International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 7, Issue 1 (2020)

Singapore’s economic growth: FDI?


Dan Owusu, Wan Xin, Emmanuel Yamoah Cobbold

Singapore's impressive economic growth has seen accompanied increase inward FDI yet there have been variant findings of these variables. This paper investigates the relationship between FDI inflows and economic growth based on a time series data covering the period 1970 – 2015. The Johansen co-integration methodology is applied on yearly data of Gross domestic product (GDP), current government expenditure (CGE), foreign direct investment (FDI), gross fixed capital formation (GFCF) and net trade (NT). Vector error-correction model (VECM) used to test the long-run relationship. There are positive long-run relationship and bidirectional causality between GDP and FDI between FDI and economic growth.
Pages : 124-127