• Version
• Download 9
• File Size 0.00 KB
• File Count 1
• Create Date 01/03/2020
• Last Updated 04/05/2020

Foreign direct investment, exports, and economic growth in Malaysia, Thailand, and Vietnam

By Bui Thi Kim Hoang (VNP 15)

Supervisor: Dr. Nguyen Hoang Bao

Abstract

This study examines the causality relations between foreign direct investment, exports, and economic growth in the three countries including Malaysia, Thailand, and Vietnam of the Southeast region for the period of 1989-2010. The paper uses time series data for individual countries and panel data for the panel three countries. The study estimate vector autoregression model (VAR) or vector error correction model (VECM) of the three variables to find Granger causal relationship for each of the three countries. And then, using two different panel unit root tests it is found that all the panel variables are integrated in order one. The cointegration is found for the panel variables from the Johansen Fisher panel cointegration and Kao tests. The panel-Granger test support that there are bidirectional long run causal relations between the variables but there is only unidirectional from exports to foreign direct investment in the short run for the panel of three countries.

Attached Files