Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countries
This study examines the nexus between foreign direct investment (FDI), trade openness (TRO) and economic growth for selected 11 high-income and 22 middle- and low-income Asian countries within a model using a more recent panel dataset over the period 2000–2021. The cointegration test has been applie...
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| Language: | English |
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Selcuk University Press
2024-04-01
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| Series: | Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/3768380 |
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| author | İraima Dorbonova İbrahim Halil Sugözü |
| author_facet | İraima Dorbonova İbrahim Halil Sugözü |
| author_sort | İraima Dorbonova |
| collection | DOAJ |
| description | This study examines the nexus between foreign direct investment (FDI), trade openness (TRO) and economic growth for selected 11 high-income and 22 middle- and low-income Asian countries within a model using a more recent panel dataset over the period 2000–2021. The cointegration test has been applied in this study, which shows that whether there is a long-term interrelationship between FDI and economic growth, which we focus on in particular, and then the covariance matrix estimators that are developed by Driscoll and Kraay are used. Our findings indicate that there is a positive relationship between FDI and TRO, and economic growth for high-income countries, whereas the relationship between FDI and economic growth is negative for middle- and low-income countries. This study provides insights on why governments and policy makers in developing countries should focus on prioritizing domestic investment and production strategies for sustainable economic growth rather than simply emphasizing the attractiveness of FDI and the indispensability of import-oriented trade liberalization. |
| format | Article |
| id | doaj-art-c3e5c73dae9c4ddbaae3fd54ddabb7f2 |
| institution | Kabale University |
| issn | 2564-7458 |
| language | English |
| publishDate | 2024-04-01 |
| publisher | Selcuk University Press |
| record_format | Article |
| series | Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi |
| spelling | doaj-art-c3e5c73dae9c4ddbaae3fd54ddabb7f22025-01-03T01:05:32ZengSelcuk University PressSelçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi2564-74582024-04-0127130832010.29249/selcuksbmyd.1446206154Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countriesİraima Dorbonova0İbrahim Halil Sugözü1KYRGYZ - TURKISH MANAS UNIVERSITYKIRGIZİSTAN TÜRKİYE MANAS ÜNİVERSİTESİ, İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİThis study examines the nexus between foreign direct investment (FDI), trade openness (TRO) and economic growth for selected 11 high-income and 22 middle- and low-income Asian countries within a model using a more recent panel dataset over the period 2000–2021. The cointegration test has been applied in this study, which shows that whether there is a long-term interrelationship between FDI and economic growth, which we focus on in particular, and then the covariance matrix estimators that are developed by Driscoll and Kraay are used. Our findings indicate that there is a positive relationship between FDI and TRO, and economic growth for high-income countries, whereas the relationship between FDI and economic growth is negative for middle- and low-income countries. This study provides insights on why governments and policy makers in developing countries should focus on prioritizing domestic investment and production strategies for sustainable economic growth rather than simply emphasizing the attractiveness of FDI and the indispensability of import-oriented trade liberalization.https://dergipark.org.tr/tr/download/article-file/3768380doğrudan yabancı yatırımticari açıklıkekonomik büyümeasya ülkeleripanel veri analiziforeign direct investmenttrade opennesseconomic growthasian countriespanel data analysis |
| spellingShingle | İraima Dorbonova İbrahim Halil Sugözü Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countries Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi doğrudan yabancı yatırım ticari açıklık ekonomik büyüme asya ülkeleri panel veri analizi foreign direct investment trade openness economic growth asian countries panel data analysis |
| title | Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countries |
| title_full | Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countries |
| title_fullStr | Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countries |
| title_full_unstemmed | Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countries |
| title_short | Do FDI And Trade Openness Affect Economic Growth Differently Across Income Groups? Case Studies From Asian Countries |
| title_sort | do fdi and trade openness affect economic growth differently across income groups case studies from asian countries |
| topic | doğrudan yabancı yatırım ticari açıklık ekonomik büyüme asya ülkeleri panel veri analizi foreign direct investment trade openness economic growth asian countries panel data analysis |
| url | https://dergipark.org.tr/tr/download/article-file/3768380 |
| work_keys_str_mv | AT iraimadorbonova dofdiandtradeopennessaffecteconomicgrowthdifferentlyacrossincomegroupscasestudiesfromasiancountries AT ibrahimhalilsugozu dofdiandtradeopennessaffecteconomicgrowthdifferentlyacrossincomegroupscasestudiesfromasiancountries |