Skip to main content

How trade and foreign investment affect the growth of a small but not so open economy: Australia?

Buy Article:

$55.00 plus tax (Refund Policy)

Abstract:

This article analyses the impact of trade and foreign investment on a small but not so open economy, Australia, whose growth rate outpaced the majority of the OECD countries in the last decade. We model five channels of outward orientation: exports, imports, foreign direct investment, foreign portfolio investment and other foreign investment. A cointegrated vector autoregressive model, complemented by a robust Granger noncausality test, is specified to identify permanent channels of outward orientation. Imports and direct investment are found to have a growth effect in the long run. The effect of imports is almost three times that of direct investment.

Document Type: Research Article

DOI: https://doi.org/10.1080/00036840601032177

Affiliations: 1: Department of Applied and International Economics, Massey University, New Zealand 2: School of Economics, University of Queensland, St Lucia QLD 4072, Australia

Publication date: 2009-05-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more