Using Instrumental variable and Two-Stage Least Squares for Panel Data Models to Estimate the Interactions between Trade and FDI
Based on the early theories of the foreign direct investment (FDI), trade and FDI are substitutes while the new international trade theories emphasize the complementary relationship between trade and FDI. This introduces new aspects to model fundamental concepts such as increasing returns to scale,...
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2009-01-01
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| Series: | پژوهشهای اقتصادی |
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| Online Access: | http://ecor.modares.ac.ir/article-18-2650-en.pdf |
| _version_ | 1797803211509202944 |
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| author | Seyed Komail Tayyebi Karem Azarbayegani Batool Rafat |
| author_facet | Seyed Komail Tayyebi Karem Azarbayegani Batool Rafat |
| author_sort | Seyed Komail Tayyebi |
| collection | DOAJ |
| description | Based on the early theories of the foreign direct investment (FDI), trade and FDI are substitutes while the new international trade theories emphasize the complementary relationship between trade and FDI. This introduces new aspects to model fundamental concepts such as increasing returns to scale, product differentiation, and technology differences among countries.
This paper is an empirical study of the interaction between trade and FDI using data on inward FDI to the ECO and D8 countries. To end this, we use instrumental variable and generalized two-stage least squares (G2SLS) techniques for panel data models. The results show that there is a complementary relationship between trade and FDI. Moreover, GDP, exchange rate, population, inflation, and some convergences variables have significantly influence on trade and FDI. |
| first_indexed | 2024-03-13T05:17:28Z |
| format | Article |
| id | doaj.art-ac194e9058654d22811748aaeefd5add |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:17:28Z |
| publishDate | 2009-01-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-ac194e9058654d22811748aaeefd5add2023-06-15T20:32:05ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322009-01-01847794Using Instrumental variable and Two-Stage Least Squares for Panel Data Models to Estimate the Interactions between Trade and FDISeyed Komail Tayyebi0Karem Azarbayegani1Batool Rafat2 University of Isfahan University of Isfahan University ofIsfahan Based on the early theories of the foreign direct investment (FDI), trade and FDI are substitutes while the new international trade theories emphasize the complementary relationship between trade and FDI. This introduces new aspects to model fundamental concepts such as increasing returns to scale, product differentiation, and technology differences among countries. This paper is an empirical study of the interaction between trade and FDI using data on inward FDI to the ECO and D8 countries. To end this, we use instrumental variable and generalized two-stage least squares (G2SLS) techniques for panel data models. The results show that there is a complementary relationship between trade and FDI. Moreover, GDP, exchange rate, population, inflation, and some convergences variables have significantly influence on trade and FDI.http://ecor.modares.ac.ir/article-18-2650-en.pdfforeign direct investmenteconomic convergence variableinstrumental variable techniquetwo-stage least squares techniquepanel data |
| spellingShingle | Seyed Komail Tayyebi Karem Azarbayegani Batool Rafat Using Instrumental variable and Two-Stage Least Squares for Panel Data Models to Estimate the Interactions between Trade and FDI پژوهشهای اقتصادی foreign direct investment economic convergence variable instrumental variable technique two-stage least squares technique panel data |
| title | Using Instrumental variable and Two-Stage Least Squares for Panel Data Models to Estimate the Interactions between Trade and FDI |
| title_full | Using Instrumental variable and Two-Stage Least Squares for Panel Data Models to Estimate the Interactions between Trade and FDI |
| title_fullStr | Using Instrumental variable and Two-Stage Least Squares for Panel Data Models to Estimate the Interactions between Trade and FDI |
| title_full_unstemmed | Using Instrumental variable and Two-Stage Least Squares for Panel Data Models to Estimate the Interactions between Trade and FDI |
| title_short | Using Instrumental variable and Two-Stage Least Squares for Panel Data Models to Estimate the Interactions between Trade and FDI |
| title_sort | using instrumental variable and two stage least squares for panel data models to estimate the interactions between trade and fdi |
| topic | foreign direct investment economic convergence variable instrumental variable technique two-stage least squares technique panel data |
| url | http://ecor.modares.ac.ir/article-18-2650-en.pdf |
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