Chiappini, Raphaël - In: Economics Bulletin 31 (2011) 4, pp. 2975-2985
This paper will investigate the Granger causality between outward Foreign Direct Investment (FDI) and the exports of goods and services in 11 European countries from 1996 to 2008. Using a new method to evaluate causality in a heterogeneous panel, we find that the causal relationship from FDI to...