The impact of Chinese Foreign Direct Investment on economic growth of Peru
Since 2000, the Peruvian economic policy presented a positive impact on the economic growth thanks to Foreign Direct Investment (FDI) increase and the inclusion of foreign markets in the local economy. This study analyzes and quantifies the short and long-run impact of FDI and Foreign Direct Investm...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidad de Chile
2020-04-01
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| Series: | Latin American Journal of Trade Policy |
| Online Access: | https://lajtp.uchile.cl/index.php/LAJTP/article/view/57165 |
| _version_ | 1819181561544704000 |
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| author | María Osterloh Mejía Nadia Urriola Canchari Xiangzheng Deng |
| author_facet | María Osterloh Mejía Nadia Urriola Canchari Xiangzheng Deng |
| author_sort | María Osterloh Mejía |
| collection | DOAJ |
| description | Since 2000, the Peruvian economic policy presented a positive impact on the economic growth thanks to Foreign Direct Investment (FDI) increase and the inclusion of foreign markets in the local economy. This study analyzes and quantifies the short and long-run impact of FDI and Foreign Direct Investment from China (FDICH) on economic growth in Peru, using annual time series data from 2001 to 2018 obtained from the Central Bank of Peru and the World Bank. Vector Autoregression (VAR) Model, Augmented Dickey-Fuller test, Johansen Co-integration test, and Granger Causality test were employed for data analysis through the production function. The findings revealed the impact and significance of FDI and FDICH in the short and long-run, which were positive and significant. Moreover, the Co-integration test (for long-run relationship) was positive, and the causality test in the relationship between all variables and the economic growth revealed the directionality of these links. |
| first_indexed | 2024-12-22T22:32:12Z |
| format | Article |
| id | doaj.art-b20ed34162a04ed38105f268d1be9374 |
| institution | Directory Open Access Journal |
| issn | 0719-9368 |
| language | English |
| last_indexed | 2024-12-22T22:32:12Z |
| publishDate | 2020-04-01 |
| publisher | Universidad de Chile |
| record_format | Article |
| series | Latin American Journal of Trade Policy |
| spelling | doaj.art-b20ed34162a04ed38105f268d1be93742022-12-21T18:10:25ZengUniversidad de ChileLatin American Journal of Trade Policy0719-93682020-04-0136324710.5354/0719-9368.2020.5716557165The impact of Chinese Foreign Direct Investment on economic growth of PeruMaría Osterloh Mejía0Nadia Urriola Canchari1Xiangzheng Deng2Center of Asian Studies of San Marcos National UniversityInstitute of Geographic Sciences and Natural Resources Research, Chinese Academy of ScienceInstitute of Geographic Sciences and Natural Resources Research, Chinese Academy of ScienceSince 2000, the Peruvian economic policy presented a positive impact on the economic growth thanks to Foreign Direct Investment (FDI) increase and the inclusion of foreign markets in the local economy. This study analyzes and quantifies the short and long-run impact of FDI and Foreign Direct Investment from China (FDICH) on economic growth in Peru, using annual time series data from 2001 to 2018 obtained from the Central Bank of Peru and the World Bank. Vector Autoregression (VAR) Model, Augmented Dickey-Fuller test, Johansen Co-integration test, and Granger Causality test were employed for data analysis through the production function. The findings revealed the impact and significance of FDI and FDICH in the short and long-run, which were positive and significant. Moreover, the Co-integration test (for long-run relationship) was positive, and the causality test in the relationship between all variables and the economic growth revealed the directionality of these links.https://lajtp.uchile.cl/index.php/LAJTP/article/view/57165 |
| spellingShingle | María Osterloh Mejía Nadia Urriola Canchari Xiangzheng Deng The impact of Chinese Foreign Direct Investment on economic growth of Peru Latin American Journal of Trade Policy |
| title | The impact of Chinese Foreign Direct Investment on economic growth of Peru |
| title_full | The impact of Chinese Foreign Direct Investment on economic growth of Peru |
| title_fullStr | The impact of Chinese Foreign Direct Investment on economic growth of Peru |
| title_full_unstemmed | The impact of Chinese Foreign Direct Investment on economic growth of Peru |
| title_short | The impact of Chinese Foreign Direct Investment on economic growth of Peru |
| title_sort | impact of chinese foreign direct investment on economic growth of peru |
| url | https://lajtp.uchile.cl/index.php/LAJTP/article/view/57165 |
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