The Effect of FDI on Foreign Trade: A Panel Analysis
Selcuk Koc, Idris Sarisoy
article (Uluslararası, Hakemli) | Yazar(lar): Selcuk Koc, Idris Sarisoy | Yıl: 2012 | Dergi/Kurum: ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES | İndeks: WOS.ESCI | Anahtar Kelimeler: FDI, foreign trade, panel data — Özet: The purpose of t
The purpose of this paper is to determine the effect of inward and outward foreign direct investments (FDI) on foreign trade (FT) using panel regression analysis. To this end, 143 countries, which were classified into 5 different development groups according per capita income, were subject to 4 separate analyses using FDI and FT data between the years 1980 and 2009. This study concludes that inward and outward FDI affects trade volume at different rates according to a country's development level. However, imports and exports appear to be more sensitive to FDI in less developed countries.