An Application Of Granger Causlity And Co-Integration Techniques

În articol se examinează legăturile cazuale dintre investiţiile directe străine şi creşterea economică din Nigeria (anii 1970-200

Foreign Direct Investment, Aggregate Demand Conditions and Exchange Rate Nexus: A Panel Data Analysis of BRICS Economies

In this study, we attempt to provide underlying theoretical and empirical explanations for exchange rate appreciation due to foreign capital influx and aggregate demand conditions in the BRICS economies. The empirical analysis is based on a panel dataset of BRICS countries over the time period 1992–2013 to substantiate our theoretical findings. For panel co-integration, Pedroni and Johansen-Fisher panel co-integration tests are conducted to compare co-integration among panel countries. We also analyze the results from Dumitrescu-Hurlin panel causality test among variables and use Granger Causality to test for the causal patterns in each of the individual countries. Our findings showed that the exchange rate volatility is directly affected by the flows of FDI, GDP per capita, Capital formulation and House hold consumption. The results have profound implications in terms of exchange rate stability in the BRICS countries and associated risks

Political risk assessment by multinational corporations in African markets: a Nigerian perspective

Political risk assessment (PRA) is one of the determinants of foreign direct investment (FDI) and the competitiveness of multinational corporations (MNCs), yet little is known about its use in African markets. This study critically investigates the PRA techniques used by MNCs in Nigeria and their applicability. It uses a multimethod approach to analyze data collected from MNCs and the data set of the International Country Risk Guide (ICRG) PRA annual rating for Nigeria from 2011 to 2015. The findings reveal that most firms use qualitative, rather than quantitative, PRA techniques. Regional variations in the outcome of PRA within Nigeria could also contribute to the low use of quantitative techniques. This article identifies that firms are prepared to invest in Nigeria, in spite of high political risk, due to its economic and financial attractiveness. This article’s findings offer some implications for practice with some suggestions on how it could influence firms’ internationalization and their conduct of PRA

ON THE CAUSAL LINKS BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN NIGERIA, 1970-2008: AN APPLICATION OF GRANGER CAUSLITY AND CO-INTEGRATION TECHNIQUES

This paper examines the causal links between foreign direct investment and economic growth in Nigeria during the period 1970-2008. The authors employed the Granger causality and Johansen co-integration techniques to analyze the relationship and direction of causality between the variables. The Johansen co-integration statistic indicates that the variables are co-integrated, and the granger causality statistic reveals a unidirectional causality running from foreign direct investment to economic growth