In this paper, we implement Granger causalty tests using panel data as methodology perfected by Hurlin (2004, 2005) and Hurlin and Venet(2004). We consider the bilateral trade patterns of the European Union with 17 countries over the period 1976-2000. We show that for the whole sample, there are...

LICs have no access to international financial markets. Since the nineties, LICs have been granted debt relief by bilateral creditors andby international financing institutions, namely from 1996 on underHighly Indebted Poor Countries (HIPC) Initiative and from 2005 onunder Multilateral Debt...

This paper proposes an extension of the Granger (1969) causality definition to panel data models with fixed coefficients. Given the heterogeneity of the data generating process, four definitions of causality relationships are proposed. A procedure of nested tests is then defined and a...