Foreign direct investment, trade openness and growth nexus in Lesotho
This paper examines the long-run relationship among FDI, trade openness and growth in Lesotho for the period 1980-2011. The results show a long-run relationship between output, FDI and trade openness. The VAR Granger causality shows a unidirectional causal relationship running from trade openness, F...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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AOSIS
2017-06-01
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| Series: | Journal of Economic and Financial Sciences |
| Subjects: | |
| Online Access: | https://jefjournal.org.za/index.php/jef/article/view/10 |
| _version_ | 1828922214088441856 |
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| author | Leseko Makhetha Joel Rantaoleng |
| author_facet | Leseko Makhetha Joel Rantaoleng |
| author_sort | Leseko Makhetha |
| collection | DOAJ |
| description | This paper examines the long-run relationship among FDI, trade openness and growth in Lesotho for the period 1980-2011. The results show a long-run relationship between output, FDI and trade openness. The VAR Granger causality shows a unidirectional causal relationship running from trade openness, FDI to output and from output, FDI to trade openness. FDI was found to be insignificant in explaining growth of output in both the long and short run. Trade openness was found to be significant with a negative impact on output growth in the long run but was found to be insignificant in the short run. |
| first_indexed | 2024-12-13T22:16:38Z |
| format | Article |
| id | doaj.art-82ecd5405bc34c4e8c6f968f46c53d31 |
| institution | Directory Open Access Journal |
| issn | 1995-7076 2312-2803 |
| language | English |
| last_indexed | 2024-12-13T22:16:38Z |
| publishDate | 2017-06-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Journal of Economic and Financial Sciences |
| spelling | doaj.art-82ecd5405bc34c4e8c6f968f46c53d312022-12-21T23:29:30ZengAOSISJournal of Economic and Financial Sciences1995-70762312-28032017-06-0110114515910.4102/jef.v10i1.1010Foreign direct investment, trade openness and growth nexus in LesothoLeseko Makhetha0Joel Rantaoleng1National University of LesothoLesotho Post BankThis paper examines the long-run relationship among FDI, trade openness and growth in Lesotho for the period 1980-2011. The results show a long-run relationship between output, FDI and trade openness. The VAR Granger causality shows a unidirectional causal relationship running from trade openness, FDI to output and from output, FDI to trade openness. FDI was found to be insignificant in explaining growth of output in both the long and short run. Trade openness was found to be significant with a negative impact on output growth in the long run but was found to be insignificant in the short run.https://jefjournal.org.za/index.php/jef/article/view/10LesothoFDITrade OpennessARDL cointegrationVAR Granger causality/BlockExogeneity Wald tests |
| spellingShingle | Leseko Makhetha Joel Rantaoleng Foreign direct investment, trade openness and growth nexus in Lesotho Journal of Economic and Financial Sciences Lesotho FDI Trade Openness ARDL cointegration VAR Granger causality/Block Exogeneity Wald tests |
| title | Foreign direct investment, trade openness and growth nexus in Lesotho |
| title_full | Foreign direct investment, trade openness and growth nexus in Lesotho |
| title_fullStr | Foreign direct investment, trade openness and growth nexus in Lesotho |
| title_full_unstemmed | Foreign direct investment, trade openness and growth nexus in Lesotho |
| title_short | Foreign direct investment, trade openness and growth nexus in Lesotho |
| title_sort | foreign direct investment trade openness and growth nexus in lesotho |
| topic | Lesotho FDI Trade Openness ARDL cointegration VAR Granger causality/Block Exogeneity Wald tests |
| url | https://jefjournal.org.za/index.php/jef/article/view/10 |
| work_keys_str_mv | AT lesekomakhetha foreigndirectinvestmenttradeopennessandgrowthnexusinlesotho AT joelrantaoleng foreigndirectinvestmenttradeopennessandgrowthnexusinlesotho |