Do FDI and Trade Openness Matter for Economic Growth in CIS Countries? Evidence from Panel ARDL

Abstract

For the purpose of this paper, we examine the association between foreign direct investment, openness to trade, infrastructure, innovation, and economic development in 10 members of the Commonwealth Independent States between 2000 and 2020 using a panel Autoregressive Distributed Lag model. According to the results, none of the elements that are researched for this paper has a statistically significant influence on economic growth over the short term. On the other hand, in the long run, each of the variables, including foreign direct investment, infrastructure, innovation, and trade openness, has a statistically favorable and substantial impact on economic growth; furthermore, the findings are in line with the findings of the baseline static panel data models.

Keywords:

• Commonwealth independent states
• economic growth
• foreign direct investment
• innovation
• panel autoregressive distributed lag model
• trade openness

JEL CLASSIFICATIONS:

• C01
• O11
• O47
• C33
• F14

Disclosure statement

No potential conflict of interest was reported by the author(s).