<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Foreign direct investment and Trade were regarded as an important elements in enhancing economic development. This study used some time series econometric tests including the Augmented Dickey – Fuller (ADF) unit root test developed by Dickey – Fuller, stationary test developed by Kwiatkowski-Philips-Schmidt-Shin (KPSS), Johansen co-integration test and Granger causality test to analyse the connection between foreign direct investment, trade and economic growth in Niger. The tests results showed a bilateral relationship between trade and economic growth and a unidirectional causal relationship between trade and foreign direct investment with direction from trade to foreign direct investment. The long run effect tests revealed that trade has a positive effect on economic growth while foreign direct investment has a negative effect on economic growth in Niger. On average, ceteris paribus, the coefficients are statistically significant at 5% level.</p></abstract>

Foreign direct investment and Trade were regarded as an important elements in enhancing economic development. This study used some time series econometric tests including the Augmented Dickey – Fuller (ADF) unit root test developed by Dickey – Fuller, stationary test developed by Kwiatkowski-Philips-Schmidt-Shin (KPSS), Johansen co-integration test and Granger causality test to analyse the connection between foreign direct investment, trade and economic growth in Niger. The tests results showed a bilateral relationship between trade and economic growth and a unidirectional causal relationship between trade and foreign direct investment with direction from trade to foreign direct investment. The long run effect tests revealed that trade has a positive effect on economic growth while foreign direct investment has a negative effect on economic growth in Niger. On average, ceteris paribus, the coefficients are statistically significant at 5% level.

A Causal Relationship Between Trade, Foreign Direct Investment and Economic Growth in Niger

Faculté de droit d’économie et de gestion, Département d’économie et gestion

Journal of Social and Economic Statistics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Foreign direct investment and Trade were regarded as an important elements in enhancing economic development. This study used some time series econometric...

A Causal Relationship Between Trade, Foreign Direct Investment and Economic Growth in Niger

Published Online: Feb 01, 2020

Page range: 24 - 38

DOI: https://doi.org/10.2478/jses-2019-0003

Keywords
Trade, Foreign Direct investment, Economic growth, Niger

© 2019 Issoufou Oumarou et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

A Causal Relationship Between Trade, Foreign Direct Investment and Economic Growth in Niger

Published Online: Feb 01, 2020

Page range: 24 - 38

DOI: https://doi.org/10.2478/jses-2019-0003

KeywordsTrade, Foreign Direct investment, Economic growth, Niger

© 2019 Issoufou Oumarou et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Trade, Foreign Direct investment, Economic growth, Niger