Impact of Foreign Direct Investment on Economic Growth: Comparative Analysis in Ecuador, Peru and Colombia 1996-2016
The present investigation has the purpose of evaluating whether there is a Granger causality relationship in the 1996-2016 historical trajectory between the study variables, Foreign Direct Investment (FDI) and economic growth of Ecuador, with its commercial partners Colombia and Peru; considering t...
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| Format: | Article |
| Language: | English |
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EconJournals
2020-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/9937 |
| _version_ | 1828029860110401536 |
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| author | Freddy R. Camacho Yanina S. Bajaña |
| author_facet | Freddy R. Camacho Yanina S. Bajaña |
| author_sort | Freddy R. Camacho |
| collection | DOAJ |
| description |
The present investigation has the purpose of evaluating whether there is a Granger causality relationship in the 1996-2016 historical trajectory between the study variables, Foreign Direct Investment (FDI) and economic growth of Ecuador, with its commercial partners Colombia and Peru; considering the importance that its implications could contribute to political-economic decisions. The analysis was performed taking data from Ecuador, Peru and Colombia with a temporal sample in the period 1996-2016 on a quarterly basis applying autoregressive vectors to determine the relationship between the mentioned variables. The results indicate that GDP does not cause FDI in any of the countries analyzed. However, in Ecuador and Peru FDI has a significant Granger-causality effect on GDP. A possible explanation for this last result may be that FDI has a non-linear effect on production. Both Ecuador and Peru have a low level of FDI over GDP in relation to Colombia.
Keywords: Foreign Direct Investment, Gross Domestic Product, Economic Growth, Comparative
JEL Classifications: E22, 040, F43, N10
DOI: https://doi.org/10.32479/ijefi.9937
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| first_indexed | 2024-04-10T14:17:01Z |
| format | Article |
| id | doaj.art-f78e9e57366548fb827432757a19ff23 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:17:01Z |
| publishDate | 2020-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-f78e9e57366548fb827432757a19ff232023-02-15T16:09:30ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382020-07-01104Impact of Foreign Direct Investment on Economic Growth: Comparative Analysis in Ecuador, Peru and Colombia 1996-2016Freddy R. Camacho0Yanina S. Bajaña1UNIVERSIDAD CATÓLICA DE SANTIAGO DE GUAYAQUILUNIVERSIDAD CATÓLICA DE SANTIAGO DE GUAYAQUIL The present investigation has the purpose of evaluating whether there is a Granger causality relationship in the 1996-2016 historical trajectory between the study variables, Foreign Direct Investment (FDI) and economic growth of Ecuador, with its commercial partners Colombia and Peru; considering the importance that its implications could contribute to political-economic decisions. The analysis was performed taking data from Ecuador, Peru and Colombia with a temporal sample in the period 1996-2016 on a quarterly basis applying autoregressive vectors to determine the relationship between the mentioned variables. The results indicate that GDP does not cause FDI in any of the countries analyzed. However, in Ecuador and Peru FDI has a significant Granger-causality effect on GDP. A possible explanation for this last result may be that FDI has a non-linear effect on production. Both Ecuador and Peru have a low level of FDI over GDP in relation to Colombia. Keywords: Foreign Direct Investment, Gross Domestic Product, Economic Growth, Comparative JEL Classifications: E22, 040, F43, N10 DOI: https://doi.org/10.32479/ijefi.9937 https://www.econjournals.com/index.php/ijefi/article/view/9937 |
| spellingShingle | Freddy R. Camacho Yanina S. Bajaña Impact of Foreign Direct Investment on Economic Growth: Comparative Analysis in Ecuador, Peru and Colombia 1996-2016 International Journal of Economics and Financial Issues |
| title | Impact of Foreign Direct Investment on Economic Growth: Comparative Analysis in Ecuador, Peru and Colombia 1996-2016 |
| title_full | Impact of Foreign Direct Investment on Economic Growth: Comparative Analysis in Ecuador, Peru and Colombia 1996-2016 |
| title_fullStr | Impact of Foreign Direct Investment on Economic Growth: Comparative Analysis in Ecuador, Peru and Colombia 1996-2016 |
| title_full_unstemmed | Impact of Foreign Direct Investment on Economic Growth: Comparative Analysis in Ecuador, Peru and Colombia 1996-2016 |
| title_short | Impact of Foreign Direct Investment on Economic Growth: Comparative Analysis in Ecuador, Peru and Colombia 1996-2016 |
| title_sort | impact of foreign direct investment on economic growth comparative analysis in ecuador peru and colombia 1996 2016 |
| url | https://www.econjournals.com/index.php/ijefi/article/view/9937 |
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