Ejbe2013vol06no11p075sharma Kaur

8/12/2019 Ejbe2013vol06no11p075sharma Kaur

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Eurasian Journal of Business and Economics 2013, 6(11), 75-91.

Causal Links between Foreign DirectInvestments and Trade: A Comparative

Study of India andC ina

!enu S"A!#A$% #andeep &A'!$$

Abstract

Global economic environment is changing rapidly during the last twodecades. This change is reflected in widening and intensifying internationallinkages in trade and FDI. Various countries are now favouring economicreforms for attaining rapid and sustained growth. The scope for transnational

production has expended due to reduction of the barriers to internationaltrade and the various regional integration agreements between the differentcountries. This paper examines the causal relationships between FDI andtrade i.e !xports and Imports" in India and #hina. Granger causality testhas been employed to examine the causal relation between FDI and tradeby using the data over the period of $%&'()*$$.The results for #hina showunidirectional causality running from FDI to imports and FDI to exports+however+ there exist bidirectional causality between imports and exports.

India gives the results which are not similar to #hina where bidirectionalcausality between FDI and imports, FDI and exports, and exports andimports have been found.

Keywords - #ausality !xports+ FDI+ Imports

JEL Code Classification: F)$+ F$*+ F) .

* ssis!an! "rofessor, #.$.%.&. 'olle e, $ud iana. E-mail renu+ra 200 o!mail.com ** ssocia!e "rofessor, /uru ana &e ni ersi!4, mri!sar. E-mailm aur02 4 aoo.co.in


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() Introduction

: e im or!ance of ! e causal rela!ions i ;e!f =&>(=orei n direc! in es!men!s) dis laces e? or! !rade of local firms of ! e os!coun!r4, ! en i! com lemen!s !o eac o! er ! en i!mi ! lead !o rea!er com e!i!i eness of ! e forei n mar e! and ! is is;eneficial !o e? or!s from os! coun!r4 and ! erefore !o i!s indus!ries(:adesse and 4an, 2001).

s no!ed ;4 ! e ni!ed a!ions 'onference on :rade and &e elo men!(1996), conce !ual models of forei n direc! in es!men! (=&>) andin!erna!ional !rade a e !radi!ionall4 ;een de elo ed se ara!el4. : ein!e ra!ion of =&> and !rade ! eories is s!ill a! i!s infan! s!a e. s a resul!,! ou ! e im or!ance of =&> or in!erna!ional !rade as indi idual aria;les ineconomic ro

o ernmen!s !o armoniAe ! eir =&> and !rade olicies for ro

>n ! e in!erna!ional economics and ;usiness li!era!ure, ! e follon!erna!ional :rade or Cice-Cersa.

s for ! e firs! as ec!, ! e ec sc er @ linD%amuelson model su es!s ! a!in!erna!ional !rade can su;s!i!u!e for in!erna!ional mo emen! of fac!ors of

roduc!ion includin =&>. : is model im lies ! a! in!erna!ional commodi!4!rade in ol es an indirec! e?c an e of fac!ors ;e!n ! a! case,! ere is no e iden! direc!ion of causa!ion ;e! or e? or!

romo!ion are re uired for s!ruc!ural !ransforma!ion and ro

f!er learnin more a;ou! ! e economic, oli!ical, and social condi!ions andainin more e? erience, ome coun!r4 firms ma4 es!a;lis roduc!ion

su;sidiaries in ! e forei n mar e!. o


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'ausal $in s ;e!n es!men!s and :radeH

rela!ions i ;e! is com lica!ed and de ends lar el4 on! e !4 es of !rade and =&> ;ein considered. >! is ;asicall4 coun!r4 s ecific.>n ;rief, ! e >ndian and ' inese o ernmen!s and de elo men! a enciesmus! no< a;ou! ! e success of as! olic4 and fu!ure de elo men!s!ra!e ies of ! eir coun!r4. : is necessi!a!es no! onl4 !o a4 a!!en!ion !ondia and ' ina, ;u!! e com arison of >ndia and ' ina on ! e ;asis for !es!in for causali!4 for=&>, e? or!s and im or!s D!raderela!ions i s for ! ese coun!ries.

: e s!ud4 as ;een classified in!o 6 sec!ions. : e firs! sec!ion resen!s ! edirec! and indirec! effec! of =&> on os! coun!r4 e? or!s. %ec!ion 2 re iendia and ' ina durin ! e eriod 19 0-2011 as;een e? lained in sec!ion 3. %ec!ion I descri;es da!a ;ase and me! odolo 4and ! e findin s of ! e a er as ;een discussed in sec!ion 5. %ummar4,limi!a!ions and su es!ions a e ;een e? lained in sec!ion 6. %co e forfur! er researc as also ;een discussed under ! is sec!ion.

