Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl


2015 | 3 (7) | 30-45

Article title

Bezpośrednie inwestycje zagraniczne i wzrost gospodarczy w państwach G-5 oraz BRICS – analiza przyczynowości w sensie Grangera



Title variants

Foreign Direct Investments and economic growth in G-5 and BRICS countries – Granger causality analysis

Languages of publication



Research concerns causality between FDI inflows and real GDP growth in ten countries: France, Germany, Japan, U.S., U.K., Brazil, China, India, Russia and South Africa during the period 1971-2012. The analysis is based on Granger-causality tests. The study is aimed at answering a question whether there is one way or two-way causality (or no causality at all) between FDI inflows and real GDP growth in G-5 and BRICS countries. According to the Granger-causality tests one-way causality occurs only in the case of Japan and India. Thus, Granger-causality between FDI inflows and real GDP growth seems to be a country-specific issue and any genral conlusions concerning developed or developing economies are not justified.





Physical description




  • Afsar M., 2007, The causality relationship between economic growth and foreign direct investment in Turkey, mimeo, conference on Business and Economics Society International.
  • Asghar N., Nasreen S., Rehman H., 2011, Relationship between FDI and economic growth in selected Asian countries: A panel data analysis, Review of Economics & Finance, Academic Research Centre of Canada.
  • Choe J.I., 2003, Do foreign investment and gross domestic promote economic growth?, Review of Development Economics, no. 7, s. 44-57.
  • Chowdhury A., Mavrotas G., 2005, FDI and growth: A causal relationship, UNU-WIDER Research Paper, no. 2005/25.
  • Ericsson J., Irandoust M., 2001, On the causality between foreign direct investment and output: A comparative study, The International Trade Journal, vol. 15, no. 1, s. 122-132.
  • Esso L.J., 2010, Long-run relationship and causality between foreign direct investment and growth: Evidence from ten African countries, International Journal of Economics and Finance, vol. 2, no. 2, s. 168-177.
  • Feridun M., Sissoko Y., 2006, Impact of FDI on economic development: A causality analysis for Singapore, mimeo, 6th Global Conference on Business & Economics, Gutman Conference Center, USA.
  • Folfas P., 2013, Bivariate causality between FDI inflows and real GDP growth in developed economies, mimeo, ETSG 2013 conference.
  • Granger C.W.J., 1969, Investigating causal relations by econometric models and cross-spectral methods, Econometrica, vol. 3, no. 37, s. 424-438.
  • Guru-Gharana K., Adhikari D.R., 2011 , Econometric investigation of relationships among export, FDI and growth in China: An application of Toda-Yamamoto-Dolado-Lutkephol Granger Causality Test, Journal of International Business Research, vol. 10, no. 2, s. 31-50.
  • Hansen H., Rand J., 2004, On the casual links between FDI and economic growth in developing economies, mimeo, DERG, University of Copenhagen.
  • Har W.M., Teo K.L., Yee K.M., 2008, FDI and economic growth relationship: An empirical study on Malaysia, International Business Research, vol. 1, no. 2, s. 11-18.
  • Karikari J.A., 1992, Causality between foreign direct investment and economic output in Ghana, Journal of Economic Development, no. 17, s. 1-12.
  • Kim M., 2004, Does a Casual Link Exist between FDI and Economic Growth in the Asian NIEs?, mimeo, M.A. thesis at Ohio University.
  • Magnus F.J., Fosu O.-A.E., 2008, Bivariate causality analysis between FDI inflows and economic growth in Ghana, International Journal of Finance and Economics, no. 15, s. 103-112.
  • Mah J., 2010, Foreign direct investment inflows and economic growth of China, Journal of Policy Modeling, no. 32, s. 155-158.
  • Majagaiya K.P., 2010, A time series analysis of foreign direct investment and economic growth: A case study of Nepal, International Journal of Bussiness and Management, vol. 5, no. 2, s. 144-148.
  • Mawugnon A.K., Qiang F., 2011, The relationship between foreign direct investment and economic growth in Togo, Proceedings of the 8th International Conference on Innovation & Management, s. 1269-1273.
  • Moudatsou A., Kyrkillis D., 2009, FDI and economic growth: Granger Causality Tests in Panel Data Model-Comparative results in the case of European Union countries EU (European Union countries) and ASEAN Association of South East Asian Nations, mimeo, EEFS Conference in Warsaw.
  • Ocaya B., Ruranga Ch., Kaberuka W., 2013, Foreign direct investment and economic growth in Rwanda: A time series analysis, Journal of Business Management and Corporate Affairs, vol. 2, no. 1, s. 11-18.
  • Osińska J., 2008, Ekonometryczna analiza zależności przyczynowych, Wydawnictwo UMK, Toruń.
  • Pradhan R.P., 2009, The FDI-led-growth hypothesis in ASEAN-5 countries: Evidence from cointegrated panel analysis, International Journal Business and Management, vol. 4, no. 12, s. 153-164.
  • Ray S., 2012, Impact of Foreign Direct Investment on Economic Growth in India: A Co-integration Analysis, Advances in Information Technology and Management, vol. 2, no. 1, s. 187-201.
  • Samad A., 2009, Does FDI Cause Economic Growth? Evidence from South-East Asia and Latin America, Working Paper of Woodbury School of Business, no. 1–09.
  • Tang S., Selvanathan E.A., Selvanathan S., 2008, Foreign direct investment, domestic investment, and economic growth in China. A time series analysis, UNU-WIDER Research Paper, no. 2008/19.
  • Toda H.Y., Yamamoto T., 1995, Statistical inference in vector autoregressions with possibly integrated processes, Journal of Econometrics, no. 66, s. 225-250.
  • UNCTAD, http://unctadstat.unctad.org (15.06. 2014).
  • Yasemin Yalta A., 2011, New evidence on the FDI-Led Growth: The case of China, Working Paper of TOBB University of Economics and Technology Department of Economics, no. 11–07.

Document Type

Publication order reference


YADDA identifier

JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.