Contents of the volume

2017, Volume 70 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 20 October 2017

SECULAR STAGNATION: IS IT IN THE DATA?

Dimitris Kirikos

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INCOME INEQUALITY AND GROWTH: NEW INSIGHTS FROM ITALY

Bernard Njindan Iyke, Sin-Yu HO

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FOREIGN DIRECT INVESTMENTS, EXPORTS, UNEMPLOYMENT AND ECONOMIC GROWTH IN THE NEW EU MEMBERS – A PANEL DATA APPROACH

Nicholaos Dritsakis, Pavlos Stamatiou

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IS REAL DEPRECIATION OR MORE GOVERNMENT DEBT CONTRACTIONARY? THE CASE OF ROMANIA

Yu Hsing

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HEDGE FUNDS: A POLITICAL AND ECONOMIC ANALYSIS

Cameron J. Gable, Shalendra Sharma

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REASSESSING THE SUSTAINABILITY OF PUBLIC FINANCES IN POLAND: EVIDENCE FROM A MULTICOINTEGRATION APPROACH

Marco Tronzano

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THE ASSOCIATION BETWEEN INCOME INEQUALITY AND HEALTH IN ADVANCED COUNTRIES

Stephen Foreman

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Nicholaos DRITSAKIS, Department of Applied Informatics, University of Macedonia, Economics and Social Sciences, Thessaloniki, Greece

Co-authors

Pavlos STAMATIOU, Department of Applied Informatics, University of Macedonia, Economics and Social Sciences, Thessaloniki, Greece

Foreign Direct Investments, Exports, Unemployment and Economic Growth in the New EU Members – A Panel Data Approach

Pages

443-468

Abstract

Foreign direct investments and exports play an important role in economic growth worldwide. Particularly, foreign direct investments have been considered as one of the best alternatives to fuel economic growth mainly for developing countries. Policy, macroeconomic stability of each country as well as the labor market of an economy are some of the main aspects analyzed by foreign investors before investing in a country. In this paper we study the interdependencies among foreign direct investment, exports, unemployment and economic growth for thirteen new member countries of European Union (EU) for the period 1995-2013. The econometric methodology, based on error correction model is used to analyze the short and long term causal relationship between the examined variables. The main finding of the study is that there is bidirectional long term causal relationship between exports and economic growth and unidirectional long term causal relationship between economic growth and unemployment. Also, the results of the paper show that there is a short run unidirectional causality between exports and foreign direct investments.

JEL classification

C22, C33, E31, E50, H60, O16

Keywords

Economic Growth, Foreign Direct Investments, Exports, Unemployment, FMOLS, DOLS, Causality

Index

  1. Introduction
  2. Theoretical background
  3. Review of empirical studies
  4. Data and methodology
  5. Empirical results
  6. Conclusion and policy implications

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