Description
Title: Evidence from the Toda-Yamamoto Approach on the Relationship between Economic Growth, Foreign Aid, Foreign Direct Investment, and Gross Capital Formation in Indonesia
Abstract: Using the augmented Toda-Yamamoto approach and the Granger causality test, this study investigates the direction of causality between Gross Domestic Product, foreign aid, foreign direct investment, and gross capital formation in Indonesia from 1970 to 2019. The unit root test for both variables was successfully completed in this study using the ADF test, confirming the cointegration of the variables under study and their sustained equilibrium relationship with GDP, ODA, FDI, and GCA. The direction of causality between variables was examined using the Toda-Yamamoto causality test. The findings indicated that both FDI and GDP had a positive one-way causal relationship with ODA. ODA has encouraged the growth of economic and development activities, which has increased Indonesia’s GDP. Although there is a long-term correlation, the study was unable to establish a link between ODA and GCA in Indonesia. Therefore, better management of foreign aid is required to draw in foreign direct investment.
Keywords: economic growth; foreign aid; foreign direct investment; capital formation; causality
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
Plagiarism Report: Turnitin Plagiarism Report will be less than 10%
Restriction: Only one author may purchase a single paper. The paper will then indicate that it is out of stock.
What will I get after the purchase?
A turnitin plagiarism report of less than 10% in a pdf file and a full research paper in a word document.
In case you have any questions related to this research paper, please feel free to call/ WhatsApp on +919726999915
Reviews
There are no reviews yet.