Research Article Open Access

A Causal Relationship between Trade, Foreign Direct Investment and Economic Growth in Greece

Melina Dritsaki1, Chaido Dritsaki1 and Antonios Adamopoulos1
  • 1 Department of Applied Informatics, University of Macedonia Economics and Social Sciences, Greece

Abstract

This study investigates the relationship between Trade, Foreign Direct Investment (FDI) and economic growth in Greece over the period 1960-2002. The cointegration analysis suggested that there is a long-run equilibrium relationship. The results of the Granger causality test showed that there is a causal relationship between the examined variables. Economic growth, trade and FDI appear to be mutually reinforcing under the open-door policy.

American Journal of Applied Sciences
Volume 1 No. 3, 2004, 230-235

DOI: https://doi.org/10.3844/ajassp.2004.230.235

Submitted On: 27 April 2005 Published On: 30 September 2004

How to Cite: Dritsaki, M., Dritsaki, C. & Adamopoulos, A. (2004). A Causal Relationship between Trade, Foreign Direct Investment and Economic Growth in Greece. American Journal of Applied Sciences, 1(3), 230-235. https://doi.org/10.3844/ajassp.2004.230.235

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Keywords

  • Trade
  • Foreign Direct Investment
  • Economic Growth
  • Granger Causality