연구정보
The causal relationship between Foreign Direct Investment and Current Account: an empirical investigation for Pakistan economy
파키스탄 국외연구자료 기타 Muhammad ASIM, Mohsin Hasnain AHMAD, Danish Ahmed SIDDIQUI Theoretical and Applied Economics 발간일 : 2013-01-01 등록일 : 2016-06-02 원문링크
This paper investigates relationship between FDI and current account (CA) in Pakistan using the Johansen-Juselius cointegration technique and the Granger causality test. The study results indicate that FDI and CA are cointegrated and thus exhibit a reliable long run relationship. The Granger causality test findings indicate that the causality between FDI and CA is uni-directional. However, there is no short run causality from FDI to CA and vice versa. Therefore, as a policy implication that FDI inflows may cause to the deterioration of the balance of payments in the long run should be taken into account when policy makers decide to implement policies to attract foreign investors.