Foreign Direct Investment and Growth Relationship in Georgia
This paper aims to investigate the empirically the impact of FDI on economic growth of Georgia over the period of 1997-2010. The Engle-Granger cointegration and Granger causality tests are used in order to analyse the causal relationship between FDI and economic growth. It is crucial to see the dir...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2012-06-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/238 |
| _version_ | 1797911872196837376 |
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| author | Faruk Gürsoy Huseyin KALYONCU |
| author_facet | Faruk Gürsoy Huseyin KALYONCU |
| author_sort | Faruk Gürsoy |
| collection | DOAJ |
| description |
This paper aims to investigate the empirically the impact of FDI on economic growth of Georgia over the period of 1997-2010. The Engle-Granger cointegration and Granger causality tests are used in order to analyse the causal relationship between FDI and economic growth. It is crucial to see the directions of causality between two variables for the policy makers to encourage private sectors. It is found that these two variables are cointegrated. Our empirical findings suggest that it is FDI that causes GDP in the case of Georgia.
Keywords: Economic growth; Foreign direct investment; Granger causality
JEL Classifications: C32; F21; O4
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| first_indexed | 2024-04-10T11:47:18Z |
| format | Article |
| id | doaj.art-8ee29dcfa57e4255a822ba6149614f90 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:47:18Z |
| publishDate | 2012-06-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-8ee29dcfa57e4255a822ba6149614f902023-02-15T16:17:16ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382012-06-0123Foreign Direct Investment and Growth Relationship in GeorgiaFaruk Gürsoy0Huseyin KALYONCU1International Black Sea UniversityMeliksah University, Kayseri This paper aims to investigate the empirically the impact of FDI on economic growth of Georgia over the period of 1997-2010. The Engle-Granger cointegration and Granger causality tests are used in order to analyse the causal relationship between FDI and economic growth. It is crucial to see the directions of causality between two variables for the policy makers to encourage private sectors. It is found that these two variables are cointegrated. Our empirical findings suggest that it is FDI that causes GDP in the case of Georgia. Keywords: Economic growth; Foreign direct investment; Granger causality JEL Classifications: C32; F21; O4 https://econjournals.com/index.php/ijefi/article/view/238 |
| spellingShingle | Faruk Gürsoy Huseyin KALYONCU Foreign Direct Investment and Growth Relationship in Georgia International Journal of Economics and Financial Issues |
| title | Foreign Direct Investment and Growth Relationship in Georgia |
| title_full | Foreign Direct Investment and Growth Relationship in Georgia |
| title_fullStr | Foreign Direct Investment and Growth Relationship in Georgia |
| title_full_unstemmed | Foreign Direct Investment and Growth Relationship in Georgia |
| title_short | Foreign Direct Investment and Growth Relationship in Georgia |
| title_sort | foreign direct investment and growth relationship in georgia |
| url | https://econjournals.com/index.php/ijefi/article/view/238 |
| work_keys_str_mv | AT farukgursoy foreigndirectinvestmentandgrowthrelationshipingeorgia AT huseyinkalyoncu foreigndirectinvestmentandgrowthrelationshipingeorgia |