Vol. 10 No. 4 (2022): Business & Management Studies: An International Journal
Articles

Causality test among foreign direct investment, trade openness and economic growth: recent evidence from BRICS and MINT countries

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  • Sevilay KÜÇÜKSAKARYA
Sevilay KÜÇÜKSAKARYA
Assoc. Prof. Dr., Anadolu University, Eskişehir, Turkey

Published 2022-12-25

Keywords

  • BRICS, MINT, Ekonomik Büyüme, Yatay Kesit Bağımlılığı, Panel Nedensellik
  • BRICS, MINT, Economic Growth, Cross-sectional Dependence, Panel Causality

How to Cite

Causality test among foreign direct investment, trade openness and economic growth: recent evidence from BRICS and MINT countries. (2022). Business & Management Studies: An International Journal, 10(4), 1416-1424. https://doi.org/10.15295/bmij.v10i4.2161

Copyright (c) 2022 Sevilay KÜÇÜKSAKARYA

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite

Causality test among foreign direct investment, trade openness and economic growth: recent evidence from BRICS and MINT countries. (2022). Business & Management Studies: An International Journal, 10(4), 1416-1424. https://doi.org/10.15295/bmij.v10i4.2161

Abstract

This study attempts to find new evidence of causality between foreign direct investment, trade openness, and economic growth for BRICS and MINT countries between 1990-2021 using the Dumitrescu-Hurlin panel causality test. We first check whether there is a cross-sectional dependence between the countries using different cross-sectional dependence tests. After we find out there is cross-sectional dependence, we perform the CIPS unit root test. All variables are stationary at their first differences, so we applied the Dumitrescu-Hurlin panel causality test. There is bi-directional causality between trade openness and economic growth only for MINT countries. For BRICS, we found unidirectional relationships between economic growth and foreign direct investment and trade openness to economic growth. There is a unidirectional relationship from trade openness to foreign direct investment for both country groups.

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