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Title: |
Inward Foreign Direct Investment and Imports
in Spain |
| Author: |
Alguacil, M.
T.; Orts, V. |
| Author
Affiliation: |
U Jaume I |
| Source: |
International Economic Journal, Autumn 2003, v. 17, no. 3, pp.
19-38 |
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Publication Date: |
Autumn 2003 |
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Abstract: |
In this paper,
we investigate the links between inward foreign direct investment and
imports in Spain. We show that FDI in this country has been
trade-oriented, encouraging greater imports. Foreign production thus
magnifies its potential gains with the conventional benefits of trade. A
cointegration analysis in a multivariate VAR model is applied for
Granger temporal causality testing. The strength and direction of the
causal relationship are shown through the dynamic variance decomposition
and the impulse response technique. |
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