Assessing The Casual Relationship Between FDI, Export, And Economic Growth In The BIMSTEC Countries

Abstract

Economic integration within regional trading blocs yields enormous benefits in increased economic growth, trade, and investment. This study aims to analyze the causality and cointegration between GDP, foreign direct investment (FDI), and export for BIMSTEC nations using time series data from 1997 to 2020. The VAR model-based Granger Causality test is used. The results show a bi-directional correlation between FDI and economic growth and unidirectional causality between FDI and economic growth to exports. The findings indicate that attracting FDI to BIMSTEC nations boosts economic growth and exports.