*) +ffect of Foreign Direct Investments on "ost Country+,ports

:ransna!ional cor ora!ions (: ' s) a e ;ecome a common fea!ure of mos!of de elo in coun!ries in ! e


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roduc!s, suc as !e?!iles and o! er consumer oods. =irms in de elo incoun!ries see in !o e? and ! eir e? or!s !o on ! e com e!i!i eness

of os! coun!r4 firms and diffusion of ne< !ec nolo ies. : 's a e firm-s ecific ad an!a es ! a! ena;le ! em !o com e!e


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roduc!i i!4 im ro emen!s and ! e com e!i!i eness of os! coun!r4 firms.E? or! romo!ion ! rou =&> as ;een one of ! e e4 reasons for ! e

o ernmen!Ks desire !o a!!rac! =&>. =&> can el !o c annel ca i!al in!oindus!ries ! a! a e ! e o!en!ial !o com e!e in!erna!ionall4, and ! e lo;allin a es of : 's can facili!a!e ! eir access !o forei n mar e!s. >n addi!ion !oe? or!s ! a! are enera!ed direc!l4 ;4 forei n affilia!es, =&> can also romo!ee? or!s ;4 framin ro er mar e!in s!ra!e ies, ado !in o !imal me! ods,follo). : is is ar!icularl4 !rue amon de elo incoun!ries < ere E=&> ac!s as ins!rumen!al !ool for s!ren ! enin ! eir e? or!com e!i!i eness ar!icularl4 in ! e non eneral E=&> ;rin s in a L;undle ofin!an i;le asse!s suc as ne< !ec nolo 4, s ill, mar e!in nondia as no! ;een afa ora;le des!ina!ion for E=&> as com ared !o o! er coun!ries suc as' ina, %in a ore or ala4sia. E en ! e coun!ries suc as r en!ina, BraAil,'os!a ica, e?ico, "eru and :aiconsidera;l4 i er as com ared !o >ndia. : ere is no dou;! in ! e fac! ! a!coun!ries


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li;eraliAa!ions under!a en ;4 de elo in coun!ries in recen! 4ears onaccoun! of ! e osi!i e feed;ac s ;e! ( iAenmana and

o4, 2006M =on!a ne and "a o!M 2000M "an!ulu and "oon 2002).

Table: ( Causal !elations ip between FDI and Trade

Studies

Fontagneand-a3ot4*5556

Direction

7a

#ontero4(8896

of Causality

SampleSi0e

Spa nis

+conomy

*(:+CDCountries

-eriod ofStudy

(1977-

(19I-

1992)199I)

utward -FDI +,por

tsFDI Trade - -FDI Trade - Imports FDIFD

- -

I +,portsFDI +,ports - -

FDI +,ports

%ource u! orcom u!a!ions

Liu etal)4*55(6

"an!ulu and

"oon (2002)

Sriva sta

va a ndSen4*5596

Ai0enm

a na a nd.oy4*55;6

A med etal)4*556

I?baletal)4*5(56

C ina

*8 Countries

respectively India

>(DevelopingCountries

@SubSa

a ra nAfr

ica n+conomies

@9Countries

-a kistan

(19I-

(1996-

(1991- (19 2- (19 5- (1999-

(199 -

199)

1999) 2002) 199 ) 2005) 2006)

2009)

- - - - - - -

- - - - - --

- - -

- -

- - - - - -


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- - - - -

>ndica!es ! e e?is!enceof causal rela!ions i

: e causal rela!ions i;e!

causes ! e ro from omecoun!r4, < ic in !urncauses ! e ro


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coun!ries ( iAenmana and o4, 2006M =on!a ne and "a o!, 2000) < ile "an!uluand "oon, (2002) a e found uni-direc!ional rela!ions i s ;e! in ' ina.

: e causal rela!ions i ;e! is com le?. : is necessi!a!esserious a!!en!ion !o and !rade rela!ions i ;u! ! eree?is! lac of eneral consensus amon ! e researc ers. : is su es!s ! erela!ions i !o ;e coun!r4 s ecific. fe< s!udies a e e?amined ! ecausali!4 ;e!ndia and ' ina, ! erefore, ! ecom arison of ! ese coun!ries on ! e ;asis of !es!in for causali!4 ;e!, e? or!s and im or!s D !raderela!ions i s for ! ese coun!ries.

