Contents of the volume

2019, Volume 72 - Issue 1

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 01 February 2019


Shailender Singh, Hawati Janor

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Temitope Laniran, Victoria A. Olakunle

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Roger Hosein, Regan Deonanan, Kimbert Evans

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Nicholaos Dritsakis, Paraskevi Klazoglou

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Nadeem A. Burney, Nadia Al-Musallam, Mohammad Alenezi, Salwa Hamada

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Roger HOSEIN, , Department of Economics, The University of the West Indies, St. Augustine Campus, Trinidad and Tobago


Regan DEONANAN, Department of Economics, The University of the West Indies, St. Augustine Campus, Trinidad and Tobago

Kimbert EVANS, Department of Economics, The University of the West Indies, St. Augustine Campus, Trinidad and Tobago

Foreign Direct Investments, Exports and Economic Growth in SIDS: Evidence from Santa Lucia




This paper examines the causal relationships among FDI, exports, and GDP in SIDS using data for Saint Lucia over the period 1980-2015. Using the ARDL bounds test approach to assess cointegration, results indicate that the variables share a long-run relationship when GDP and FDI are the dependent variables. Employing the Toda-Yamamoto test to assess long-run causal linkages, results indicate bi-directional causality between GDP and FDI, unidirectional causality from exports to GDP, and, unidirectional causality from FDI to exports. Accordingly, this paper finds evidence of export led-growth and FDI-led growth in Saint Lucia. These findings suggest that Saint Lucia should continue policies aimed at attracting FDI and expanding the export sector to promote economic growth. Additionally, policies which can diversify the types of FDI that Saint Lucia is currently attracting may be important in promoting exports and spurring higher levels of export led-growth and FDI-led growth. This study has implications for Eastern Caribbean countries and SIDS in other regions.

JEL classification

C32, F21, F43, O40


ARDL, Exports, FDI, GDP, Saint Lucia, SIDS, Toda-Yamamoto


  1. Introduction
  2. Related literature
  3. Country context of Saint Lucia
  4. Data and model specification
  5. Methodology
  6. Empirical results and discussion
  7. Conclusion and policy recommendations


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