Foreign Direct Investment and Growth Relationship in Georgia

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 dire...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:International journal of economics and financial issues 2012-01, Vol.2 (3), p.267-271
Hauptverfasser: Faruk Gürsoy, Huseyin KALYONCU
Format: Artikel
Sprache:eng
Schlagworte:
Economic growth
Foreign direct investment
Granger causality
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung: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.
ISSN:2146-4138
2146-4138