9) Trade -erformance of India and C ina

E? or!s no! onl4 s!imula!e economic de elo men! and s!ruc!ural c an e, ;u!also a!!rac! =&> (=orei n direc! in es!men!s). : is is also !rue ! a! ! e inflo la4s a ma or role !o

< ic in !urn leads !o increase in e? or! as ! is a aren! from ! e !a;le 2 and fi ure 1 ! a! from ! e 4ear 19 0 !o 2011:radeN/&" ra!io as a ndia and 19.O-71.9 O in case of ' ina. s com ared !o >ndia, ! is ra!io


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Table: * Trade as a -ercentage of =D- 4(8>5/*5((6India

C ina

ea rs =D- Trade TradeB=D- =D- Trade TradeB=D

-4 million6

4 million6

4 million6 4 million6

(8>5 1 5I02 2 I0 15.55 306520 65712 21.I3(8>( 197762 2 651 1I.I 293 52 70722 2I.06(8>* 201927 2 551 1I.13 295370 62935 21.30(8>2 22031 2979 13.52 31I637 62552 19.(8>9 21 222 30223 13. I 317352 70266 22.1I(8>@ 2272I7 31601 13.90 3090 3 73665 23. 3(8>

; 2I 9 2 29 5 12.00 30I3I 7 3I2 25.7I(8>< 275529 326 0 11. 6 329 51 10522 31.90(8>> 30I 09 3 735 12.70 I13I39 1I2337 3I.I2(8>8 30176I I3I9 1I.I1 I597 2 15I572 33.61(885 327930 I925 15.02 I0II9I 1350I5 33.3(88( 2906 7 I 0II 16.52 I2I117 155536 36.67(88* 291925 53010 1 .15 I99 59 1526II 30.53(88

2 2 I972 5I1 5 19.01 6I1069 1 I905 2 . I(889 32 I72 61626 1 .76 5 2653 230I97 39.55(88@ 370522 770 7 20. 0 756960 2 2I9 37.32(88; 390520 5760 21.96 9201I 325 05 36.52(88< I200I0 916I3 21. 1 9 50I6 371655 37.72(88> I2 750 100265 23.3 10I5199 371021 35.I9(888 I5I952 1090I2 23.96 109 32 I112 9 37.I2*55

5 I6 970 1190 7 25.39 1192 36 5302I3 II.I5*55( I 3I66 127 05 26.I3 131155 57073I I3.51*55* 50395I 1397 27.73 1I5I0I0 697037 I7.93*552 592535 16 32 2 .I0 16I791 93756 56. 9*559 6 03 23209I 33.69 1936502 1262371 65.1*55@ 0 I 315000 3 .9I 22 255I 15I 975 67. 6*55; 903226 391516 I3.3I 2661265 191I056 71.92*55

1252I03 577201 I6.0 I3I 303 3072963 70.67


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*558

1353215 5901 7 I3.61 50505I3 2II65 3 I .II

*5(5

172232 7 95I1 I5. I 573935 32731 I 57.03

*5((

1 I 2I1 1010 30 5I.69 729 121 39 I133 5I.59

%ource orld >n es!men!s e or!s for ! e 4ears 19 2 !o 2012.

: e role of =&> in e? or! romo!ion in de elo in coun!ries remainscon!ro ersial and de ends cruciall4 on ! e mo!i e for suc in es!men!. >f ! emo!i e ;e ind =&> is !o ca !ure domes!ic mar e! ! en i! ma4 no! con!ri;u!e!o e? or! ro ma4con!ri;u!e !o e? or! ro con!ri;u!es !o e? or! ro

"a e G 2 EJBE 2013, 6 (11)


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80

70

6050

%

40

30

2010

0

1980

19

8

19

8

19

8

19

8

19

8

19

8

19

8

19

8

19

8

19

9

19

9

19

9

19

9

19

9

19

9

19

9

19

9

19

9

19

9

20

0

20

0

20

0

20

0

20

0

20

0

20

0

20

0

20

0

20

0

20

1

20

1Years

India

China

Figure (: Trade as a -ercentage of =D- in India andC ina

: e difference in ! e !rade erformances of ' ina and >ndia is er4in!eres!in ;ecause ! e !


