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Impact of FDI and Trade Openness on Economic Growth: A Comparative Study of Pakistan and Malaysia

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Author(s): Zaheer Khan KAKAR | Bashir Ahmad KHILJI

Journal: Theoretical and Applied Economics
ISSN 1841-8678

Volume: 11(564);
Issue: 11(564);
Start page: 53;
Date: 2011;
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Keywords: trade openness | foreign direct investment | economic growth | co-integration | Granger causality.

ABSTRACT
This paper examines the role of trade openness and foreign direct investment in relation to economic growth for Pakistan and Malaysia for the period 1980-2010. Johansen co-integration test is used to estimate the nature of relationship and Granger causality test is used to determine the direction of causality in the model.
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