FDI, TRADE OPENNESS AND ECONOMIC GROWTH EVIDENCE FROM CEECS
FDI, TRADE OPENNESS AND ECONOMIC GROWTH EVIDENCE FROM CEECS

Author(s): Lenuta Carp
Subject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: ASERS Publishing
Keywords: FDI; trade openness; economic growth; VECM; Johansen Co-integration tes
Summary/Abstract: Foreign capital flows and exports are widely recognized for the positive externalities generated both in the host country economy and the source one. This chapter aims at emphasizing the existence of a long-run or short-run correlation among FDI, trade openness and economic growth in CEECs, through the VECM method and Johansen Co-integration test. The analysis uses data over the period 1991 - 2011 and the results have revealed the strong interdependency among the selected variables for Bulgaria and Hungary in long run. The findings for Romania, Slovakia and Czech Republic have proved a short-run causality. Further analysis shall be implemented and developed using a panel study, including both developed and developing economies, from different regions and various econometric techniques.

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