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: ree aria;les used for !es!in ! e causali!4 ;e! and !rade are ! e=orei n &irec! >n es!men! (=&>), E? or! (EQ") and >m or! (> ") for ;o!>ndia and ' ina. : e da!a as ;een collec!ed from ! e orld &e elo men!>ndica!ors and orld &e elo men! e or!s u;lis ed ;4 ! e orld Ban for! e eriod 1976-2012. ll ! e aria;les a e ;een defla!ed a! 200I-05 rices;4 usin "urc asin "o


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of ! e s!udies a e found =&> and !rade rela!ions i . %ome a ein es!i a!ed ;i-direc!ional causali!4, ( iAenmana and o4, 2006M =on!a neand "a o!, 2000) < ile some o! ers a e found uni-direc!ional rela!ions i s;e!ndia and $iu and /ra am (200 ) o;ser ed ! e sameresul!s for :ai ;al e! al. (2010) for de elo incoun!ries and for "a is!an res ec!i el4.

: is su es!s ! e rela!ions i !o ;e coun!r4 s ecific. small num;er ofs!udies a e e?amined ! e causali!4 ;e!ndiaand ' ina, ! erefore, ! e com arison of ! ese coun!ries on ! e ;asis of!es!in for causali!4 ;e!, e? or!s and im or!s D!rade rela!ions i s for ! ese coun!ries.

@)2) "ypot eses Taken in t e Study

: e arious 4 o! eses !o ;e !es!ed for ac ie in ! e a;o e men!ionedo; ec!i e of ! e s!ud4 are ca!e oriAed as under

1- >m or!s do no! cause =&>2- =&> does no! cause >m or!s3- E? or!s do no! cause =&>4- =&> does no! cause E? or!s5- >m or!s do no! cause E? or!s6- E? or!s do no! cause >m or!s

@)9) +conometric #et odology

: e firs! s!e in ! e anal4sis is !o erif4 ! e s!a!ionari!4 of ! e da!a series.u men!ed &ic e4-=uller ( &=) !es! as ;een em lo4ed for ! is ur ose.

: e uni! roo! ro er!4 of ! e da!a series is crucial for ! e causali!4 anal4ses.Caria;les ! a! are non-s!a!ionar4 can ;e made s!a!ionar4 ;4 differencin ! enum;er of differencin (d) re uired !o ma e ! e series s!a!ionar4 iden!ifies! e order of in!e ra!ion 1(d). : e uni! roo! !es! resul!s re eal ! a! ! e null

4 o! esis of uni! roo! for ! e selec!ed aria;les suc as =&>, e? or!s andim or!s in case of eac indi idual coun!r4 , EQ"and > ") a e ;een !a en in lo ari! mic form !o ma e ! em s!a!ionar4 a!lesser order of in!e ra!ion. f!er ! a!, s!a!ionari!4 of e ression residuals fores!ima!in ! e e?is!ence of coin!e ra!in rela!ions i s ;e!, E? or!sand >m or!s a e ;een !es!ed for >ndia and ' ina. En le /ran er !es! forcoin!e ra!ion can ;e used if ! e residuals of ! e da!a

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series are s!a!ionar4, < ic means ! ere e?is! coin!e ra!ion rela!ions i;e!! as;een found ! a! ! e re ression residuals are non s!a!ionar4 so ! ecoin!e ra!ion !ec ni ue canno! ;e a lied so s!andard /ran er 'ausali!4

!es! as ;een used !o e?amine ossi;le causal rela!ions i s amon ! reearia;les i.e. =&>, E? or!s and >m or!s in >ndia as


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residuals, < ere &= !-s!a!is!ics for residual ndia and:a;le no. I for ' ina.

EJBE 2013, 6 (11) "a e G 5


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Table: 2 !esults for Stationarity of !esiduals for +stimatingCointegrating !elations ips between FDI% +,ports and Imports4India6

ADFDecision

about

#odelsConstant

Coefficient

D)E

Ad3usted! *

t/Statistics

for presence of

!esidualCointegratio

n#odel ( 7.I 9 0.I63 0.

77 0. 9 -3.212 o4I#- onFDI6 (I0.I9)* (16.37)*#odel * 7.266 0.I75 0.

97 0.90 -3.I03 o4+ - onFDI6 (I1.26)* (17.65)*#odel 2 0.37 0.977 0.

I7 0.99 -2. 5 o4+ - onI#-6 (2.3I)* (61.90)*

* deno!es si nificance a! ! e le el 1O.

