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Trade , Foreign Direct Investment and Economic Growth : Empirical Evidence for CEE countries
| Content Provider | Semantic Scholar |
|---|---|
| Author | Tarsalewska, Monika |
| Copyright Year | 2008 |
| Abstract | In this paper we study the relationship between international trade, foreign direct investment and economic growth using the open economy version of the expanding product variety growth model that combines crucial features of neoclassical and endogenous growth models. In particular, we demonstrate that both international trade and foreign direct investment lead to the increase in the level of per capita income in the long run but do not affect the long-run rate of growth. However, they affect the speed of convergence and the rate of growth along the transition path to the steady-state. The predictions of the theoretical model are tested empirically for the CEE using static and dynamic panel data estimation. The estimation results show that both trade and FDI are positively related to economic growth in the CEE countries, although the significance of these variables crucially depends on the employed estimation method. JEL classification codes: F1, F2, F4, O4 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.etsg.org/ETSG2008/Papers/Cieslik.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
