports, Unemployment, Panel analysis, Causality

Abstract

This study examines the causality relationships between foreign direct investments (FDI), exports, unemployment and economic growth in the fifteen old EU members using panel data covering the period 1970-2015. The Hausman test is applied for choosing between Fixed Effect and Random Effect approach in order to estimate the panel VAR equations for Granger causality tests. The results revealed three bidirectional causalities between economic growth and exports, exports and FDI, and exports and unemployment and three unidirectional causalities running from FDI to economic growth, FDI to unemployment and from economic growth to unemployment. Policy implications are then explored in the conclusions.

 

Data:
Received: 8 Aug 2018
Revised: 26 Sep 2018
Accepted: 6 Nov 2018
Published: 20 Nov 2018

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Published

2018-11-20

Issue

Vol. 7 No. 2 (2018): International Journal of Economic Sciences

Section

Articles

License

Copyright (c) 2018 Nikolaos Dritsakis, Pavlos Stamatiou (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite

Dritsakis, N., & Stamatiou, P. (2018). CAUSAL NEXUS BETWEEN FDI, EXPORTS, UNEMPLOYMENT AND ECONOMIC GROWTH FOR THE OLD EUROPEAN UNION MEMBERS. EVIDENCE FROM PANEL DATA. International Journal of Economic Sciences, 7(2), 35-56. https://doi.org/10.20472/ES.2018.7.2.002
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