International Conference on Eurasian Economies

International Conference on Eurasian Economies

17-18 September 2013 – St. Petersburg, RUSSIA

Paper detail

Paper ID : 740
Status : Paper published
Language : Turkish
Topic : International Trade and Globalization
Presenter: Ph.D. candidate Mehmet Songur
Session : 7B Uluslararası Ticaret III

The Effect of Foreign Direct Investment and Foreign Trade on Gross Domestic Product in Eurasian Countries: Panel Cointegration Analysis
Avrasya Ülkeleri’nde Gayri Safi Yurtiçi Hasıla Üzerine Doğrudan Yabancı Yatırımlar ve Dış Ticaret’in Etkisi: Panel Eşbütünleşme Analizi

Abstract

In recent years, with the phenomenon of globalization, both foreign trade and foreign direct investment have become important factors that impact on economic growth. The effect of foreign trade and foreign direct investment on economic growth has been an important research area for many economists. For this purpose, this study investigates the effects of foreign direct invesment and foreign trade on economic growth, with the help of Pedroni Panel Cointegration Analysis,for 9 Eurasian countries using annual data for the period 1995-2011.The results show that in analyzed countries, there has been a long-term relationship between the variables. The results of cointegration coeffficients show that, import and export has a negative impact but foreign direct invesment has a positive impact on GDP. From these results, Eurasian economies on one hand should develop policies to increase the effeciency of foreign direct invesment and increase foreign trade. On the other hand Eurasian economies should improve policies to increase the economic and human infrastructure.

JEL codes: F41, C33

Songur, Mehmet , Yaman , Demet (2013). "The Effect of Foreign Direct Investment and Foreign Trade on Gross Domestic Product in Eurasian Countries: Panel Cointegration Analysis " in Proceedings of International Conference of Eurasian Economies 2013, pp.532-540, St. Petersburg, RUSSIA.

DOI: https://doi.org/10.36880/C04.00740

Full paper in PDF format.

Session 7B: Uluslararası Ticaret III

Beykent University Turkish Central Bank TIKA