Table: 9 !esults for Stationarity of !esiduals for +stimatingCointegrating !elations ips between FDI% +,ports and Imports4C ina6

ADFDecision

about

#odelsConstant

Coefficient

D)E

Ad3usted! *

t/Statisticsfor presence of

!esidualCointegrati

on#odel ( 0.3 6 .116 0.

2 0. 0 -1.121 o4I#- onFDI6 (11.37)* (27.72)*#odel * 0.I01 .065 0.

25 0.79 -1.II6 o4+ - onFDI6 (11.1I)* (26.03)*#odel 2 0.957 0.I12 1.

06 0.99 -3.15 o4+ - onI#-6 (72. )* (2.77)** deno!es si nificance a! ! e le el 1O.

: e resul!s s o< ! e a;sence of coin!e ra!in rela!ions i ;e!


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"a e G 6 EJBE 2013, 6 (11)


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null 4 o! esis for Lim or!s do no! cause =&> is also re ec!ed a! 1Osi nificance le el. : is leads !o ! e conclusion ! a! ! ere e?is! ;idirec!ionalcausali!4 ;e! and im or!s. %imilarl4 ! e null 4 o! esis of L=&> doesno! cause e? or!s as

a e ;een re ec!ed a! 1O le el. : is also indica!es ! e resence of;idirec!ional causali!4 ;e! and e? or!s. : ere is s!ron e idence of;idirec!ional causali!4 ;e!n ;rief i! can ;e said ! a! =&> causes im or!s < ic in !urn causese? or!s and e? or!s fur! er causes =&>. >! is also no!ed ! a! =&> also causese? or!s < ic in !urn leads !o more im or!s.

Table: @ =ranger Causality Test for FDI% +,ports and Imports inIndia

.ull "ypot eses F values - values InferencesImports do not cause FDI 9.617 0.000* e,ec!edFDI does not cause Imports 6.0I0 0.007* e,ec!ed+,ports do not cause FDI 26.017 0.000* e,ec!edFDI does not cause +,ports 5.235 0.013* e,ec!ed

Imports do not cause+,ports 27.9 5 0.000* e,ec!ed+,ports do not causeImports 36. 06 0.001* e,ec!ed

*%i nifican! a! 1O.

Table: ; =ranger Causality Test for FDI% +,ports and Imports inC ina

.ull "ypot eses F values - values InferencesImports do not cause FDI 1. 33 0.1 1 cce !edFDI does not cause Imports 3.02I 0.067*** e,ec!ed+,ports do not cause FDI 1.13I 0.33 cce !edFDI does not cause +,ports 2.615 0.091*** e,ec!edImports do not cause

+,ports 6.092 0.007* e,ec!ed+,ports do not causeImports I.7I1 0.01 * e,ec!ed

*%i nifican! a! 1O, *** %i nifican! a! 10O.

:a;le 6 si nifies ! e ran er causali!4 resul!s for ' ina. : e resul!s of >ndiais no! similar !o ' ina as ! e causali!4 ;e! isacce !ed, < ic indica!es ! e unidirec!ional causali!4 runnin from =&> !oim or!s. ain ! e null 4 o! esis for L=&> does no! cause e? or!s isre ec!ed a! 10O le el, and ! e null 4 o! esis for LE? or!s do no! cause =&>is no! re ec!ed. : ere is onl4 one !o e? or!s,

< ic indica!es ! a! =&> causes e? or!s ;u! e? or!s do no! influence =&>.

: e 4 o! esis of Lim or!s do no! cause e? or!s is re ec!ed a! 1O le el, and! e 4 o! esis of LE? or!s do no! cause >m or!s is also re ec!ed a! 1Ore resen!in ! e ;idirec!ional causali!4 ;e!


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' ina s in and !rade a e e? anded er4 ra idl4 o er ! e las! !

($iu e!.al., 1997).

in!o ' ina leads !o more im or!s, < ic in !urn leads !o moree? or!s ;ecause of s4ner ies crea!ed ;4 ! is rocedure. >n ! is sense, in a! econom4 le el in ' ina can ;e re arded as efficienc4 see in , < icincreases ! e olume of !rade. : e causa!ion from =&> !o ' ina s e? or! rondia s o< ! a! ! ere e?is!s;idirec!ional causali!4 ;e! and im or!s, =&> and e? or!s and e? or!sand im or!s < ic indica!e ! a! =&> causes im or!s (im or!in !ec nolo ies)

< ic in !urn causes e? or!s and e? or!s fur! er cause =&>. oreo er, i! is alsono!ed ! a! =&> also causes e? or!s < ic in !urn leads !o more im or!s.

