Examining the Impacts of GDP, Trade Openness, Freedom Index and the Internet on FDI
Comparison of Countries with Panel ARDL
Bibliographic Data
| ID | 10713725 |
|---|---|
| Authors | Tuğba Güz (0000-0003-1644-7803), Coşkun Parim (0000-0002-6412-1325, Istanbul Yeni Yüzyıl University), Erhan Çene (0000-0001-5336-6004) |
| Year | 2025 |
| Volume | 73 |
| Issue | 1 |
| Pages | 88-124 |
| Publication date | 2025-02-17 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Politická ekonomie (JOURNAL) |
| Journal identifiers | ISSN: 0032-3233 • E-ISSN: 2336-8225 |
| Publisher | Prague University of Economics and Business (PUBLISHER • CZ) |
| DOI | 10.18267/j.polek.1445 |
| OpenAlex | W4407642915 |
| Language | EN |
| References cited | 57 |
The main purpose of this study is to examine the impacts of GDP, trade openness, the freedom index and the internet on FDI in 54 countries, including developing, transition and developed countries, over the period 1995-2021. First, the variables affecting FDI are determined. Then, first- and second-generation unit root tests are conducted for panel data to investigate stationarity. Finally, long- and short-run relationships between variables that have an effect on FDI are exhibited with panel cointegration tests and panel ARDL analysis. Among 17 candidate variables, internet, GDP, the freedom index and trade openness are determined to affect FDI. GDP, the internet and the freedom index have a significant positive and trade openness has a significant negative relationship with FDI in the short run. Finally, there is a long-term equilibrium between FDI and all the variables. Trade openness also has negative coefficient in developing countries such as China, Brazil and Turkey. This is a unique study in which empirical findings are given for each country with the PMG model, which would aid the policy implications identified for the 54 countries, including developing, transition and developed countries
Econometrics · Economics · Foreign direct investment · Index (typography) · International economics · International trade · Macroeconomics · Monetary economics · Openness to experience · Panel data · The Internet · World Wide Web · Computer Science · Economic Growth and Development · Energy, Environment, Economic Growth · International Business and FDI · Psychology
Estimating long-run relationships from dynamic heterogeneous panels
Unit root tests for panel data
International Technology Diffusion
Openness, country size and government
Unit root tests in panel data
Testing for unit roots in heterogeneous panels
Pooled Mean Group Estimation of Dynamic Heterogeneous Panels
Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure
Panel Cointegration
Spurious regression and residual-based tests for cointegration in panel data
Bounds testing approaches to the analysis of level relationships
A simple panel unit root test in the presence of cross‐section dependence
Uncovering interlinks among ICT connectivity and penetration, trade openness, foreign direct investment, and economic growth
General diagnostic tests for cross-sectional dependence in panels
Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa
Has the Internet increased FDI, economic growth, and trade? Evidence from Asian economies
Foreign direct investment, financial development and economic growth
Technical Change and the Aggregate Production Function
Foreign direct investment and growth in developing countries
Endogenous Technological Change
The Role of Economic Theory in Modelling The Long Run
How does foreign direct investment affect economic growth
| Citation velocity | historical |
|---|---|
| Highly cited | No |