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Foreign Direct Investment Inward and Outward; Evidence from Panel Data, Developed and Developing Economies, and Open and Closed Economies

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  • Nicholas Apergis
Abstract
This paper examines empirically the association between Foreign Direct Investment inward and Foreign Direct Investment outward. Using a panel data set for 35 economies over the period 1981–2004 as well as the methodology of panel cointegration and panel causality tests, the empirical findings show that FDI inward does exhibit a significant relationship with FDI outward. Moreover, bi-directional panel causality is present when the sample is split into developed and developing economies. When the sample is split between open and closed economies the causality remains only for the open economies.

Suggested Citation

  • Nicholas Apergis, 2009. "Foreign Direct Investment Inward and Outward; Evidence from Panel Data, Developed and Developing Economies, and Open and Closed Economies," The American Economist, Sage Publications, vol. 54(2), pages 21-27, October.
    • Handle: RePEc:sae:amerec:v:54:y:2009:i:2:p:21-27
    DOI: 10.1177/056943450905400203
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    References listed on IDEAS

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    Cited by:

    1. Andaman, Gul & Yusop, Zulkornain & Mohd Noor, Zaleha & Kaliappan, Shivee, 2016. "Host Country-Specific Factors Causing Outwards Foreign Direct Investment from Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 50(1), pages 67-80.
    2. Kottaridi, Constantina & Louloudi, Konstantina & Karkalakos, Sotiris, 2019. "Human capital, skills and competencies: Varying effects on inward FDI in the EU context," International Business Review, Elsevier, vol. 28(2), pages 375-390.
    3. Yao, Shujie & Wang, Pan & Zhang, Jing & Ou, Jinghua, 2016. "Dynamic relationship between China's inward and outward foreign direct investments," China Economic Review, Elsevier, vol. 40(C), pages 54-70.

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