Bi-causal rela!ions i ;e!ndia and ' ina s ould focus more on!ec nolo 4 im or!s and i!s !ransfer as an essen!ial condi!ion for e? andine? or!s of ! ese coun!ries. /o ernmen! of ! ese coun!ries s ould use ! is

ers ec!i e of im or!s as an effec!i e measure in formula!ion of ! eir e? or!romo!ion s!ra!e 4. : is


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inflo

' o ra, '. (2003), =orei n >n es!men! in >ndia(>s! ed.), &ee and &ee "u;lica!ion,e< &el i.

' o and /ro

Ja4ac andran, J. and %eilan, . (2010), W>n!erna!ional esearc Journal of =inanceand EconomicsX 'ausal ela!ions i ;e!n es!men!and Economic /rondia (I2) 1I50-2 7

#arliner, :. (1997), W C roac !o ! e Economics of =&> in ' inaX, lied

Economics, 3I(7) I31-II5.$iu, /.%.M $iu, Q. and ei, P. (2001), W@ enness and Efficienc4 of >ndia and ' inaela!i e !o ! e orld Econom4X, "u;lic "olic4 &iscussion "a ers o. 02-1 , Brunelni ersi!4, .#.

$iu, Q. and % u, '. (2001), W&e!erminan!s of E? or!s "erformance and ! e Effec!s of! e :@ En!r4 on $a;our >n!ensi e E? or!s E idence from ' ina s anufac!urin X,

!! NN cisinfoN;oro.ac.u .01Nc1N

Economics, 29(2) 1679-16 6."rad an, J.". and ;ra am, C. (200I), W !!rac!in E? or! @rien!ed =&> 'an >ndia in ! e

aceYX, or in "a er o. 156, /u ara! >ns!i!u!e of &e elo men! esearc . /o!a,meda;ad.

% arma, #. (2000), WE? or! /ron >ndia as =&> "la4ed oleYX 'en!er&iscussion "a er o. 16. !! NN


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enu % 8 andee #

% arma, #. (2003), W=ac!ors &e!erminin >ndia s E? or! "erformanceX, Journal ofsian Economies, 1I(2) I35-II6.

:edesse, B. and 4an, . (2001), W: e =&>-:rade ela!ions i re &e elo in'oun!ries &ifferen!YX in &oes =&> "romo!e &e elo men!, edi!ed ;4 : eodore, . MEdns!i!u!e of >n!erna!ional Economics and 'en!re for/lo;al &e elo men!, as in !on, &.'., 136-1I , (3rd ed.).

:ian, . and Pu, . (2011), W' ina and >ndia :rends in :rade o er ! e $as! &ecadeX,: e Journal of ' ina and /lo;al Economics, 1(1) 27-3 .

': &, (197 !o 2009), W orld >n es!men! e or!X ni!ed a!ions 'onference on:rade and &e elo men!, e< Por and /ene a.

': &, (1996 and 1999), W orld >n es!men! e or!X ni!ed a!ions 'onferenceon :rade and &e elo men!, e< Por and /ene a.

': &, orld &e elo men! >ndica!ors &a!a Base, (2005-06, 2007-0 and 200 -09), ni!ed a!ions 'onference on :rade and &e elo men!, e< Por and /ene a.

F an , #. . and %on , %. (2000), W"romo!in E? or!s : e ole of >n in' inaX, ' ina Economic e ie does no! /ran er 'ause EQ"@ :% 29 5.235 5 0.0130EQ"@ :% does no! /ran er 'ause =&> 26.0170 1.E-06

"air "@ :% 29 36. 062 5.E-0> "@ :% does no! /ran er 'auseEQ"@ :% 27.9 52 5.E-07

"air "@ :% 29 6.0I017 0.0075> "@ :% does no! /ran er 'ause =&> 9.61732 0.0009

"a e G 90 EJBE 2013, 6 (11)


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=ranger Causality Test for +,ploring t e !elations ipsbetween FDI% +,ports and Imports inC ina

"air 29 1.13I1I 0.33 3=&> does no! /ran er 'ause EQ" 2.615I 0.093

"air 29 1. 3351 0.1 15=&> does no! /ran er 'ause > " 3.02I17 0.067I

"air " 29 I.7I193 0.01 I> " does no! /ran er 'ause EQ" 6.09277 0.0072

EJBE 2013, 6 (11) "a e G 91

Ejbe2013vol06no11p075sharma Kaur

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