Foreign direct investment, exports and economic growth: evidence from two panels of developing countries

Figures & data

Table 1. Panel unit root tests – European developing countries.

Variable	LGDP		LEX		LFDI
Test	Levels	1st differences	Levels	1st differences	Levels	1st differences
LLC (2002)	2.28	−5.08***	0.24	−4.17***	−1.02	−4.83***
Im et al. (2003)	−0.19	−9.85***	0.03	−7.18***	0.03	−3.27***
Breitung (2000)	2.36	−1.92**	0.34	−2.82***	1.24	0.39
ADF-Fisher	14.30	174.17***	19.59	80.44***	20.26	45.77***
PP-Fisher	121.65**	437.69***	107.75**	792.71***	18.62	159.9***

Note: *** and ** denote statistical significance at the 1 and 5 % levels.

Source: Authors calculations.

Table 2. Panel unit root tests – Asian developing countries.

Variable	LGDP		LEX		LFDI
Test	Levels	1st differences	Levels	1st differences	Levels	1st differences
LLC (2002)	0.46	-9.41***	-1.10	-7.56***	2.51	-5.46***
Im et al. (2003)	2.20	-7.67***	1.29	-7.48***	-1.65	-9.33***
Breitung (2000)	0.25	-7.16***	-0.51	-8.15***	-2.80*	-7.22***
ADF-Fisher	5.25	86.71***	10.46	83.73***	32.32**	119.33***
PP-Fisher	6.00	94.99***	18.15	129.69***	46.47**	522.59***

Note: *** and ** denote statistical significance at the 1 and 5 % levels.

Source: Authors calculations.

Table 3. Pedroni panel co-integration test.

Panel Group Statistics	European Developing Countries	Asian Developing Countries
Panel v-statistic	8.08***	18.04**
Panel ρ-statistic	−10.30***	−17.43*
Panel non-parametric (PP) t-statistic	−4.20***	−5.65
Panel parametric (ADF) t-statistic	−55.92***	−97.84***
Group ρ-statistic	−17.61***	−16.18***
Group non-parametric t-statistic	−5.61**	−5.31***
Group parametric t-statistic	−624	−5.13***

Note: ***, ** and * denote statistical significance at the 1, 5 and 10% levels, respectively.

Source: Authors calculations.

Table 4. Kao panel co-integration test.

Panel Group Statistics	European Developing Countries	Asian Developing Countries
DFρ	−0.96*	−0.95
DFt	−1.06	−0.70
	−4.65***	−4.90***
	−1.90***	−1.65***
ADF	−1.62**	−1.90**

Note: ***, ** and * denote statistical significance at the 1, 5 and 10% levels, respectively.

Source: Authors calculations.

Table 5. Panel-VECM causality – European developing countries.

	Source of causation (independent variables)
	Short-run			Long-run
Dependent variable	∆LGDP	∆LEX	∆LFDI	ECT
∆LGDP	–	2.17	2.29*	4.59***
∆LEX	22.69***	–	8.24***	0.16
∆LFDI	4.66*	1.37	–	23.76***

Note: The table reports F statistics. ***, ** and * denote statistical significance at the 1, 5 and 10% levels, respectively.

Source: Authors calculations.

Table 6. Panel-VECM causality – Asian developing countries.

	Source of causation (independent variables)
	Short-run			Long-run
Dependent variable	∆LGDP	∆LEX	∆LFDI	ECT
∆LGDP	–	4.00**	0.06	11.82***
∆LEX	3.50**	–	0.17	1.15
∆LFDI	0.58	0.01	–	28.39***

Note: The table reports F statistics. *** and **denote statistical significance at the 1% and 5% levels.

Source: Authors’ calculations.

Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit-root test in panel data: asymptotic and finite sample properties. Journal of Econometrics, 108, 1–24. doi:10.1016/S0304-4076(01)00098-7.

 Web of Science ®Google Scholar

Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115, 53–74. doi:10.1016/S0304-4076(03)00092-7.

 Web of Science ®Google Scholar

Breitung, J. (2000). The local power of some unit root tests for panel data. Advances in Econometrics, 15, 161–177. doi:10.1016/S0731-9053(00)15006-6.

 Google Scholar