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Chaido Dritsaki and Melina Dritsaki
''Exports and FDI: A Granger causality analysis in a heterogeneous panel''
( 2012, Vol. 32 No.4 )
This paper investigates the heterogenous panels Granger causality between exports and Foreign Direct Investment (FDI) for the twelve new EU countries from 1995 until 2010. The cointegration test by Pedroni (1999) shows a long run heterogenous relationship. A two-stage Engle and Granger procedure (1987), allowing for testing of heterogeneity of panel data on dynamic models, shows a bilateral causal relationship between exports and foreign direct investment both in the long and short run for the examined countries.
Keywords: Foreign Direct Investment, Exports, Granger Causality; and Heterogenous Panel, Τwelve new EU countries
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
C4 - Econometric and Statistical Methods: Special Topics
Manuscript Received : Jun 13 2012 Manuscript Accepted : Nov 19 2012

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