Document Type
Thesis
First Faculty Advisor
Ramesh Mohan
Second Faculty Advisor
Allison Kaminaga
Publisher
Bryant University
Rights Management
CC-BY-SA
Abstract
This paper will explore the causality between foreign direct investment (FDI), trade openness and GDP within Mexico and the Dominican Republic. The paper will analyze the economy of some countries in Latin America and the Caribbean as off the turn of the century, performing a time series analysis using a multivariate causal framework evaluating the causality between the three variables and determining the long and short run relationships between the variables. The paper estimates the Vector Autoregression (VAR) or Vector Error Correction Model (VECM) of the three variables to determine the short and long run causal relationship among the variables. The results show unidirectional causation between GDP and FDI in the Dominican Republic and fail to show any other causal relationship between the variables in both countries.
Comments
This work was made to further explore the intricacies of the economic factors studied in the paper within a particular region in which different sized economies were considered.