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| Fernando Seabra and Lisandra Flach |
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| ''Foreign direct investment and profit outflows: a causality analysis for the Brazilian economy'' |
| ( 2005, Vol. 6 No.1 ) |
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| Most empirical works have focused on the effects of foreign direct investment (FDI) to exports and other economic performance indicators, whereas its impacts to profit outflows has been relatively neglected. This paper investigates the nature of the causal relationship between FDI and profit remittance in Brazil using the Granger causality test procedure developed by Toda and Yamamoto (1995). The findings in this paper indicate that FDI causes profit remittance and emphasize significant adverse long-run effects of FDI attraction policies for the Brazilian economy. |
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| Keywords: |
JEL: F3 - International Finance: General
F2 - International Factor Movements and International Business: General |
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| Manuscript Received : Oct 25 2004 | | Manuscript Accepted : Feb 24 2005 |
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